EVS 3Q Results Show Sequential Improvement

OUGRÉE, BELGIUM: Business continues to rebound at EVS Broadcast, even as revenues are just a little over half of what they were last year. The server and software company posted 3Q09 revenues of 19.6 euros (US$29.4 million), down 47 percent from the 3Q08 total at constant exchange rates and excluding “big event rentals,” EVS (Public, EBR:EVS) said. Net income was 5.6 million euros (US$8.4 million), down nearly 66 percent from a year ago, when the company had a boost from the Beijing Olympics

EVS CEO Pierre L’Hoest said the broadcast business continues to be challenged, but projects are beginning to sprout.

“The somewhat improving sentiment about the global economic environment has pushed some clients to realize some catch up purchases, and some other clients to start thinking about large projects again,” L’Hoest said. “But it remains unclear whether the coming months will show clear signs of recovery or continued cautiousness in the broadcast industry.”

Transactions in North America produced 3.4 million euros (US$5 million) for the quarter, down nearly 68 percent from last year. EVS said that even as the North American market remained weak, it was showing “some traction” from the Winter Olympics taking place in Vancouver, B.C. next February, “such as some upgrades of existing materials in OB vans or new studio equipment.” EVS also scored a six-month project with Sky News for launching the franchises HD news channel next spring.

“This project will help us extending our know-how in the studio market as we develop some customized tools for it,” L’Hoest said.

Autumn book totaled 28 million euros (US$42 million), an improvement of nearly 143 percent over last year. Studio orders represent 47 of the amount, compared to around 36 percent for all orders taken this year.

EVS is scheduled to pay an interim dividend at the end of this month.

More on EVS:
August 27, 2009: “EVS Sees Brighter Days Ahead”
VS Broadcast said business activity picked up a bit during the summer, portending a better second half of 2009.

July 15, 2009: EVS Beats Analysts’ 2Q Forecasts
EVS Broadcast said its second-quarter results were better than expected, though revenues were down significantly compared to last year. 
June 12, 1009: “EVS Shareholders Approve Cancellation of Shares”
Shareholders of EVS Broadcast Equipment S.A. approved the cancellation of 250,000 shares during the company’s Extraordinary General Meeting held today.

April 16, 2009: “EVS Board Proposes Dividend”
The board of directors of EVS Broadcast Equipment S.A. announced today it would propose a dividend of 2.48 euros ($3.28 US) per share, nearly 9 percent more than during the same period a year ago.

March 17, 2009: “EVS Upgraded to Buy”
nalysts at ING Financial Markets upgrade EVS Broadcast Equipment from “hold” to “buy.” The target price has been raised from 25 to 31 euros.