Evertz Technologies reports Q1 results for July 2024

Evertz Technologies Limited reported its financial results for the first quarter ending July 31, 2024, revealing a revenue of $111.6 million, a decline from $125.8 million in the same quarter the previous year. The company experienced a significant increase in reoccurring software and services revenue, which rose by 26% to $55.9 million. However, net earnings fell to $9.7 million compared to $15.9 million in the prior year, reflecting challenges in the market. The gross margin for the quarter was reported at $66.2 million, down from $72.0 million a year earlier. Operating expenses also increased, with selling and administrative costs rising to $17.6 million and research and development expenses climbing to $37.4 million. This increase in expenses contributed to the overall decline in earnings. Despite the drop in revenue and net earnings, the company maintained a strong liquidity position, with cash reserves of $91.0 million and working capital of $197.7 million. Cash generated from operations was $22.3 million, a decrease from $60.0 million in the same quarter last year, indicating a need for improved operational efficiency. Evertz Technologies plans to pay a dividend of $14.9 million to shareholders, reflecting its commitment to returning value to investors despite the challenging financial landscape. The company will discuss these results in a conference call with financial analysts, highlighting its ongoing efforts to adapt and thrive in a competitive industry.