MIRA
INFORM REPORT
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Report Date : |
09.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
VIZ R.T. LTD. |
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Registered Office : |
P.O. Box 10, Shefayim 60990 |
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Country : |
Israel |
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Date of Incorporation : |
2.5.1994 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Developers, exporters and marketers of software that enables the
creation and distribution of rich visual content for broadcast graphics, virtual
environments and quantitive visualization and information display across
networks that are delivered to different media platforms, including
television, interactive television, and wireless application protocol. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name
VIZ R.T. LTD.
P.O. Box 10
SHEFAYIM 60990 ISRAEL
Telephone 972 9 955 22 36
Fax 972 9 955 22
39
HISTORY
A private limited company, incorporated as per file No. 51-196896-8 on
2.5.1994.
In 1999 published a prospectus offering its shares to the public and on
4.11.1999 converted into a public limited company and registered as such as per
File No. 52-004434-8.
Originally established under the name PIXEL CONTROL LTD, which changed
to R.T-SET REAL TIME SYNTHESIZED ENTERTAINMENT TECHNOLOGY LTD, which changed to
the present name on 12.1.2001.
SHARE CAPITAL
Authorized share capital NIS 15,000,000.00 divided into- 136,500
deferred shares, 149,863,500 ordinary shares, all of NIS 0.01 each, of which
shares amounting to NIS 617,396.73 were issued.
SHAREHOLDERS
The FIDELITY FUND, 10%,
ORKALA, 10%,
ABN AMRO, 8%,
Odin Forvaltning AS, 5%,
POWE CAPITAL MANAGEMENT U.K., 5%,
Raidar Michaelson, 4%,
Svein Ove Strommen, 4%,
Bjarne Berg, 3%,
Yaron Sheiman, 3%,
Subject’s employees and several other private and public investors,
Shares are also traded on the Frankfurt Stock Exchange and the Oslo List
Stock Exchange (symbol: VIZ).
DIRECTORS
Svein Ove Strommen, - Chairman,
Yaron Sheiman,
Raidar Michaelson,
Ms. Dalia Rabin,
Gerhard Heiberg,
Bjorn Olafson,
Bjarne Berg.
JOINT GENERAL MANAGERS
1. Menahem (Chemmy) Polak,
2. Bjarne Berg, of Norway.
BUSINESS
Developers, exporters and marketers of software that enables the
creation and distribution of rich visual content for broadcast graphics,
virtual environments and quantitive visualization and information display
across networks that are delivered to different media platforms, including
television, interactive television, and wireless application protocol.
Subject’s products and solutions which combine high-definition (HD) and
standard-definition (SD) real-time 2D and true 3D broadcast graphics and Asset
Management Systems, used by major broadcast television networks around the
world.
Among subject’s clients: CBS, CNN, VH-1, HBO, SKY T.V., BUENA VISTA
TELEVISION, AT&T, China Central Television (CCTV), ZDF, ITN, NHK, STAR TV,
HOT, YES (later 2 are in Israel), etc.
Operating from office premises, on an area of 750 sq. meters (rented) in
Kibbutz Shefayim (north of Herzliya) and offices in the U.S.A, Austria, Sweden,
the U.K, India and Australia.
Having 340 employees (of which 40 are in Israel).
MEANS
In the beginning of November 1999 subject issued 3.5 million shares (2.5
million new ones and 1 million were sold by existing shareholders), for trading
on the Neuer Stock Exchange, Frankfurt, thus raising a sum of US$ 47.2 million.
In May 2005, subject raised US$ 6 million in issuing shares via the Oslo
Stock Exchange, following which it was also listed for trade in the Oslo Stock
Exchange.
Consolidated B/S shows:
US$
(thousands)
30.06.2007 31.12.2006
ASSETS
Current Assets
Cash and cash equivalents 30,726 16,358
Short term deposit 16,827 21,833
Trade receivables, net 18,314 12,664
Other accounts receivable and prepaid
expenses 3,020 2,898
Inventory _1,957 _1,942
70,844 55,695
Total long term
investments 2,093 1,979
Property and
equipment, net 2,818 2,352
Intangible
assets, net 13,919 15,474
Goodwill _23,731 _23,498
113,405 98,998
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LIABILITIES
Current
liabilities 21,977 16,285
Long-term
liabilities 5,505 5,773
Shareholder's
equity _85,923 76,940
113,405 98,998
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Current market value € 99.5 million.
