BURLINGTON, ONTARIO--(Marketwire - March 5, 2013) -

Attention Business/Financial Editors:

Evertz Technologies Limited (TSX:ET), a global leader in video infrastructure solutions for production, playout and delivery systems for television broadcasters, telecom and multi-system operators, today reported its results for the third quarter of its fiscal 2013 year.

Quarterly Highlights

• Revenue of $71.8 million, including an increase of 6% in the US/Canada region
• Fully diluted earnings per share of $0.18, an increase of 6% as compared to $0.17 a year ago
• Accretive investment of over $5 million in a complimentary communications solutions company
• Continued growth in R&D with a gross investment increase of 18% compared to a year ago
• Cash and instruments held for trading increased to over $224 million

Revenue

For the quarter ended January 31, 2013, revenues were $71.8 million as compared to revenues of $71.4 million for the quarter ended January 31, 2012. For the quarter, revenues in the United States/Canada region were $33.8 million, an increase of $1.8 million or 6% when compared to the same quarter last year. The International region had revenues of $38.0 million, as compared to $39.5 million in the same quarter last year.

Gross Margin

For the quarter ended January 31, 2013 gross margin was $40.3 million compared to $40.2 million in the same quarter last year. Gross margin percentage was approximately 56% and consistent with the quarter ended January 31, 2012.

Earnings

For the quarter ended January 31, 2013 net earnings were $13.2 million as compared to $12.7 million in the corresponding period last year.

For the quarter ended January 31, 2013, earnings per share on a fully-diluted basis were $0.18 as compared to $0.17 in the same period in 2012.

Operating Expenses

For the quarter ended January 31, 2013 selling and administrative expenses were $13.7 million compared to $12.7 million for the quarter ended January 31, 2012. Selling and administrative expenses represented approximately 19% of revenue in the quarter compared to 18% for the same period last year.

For the quarter ended January 31, 2013 gross research and development expenses increased by $2.0 million or 18% as compared to the corresponding period in 2012. Gross research and development expenses represented approximately 18% of revenue for the quarter ended January 31, 2013.

Liquidity and Capital Resources

The Company's working capital as at January 31, 2013 was $355.7 million as compared to $325.7 million on April 30, 2012.

Cash and instruments held for trading were $224.3 million as at January 31, 2013 as compared to $185.7 million on April 30, 2012.

Cash provided by operations was $22.0 million for the quarter ended January 31, 2013 as compared to $23.8 million for the quarter ended January 31, 2012. Before taking into account the changes in non-cash working capital, the Company generated $16.7 million from operations for the quarter ended January 31, 2013 compared to $16.7 million for the same period last year.

The Company invested $6.2 million in a technology based company and on the purchase of capital assets for the quarter ended January 31, 2013, compared to $10.9 million in capital assets purchased for the quarter ended January 31, 2012.

For the quarter ended January 31, 2013, the Company used cash from financing activities of $6.3 million which was principally a result of the payment of dividends of $10.2 million offset by the issuance of capital stock of $4.5 million.

Shipments and Backlog

Purchase order backlog at the end of February 2013 was in excess of $45 million and shipments during the month of February 2013 exceeded $15 million.

Dividend Declared

On March 5, 2013, the Evertz Board of Directors approved a 14% increase of the dividend to $0.16 per share from $0.14 per share. This is the 6^th dividend increase in the past six years, reflecting the underlying strength of the Company's cash flow and business outlook.

The dividend is payable to shareholders of record on March 15, 2013 and will be paid on or about March 22, 2013.

		Three month period ended January 31,								Nine month period ended January 31,
		2013				2012				2013				2012
Revenue		$	71,771			$	71,445			$	250,890			$	217,060
Cost of goods sold			31,499				31,283				106,103				93,675
Gross margin			40,272				40,162				144,787				123,385
Expenses
	Selling and administrative		13,659				12,677				39,118				34,798
	General		1,393				1,580				4,290				4,678
	Research and development		13,098				11,058				37,502				31,418
	Investment tax credits		(3,519	)			(2,574	)			(9,569	)			(7,310	)
	Foreign exchange (gain) loss		(1,467	)			64				(2,790	)			(3,001	)
			23,164				22,805				68,551				60,583
Earnings before undernoted			17,108				17,357				76,236				62,802
Finance income			699				551				1,576				1,427
Finance costs			(103	)			(45	)			(269	)			(142	)
Other income and expenses			276				(332	)			272				(557	)
Earnings before income taxes			17,980				17,531				77,815				63,530
Provision for (recovery of) income taxes
	Current		3,968				4,323				19,280				17,804
	Deferred		833				463				1,505				(740	)
			4,801				4,786				20,785				17,064
Net earnings for the period		$	13,179			$	12,745			$	57,030			$	46,466
Net earnings attributable to non-controlling interest			195				108				550				306
Net earnings attributable to shareholders			12,984				12,637				56,480				46,160
Net earnings for the period		$	13,179			$	12,745			$	57,030			$	46,466
Earnings per share
Basic		$	0.18			$	0.17			$	0.77			$	0.63
Diluted		$	0.18			$	0.17			$	0.77			$	0.62

Consolidated Balance Sheet Data		As at January 31, 2013			As at April 30, 2012
Cash and instruments held for trading		$	224,315		$	185,669
Inventory		$	114,937		$	109,211
Working capital		$	355,652		$	325,677
Total assets		$	462,801		$	431,864
Shareholders' equity		$	409,690		$	378,417
Number of common shares outstanding:
	Basic		73,574,766			73,225,786
	Fully -diluted		78,239,966			77,904,086
Weighted average number of shares outstanding:
	Basic		73,190,057			73,612,759
	Fully -diluted		73,707,805			73,812,767

Forward-Looking Statements

The report contains forward-looking statements reflecting Evertz's objectives, estimates and expectations. Such forward looking statements use words such as "may", "will", "expect", "believe", "anticipate", "plan", "intend", "project", "continue" and other similar terminology of a forward-looking nature or negatives of those terms.

Although management of the Company believes that the expectations reflected in such forward-looking statements are reasonable, all forward-looking statements address matters that involve known and unknown risks, uncertainties and other factors. Accordingly, there are or will be a number of significant factors which could cause the Company's actual results, performance or achievements, or industry results to be materially different from any future results performance or achievements expressed or implied by such forward-looking statements.

Conference Call

The Company will hold a conference call with financial analysts to discuss the results on March 5, 2013 at 5:00 p.m. (EDT). Media and other interested parties are invited to join the conference call in listen-only mode. The conference call may be accessed by dialing 1-416-849-6166 or toll-free (North America) 1-866-250-6267.

For those unable to listen to the live call, a rebroadcast will also be available until April 4, 2013. The rebroadcast can be accessed at 1-416-915-1035 or toll-free 1-866-245-6755. The pass code for the rebroadcast is 820034.

About Evertz

Evertz Technologies Limited (TSX:ET) designs, manufactures and markets video and audio infrastructure solutions for the television, telecommunications and new-media industries. The Company's solutions are purchased by content creators, broadcasters, specialty channels and television service providers to support their increasingly complex multi-channel digital and high definition television ("HDTV") broadcast environments and by telecommunications and new-media companies. The Company's products allow its customers to generate additional revenue while reducing costs through the more efficient signal routing, distribution, monitoring and management of content as well as the automation of previously manual processes.

Contributing Sources

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