BURLINGTON, ONTARIO -- (Marketwire) -- 03/05/13 --

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 

Selected Financial Information                                              
Consolidated Statement of Earnings Data                                     
(in thousands of dollars, except per share amounts)                         
                                                                            
                                                          Q3 '13      Q3 '12
                                                      ----------  ----------
                                                      ----------  ----------
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
                                                      ----------  ----------
                                                      ----------  ----------
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

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.

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.