/EINPresswire.com/ -- BURLINGTON, ONTARIO -- (Marketwired) -- 12/02/15 -- Attention Business/Financial Editors:

Evertz Technologies Limited (TSX: ET), the leader in Software Defined Video Network ("SDVN") technology, today reported its results for the second quarter ended October 31, 2015.

Quarterly Highlights

--  Revenue of $100.6 million, an increase of 21% year over year
--  United States / Canada region revenue up 35% year over year to $61.2
    million
--  The increase was predominantly driven by the adoption of the Evertz
    newly released technologies and products
--  International revenue of $39.3 million, up 5% year over year
--  Net earnings of $19.6 million for the quarter, up 37%
--  Fully diluted earnings per share of $0.26 for the quarter, up 37% year
    over year


Selected Financial Information
Consolidated Statement of Earnings Data
(in thousands of dollars, except per share amounts)

                                                           Q2 '16     Q2 '15
                                                      ----------------------
Revenue                                                 $ 100,560  $  82,889
Gross Margin                                               57,534     46,565
Earnings from operations                                   26,715     19,528
Net earnings                                               19,619     14,343
Fully-diluted earnings per share                        $    0.26  $    0.19

Selected Financial Information
Consolidated Balance Sheet Data
(in thousands of dollars)

                                                           Q2 '16     YE '15
                                                      ----------------------
Cash and cash equivalents                               $  97,491  $ 100,681
Working capital                                           305,757    294,895
Total assets                                              431,751    426,162
Shareholders' equity                                      364,379    353,471

Revenue

For the quarter ended October 31, 2015, revenues were $100.6 million compared to revenues of $82.9 million for the quarter ended October 31, 2014. For the quarter, revenues in the United States/Canada region were $61.2 million compared to $45.4 million in the same quarter last year. The International region had revenues of $39.3 million compared to $37.5 million in the same quarter last year.

Gross Margin

For the quarter ended October 31, 2015 gross margin was $57.5 million compared to $46.6 million in the same quarter last year. Gross margin percentage was approximately 57.2% compared to 56.2% in the quarter ended October 31, 2014.

Earnings

For the quarter ended October 31, 2015 net earnings were $19.6 million, compared to $14.3 million in the corresponding period last year.

For the quarter ended October 31, 2015, earnings per share on a fully-diluted basis were $0.26 compared to $0.19 in the corresponding period last year.

Operating Expenses

For the quarter ended October 31, 2015 selling and administrative expenses were $14.8 million compared to $15.1 million for the quarter ended October 31, 2014.

For the quarter ended October 31, 2015 gross research and development expenses increased by $1.0 million or 7% as compared to the corresponding period in 2014. Gross research and development expenses represented approximately 16% of revenue for the quarter ended October 31, 2015.

Liquidity and Capital Resources

The Company's working capital as at October 31, 2015 was $305.8 million as compared to $294.9 million on April 30, 2015.

Cash and cash equivalents were $97.5 million as at October 31, 2015 as compared to $100.7 million on April 30, 2015.

Cash generated from operations was $23.7 million for the quarter ended October 31, 2015 as compared to cash used of $0.7 million for the quarter ended October 31, 2014. Before taking into account taxes and the changes in non-cash working capital and current taxes, the Company generated $22.2 million from operations for the quarter ended October 31, 2015 compared to $17.5 million for the same period last year.

For the quarter, the Company used $1.1 million in investing activities largely a result of purchases in capital assets.

For the quarter ended, the Company used cash in financing activities of $21.6 million which was principally a result of the payment of dividends of $14.0 million and the repurchase of Capital Stock costing $7.5 million.

Shipments and Backlog

At the end of November 2015, purchase order backlog was in excess of $66 million and shipments during the month of November 2015 were $30 million.

Dividend Declared

Evertz's Board of Directors declared a regular quarterly dividend on December 2, 2015 of $0.18 per share.

The dividend is payable to shareholders of record on December 11, 2015 and will be paid on or about December 18, 2015.

