Attention Business/Financial Editors:

Burlington, Ontario--(Newsfile Corp. - September 14, 2026) - Evertz Technologies Limited (TSX: ET), the leader in Software Defined Video Network ("SDVN") technology, today reported its results for the first quarter ended July 31, 2026.

First Quarter 2027 Highlights

• Revenue of $118.3 million, an increase from $112.1 million in the prior year.
• Revenue to the US and Canada was $79.9 million an increase of $0.5 million or 1% from prior year
• Order Backlog of $259 million as at August 31, 2026, a 9% sequential increase from May 31, 2026
• Gross Margin of 58.6%
• Earnings from operations of $11.0 million
• Net earnings of $8.0 million
• Fully diluted earnings per share of $0.10 for the quarter

Selected Financial Information
Consolidated Statement of Earnings Data
(in thousands of dollars, except earnings per share and share data)

Selected Financial Information
Consolidated Balance Sheet Data
(in thousands of dollars)

Revenue
For the quarter ended July 31, 2026, revenues were $118.3 million, an increase of $6.1 million compared to revenues of $112.1 million for the quarter ended July 31, 2025. For the quarter, revenues in the United States/Canada region were $79.9 million an increase of $0.5 million compared to $79.5 million in the same quarter last year. The International region had revenues of $ 38.3 million, compared to $32.7 million in the same quarter last year.

Gross Margin
For the quarter ended July 31, 2026, gross margin was $69.3 million as compared to $68.8 million in the same quarter last year. Gross margin percentage was approximately 58.6% as compared to 61.4% in the quarter ended July 31, 2025.

Earnings
For the quarter ended July 31, 2026, net earnings were $8.0 million as compared to $11.9 million in the corresponding period last year.

For the quarter ended July 31, 2026, earnings per share on a fully-diluted basis were $0.10 as compared to $0.15 in the corresponding period last year.

Operating Expenses
For the quarter ended July 31, 2026, selling and administrative expenses were $19.9 million as compared to $18.6 million for the quarter ended July 31, 2025.

For the quarter ended July 31, 2026, gross research and development expenses were $38.5 million as compared to $37.0 million for the quarter ended July 31, 2025.

Liquidity and Capital Resources
The Company's working capital as at July 31, 2026 was $131.4 million as compared to $131.7 million on April 30, 2026.

Cash, net of bank indebtedness, was $2.5 million as at July 31, 2026 as compared to $19.1 million on April 30, 2026.

Cash generated from operations was $0.8 million for the quarter ended July 31, 2026 as compared to $33.5 million cash generated for the quarter ended July 31, 2025. Before taking into account taxes and the changes in non-cash working capital and current taxes, the Company generated $16.8 million from operations for the quarter ended July 31, 2026 compared to $16.8 million for the same period last year.

For the quarter, the Company used $2.1 million for investing activities, which was principally driven by the acquisition of capital assets of $ 1.8 million and business acquisitions of $0.2 million.

For the quarter ended July 31, 2026, the Company used cash in financing activities, net of bank indebtedness, of $16.8 million which was principally driven by dividends paid of $15.5 million and lease payments of $1.0 million.

Shipments and Backlog
At the end of August 2026, purchase order backlog was in excess of $259 million and shipments during the month of August 2026 were $30 million.

Dividend Declared
Evertz Board of Directors declared a regular quarterly dividend on September 14, 2026 of $0.205 per share.

The dividend is payable to shareholders of record on September 24, 2026 and will be paid on or about October 1, 2026.

Selected Consolidated Financial Information
(in thousands of dollars, except earnings per share and percentages)

Forward-Looking Statements

The report contains forward-looking statements reflecting Evertz's objectives, estimates and expectations. Such forward looking statements use words such as "may", "will", "expect", "believe", "anticipate", "plan", "intend", "project", "continue" and other similar terminology of a forward-looking nature or negatives of those terms.

Although management of the Company believes that the expectations reflected in such forward-looking statements are reasonable, all forward-looking statements address matters that involve known and unknown risks, uncertainties and other factors. Accordingly, there are or will be a number of significant factors which could cause the Company's actual results, performance or achievements, or industry results to be materially different from any future results performance or achievements expressed or implied by such forward-looking statements.

Conference Call

The Company will hold a conference call with financial analysts to discuss the results on
September 14, 2026 at 5:00 p.m. (EDT). Media and other interested parties are invited to join the conference call in listen-only mode. The conference call may be accessed by dialing 289-514-5100 or toll-free (North America) 1-800-717-1738.

For those unable to listen to the live call, a rebroadcast will also be available until
October 14, 2026. The rebroadcast can be accessed at 289-819-1325 or toll-free 1-888-660-6264. The pass code for the rebroadcast is 74313 #.

About Evertz

Evertz Technologies Limited (TSX: ET) designs, manufactures and markets video and audio infrastructure solutions for the production, post-production and transmission of video content. The Company's solutions are purchased by the television broadcast, telecommunications, professional audio-visual, content creator, advanced education, government, military, enterprise, and new media sectors to support increasingly complex multi-channel digital and high-definition, Ultra HD, and high dynamic range formats and next generation high bandwidth low latency IP network environments. The Company's products allow its customers to generate additional revenue while reducing costs through efficient, highly reliable and secure signal routing, distribution, monitoring and management of content as well as the automation and orchestration of more streamlined and agile workflow processes on premise and in the "Cloud".

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/314281

Source: Evertz Technologies Limited