Evertz Technologies Third Quarter Fiscal 2013 Earnings Per Share Up 6%

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

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-- 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

Selected Financial Information

Consolidated Statement of Earnings Data

(in thousands of dollars, except per share amounts)

Q3 '13 Q3 '12

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Revenue $ 71,771 $ 71,445

Gross margin 40,272 40,162

Earnings from operations 17,108 17,357

Net earnings 13,179 12,745

Fully-diluted earnings per share $ 0.18 $ 0.17

Selected Financial Information

Consolidated Balance Sheet Data

(in thousands of dollars)

Q3 '13 YE '12

---------- ----------

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Cash and instruments held for trading $ 224,315 $ 185,669

Working capital 355,652 325,677

Total assets 462,801 431,864

Shareholders' equity 409,690 378,417

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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 6th 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.

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Selected Consolidated Financial Information

(Unaudited)

(in thousands of dollars, except earnings per share and share data)

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Three month period Nine month period ended

ended January 31, January 31,

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2013 2012 2013 2012

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Revenue $ 71,771 $ 71,445 $ 250,890 $ 217,060

Cost of goods sold 31,499 31,283 106,103 93,675

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Gross margin 40,272 40,162 144,787 123,385

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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)

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23,164 22,805 68,551 60,583

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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)

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Earnings before income taxes 17,980 17,531 77,815 63,530

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Provision for (recovery of)

income taxes

Current 3,968 4,323 19,280 17,804

Deferred 833 463 1,505 (740)

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4,801 4,786 20,785 17,064

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Net earnings for the period $ 13,179 $ 12,745 $ 57,030 $ 46,466

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Net earnings attributable to

non-controlling interest 195 108 550 306

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Net earnings attributable to

shareholders 12,984 12,637 56,480 46,160

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Net earnings for the period $ 13,179 $ 12,745 $ 57,030 $ 46,466

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Earnings per share

Basic $ 0.18 $ 0.17 $ 0.77 $ 0.63

Diluted $ 0.18 $ 0.17 $ 0.77 $ 0.62

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Consolidated Balance Sheet Data As at January

31, As at April

2013 30, 2012

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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

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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.

Contact:

Evertz Technologies Limited

Anthony Gridley

Chief Financial Officer

(905) 335-7580

ir@evertz.com

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