Vizrt

Software-provider Vizrt located in Schwaz nibbles from the huge World Cup boom in Germany.

More or less all Germans speaking TV-stations (e.g. ORF) jazz up their World Cup broadcast with software originating in Schwaz.

Together with Wige Data, a Swatch Group company, Vizrt is a big player in the Football World Cup. Wige Data is a service provider to support TV-stations that sent more than 100 experts to Germany. But the software they use comes from Vizrt, most of it originates in Tyrol. The graphics from Tyrol are used among others by ORF, ARD, ZDF; RTL and Premiere and other stations in France, England or Mexico.

Christian Huber, MD of Vizrt-Austria, explains to Tiroler Tageszeitung that the company delivers virtual graphics such as team formations, national flags, 3-D-models of all stadiums, result-presentations, offline- and distance-lines, tracking-the-ball lines and the kick-speed.

In ticklish situations the software-artists work with high-speed. It should be clarified whether the player was offside or not as fast as possible before the next action. But even the graphics can not in any case give a 100% guarantee for the right answer, for example whether the ball was in fact behind the goal-line in the famous Wembley-decision which helped England to become the world champion in 19666. “At that time, not enough cameras were installed and their resolution was too weak”, says Huber.

Vizrt is located in Norway, Israel, USA and Tyrol and is the worldwide market leader for TV-graphics and 3-D-animations. Schwaz (six years ago Peak Software was sold and merged with Vizrt) is responsible for the markets in Germany, Austria, Switzerland, Italy, Slovenia, Croatia, Slovakia, and the Czech Republic.

According to Huber, Vizrt supplies more than 300 TV-stations worldwide, including CNN, CBX, ABC, NBC, BBC and Sky. Total sales reach just over USD 50 million, USD 8 to 9 million of that come from Tyrol. 30 of Vizrt’s total 200 employees are in Schwaz.

Huber expects an impulse from the coming worldwide launch of HDTV which provides a five-time higher resolution. TV-stations will have to exchange their complete technical equipment. “The World Cup is the starting point for HDTV in Europe”. As a consequence, Vizrt will deliver graphics that are even richer in details and functionality.

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After publication of Vizrt's Q1 2006 results, Vara Research has updated it's estimations and reiterates the Buy rating with a price target of now Euro 12.95.

The HVB analysts have raised their target price from EUR 9.00 to EUR 12.10.

Israeli Vizrt Ltd., a provider of real-time 2D and 3D broadcast graphics, announced on Monday that it continues to expand its world wide presence by opening an office in Moscow. It will be the 20th outpost of the company so far.

The Russian market and the CIS region are providing a growing demand for TV broadcast products. This quarter Vizrt has successfully closed deals for approx. USD 500,000, the number of TV customers out of the region reached 9.

According to the company, the Russian TV market is one of the fastest growing in the world. There are currently more than eighty channels available nationally through terrestrial and satellite broadcasting, as well as over 170 regional channels, and many of which are not yet digitized. TV advertising spending is undergoing a boom period of growth, currently worth around USD 2bn per year.

Currently the shares of Vizrt are traded at 10.36 Euro, plus 2.07%”

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The experts of “Markus Frick Inside” recommend to stay invested in shares of Vizrt.

In the previous year the stock of Vizrt was often found as experts recommendation. Hence the stock went up more than 100% in the meantime. According to the editors the top was not been reached yet. Even though the target of 8 Euro was already passed, the way leads now to 11.50 Euro.

The company has finalized 2005 with a very strong operating result in Q4, the figures for the total year have been outstanding. Total revenues went up 36% to USD 38.8M, compared to USD 28.6M in 2004. Net profit went up 43% to USD 6M, compared to USD 4.2M in 2004. EPS was at USD 0.40, compared to USD 0.30 in 2004.

The positioning of the company in the market for graphic software solutions for the TV sector has been further strengthened during the past quarters. With archiving and TV Mobile solutions the company has entered further growth drivers.

The experts of “Markus Frick Inside” recommend to stay invested in shares of Vizrt. They increase their price target to 11.50 Euro. Anyway they are reserved concerning new investments at the moment.”

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Vizrt announced today that CCTV-5 Sports, China Central Television’s 24-hour sports channel, has ordered Vizrt’s latest graphics systems for a total volume of US$ 0.75M.

The sale to CCTV5 includes the mixture of a standard definition graphics system for live broadcasts of domestic and foreign sports events and news as well as China’s first high-definition graphics system for an HD studio. The new graphics installation will be used for all major sports events for this year.

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Israeli Vizrt, a provider of real-time 2D and 3D TV graphics, announced on Wednesday a record demand for its weather forecasting product, Viz|Weather.

The company revealed that it had sold three systems in the last week alone, bringing the total number of Viz|Weather sales for Q1 to six, generating sales revenue of over US$1.5m this quarter.

The most recent broadcasters to sign up to Viz|Weather were the public service broadcaster ORF in Austria, 1+1 TV in the Ukraine, and the new real estate channel in Dubai, Al Araquiya.

Earlier this year the state-owned China Meteorological Administration (CMA) bought a combination of multiple Viz|Weather and Viz|Trio character generator systems to assist them with production of their own weather programs for TV channels throughout China. SBS (Seoul Broadcasting Systems), upgraded their Vizrt installation to include Viz|Weather. RTPA, a regional channel in Asturias, Spain added Viz|Weather to the purchase of a completely new Vizrt real-time graphics system.

The share price of Vizrt is currently unchanged at Euro 9.04.

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Speculative Investment

Vizrt – Winner of the World Championships

Has the forward been offside? Which distance was between the ball and the goal at the free kick? Thanks to the software of Vizrt, the audience knows more than the referee. The Israeli company develops graphics software for the TV industry. The outcome are news tickers or graphic flashs during sport events. Among Vizrt’s clients are many well-known TV stations: BBC, CNN, ZDF, or Al Jazeeras sports channel. Because of the soccer world championships, business is buzzing: Analysts expect, that revenues in 2006 will grow by 30% to USD 50M, profit should jump by 45% to USD 9M. Even though the share price already went up 80% during the last 12 months, there is still potential: The planned takeover of Ardendo, a provider of solutions for archiving, as well as the expansion to Asia and Latin America should drive profits.”

Spekulatives Investment

VIZRT - Gewinner der WM

Stand der Stürmer im Abseits? In welcher Entfernung lag der Ball beim Freistoß zum Tor? Dank der Software von Vizrt wissen Fernsehzuschauer mehr als der Schiedsrichter. Das israelische Unternehmen entwickelt Grafiksoftware für die TV-Industrie. Dazu zählen etwa Nachrichtenlaufbänder sowie grafische Einblendungen bei Sportübertragungen. Viele namhafte Sender sind Kunden von Vizrt: BBC, CNN, ZDF oder der Sportkanal von Al Dschasira. Auf Grund der Fußball-WM brummt das Geschäft: Analysten erwarten, dass der Umsatz 2006 um 30 Prozent auf 50 Millionen Dollar klettert, der Gewinn soll um 45 Prozent auf neun Millionen Dollar zulegen. Obwohl die Aktie in den vergangenen zwölf Monaten bereits um rund 80 Prozent stieg, besteht noch Kursfantasie: Die geplante Übernahme von Ardendo, einem Anbieter von Lösungen zur Archivierung von Grafiken, und die Expansion nach Asien und Lateinamerika sollten die Gewinne vorantreiben.

Vizrt Ltd., a provider of software for real-time 3D broadcast graphics, once again reached record growth of revenues and profit in 2005.

As the company announced on Tuesday, revenues grew by 36% to 38.8 million USD (2004: 28.6 million USD). Gross margin remained at 70 percent on the same level as in the prior year. However, EBITDA (excluding amortization of deferred stock compensation) was up 40% to 7.1 million USD (2004: 5.1 million USD). Net profit rose 43 percent to 6.0 million USD (2004: 4.2 million USD). On a fully diluted basis, earnings per share were 0.36 USD compared to 0.27 USD in 2004.

As of December 31, 2005, cash balance was 20.4 million USD (including cash and short term deposits) compared to 15.2 million USD as of December 31, 2004.

The company said that it will continue on the path of local office expansion this year. Offices in Asia will be strengthened with more personnel in China, a new office in India and yet another one in Thailand. In addition, the focus will also be on Australia and the presence in Latin America shall increase.

The most significant development for Vizrt this year will be the launch of a combined product line with Ardendo and Adactus, stated the company. This product line is the answer to the increasing needs of broadcasters which are in the process of licensing their live and recorded content to mobile devices. Currently, this market records globally the fastest growth.

According to Vizrt, TV-stations benefit from this development by expanding both revenue streams and audience reach. Taking the company into these new product opportunities should provide broadcasters with a set of “end to end” tools to manage mobile TV and help Vizrt sustain its position in the market.

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The Israeli Vizrt Ltd. (ISIN IL0010838154/ WKN 926501) (ISIN IL0010838154/stock registration code 926501), a provider of HD/SD real-time 2D and true 3D broadcast graphics, announced on Tuesday that revenues grew by 36 percent in the total year of 2005.

According to the company, revenues reached 38.8 million USD in comparison to 28.6 million USD in 2004. Gross margin remained at 70 percent, the same level as in the prior year. EBITDA (excluding amortization of deferred stock compensation) was 7.1 million USD, up 40 percent. Net profit rose by 43 percent to 6.0 million USD. Earnings per share increased to 0.36 USD from 0.27 USD in 2004. On a fully diluted basis, earnings per share were 0.36 USD compared to 0.27 USD in 2004.

