MIRA INFORM REPORT

 

 

Report Date :

18.10.2012

 

IDENTIFICATION DETAILS

 

Name :

VIZ R.T. LTD.

 

 

Formerly Known As :

R.T-SET REAL TIME SYNTHESIZED ENTERTAINMENT TECHNOLOGY LTD.

 

 

Registered Office :

P.O. Box 10, Commercial Center, Shefayim 6099000      

 

 

Country :

Israel

 

 

Financials (as on) :

30.06.2012

 

 

Date of Incorporation :

02.05.1994

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Developers, exporters and marketers of tools for the digital media industry ( 3D graphics & maps, integrated video workflow solutions, online publishing tools, etc.)

 

 

No. of Employees :

580 employees (Group)

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

No Complaints

Litigation :

Clear

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Israel

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

israel - ECONOMIC OVERVIEW

 

Israel has a technologically advanced market economy. It depends on imports of crude oil, grains, raw materials, and military equipment. Cut diamonds, high-technology equipment, and agricultural products (fruits and vegetables) are the leading exports. Israel usually posts sizable trade deficits, which are covered by tourism and other service exports, as well as significant foreign investment inflows. The global financial crisis of 2008-09 spurred a brief recession in Israel, but the country entered the crisis with solid fundamentals - following years of prudent fiscal policy and a resilient banking sector. The economy has recovered better than most advanced, comparably sized economies. In 2010, Israel formally acceded to the OECD. Natural gasfields discovered off Israel's coast during the past two years have brightened Israel's energy security outlook. The Leviathan field was one of the world's largest offshore natural gas finds this past decade. In mid-2011, public protests arose around income inequality and rising housing and commodity prices. The government formed committees to address some of the grievances but has maintained that it will not engage in deficit spending to satisfy populist demands.

 

Source : CIA

 

 


Company name & address

 

VIZ R.T. LTD.

Telephone 972 9 955 22 36

Fax           972 9 955 22 39

P.O. Box 10

Commercial Center

SHEFAYIM                          6099000         ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-196896-8 on the 02.05.1994.

 

In 1999 published a prospectus offering its shares to the public on the Oslo Stock Exchange, and on 04.11.1999 converted into a public limited company and registered as such as per File No. 52-004434-8.

 

Originally registered 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 12.01.2001.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 800,365.00, divided into:-

              79,900,000 ordinary shares (66,086,978 shares issued),

              136,500 deferred shares, all of NIS 0.01 each,

of which shares amounting to NIS 660,869.78 were issued.

 

 

SHAREHOLDERS

 

1.      FSN CAPITAL III (via DOROTHY HOLDING AB), 16.04%, a buyout Nordic Fund, controlled by Frode Strand-Nielsen,

2.      FERD AS INVEST, 9.05%,

3.      ORKALA, 8.89%,

4.      ODIN FORVALTNING AS, 5.35%,

5.      Subject’s employees and several other private and executives, 4.15%,

6.      Shares are also traded on the Oslo List Stock Exchange (symbol: VIZ).

 

Note: In May 2009 subject de-listed its shares from the Frankfurt Stock Exchange.

 

 

DIRECTORS

 

1.      Dag J. Opedal, Chairman,

2.      Thomas Falck,

3.      Ms. Janne T. Morstøl,

4.      Bjørn Olafsson,

5.      Odd Jonny Winge,

6.      Frode Strand-Nielsen,

7.      Ms. Tali Aben.

 

 

GENERAL MANAGER

 

Martin Burkhalter.

 

 

BUSINESS

 

Developers, exporters and marketers of tools for the digital media industry ( 3D graphics & maps, integrated video workflow solutions, online publishing tools, etc.).

 

Subject's products revenue in 2011: Broadcast Graphics 77%, Media Asset Management (MAM), 15%, Online Publishing Tools (ONL), 8%.

 

Sales are to 3,500 TV channels and several hundreds of newspapers in 90 countries, as well as production houses and corporate institutions

 

Among subject’s clients: CNN, CBS, FOX, BBC, SKY, ITN, ZDF, STAR TV, NETWORK 18, TV TODAY, CCTV, NHK, THE GLOBE AND MAIL, THETELEGRAPH, WELT ONLINE, HOT CABLE TV, YES SATELLITE TV (latter 2 are in Israel), New York Stock Exchange, London Stock Exchange, and many more.

 

Sales distribution is (2011): Europe, the Middle East and Africa - 55%, Americas - 22%, Asia-Pacific - 23%.

 

Operating from premises (office, development facilities), in Commercial Center, Kibbutz Shefayim (north of Herzliya). Headquarters are in Bergen, Norway, and offices in 37 countries.

 

Having 580 employees in the Group.

