Evertz Technologies Reports Record Quarterly Revenue of $137 Million in The Third Quarter Ended January 31, 2025

Rhea-AI Summary

Evertz Technologies reported record quarterly revenue of $136.9 million for Q3 2025 (ended January 31), marking a 9% sequential increase. The company's US/Canada revenue reached $99.1 million, while international revenue was $37.8 million.

Key financial highlights include:

• Net earnings of $21.1 million with $0.27 earnings per diluted share
• Reoccurring software and services revenue of $55.7 million, up 6% year-over-year
• Gross margin of 57.8% ($79.1 million)
• Operating earnings of $28.1 million, up 8% from prior year

The company maintained strong liquidity with $96.3 million in cash and equivalents, working capital of $207.9 million, and a purchase order backlog exceeding $269 million. The Board declared a quarterly dividend of $0.20 per share, payable March 20, 2025.

Positive

• Record quarterly revenue of $136.9M (+9% sequential growth)
• Net earnings increased to $21.1M from $19.0M YoY
• Software/services revenue up 6% YoY to $55.7M
• Strong backlog of $269M
• Cash position improved to $96.3M from $86.3M
• Operating cash flow increased to $53.0M from $30.2M YoY

Negative

• Gross margin declined to 57.8% from 58.9% YoY
• International revenue decreased to $37.8M from $54.8M YoY
• Operating expenses increased: R&D to $36.6M from $34.0M
• Selling and admin expenses rose to $19.2M from $18.3M

Attention Business/Financial Editors:

Burlington, Ontario--(Newsfile Corp. - March 5, 2025) - Evertz Technologies Limited (TSX: ET), the leader in Software Defined Video Network ("SDVN") technology, today reported its results for the third quarter ended January 31, 2025.

Third Quarter 2025 Highlights

• Record Quarterly revenue of $136.9 million, an increase of 9% or $11.7 million sequentially
• Reoccurring software, services and other software revenue of $55.7 million in the quarter, up 6% from the prior year
• Earnings from operations of $28.1 million for the quarter, an increase of 8% from the prior year
• Net earnings of $21.1 million for the quarter
• Fully diluted earnings per share of $0.27 for the quarter

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

						Q3 ' 25				Q3 ' 24
Revenue					$	136,916			$	135,278
Gross margin						79,098				79,733
Earnings from operations						28,108				26,398
Net earnings						21,076				19,024
Fully-diluted earnings per share					$	0.27			$	0.24
Fully-diluted shares						76,860,180				76,878,395

 

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

					Q3 ' 25				YE' 24
Cash and cash equivalents				$	96,280			$	86,325
Working capital					207,943				201,437
Total assets					472,210				484,722
Shareholders' equity					269,606				263,267

 

Revenue
For the quarter ended January 31, 2025, revenues were $136.9 million compared to revenues of $135.3 million for the quarter ended January 31, 2024. For the quarter, revenues in the United States/Canada region were $99.1 million compared to $80.5 million in the same quarter last year. The International region had revenues of $37.8 million compared to $54.8 million in the same quarter last year.

Gross Margin
For the quarter ended January 31, 2025, gross margin was $79.1 million as compared to $79.7 million in the same quarter last year. Gross margin percentage was approximately 57.8% as compared to 58.9% in the quarter ended January 31, 2024.

Earnings
For the quarter ended January 31, 2025, net earnings were $21.1 million as compared to $19.0 million in the corresponding period last year.

For the quarter ended January 31, 2025, earnings per share on a fully-diluted basis were $0.27 as compared to $0.24 in the corresponding period last year.

Operating Expenses
For the quarter ended January 31, 2025, selling and administrative expenses were $19.2 million as compared to $18.3 million for the quarter ended January 31, 2024.

For the quarter ended January 31, 2025, gross research and development expenses were $36.6 million as compared to $34.0 million for the quarter ended January 31, 2024.

Liquidity and Capital Resources
The Company's working capital as at January 31, 2025 was $207.9 million as compared to $201.4 million on April 30, 2024.

Cash and cash equivalent $96.3 million as at January 31, 2025 as compared to $86.3 million in cash on April 30, 2024.

Cash generated from operations was $53.0 million for the quarter ended January 31, 2025 as compared to $30.2 million cash generated for the quarter ended January 31, 2024. Before taking into account taxes and the changes in non-cash working capital and current taxes, the Company generated $27.2 million from operations for the quarter ended January 31, 2025 compared to $25.0 million for the same period last year.

For the quarter, the Company used $1.2 million for investing activities.

