2008-08-11 02:00:00
Elbit Vision Systems Announces Record Revenue for the Second Quarter of 2008
Second quarter revenues reach $6.3 million, up 18% over last year
Second Quarter 2008 Highlights - Record revenues reach $6.3 million, up 18%
over second quarter, last year.
- On track and reiterate 2008 revenue guidance; expecting revenues of $25-
26 million
QADIMA, Israel, Aug. 11 /EMWNews/ -- Elbit Vision Systems
Ltd. (OTC Bulletin Board: EVSNF), a global leader in the field of automatic
in-line optical web inspection and quality monitoring systems, today
announced its consolidated financial results for the three month period
ended June 30, 2008.
Second Quarter 2008 Results:
Revenues for the second quarter of 2008 totaled $6.3 million, an
increase of 18% compared to $5.4 million for the second quarter of 2007.
Gross profit on a GAAP basis totaled $2.9 million, representing 46% of
revenues, compared with $2.7 million or 50% of revenues for the second
quarter of 2007. Gross profit on a non-GAAP basis for the second quarter of
2008 totaled $3 million, representing 48% of the Company's revenues,
compared with $2.8 million in the second quarter of 2007, or 52% of
revenues. Gross margins were below those of the same period a year ago due
to the product mix, as well as increased material costs and a substantially
weakened US dollar.
Operating loss on a GAAP basis was $172 thousand compared with an
operating income of $381 thousand in the second quarter of 2007. Operating
profit on a non-GAAP basis for the second quarter of 2008 totaled $29
thousand, compared with $598 thousand in the second quarter of 2007.
Operating expenses in the quarter increased primarily due the decrease in
the value of the Company's reporting currency, the US dollar, against the
Israeli shekel in which a significant portion of the Company's expenses are
generated.
Net loss on a GAAP basis for the second quarter of 2008 was $557
thousand, compared to a net loss of $14 thousand in the second quarter of
2007. Net loss per basic share on a GAAP basis was $0.011. Net loss on a
non-GAAP basis for the second quarter of 2008 was $356 thousand, compared
to a net profit of $318 thousand in the second quarter of 2007. Net loss
per basic share on a non-GAAP basis was $0.007.
EBITDA for the second quarter of 2008 totaled $75 thousand, compared to
$642 thousand in the second quarter of 2007.
David Gal, Chairman and CEO of EVS commented, "Our second quarter
revenues grew in line with our expectations, and we saw strong demand
particularly for ultrasonic solutions. However, our expenses this quarter
were higher than our original expectations due to a number of factors
beyond our control. These included the continued weakening of the US dollar
against the Israeli Shekel, as well as higher material costs. As I had
planned and discussed last quarter, we have now taken a number of steps to
reduce our expenses, and as we move into the third quarter and beyond, we
expect to realize a lower expense level."
"Looking ahead and based on our current backlog and pipeline, we are on
target and maintain our expectations of revenues between $25-26 million for
the year. We do expect to return to operating profitability, and expect to
reach an operating margin by year-end of around 8 percent."
Conference Call
Management will be hosting a conference today, August 11, 2008, at 9am
Eastern Time. On the call, management will review and discuss the results,
and will be available to answer investor questions.
To participate, please call one of the following teleconferencing
numbers. Please begin placing your calls a few minutes before the
conference call commences.
US Dial-in Number: 1 866 345 5855
UK Dial-in Number: 0 800 404 8418
ISRAEL Dial-in Number: 03 918 0688
INTERNATIONAL Dial-in Number: +972 3 918 0688
At: 9:00am Eastern Time, 6:00am Pacific Time, 4:00pm Israel Time, 2pm
UK time
For those unable to listen to the live call, a replay of the call will
be available from three days after the call from a link in the investor
relations section of the Company's website.
Use of Non- GAAP Financial Measures
EVS believes that both non-GAAP financial measures are better principal
indicators of the operating and financial performance of its business. The
non-GAAP numbers exclude mainly the non-cash equity-based compensation
charges recorded in accordance with SFAS 123R as well as associated with
purchase price allocation charges. Please see below for more details.
