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

Core Viewpoint - Evertz Technologies Limited reported a modest increase in revenue and earnings for the first quarter of fiscal year 2026, driven by growth in the US/Canada region and improved gross margins [1][3][4]. Financial Performance - Revenue for the quarter ended July 31, 2025, was $112.1 million, up from $111.6 million in the same quarter last year, representing a growth of approximately 0.4% [1][3]. - Revenue from the US/Canada region was $79.5 million, an increase of $5.5 million or 7% compared to the prior year [3][4]. - Software and services revenue accounted for $51.6 million, which is 46% of total revenue for the quarter [3]. - Gross margin was $68.8 million, with a gross margin percentage of 61.4%, up from 59.4% in the prior year [4][10]. - Earnings from operations were $15.0 million, reflecting a 19% increase from $12.6 million in the same quarter last year [3][4]. - Net earnings rose to $11.9 million, a 22% increase from $9.7 million in the corresponding period last year [4][5]. Earnings Per Share - Fully diluted earnings per share for the quarter were $0.15, compared to $0.13 in the same quarter last year [5][10]. Operating Expenses - Selling and administrative expenses increased to $18.6 million from $17.6 million in the prior year [5][11]. - Research and development expenses were slightly reduced to $37.0 million from $37.4 million year-over-year [5][11]. Liquidity and Capital Resources - As of July 31, 2025, working capital was $202.6 million, down from $206.9 million on April 30, 2025 [6]. - Cash and cash equivalents increased to $124.3 million from $111.6 million on April 30, 2025 [6][10]. - Cash generated from operations was $33.5 million, up from $22.3 million in the same quarter last year [7]. Investments and Financing Activities - The company used $0.5 million for investing activities, primarily for capital asset acquisitions [8]. - Cash used in financing activities totaled $20.2 million, mainly due to dividends paid of $15.1 million and capital stock repurchase of $3.8 million [8]. Shipments and Backlog - As of the end of August 2025, the purchase order backlog exceeded $252 million, with shipments during August amounting to $41 million [9]. Dividend Declaration - The Board of Directors declared a quarterly dividend of $0.20 per share, payable on or about September 25, 2025 [9].