For the quarter ended, the Company used cash in financing activities of $17.0 million which was principally a result of the payment of dividends of $15.2 million.

Shipments and Backlog
At the end of February 2025, purchase order backlog was in excess of $269 million and shipments during the month of February 2025 were $39 million.

Dividend Declared
Evertz Board of Directors declared a regular quarterly dividend on March 5, 2025 of $0.20 per share.

The dividend is payable to shareholders of record on March 13, 2025 and will be paid on or about March 20, 2025.

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

		Three month period ended							Nine month period ended
		January 31,							January 31,
		2025			2024				2025			2024
Revenue	$	136,916		$	135,278			$	373,818		$	391,846
Cost of goods sold		57,818			55,545				154,198			162,058
Gross margin		79,098			79,733				219,620			229,788
Expenses
Selling and administrative		19,198			18,262				55,174			52,160
General		1,318			1,056				3,901			3,388
Research and development		36,584			33,967				110,237			98,124
Investment tax credits		(3,529)			(3,987)				(10,879)			(10,594)
Share based compensation		1,314			1,197				3,756			3,876
Foreign exchange (gain) loss		(3,895)			2,840				(4,677)			1,979
		50,990			53,335				157,512			148,933
Earnings before undernoted		28,108			26,398				62,108			80,855
Finance costs		531			547				2,073			1,084
Finance income		(421)			(457)				(1,104)			(1,042)
Net loss on investments through profit and loss		-			-				-			(2,704)
Other (expenses) income		(62)			(526)				249			(404)
Earnings before income taxes		28,156			25,962				63,326			77,789
Provision for (recovery of) income taxes
Current		7,505			6,045				18,381			20,481
Deferred		(425)			893				(1,779)			141
		7,080			6,938				16,602			20,622
Net earnings for the period	$	21,076		$	19,024			$	46,724		$	57,167
Net earnings attributable to non-controlling interest		161			302				336			760
Net earnings attributable to shareholders		20,915			18,722				46,388			56,407
Net earnings for the period	$	21,076		$	19,024			$	46,724		$	57,167
Earnings per share
Basic	$	0.28		$	0.25			$	0.61		$	0.74
Diluted	$	0.27		$	0.24			$	0.60		$	0.73

 

Consolidated Balance Sheet Data
				As At January 31, 2025				As At April 30, 2024
Cash and Cash Equivalents		$		96,280			$	86,325
Inventory		$		195,556			$	206,154
Working capital		$		207,943			$	201,437
Total assets		$		472,210			$	484,722
Shareholders' equity		$		269,606			$	263,267
Number of common shares outstanding:
Basic				75,941,007				76,164,322
Fully-diluted				81,043,732				81,614,447
Weighted average number of shares outstanding:
Basic				76,045,953				76,088,691
Fully-diluted				77,019,898				77,044,858

 

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 March 5, 2025 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 289-514-5100 or Toll-Free (North America) 1-800-717-1738.

For those unable to listen to the live call, a rebroadcast will also be available until Sunday, April 14, 2025. The rebroadcast can be accessed at 289-819-1325 or Toll-Free 1-888-660-6264. The pass code for the rebroadcast is 56369.

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 and ultra-high definition television ("HDTV" and "UHD") 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 efficient signal routing, distribution, monitoring and management of content as well as the automation and orchestration of more streamlined and agile workflow processes on premise and in the "Cloud."

For further information, please contact:

Doug Moore, CPA, CA
Chief Financial Officer

(905) 335-3700
ir@evertz.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/243468

FAQ

What was Evertz Technologies (EVTZF) Q3 2025 revenue and how did it compare to previous quarters?

Evertz reported record quarterly revenue of $136.9M in Q3 2025, representing a 9% increase ($11.7M) sequentially and slight growth from $135.3M in Q3 2024.

How much did Evertz Technologies (EVTZF) earn per share in Q3 2025?

Evertz reported fully diluted earnings per share of $0.27, up from $0.24 in the same quarter last year.

What is the current dividend payment for Evertz Technologies (EVTZF) shareholders?

Evertz declared a quarterly dividend of $0.20 per share, payable on March 20, 2025, to shareholders of record on March 13, 2025.

What is Evertz Technologies (EVTZF) current purchase order backlog as of February 2025?

Evertz reported a purchase order backlog exceeding $269 million at the end of February 2025, with monthly shipments of $39 million.

How much recurring revenue did Evertz Technologies (EVTZF) generate in Q3 2025?

Evertz generated $55.7 million in recurring software, services and other software revenue, showing a 6% increase from the previous year.