Evertz Technologies Reports First Quarter Results For The Quarter Ended July 31, 2025

2025-09-10 07:08:14

(MENAFN- Newsfile Corp) Attention Business/Financial Editors:

Burlington, Ontario--(Newsfile Corp. - September 10, 2025) - Evertz Technologies Limited (TSX: ET), the leader in Software Defined Video Network ("SDVN") technology, today reported its results for the first quarter ended July 31, 2025.

First Quarter 2026 Highlights

Revenue of $112.1 million, an increase from $111.6 million in the prior year.
Revenue to the US and Canada was $79.5 million an increase of $5.5 million or 7% from prior year.
Software and services revenue of $51.6 million, representing 46% of total revenue in the quarter.
Gross Margin of 61.4%, compared to 59.4% in the prior year quarter.
Earnings from operations of $15.0 million an increase of $2.4 million or 19% from prior year.
Net earnings of $11.9 million an increase of $2.2 million or 22% from prior year.
Fully diluted earnings per share of $0.15 for the quarter.

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

		Q1'26		Q1'25
Revenue	$	112,145	$	111,643
Gross margin		68,842		66,262
Earnings from operations		14,984		12,609
Net earnings		11,894		9,711
Fully-diluted earnings per share	$	0.15	$	0.13
Fully-diluted shares		77,549,350		77,278,156

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

		Q1 ' 26		YE' 25
Cash and Cash Equivalents	$	124,309	$	111,665
Working capital		202,607		206,900
Total assets		488,318		469,485
Shareholders' equity		262,067		268,123

Revenue
For the quarter ended July 31, 2025, revenues were $112.1 million, an increase of $0.5 million compared to revenues of $111.6 million for the quarter ended July 31, 2024. For the quarter, revenues in the United States/Canada region were $79.5 million an increase of $5.5 million compared to $73.9 million in the same quarter last year. The International region had revenues of $ 32.7 million, compared to $37.7 million in the same quarter last year.

Gross Margin
For the quarter ended July 31, 2025, gross margin was $68.8 million as compared to $66.2 million in the same quarter last year. Gross margin percentage was approximately 61.4% as compared to 59.4% in the quarter ended July 31, 2024.

Earnings
For the quarter ended July 31, 2025, net earnings were $11.9 million as compared to $9.7 million in the corresponding period last year.

For the quarter ended July 31, 2025, earnings per share on a fully-diluted basis were $0.15 as compared to $0.13 in the corresponding period last year.

Operating Expenses
For the quarter ended July 31, 2025, selling and administrative expenses were $18.6 million as compared to $17.6 million for the quarter ended July 31, 2024.

For the quarter ended July 31, 2025, gross research and development expenses were $37.0 million as compared to $37.4 million for the quarter ended July 31, 2024.

Liquidity and Capital Resources
The Company's working capital as at July 31, 2025 was $202.6 million as compared to $206.9 million on April 30, 2025.

Cash was $124.3 million as at July 31, 2025 as compared to $111.6 million on April 30, 2025.

Cash generated from operations was $33.5 million for the quarter ended July 31, 2025 as compared to $22.3 million cash generated for the quarter ended July 31, 2024. Before taking into account taxes and the changes in non-cash working capital and current taxes, the Company generated $16.8 million from operations for the quarter ended July 31, 2025 compared to $13.3 million for the same period last year.

For the quarter, the Company used $0.5 million for investing activities, which was principally driven by a by the acquisition of capital assets of $ 1.4 million and partially offset by proceeds from disposal of capital assets of $0.9 million.

For the quarter ended July 31, 2025, the Company used cash in financing activities of $20.2 million which was principally driven by dividends paid of $15.1 million, capital stock repurchase of $3.8 million and lease payments of $1.1 million.

Shipments and Backlog
At the end of August 2025, purchase order backlog was in excess of $252 million and shipments during the month of August 2025 were $41 million.

Dividend Declared
Evertz Board of Directors declared a regular quarterly dividend on September 10, 2025 of $0.20 per share.

The dividend is payable to shareholders of record on September 18, 2025 and will be paid on or about September 25, 2025.

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

	Three months ended July 31, 2025			Three months ended July 31, 2024
Revenue		$	112,145		$	111,643
Cost of goods sold			43,303			45,381
Gross margin			68,842			66,262
Expenses
Selling and administrative			18,624			17,604
General			1,267			1,281
Research and development			36,983			37,374
Investment tax credits			(3,348)			(3,760)
Share based compensation			1,068			1,175
Foreign exchange gain			(736)			(21)
			53,858			53,653
Earnings before undernoted			14,984			12,609

Finance income			775			705
Finance costs			(238)			(309)
Other income and expenses			500			210
Earnings before income taxes			16,021			13,215
Provision for (recovery of) income taxes
Current			3,965			5,563
Deferred			162			(2,059)
			4,127			3,504
Net earnings for the period		$	11,894		$	9,711

Net earnings attributable to non-controlling interest		$	52		$	42
Net earnings attributable to shareholders			11,842			9,669
Net earnings for the period		$	11,894		$	9,711

Earnings per share
Basic		$	0.16		$	0.13
Diluted		$	0.15		$	0.13

Consolidated Balance Sheet Data
		As At July 31, 2025		As At April 30, 2025
Cash and cash equivalents	$	124,309	$	111,665
Inventory	$	182,494	$	181,011
Working capital	$	202,607	$	206,900
Total assets	$	488,318	$	469,485
Shareholders' equity	$	262,067	$	268,123

Number of common shares outstanding:
Basic		75,432,600		75,750,235
Fully-diluted		77,549,350		80,627,710

Weighted average number of shares outstanding:
Basic		75,538,154		76,010,401
Fully-diluted		76,570,863		76,975,472

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 September 10, 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 October 10, 2025. The rebroadcast can be accessed at 289-819-1325 or toll-free 1-888-660-6264. The pass code for the rebroadcast is 75854.

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
...

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SOURCE: Evertz Technologies Limited

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