About Elbit Vision Systems Ltd. (EVS)
EVS offers a broad portfolio of automatic State-of-the-Art Visual and
Ultrasonic Inspection Systems for both in-line and off-line applications,
and quality monitoring systems used to improve product quality, safety, and
increase production efficiency. EVS' systems are used by over 600
customers, many of which are leading global companies. The headquarters,
manufacturing and R&D of EVS are all located in Israel. A worldwide Sales
and Service network supports markets as well as systems already installed,
in Asia, Europe, Africa, Australia and the Americas.
This press release and other releases are available on http://www.evs-sm.com
Safe Harbor Statement
This press release contains forward-looking statements. Such statements
are subject to certain risks and uncertainties, such as market acceptance
of new products and our ability to execute production on orders, which
could cause actual results to differ materially from those in the
statements included in this press release. Although EVS believes that the
expectations reflected in such forward-looking statements are based on
reasonable assumptions, it can give no assurance that its expectations will
be achieved. EVS disclaims any intention or obligation to update or revise
any forward- looking statements, which speak only as of the date hereof,
whether as a result of new information, future events or otherwise. EVS
undertakes no obligation to update forward-looking statements to reflect
subsequently occurring events or circumstances.
Use of Non-GAAP financial measures
Reconciliation between results on a GAAP and Non-GAAP basis is provided
in a table immediately following the Condensed Interim Consolidated
Statements of operations. Non-GAAP financial measures consist of GAAP
financial measures adjusted to exclude amortization of acquired intangible
assets. The purpose of such adjustments is to give an indication of our
performance exclusive of non- GAAP charges and other items that are
considered by management to be outside of our core operating results. Our
non-GAAP financial measures are not meant to be considered in isolation or
as a substitute for comparable GAAP measures, and should be read in
conjunction with our consolidated financial statements prepared in
accordance with GAAP.
Our management regularly uses our supplemental non-GAAP financial
measures internally to understand, manage and evaluate our business and
make operating decisions. We believe that these non- GAAP measures help
investors to understand our current and future performance, especially as
our two most recent acquisitions have resulted in amortization and non-cash
items that have had a material impact on our GAAP profits. These non-GAAP
financial measures may differ materially from the non-GAAP financial
measures used by other companies. Reconciliation between results on a GAAP
and non-GAAP basis is provided in a table immediately following the
consolidated statements of operations.
EVS uses EBITDA as a non-GAAP financial performance measurement. EBITDA
is calculated by adding back to net income interest, taxes, depreciation,
amortization. EBITDA is provided to investors to complement results
provided in accordance with GAAP, as management believes the measure helps
illustrate underlying operating trends in the Company's business and uses
the measure to establish internal budgets and goals, manage the business
and evaluate performance. EBITDA should not be considered in isolation or
as a substitute for comparable measures calculated and presented in
accordance with GAAP. A reconciliation of EBITDA to GAAP measures is
included in the financial tables accompanying this press release.
Company Contact Information: Investor Relations Contacts:
Yaron Menashe, CFO CCGK Investor Relations
Tel: +972 9 8661 601 Kenny Green / Ehud Helft
[email protected] Tel: 1 646 201 9246
[email protected]
FINANCIAL TABLES FOLLOW
ELBIT VISION SYSTEMS LTD.
