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RRsat Reports Second Quarter 2012 Revenues

Stocks in this article: RRST

Guidance for the third quarter of 2012 calls for sequential revenue growth, with revenues coming in the range of $28.2 - $29.2 million. For the full year of 2012, revenues are expected to be in the range of $112 - $115 million. Management expects similar gross margin in the third quarter.

Dividend Distribution

On August 8, 2012, the Board of Directors declared a cash dividend in the amount of $0.10 per ordinary share, and in the aggregate amount of approximately $1.7 million. The dividend will be payable on September 5, 2012 to all of the Company's shareholders of record at the end of the trading day on the NASDAQ on August 20, 2012.

In accordance with Israeli tax law, the Company will withhold 25% of the dividend amount payable to each shareholder at source, subject to applicable exemptions. The Company's dividend policy is described in detail in its most recent Annual Report on Form 20-F for the year ended December 31, 2011.

Management Comment

Shlomo Shamir, Chairman of RRsat commented, "The second quarter showed improvement in many parameters, particularly in the margins which reached their highest levels in two years. We met our top line targets in the quarter and we grew our revenues sequentially, despite significant negative currency effects. Most significantly our capital expenditures have substantially declined compared with last year. This has had a very positive impact and has allowed us to generate almost $10 million in free cash flow in the past 9 months since our major infrastructure investments ended. Given our strong backlog, we maintain good visibility into the coming quarters even against the background of a weaker global economy. Finally, after the close of the second quarter, we welcomed Avi Cohen to RRsat as the new CEO, replacing David Rivel. I very much look forward to Avi's contributions in the coming quarters and I would like to thank David for leading RRsat's growth and development over the many years."  

Avi Cohen, CEO of RRsat commented, "I am privileged to join RRsat and impressed by the people, technical capabilities and state-of-the-art infrastructure. While there are always business challenges, I believe RRsat is in a strong position to leverage its infrastructure to capture and develop new business. I look forward to working with this talented team, at a company with such potential."

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