Selected Consolidated Financial Information
(in thousands of dollars, except earnings per share and percentages)

----------------------------------------------------------------------------
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                                 Three month period
                                              ended  Six month period ended
                                        October 31,             October 31,
----------------------------------------------------------------------------
                                   2015        2014        2015        2014
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Revenue                      $  100,560  $   82,889  $  185,429  $  180,903
Cost of goods sold               43,026      36,324      80,066      78,517
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Gross margin                     57,534      46,565     105,363     102,386
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Expenses
  Selling and administrative     14,827      15,103      29,629      28,502
  General                         1,643       1,323       3,238       3,133
  Research and development       16,127      15,121      32,379      30,941
  Investment tax credits         (2,411)     (2,387)     (4,895)     (4,853)
  Foreign exchange loss
   (gain)                           633      (2,123)     (7,079)     (1,380)
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                                 30,819      27,037      53,272      56,343
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Earnings before undernoted       26,715      19,528      52,091      46,043

Finance income                      180         201         338         394
Finance costs                      (200)        (76)       (322)       (143)
Other income and expenses           188        (113)        150          27
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Earnings before income taxes     26,883      19,540      52,257      46,321
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Provision for (recovery of)
 income taxes
  Current                         7,995       5,249      15,968      14,560
  Deferred                         (731)        (52)     (1,928)     (2,288)
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                                  7,264       5,197      14,040      12,272
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Net earnings for the period  $   19,619  $   14,343  $   38,217  $   34,049
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Net earnings attributable to
 non-controlling interest           133         194         320         489
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Net earnings attributable to
 shareholders                    19,486      14,149      37,897      33,560
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Net earnings for the period  $   19,619  $   14,343  $   38,217  $   34,049
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Earnings per share
Basic                        $     0.26  $     0.19  $     0.51  $     0.45
Diluted                      $     0.26  $     0.19  $     0.51  $     0.45
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Consolidated Balance Sheet Data                          As at         As at
                                                   October 31,     April 30,
                                                          2015          2015
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Cash and cash equivalents                         $     97,491  $    100,681
Inventory                                         $    160,524  $    154,259
Working capital                                   $    305,757  $    294,895
Total assets                                      $    431,751  $    426,162
Shareholders' equity                              $    364,379  $    353,471

Number of common shares outstanding:
  Basic                                             74,238,646    74,459,346
  Fully-diluted                                     78,835,146    79,195,846

Weighted average number of shares outstanding:
  Basic                                             74,537,638    74,399,096
  Fully-diluted                                     74,952,462    75,033,398
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Forward-Looking Statements

The report contains forward-looking statements reflecting Evertz's objectives, estimates and expectations. Such forward looking statements use words such as "may", "will", "expect", "believe", "anticipate", "plan", "intend", "project", "continue" and other similar terminology of a forward-looking nature or negatives of those terms.

Although management of the Company believes that the expectations reflected in such forward-looking statements are reasonable, all forward-looking statements address matters that involve known and unknown risks, uncertainties and other factors. Accordingly, there are or will be a number of significant factors which could cause the Company's actual results, performance or achievements, or industry results to be materially different from any future results performance or achievements expressed or implied by such forward-looking statements.

Conference Call

The Company will hold a conference call with financial analysts to discuss the results on December 2, 2015 at 5:00 p.m. (EDT). Media and other interested parties are invited to join the conference call in listen-only mode. The conference call may be accessed by dialing 416-849- 1967 or toll-free (North America) 1-866-253-4709.

For those unable to listen to the live call, a rebroadcast will also be available until January 2, 2016. The rebroadcast can be accessed at 416-915-1035 or toll-free 1-866-245-6755. The pass code for the rebroadcast is 299199.

About Evertz

Evertz Technologies Limited (TSX: ET) designs, manufactures and markets video and audio infrastructure solutions for the television, telecommunications and new-media industries. The Company's solutions are purchased by content creators, broadcasters, specialty channels and television service providers to support their increasingly complex multi-channel digital and high definition television ("HDTV") and next generation high bandwidth low latency IP network environments and by telecommunications and new-media companies. The Company's products allow its customers to generate additional revenue while reducing costs through the more efficient signal routing, distribution, monitoring and management of content as well as the automation of previously manual processes.

Contacts:
Evertz Technologies Limited
Anthony Gridley
Chief Financial Officer
(905) 335-7580
ir@evertz.com