Evertz Technologies delivered another strong quarter of revenue and earnings growth, driven by solid before quarter bookings. Company reported revenues of $97.9 million (which is increased by 53% year-over-year), well ahead of our and consensus estimates of $92.4 million and $91.6 million, in that order. Gross margins increased 70 basis points quarter over quarter to 57.0%, though were little lower than our estimate of 57.5%. This is in-line with prior management targets of 56% to 60%. The EPS remained $0.26 while adj. EPS of $0.28 remained well ahead of our and consensus estimates of $0.24. We also see that revenues from United States raised by 70% year-over-year, Canada dropped by 10% year-over-year while global markets rose by 52% year-over-year.
We expect company perseveres to raise market share on key product launches (which are DreamCatcher and EXE/IPX ethernet SDVN). August shipments along with backlog remained short of expectations, telling us that many deals are going bigger and including some quarterly bad finish. We also noticed that shipments in August increased by backlog of $71 million ($25 million shipped increased by $46 million backlog) was lower than our $79 million estimate, although ahead of L3Y historical average of $66 million. The number of customer orders more than $200,000 came in increased at 86 in first quarter, with no single customer indicating higher than 6% of revenues.
Evertz maintained $102 million of net cash and equivalents ($100 million in fourth quarter) and generated $12.8 million in free cash flows. We believe the firm should create $90 million from operations exclusive of working capital needs in fiscal year 2015 estimates ($70 million to $80 million free cash flows). We expect these levels are sufficient to sustain moderate hikes in the quarterly dividend later this fiscal year and organic growth initiatives.
We believe that Evertz is an innovative technological leader and is growing faster than industry growth as they capitalize on R&D investments and increase their portrayed markets. As of now company’s stocks are trading 15 times 2015 estimated price to earnings multiple, or 13.9 times of on a cash-adjusted basis. We maintain “Outperform” rating with price target of C$22.