Vizrt reports record first-half results

Bergen, Norway-based Vizrt Ltd. today announced its financial results for the first half of 2006 with record revenue. Consolidated revenues increased by 68% to $27.4 million compared to $16.3 million in the first half of 2005.

EBIT was $4.5 million, up 92% compared to $ 2.3 million in 2005.

Basic earnings per share for the first half were $0.24 compared to $0.15 in 2005.

On May 5, Vizrt concluded the acquisition of Ardendo AB in an all stock-swap transaction, in exchange of 2,912,790 Vizrt shares. Accordingly the operating results of Ardendo since May 6 were consolidated. The consolidated balance sheet as of June 30 includes all assets and liabilities of Ardendo, including goodwill and intangible assets recorded as a result of the acquisition. Intangible assets in the aggregate amount of USD 13.8M will be amortized over the next 3-10 years, most of which in the next five years.

Vizrt offered the following update on the acquisition: “The initial integration of the Ardendo product line is now complete, and Vizrt is already experiencing the initial benefits of the combined Vizrt/Ardendo offering. Vizrt is now a substantial player in the broadcast market thanks to its end-to-end solutions. We can now accommodate our customers with a much more integrated work flow. The Vizrt product portfolio provides an integrated solution where all components operate seamlessly.”

Mobile TV opportunities have progressed more slowly than projected, but the company added: “there are some promising developments, and we
hope to see more growth at the IBC convention in Amsterdam next month. The integration of our products with Microsoft’s Virtual Earth is also progressing as planned, and Microsoft will be within our IBC booth supporting demonstrations of the new product. Also new at IBC this year will be the presence of Apple, showing how Ardendo, Vizrt and Curious products support the Mac platform.”

Vizrt reported experiencing “an uptick within emerging markets just beginning their migration to modern broadcast technologies.
Business in Eastern Europe and Latin America, as well as new markets in Asia and Africa, is escalating. Our goal is to maintain
the momentum in all of these emerging markets.”