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

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 [email protected] To view the source version of this press release, please visit https://www.newsfilecorp.com/release/265903