Topic: How To Invest

Hi Pat: Please provide your analysis and assessment of the long-term prospects for Evertz Technologies. Thank you.

Article Excerpt

Evertz Technologies Ltd., $17.11, symbol ET on Toronto (Shares outstanding: 74.2 million; Market cap: $1.3 billion; www.evertz.com), makes video and audio systems for telecommunications and other media industries. The company sells its hardware and software to content creators, broadcasters, specialty channels and TV service providers. Customers use it to support their complex digital and high definition television (HDTV) networks as well as their high-bandwidth Internet services. Customers have used Evertz’s hardware at events such as the Sochi Olympics in Russia, the FIFA World Cup, the Commonwealth Games and the U.S. midterm elections. Evertz products allow customers to generate additional revenue while reducing costs, by improving the efficiency of their signal routing, distribution, monitoring and content management. They can also automate some manual processes. In the three months ended January 31, 2016, Evertz’s revenue rose 10.0%, to $99.8 million from $90.7 million a year earlier. Earnings per share rose 17.9%, to $0.33 from $0.28. The company holds cash of $129.9 million, or $1.80…