Evertz Technologies Limited (ET) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good afternoon, ladies and gentlemen, and welcome to the Everts Q3 2025 conference call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. I would now like to turn the conference over to Brian Campbell, Executive Vice President of Business Development. Please go ahead. Thank you, Andrew. Good afternoon, everyone, and welcome to Ebert's Technologies conference call for our fiscal 2025 third quarter and January 31st, 2025, with Doug Moore, Ebert's Chief Financial Officer, and myself, Brian Campbell. Please note that our financial press release and MD&A will be available on CDAR and on the company's investor website. Doug and I will comment on the financial results and then open the call to your questions. Turning now to Everett's results, I will begin by providing a few highlights and then Doug will provide additional details. First off, sales for the first quarter, for the third quarter, totaled $136.9 million, up 9% sequentially from the prior quarter and 1% year over year. Revenue included $99.1 million in the U.S.-Canada region up 23% sequentially. Recurring software services and other software revenues increased 6.3% year-over-year, totaling $55 million in the quarter. Our base is well diversified, with the top 10 customers accounting for approximately 48% of sales during the quarter, with no single customer accounting for over 10% of sales. In fact, we had 115 customer orders of over $200,000 in the quarter. Gross margin in the quarter was $79.1 million, or 57.8%, which is within our target range. Investment in research and development during the quarter totaled $36.6 million. Net earn...