Cash balance as of December 31, 2005, was 20.4 million USD (including cash and short term deposits) compared to 15.2 million USD as of December 31, 2004.

Yesterday (ed.: Monday), closing price price of Vizrt was 6.95 Euro (+3.58 percent).

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The Israeli company Vizrt Ltd. (ISIN IL0010838154/ WKN 926501), a provider of HD/SD real-time 2D and true 3D broadcast graphics, announced on Thursday, that in late 2005 it has secured a half-million US-Dollar contract to provide a broad range of its graphics products to a new Arabic Business TV Channel. The order covered a comprehensive range of graphics products.

Reported to be worth up to Dirham 100 million, the channel is a combination of UAE and Saudi Arabian investments and will be operating from Dubai Media City (DMC) and uplinking to a satellite from Riyadh. The channel has already opened a number of offices in major Arab capitals and is expected to become a 24-hour network in 2006.

The Vizrt share is currently traded by 7.07 Euro (-0.14%).

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Vizrt a provider of real-time 3D graphics software, in late 2005 has secured a half-million US-Dollar contract to provide a broad range of its graphics products to a new Arabic Business TV Channel. As the company releases on Thursday, the order covered a comprehensive range of graphics products.

Furthermore Vizrt is announcing the April 2006 introduction of its Viz|3G product for mobile telephones and other hand held devices.

According to the information Viz|3G will mark the first integration of a graphics engine for mobile phone video viewing applications.

Viz|3G enables broadcasters to create video and graphics content that is truly merged on the end user’s device where programming can be generated locally. This creates ample opportunity for the customization, localization and personalization of targeted advertising placements.

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Israeli Vizrt Ltd., a provider of software for the generation realtime 2D and 3D graphics for the TV industry, announced on Monday, that the China Meteorological Administration (CMA), has opted for a comprehensive weather graphic system to provide weather forecast programming to TV stations throughout China. The deal is valued at over USD 600,000.

The Viz|Weather graphics system will be installed in February and will be on air from April 1, 2006. In addition, the CMA will be using the system to generate weather forecasts for its own new weather channel, which also goes to air on April 1, 2006. Viz|Weather is a comprehensive weather graphics system-in-a-box, which provides TV broadcasters with real-time weather graphics animations either as point-based symbols or as high-resolution 3D animations. Viz|Weather includes an interface with local real-time weather data of less than 1km resolution, providing accurate local forecasts. The CMA's own weather data will trigger the real-time weather graphics, providing up-to-the minute forecasts for the whole of China.

Currently, that share price of Vizrt is up 1.70% to 7.19 Euro

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Vizrt Ltd., a provider of software for the generation realtime graphics for the TV sector, announced today, that the China Meteorological Administration (CMA) has decided to order a comprehensive Vizrt weather graphic system, in order to supply weather forecast services to TV producers in the whole country. The contract is worth more than USD 600,000.

The Viz|Weather graphic system is about to be installed in February and will go live on April 1, 2006. At the same time CMA will use the system to produce weather reports for it’s own new weather channel.

Viz|Weather is a comprehensive weather graphics system-in-a-box, which provides TV broadcasters with real-time weather graphics animations either as point-based symbols or as high-resolution 3D animations.

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DnB Nor Markets publishes a research update after visiting Ardendo: "VIZ (BUY) - Ardendo will boost profits".

The Norwegian-Israeli provider of TV technology intends to acquire Swedish Ardendo AB. Both companies have signed an LOI, accordingly Vizrt would pay 23 million US Dollar in shares for the whole company.

Ardendo is a media management company. Ardendo’s revenue for the financial year ending June 30, 2005 was USD 5.494M, up 69% from the previous year, EBIT in the same period was USD 1.143M, a growth of 119% compared to the previous year and the EBIT margin for 04/05 was 21%.

Ardendo delivers products and services for media asset management, ingest automation, digital archives, desktop media processing and system integration. Vizrt is a globally leading provider for realtime visualization. Together both companies will be able to provide the world’s first complete multiplatform production solution.

According to the research analysts of PACCONSEC, the merger of both companies makes sense from a strategic viewpoint. Due to the expanded product range the company would be able to further strengthen it’s market position.

From an operating perspective, Vizrt also showed a lot of progress during the first nine months of 2005. Revenue went up 33% to 27.1 million US Dollar, at the same time EBITDA was increased by 30% to 4.8 million US Dollar. Last but not least, net profit went up 31% to 4 million US Dollar or 0.26 US Dollar. Hence, the company is highly profitable. The possible merger would make the situation even better. With this background at a price of 6.85 Euro per share the valuation seems to be still moderate. Hence PACCONSEC recommends to accumulate Vizrt shares.”

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