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EarningsQ1 2027 Earnings Report
TSE:ET Q1 2027 EPS Results
Actual EPSC$0.10
Consensus EPSC$0.14
Beat/MissMissed by -C$0.04
One Year Ago EPSC$0.15
TSE:ET Q1 2027 Revenue Results
Actual RevenueC$118.26M
Expected RevenueC$118.07M
Beat/MissBeat by +C$192.00K
YoY Revenue Growth+5.45%
Earnings Announcement Details
QuarterQ1 2027
Date09/14/2026
TimeAfter Close
Conference CallMonday, September 14, 2026
TSE:ET Upcoming Earnings
Evertz Technologies's next earnings date is estimated for December 2, 2026, based on past reporting schedules.
Q1 2027 Earnings Call Audio
No earnings call audio is available for this earnings event.
Q1 2027 Earnings Slide Deck
Q1 2027 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was predominantly positive. Revenue increased 5.5%, software and services revenue grew 14%, international revenue grew 17.5%, backlog and August shipments exceeded $289 million in total, and management cited strong order intake, product adoption and continued strategic investment. The principal concerns were the year-over-year gross margin decline, substantially lower cash balances due to inventory purchases, supply-chain delays during the quarter, higher stock compensation expense and a foreign exchange loss. Management nevertheless stated that margins were within target, supply constraints were not currently limiting shipments, tariffs were not materially affecting results, and it remained pleased with the quarter's performance.Company Guidance
Revenue Growth and Technology-Driven Demand
First-quarter sales totaled $118.3 million, up 5.5% from $112 million in the prior-year quarter. Management attributed the strong financial performance and combined shipments and purchase order backlog to channel and video services proliferation, increasing global demand for high-quality video, the transition to IP, IT and cloud-based architectures, and growing adoption of Evertz IP-based software-defined video networking and cloud solutions.
Software and Services Expansion
Software and services revenue increased 14% year-over-year to $58.9 million from $51.6 million and represented approximately 50% of total revenue, or 49.8% according to Brian Campbell. Management said the long-term increase reflects the evolution of hardware-only solutions into software solutions and the addition of more service level agreements.
International Revenue Growth
International revenue increased $4.6 million, or 17.5%, to $38.3 million from $32.7 million and represented 32% of total sales. Management said several international projects, particularly in Europe, were completed during the quarter.
Diversified Customer and Order Base
The top 10 customers accounted for approximately 49% of sales, with no single customer representing more than 10% of sales. The company received 87 customer orders exceeding $200,000 during the quarter.
Strong Backlog and August Shipments
At the end of August, purchase order backlog exceeded $259 million and August shipments were $30 million. Management reported that combined purchase order backlog plus August shipments totaled in excess of $289 million. The backlog increase was relatively broad-based, included some contracts in the $5 million to $10 million range, and was more hardware-driven, including government-related contracts.
Gross Margin Within Target Range
Quarterly gross margin was $69.3 million, or 58.6%. Although lower than 61.4% in the prior-year quarter, management stated that gross margin was within its target range and that margins remained healthy.
Continued Investment in Research and Development
Research and development investment totaled $38.5 million in the quarter, an increase of $1.5 million year-over-year. R&D represented 32.5% of revenue compared with 33% in the prior-year period. Management highlighted continued investment in software-defined IP, IT and cloud technologies.
Stable Selling and Administrative Expense Ratio
Selling and administrative expenses were $19.9 million, up $0.9 million year-over-year, while S&A expenses as a percentage of revenue improved slightly to approximately 16.8% from 16.9%. Sequentially, S&A expenses declined approximately $0.8 million from the fourth quarter.
Government and Defense Order Momentum
Government and defense sales represented between 5% to 6% of revenue during the quarter. Management reported strong order intake from government sales in August and said it was actively increasing its presence in Canada, while also maintaining a historically strong position in the U.S. government and defense community and, at times, NATO.
Supply Availability and Cost Pass-Through Position
Although the company experienced some delays in server receipts during the quarter, management said it was not currently experiencing part shortages or other supply constraints. Management also stated that component costs were not affecting margins at the moment, the company remained within its target range, and it did not forecast a decrease at this time.
Limited Current Tariff Impact
Management said tariffs were not materially impacting the company. The majority of products were described as currently protected by USMCA or otherwise not assessed with tariffs, and tariff exposure was not expected to materially affect the company's margin structure or U.S. growth at this time.
Product Adoption and Market Position
Management cited successful large-scale deployments of Evertz IP-based software-defined video networking and cloud solutions among major new media and broadcast customers, as well as continued success of the DreamCatcher Bravo IP-based replay and production suite. The company reported more than 600 industry-leading IP SDN deployments and a staff base of over 600 engineers and employees.
Dividend and Strategic Acquisition
The Board declared a regular quarterly dividend of $0.205 per share, payable on or about October 1. During the quarter, Evertz acquired a small AV integrator in the Ottawa region for $300,000.
AI Features Expected to Have Negligible Margin Effect
Management said that the costs associated with AI features embedded in software were expected to be relatively negligible and that the company did not change its margin profile based on whether products included AI.
TSE:ET Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed