EVS Board Proposes Dividend

Directors offer to cancel company shares
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Directors offer to cancel company shares

LIEGE, BELGIUM: 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. The amount includes a 1 euro interim dividend pay-out last November, leaving a final June 2 payment of 1.48 euros ($1.96) per share.

The EVS board will make the proposal May 19 during general shareholder meetings at company headquarters. The board will also proffer cancellation of 250,000 shares owned by the company, bringing the number of shares outstanding to 13,625,000.

A renewal to authorize buying back 20 percent of outstanding shares over five years will also be put to vote, as well as an issuance of 200,000 new warrants to be granted gradually to EVS employees going forward.

In mid-March, analysts at ING Financial Markets upgraded EVS from “hold” to “buy.” The target price was raised from 25 to 31 euros. Shares were trading at around 25 euros ($33) at that point; they rose above 32 euros ($42) today.

For the full year of 2008, EVS posted a profit of 45.2 million euros ($66.5 million), up nearly 15 percent from 2007, on total revenues of 110.7 million euros ($162.9 million, based on average exchange rate for the period).

The year was strong, but finished diminished as EVS posted its first decline in sales after six consecutive quarters of growth.

EVS posted 4Q08 revenues of 13.6 million euros ($18.4 million), down euros-to-euros nearly 50 percent compared to 4Q07. Net profit was 1.9 million euros ($2.6 million), down nearly 84 percent.

In its research note, ING analysts said the company’s revenues are expected to rise significantly on the live events planned for 2009 and 2010. EVS is expected to gain significant market share with new products and healthy orders.

EVS digital video records are prevalent in remote production trucks.