Q: I realize that you have been pretty much non committal about Evertz Technologies, however, they released what look to be "blow-out" numbers yesterday with a record quarter, record annual revenue and record backlog. The market clearly likes it and I wonder if this might change your view of the company going forward.
Thanks as always.
Thanks as always.
5i Research Answer:
EPS of $0.24 beat estimates of $0.18 and revenues of $128.92M beat estimates of $110.87M. Sales increased by 11.1% for the year and earnings from operations grew by 13.4%. Free cash flow was $25.2M for the quarter, an impressive jump against previous quarters, which helped boost its balance sheet. The price jump is fairly within the norm for its historical volatility levels and we feel that if the company can stabilize these profit and sales growth levels, then this could mark a turnaround, however, one quarter does not make a trend and we would like to see sustained momentum in the turnaround of its fundamentals.