CONDENSED CONSOLIDATED BALANCE SHEET
AT JUNE 30, 2008
IN U.S. DOLLARS
Jun-30 Dec-31
2008 2007 2007
U.S. dollars in thousands
(except per share data)
Assets
CURRENT ASSETS:
Cash and cash equivalents 337 368 2,189
Restricted deposit 581 771 540
Accounts receivable:
Trade 5,878 3,939 4,738
Other 1,090 958 1,428
Inventories 5,823 4,905 5,299
Total current assets 13,709 10,941 14,194
LONG-TERM RECEIVABLES:
Severance pay fund 1,844 1,495 1,623
Other long-term receivables 244 658 231
Total long-term receivables 2,088 2,153 1,854
PROPERTY, PLANT AND
EQUIPMENT - net of
accumulated depreciation and
amortization 452 564 490
OTHER ASSETS -
net of accumulated amortization:
Goodwill 3,673 3,529 3,529
Other intangible assets 3,115 3,763 3,439
6,788 7,292 6,968
Total assets 23,037 20,950 23,506
Jun-30 Dec-31
2008 2007 2007
U.S. dollars in thousands
(except per share data)
Liabilities and shareholders' equity
CURRENT LIABILITIES:
Credit from banks 5,658 6,021 4,967
Current maturities of loan from Related
Parties - 442 -
Accounts payable:
Trade 3,634 2,847 3,220
Deferred revenues 766 1,357 2,082
Other 2,782 3,686 2,629
Total current liabilities 12,840 14,353 12,898
LONG-TERM LIABILITIES:
Loans and other liabilities (net of
current maturities) 867 - 1,000
Loans from Related Parties(net of
current maturities) - 566 -
Accrued severance pay 2,278 1,809 2,008
Total long-term liabilities 3,145 2,375 3,008
Total liabilities 15,985 16,728 15,906
SHAREHOLDERS' EQUITY 7,052 4,222 7,600
Total liabilities and shareholders'
equity 23,037 20,950 23,506
6 months ended 3 months ended year ended
Jun-30 Jun-30 December 31,
2008 2007 2008 2007 2007
U.S. dollars in thousands
(except per share data)
REVENUES 12,394 10,419 6,316 5,366 21,863
COST OF REVENUES 6,629 5,376 3,395 2,679 11,308
GROSS PROFIT 5,765 5,043 2,921 2,687 10,555
RESEARCH AND DEVELOPMENT
EXPENSES - net 2,200 1,359 1,110 734 3,313
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES:
Marketing and selling 2,865 2,272 1,548 1,181 4,885
General and
administrative 881 676 435 391 1,338
OPERATING INCOME (LOSS) (181) 736 (172) 381 1,019
FINANCIAL EXPENSES - net (492) (684) (353) (333) (1,081)
WRITE OFF OF DISCOUNT ON
CONVERTIBLE LOAN ASSOCIATED
WITH BENEFICIAL CONVERSION
FEATURE - - - - (1,047)
OTHER EXPENSES - net (31) (65) (31) (64) (230)
LOSS BEFORE TAXES ON INCOME (704) (13) (556) (16) (1,339)
TAXES ON INCOME 8 1 (2) 3
LOSS FOR THE PERIOD (712) (13) (557) (14) (1,342)
LOSS PER SHARE BASIC (0.014) (0.011) (0.034)
LOSS PER SHARE DILUTED (0.014) (0.011) (0.034)
WEIGHTED AVERAGE NUMBER
OF SHARES USED IN
COMPUTATION OF LOSS PER
SHARE:
BASIC (IN THOUSANDS) 50,951 30,534 50,982 31,552 39,393
DILUTED (IN THOUSANDS) 50,951 30,534 50,982 31,552 39,393
Reconciliation Table of Non-GAAP Measures
U.S. dollars in thousands
Three months ended Year ended
June 30, December 31,
2008 2007 2007
Gross income as reported $2,921 $2,687 $10,555
Non GAAP adjustment:
Depreciation and amortization 124 124 496
Equity-based compensation
charges 7 6 38
Non-GAAP Gross income $3,052 $2,817 $11,089
Three months ended Year ended
June 30, December 31,
2008 2007 2007
Operating income (loss) as
reported $(172) $381 $1,019
Non GAAP adjustment:
Depreciation and amortization 167 167 668
Equity-based compensation
charges 34 50 216
Non-GAAP Operating income $29 $598 $1,903
Three months ended Year ended
June 30, December 31,
2008 2007 2007
Net loss as reported $(557) $(14) $(1,342)
Depreciation and amortization 167 167 668
Equity-based compensation
charges 34 82 287
Write off of discount on
convertible loan
associated with beneficial
conversion feature - 83 1,213
Non-GAAP Net income (loss) $(356) $318 $826
Three months ended Year ended
June 30, December 31,
2008 2007 2007
Net loss as reported $(557) $(14) $(1,342)
Non GAAP adjustment:
Financial expenses, net 353 218 844
Taxes on income 1 -2 3
Depreciation and amortization 213 211 891
Equity-based compensation
charges 34 82 287
Other expenses, net 31 64 230
Write off of discount on
convertible loan
associated with beneficial
conversion feature - 83 1,213
EBITDA $75 $642 $2,126
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