VIZRT announces 2001 first half results
Bergen (Norway) (ots)
vizrt (Neuer Markt: VIZ) announced the 2001 first half results:
Financial highlights for the six month ended 30th of June, 2001:
- Consolidated revenue for the first half of 2001 reached US$ 9 million, an increase of 41% compared to the first half of 2000.
- Gross margin increased to 49% (not including inventory charges of $ 1.2 million) from 39 % in the first half of 2000.
- Operating costs increased 51% to US$10.7 million compared with US$7.1 million in the first half of 2000.
- Net loss for the first half increased to US$13.3 million compared with US$4.5 million for the first half of 2000.
- Proforma net loss, not including restructuring charges, amortization of intellectual property and good will, and non recurring income, was US$7.3 million compared with US$4.9 million for the first half 2000.
- Loss per share was US$ 1.0 compared with US$0.47 in the first half of 2000. Proforma net loss per share was US$0.55 compared with US$ 0.51 in the first half of 2000.
Financial Highlights for the second quarter of 2001
- Revenues for second quarter 2001 amounted US$2.9 million compared with US$3 million in second quarter of 2000.
- Gross margin for second quarter (not including one-time inventory charge) was 54% compared with 40% in second quarter of 2000.
- Net loss for second quarter 2001 amounted US$ 9.2 million compared with 2.6 million in second quarter of 2000
- Proforma net loss for second quarter 2001 amounted US$ 5.8 million compared with 2.4 million in second quarter of 2000
- Loss per share for second quarter 2001 was US$ 0.69 compared with US$0.27 in the second quarter of 2000. Proforma net loss per share for second quarter 2001 was US$0.44 compared with US$ 0.25 in the second quarter of 2000.
Operating Highlights
- During the second quarter the company had unexpected low revenues, resulting mainly from the substantial slowdown in advertising industry which affected broadcasters and media companies around the world. Several stations decided to postpone purchasing of equipment until having a better overview of their own revenues.
- The company also went through a major restructuring this quarter and has reduced staff by 20 people, which will lead to significantly lower operating costs over the next quarters.
- The company further expanded its relationship with Wige MIC in this quarter. VIZ and Wige MIC will present their joint products at the International Broadcast Conference (IBC) next month in Amsterdam, Netherlands. VIZRT also increased sales in Scandinavia along with Denmark and Finland.
- The solid order backlog for Q3 is approximately $2.5 millions as of the end of July.
Financial details:
Revenue highlights
* 28% of H1 2001 revenue was from new markets, primarily from sales to the New York Stock Exchange and to one of the largest investment banks in US * Geographic breakdown of revenue was:
Territories H1/01 H1/00 Q2/01 Q2/00 Q1/01
(In $ thousands)
North America $3,651 $2,318 $741 $1,333 $2,910
Europe $4,129 $3,040 $1,735 $1,137 $2,394
Asia Pacific $1,182 $667 $384 $367 $798
Other $39 $361 $18 $190 $21
$9,001 $6,386 $2,878 $3,027 $6,123Gross Margin
The gross margin, not including one-time inventory charges was 49% as compared with 39% in the first half of 2000. The increased margin represents an increase in the portion of software in sales. Gross margin for second quarter (not including one-time inventory charge) was 54% compared with 40% in second quarter of 2000.
The company has evaluated the inventory and has recorded inventory charge in the amount of $1.2M. The gross margin for H1 2001 therefore decreased to 36% (14% in second quarter).
Operating Expenses
Total operating expenses (including sales and marketing expenses (S&M), research and development (R&D) and general and administrative expenses (G&A); excluding restructuring charges) in the first half of 2001 amounted to $10.7 million including one time write offs. The following table represents the total expenses:
Expenses H1/01 H1/00 Q2/01 Q2/00 Q1/01 (In $ thousands) S&M Expenses $4,596 $3,951 $2,503 $2,143 $2,093 G&A Expenses 4,165 1,677 2,718 925 1,447 R&D Expenses 1,984 1,505 973 723 1,011 Operating Expenses $10,745 $7,133 $6,194 $3,791 $4,551
- S&M increase is mainly attributable to increased travel and entertainment expenses (T&E), and trade shows expenses, primarily in second quarter. In addition the company recorded in second quarter of 2001 a $170 thousands write off of prepaid marketing expenses, which are not expected to be utilize.
- R&D increase was mainly due to the expansion of R&D activities and the integration of subsidiaries operations commencing July 2000.
- G&A has significantly increased due to write off of bad debts of $1 million and write off of fixed assets, which we do not expect to utilize ($0.4 million). G&A expensses also increased due to the integration of subsidiaries operations commencing July 2000.
- Total operating expenses in the second quarter, compared with the first quarter of 2001 increased by $1.6 million or 36%. The expenses, not including write offs applied in second quarter increased by $ 64 thousands.
Financial income
Consists primarily of interest income earned on short-term deposits offset by bank charges. Financial income for first half of 2001 was $291 thousands compared to expenses of $271 thousands in first half of 2000. Financial expenses in 2000 included erosion of Euro dominated deposit.
Restructuring expenses
Restructuring expenses amounted to $763 thousands and consisted primarily of termination of employment payments and the termination of office lease agreements.
Selected Balance Sheet Items
The following is a summary of selected balance sheet items:
- Cash - as of June 30, 2001 the Company had a balance of $8.3 million in cash compared with $12.3 million as of December 31, 2000. $3.5 million of the decrease in cash is related to the operating loss. Additional $400 thousands were invested in fixed assets.
- Accounts receivables, net - as of June 30, 2001 the Company had a total of $4 million in accounts receivables compared with $8.2 million as of December 31, 2001. The decrease in receivables was due to significant provision for bad debt that was recorded in the second quarter as well as decreased revenue in second quarter..
- Inventory - As of June 30, 2001 the Companys inventory totaled $1.7 million compared with $3.9 million as of December 31, 2000. The decrease includes devaluation of inventory to market value in the amount of $1.2 million and reclassification of inventory items used by the company, to fixed assets ($.5 million).
- amounted to $ 21.3 million compared with $26.5 million as of December 31, 2000 and resulted from the goodwill and intellectual property associated with acquisition of Peak, offset by amortization.
- Accounts payables - As of June 30, 2001 the Company had a total of $6 million in accounts payables and accrued liabilities compared with $8.5 million on December 31, 2000. Decrease is primarily due to reduction of vendor and accruals related to inventory and cost of goods.
ots Original Text Service: VIZRT Internet: www.newsaktuell.ch
Contact:
VIZRT:
Bjarne Berg, CEO,
Tel. +4955 908080
E-Mail: Bberg@vizrt.com
Germany Investor Relations:
Elise Vanier,
Kirchhoff Consult AG,
Tel. +49-69-74748615
E-Mail: Elise.vanier@kirchhoff.de
Investor Relations:
Marc Lakmaaker,
Thomson Financial / Carson,
Tel. +44-20-74225156
E-Mail: Marc.lakmaaker@tfeurope.com