 

 

MEANS

 

In 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)

                                                                                             30.06.2012            31.12.2011

ASSETS

Current assets

     Cash and short term deposit                                                         68,984                 72,444

     Other financial assets                                                                        400                     165

     Trade receivables, net                                                                   30,154                 27,088

     Other accounts receivable and prepaid expenses                            3,116                   2,711

     Inventory                                                                                    _  3,478               _  3,235

                                                                                                      106,132               105,643

 

Non-current assets                                                                              3,097                   3,248

Property and equipment, net                                                               5,143                   5,019

Intangible assets, net                                                                          9,355                 11,409

Goodwill                                                                                         _28,985               _36,849

                                                                                                      152,712               162,168

                                                                                                    =======             =======

 

LIABILITIES

Current liabilities                                                                                37,905                 34,600

Non-current liabilities                                                                           2,657                   2,802

Shareholders' equity                                                                        112,150               124,766

                                                                                                      152,712               162,168

                                                                                                    =======             =======

 

 

Current market value NOK 1.255 billion.

 

Accrued orders as of 08.08.2012 US$ 48.5 million.

 

There are no charges registered on the company’s assets.

 

 

REVENUES

                                                                                  Consolidated Statement of Income

                                                                                                  US$ (thousands)

                                                                                                Year ended 31.12

                                                                                         2009              2010                2011

Revenues                                                                         85,604           105,613          125,342

 

Gross profit                                                                      50,437             65,829            82,841

 

Operating income (loss)                                                    (7,971)               5,966            18,489

 

Income (loss) before tax on income                                   (8,206)               6,178            19,200

 

Net income (loss)                                                              (6,365)               4,459            15,969

                                                                                      ======           ======        =======

 

 

Consolidated revenues for the first 6 months of 2012 were US$ 61,862,000 (2.9% increase comparing to the parallel period in 2011), making a gross profit of  US$ 40,975,000, an operating income of US$ 83,000, and a net loss of US$ 2,235,000.

 

 

OTHER COMPANIES

 

VIZRT INC., 100%, US

PEAK BROADCAST SYSTEMS AS, 100%, Norway

VIZRT AUSTRIA GMBH, 100%, Austria

VIZRT UK, 100%, UK

ARDENDO AB, 100%, Sweden

VIZRT SPAIN & PORTUGAL S.L., 100%, Spain

VIZRT (THAILAND) LIMITED, 100%, Thailand

VIZRT SWITZERLAND SARL, 100%, Switzerland

VIZRT INDIA PRIVATE LIMITED, 100%, India

VIZRT CIS, LLC (RUSSIA), 100%, Russia

VIZRT AUSTRALIA PTY LTD., 100%, Australia

VIZRT FINANCE SARL, 100%, Switzerland

VIZRT SWEDEN AB, 100%, Sweden

VIZRT USA LLC, 100%, US

VIZRT NORWAY HOLDINGS AS, 100%, Norway

VIZRT ARGENTINA SA, 100%, Argentina

ESCENIC AS, 100%, Norway

ESCENIC ASIA, 100%, Bangladesh

ADACTUS AS, 100% Norway

LIBEROVISION AG, 100% Switzerland

VIZRT (BEIJING) TECHNOLOGY LTD., 100% China

STERGEN HI-TECH LTD., 24% Israel.

 

 

BANKERS

 

Bank Hapoalim Ltd., Hagalim Branch (No. 584), Herzliya.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

Subject is among the world leading companies in their field.

 

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.

 

In July 2010 subject completed the acquisition of 71% of ADACTUS AS, a Norwegian SW company offering solutions for content delivery to mobile terminals.

In October 2010, subject announced collaboration with STERGEN HI-TEC, a developer of 2D to stereoscopic 3D video conversion software content production.

 

In June 2011 subject acquired 60% of LIBEROVISION AG, for CHF 7 million, and in March 2012 acquired further 20%. In 2012 subject will complete the share acquisition and reach full ownership.

 

The global economic crisis which erupted in the last third of 2008 adversely affected the global electronics and hi-tech markets and in-turn, hit the local electronics industry. Nevertheless, local companies in the Electronics and Software branches in general have proven ability to withstand light of the crisis, much given the fact that global electronics sector begun recovery since mid 2009. According to the Israel Association of Electronics & Software, hi-tech industries sales in 2011 reached US$ 24.825 billion, up from US$ 23.5 billion in 2010, US$ 22.85 billion in 2009 and US$ 21.25 billion in 2008.

2011 sales divided into export of US$ 20.97 billion (US$19.9 billion and US$ 19.45 billion in 2010 and 2009, respectively) and US$ 3.855 billion sales to the local market (US$ 3.6 billion and US$ 3.4 billion in 2010 and 2009, respectively).

 

The division of companies by production within the branches in 2011 was: 23% Civilian Communications & Telecommunications, 22% Software, 18% Industrial Equipment, 16% Defense Systems, 14% Components and 7% Medical Systems.

Division of export: 30% to North America, 29% to Asia, 27% - Europe, 13% to the rest of the world.

Breakdown of export in 2011 showed 3.4% increase in Electronic Components & Computers, and 3.9% increase in Communications, Medical & Scientific Equipment.

68,000 employees were serving in the Electronics sectors, and 83,000 in the software sectors.

 

 


SUMMARY

 

Good for trade engagements.

 

Note: Since the beginning of 2012 Israel Post started using a new area code method of 7 digits (the old method of 5 digits will still be valid till end of 2012).

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.52.75

UK Pound

1

Rs.85.08

Euro

1

Rs.69.04

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

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

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

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

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

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.