There are no charges registered on the company’s assets.
ANNUAL SALES
Consolidated Statement
of Income
US$
(thousands)
Year
ended 31.12
2004 2005 2006
Revenues 28,558 38,803 63,365
Gross profit 19,946 27,204 43,051
Operating income 4,139 5,958 11,772
Income before tax on income 4,299 5,976 12,988
Net income 4,237 6,037 11,583
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Consolidated revenues for the first half of 2007 were US$ 41,189,000
(50% increase comparing to the parallel period in 2006), making a gross profit
of US$ 28,251,000, an operating income of US$ 7,432,000, and a net profit of
US$ 7,027,000.
BANKERS
Bank Hapoalim Ltd., Rehovot Branch (No. 615), Rehovot, account No.
53355.
A check with the Central Banks' database did not
reveal any negative information regarding subject's a/m account.
OTHER COMPANIES
Wholly owned subsidiaries:
VIZRT INC., of the U.S.A,
PEAK BROADCAST SYSTEM INC., of the U.S.A,
RT-SET, of the Netherlands,
PEAK BROADCAST SYSTEMS PLC, of Ireland,
PEAK BROADCAST SYSTEMS AS, of Norway,
PEAK SOFTWARE TECHNOLOGIES, of Austria,
VIZRT LTD, of the U.K.,
ARDENDO AB, of Sweden,
VIZRT (THAILAND) LIMITED, of Thailand,
VIZRT SPORTS SARL, of Switzerland.
CHARACTER AND REPUTATION
Nothing unfavorable learned.
In July 2000 subject acquired full control of PEAK BROADCAST SYSTEMS
LTD., of Norway, in a US$ 53 million stock exchange transaction. In
consideration of the entire share capital of PEAK subject allocated PEAK’s shareholders
26.5% of subject’s shares.
Following the acquisition, subject merged all PEAK’s activities into
those of subject’s.
PEAK BROADCAST SYSTEMS was an international supplier of on-air broadcast
graphics systems. PEAK’s revenues were US$ 5.5 million in 1999 and US$ 7
million in the first half of 2000.
In 2005 subject acquired software company CURIOUS SOFTWARE CO. LTD. of
the UK in consideration of US$ 9 million.
In May 2006 subject completed the acquisition of Swedish firm ARDENDO,
developers of "Asset Management" software allowing broadcast channels
to show archive data in real time, in a shares swap deal in value of US$ 23
million.
In October 2007 it was reported that subject is ranked 45th
in The DELOITTE "Technology Fast50", which ranks the fastest
technology companies in Israel.
According to the Israel Association of Electronics & Software, 2006
sales of the IT and electronics industries amounted to US$ 18.7 billion, of which
US$16 billion were for export, which is half of Israel's industrial export.
In comparison, 2005 sales were US$16.6 billion (a 6% increase from
2004), whereas exports in 2005 were US 14.2 billion (a 6% increase from 2004).
The division of sales whithin the branches is approximately as follows:
circa 24% Software, 23% Communications and Telecom (inclusive military), around
18% Industrial Equipment, over 13% Defense Systems, over 13% Components and
close to 9% Medical Systems.
From the Israel Export Institute data, it turns out that export of
software in 2006 reached US$ 3.65 billion, up from US$ 3.36 billion in 2005 and
US$ 3 billion in 2004. The projected export of software in 2007 will sum up to
US$ 3.9 billion according to the estimation by the Industrialists' Association,
while software sales to the local market expected to rise by 9% from 2006 to
US$ 1.2 billion.
Division of software export: 40% to the USA, 30% to Europe and 30% to
the rest of the world.
Software was developed and sold by more than 3,000 companies, the
highest concentration of hi-tech companies in the world, second only to the
Silicone Valley, USA. There are some 2,000 start-up companies operating in the
software and IT branches. That includes 90 start-ups that were closed in the
recent year and some 140 that were opened.
There are some 60,000 employees serving in the IT and Electronics
sectors directly.
SUMMARY
Good for trade engagements.
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)