Message #46 From:
TheMachine Date: January 2, 2009 08:28:28 AM
ARTX Stock News : Arotech Corporation Reports Results for the Third Quarter and First Nine Months, 2008
Company Has Break Even Results for the Third Quarter, as Revenues Increase 24% Over the Same Period Last Year
ANN ARBOR, MI -- (Marketwire) -- 11/11/08 -- Arotech Corporation (NASDAQ: ARTX), a
provider of quality defense and security products for the military, law
enforcement and security markets, today reported results for the quarter
and nine months ending September 30, 2008.
Third Quarter Results
Revenues for the third quarter reached $19.2 million, compared to $15.5
million for the corresponding period in 2007, an increase of 24.4% over the
same period last year.
Gross profit for the quarter was $5.7 million, or 29.8% of revenues,
compared to $4.4 million, or 28.3% of revenues, for the corresponding
period in 2007.
The net loss for the third quarter was $(44,000), or $(0.00) per share,
versus a loss of $(783,000), or $(0.06) per share, for the corresponding
period last year.
"During the third quarter our Armor and Battery Divisions were able to get
back on track with their production and deliveries, while our Simulation
Division continued its strong performance in what is shaping up to be a
record year for that division, enabling us to break even in the third
quarter," noted Arotech's Chairman and CEO Robert S. Ehrlich. "We hope to
continue this positive performance during the remainder of 2008," concluded
Ehrlich.
First Nine Months Results
Revenues for the first nine months reached $45.1 million, compared to $40.0
million for the corresponding
period in 2007, an increase of 12.7% over the same period last year.
Gross profit for the nine months was $11.8 million, or 26.2% of revenues,
compared to $12.2 million, or 30.6% of revenues, for the corresponding
period in 2007.
The net loss for the first nine months was $(3.0) million, or $(0.24) per
share, versus $(4.0) million, or $(0.35) per share, for the corresponding
period last year.
Backlog
Backlog of orders totaled approximately $41.7 million as of September 30,
2008, as compared to $50.9 million at September 30, 2007.
Cash Position at Quarter End
As of September 30, 2008, the Company had $1.6 million in cash, $163,000 in
restricted collateral securities and restricted held-to-maturity securities
due within one year, and $54,000 in available-for-sale marketable
securities, as compared to December 31, 2007, when the Company had $3.4
million in cash, $320,000 in
restricted collateral deposits, $1.5 million in an escrow receivable, and
$47,000 in available-for-sale marketable securities. Cash was invested in
the Company's Armor Division and a pay down of its working capital bank
line.
Short term bank borrowings were $2.8 million at the end of the third
quarter 2008 compared to $4.6 million at the end of 2007.
The Company had trade receivables of $13.9 million as of September 30,
2008, compared to $14.6 million as of December 31, 2007. The Company had a
current ratio (current assets/current liabilities) of 1.98, up from the
December 31, 2007 current ratio of 1.93.
Conference Call
Those wishing to access the conference call should dial 1-888-300-2335
(U.S.) or 1-719-325-2280
(international) a few minutes before the 9:00 a.m. ET start time. The
confirmation code is 2182343. A replay of the conference call will be
available starting Wednesday, November 12, 2008 at 11:00 a.m. until Friday,
November 14, 2008 at 12:00 p.m. The replay telephone number is
1-888-203-1112 (U.S) and
1-719-457-0820 (international). The replay passcode is: 2182343
About Arotech Corporation
Arotech Corporation is a leading provider of quality defense and security
products for the military, law
enforcement and homeland security markets. Arotech provides multimedia
interactive simulators/trainers,
lightweight armoring and advanced zinc-air and lithium batteries and
chargers. Arotech operates through three major business divisions: Armor,
Training and Simulation, and Batteries and Power Systems.
Arotech is incorporated in Delaware, with corporate offices in Ann Arbor,
Michigan and research, development and production subsidiaries in Alabama,
Michigan and Israel.
Except for the historical information herein, the matters discussed in this
news release include forward-looking statements, as defined in the Private
Securities Litigation Reform Act of 1995. Forward-looking statements
reflect management's current knowledge, assumptions, judgment and
expectations regarding future performance or events. Although management
believes that the expectations reflected in such statements are reasonable,
readers are cautioned not to place undue reliance on these forward-looking
statements, as they are subject to various risks and uncertainties that may
cause actual results to vary materially. These risks and uncertainties
include, but are not limited to, risks relating to: product and technology
development; the uncertainty of the market for Arotech's products; changing
economic conditions; delay, cancellation or non-renewal, in whole or in
part, of contracts or of purchase orders; dilution resulting from issuances
of Arotech's common stock upon conversion or payment of its outstanding
convertible debt, which would be increasingly dilutive if and to the extent
that the market price of Arotech's stock decreases; and other risk factors
detailed in Arotech's most recent Annual Report on Form 10-K for the fiscal
year ended December 31, 2007, as amended, and other filings with the
Securities and Exchange Commission. Arotech assumes no obligation to update
the information in this release. Reference to the Company's website above
does not constitute incorporation of any of the information thereon into
this press release.
TABLE TO FOLLOW
AROTECH CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Nine months ended Three months ended September 30, September 30, -------------------------- -------------------------- 2008 2007 2008 2007 ------------ ------------ ------------ ------------ Revenues $ 45,074,091 $ 40,011,014 $ 19,216,509 $ 15,453,124 Cost of revenues, exclusive of amortization of intangibles 33,256,814 27,764,509 13,484,314 11,079,269 Research and development 1,231,530 1,413,852 398,658 491,597 Selling and marketing expenses 3,290,499 2,999,226 1,003,504 905,725 General and administrative expenses 10,025,658 9,221,310 3,199,878 3,309,628 Amortization of intangible assets 1,362,251 1,481,764 377,230 307,871 Escrow adjustment - credit (1,448,074) - - - ------------ ------------ ------------ ------------ Total operating costs and expenses 47,718,678 42,880,661 18,463,584 16,094,090 ------------ ------------ ------------ ------------ Operating income (loss) (2,644,587) (2,869,647) 752,925 (640,966) Other income 670,483 75,452 11,334 6,333 Financial expenses, net (341,632) (707,225) (288,680) (80,412) ------------ ------------ ------------ ------------ Income (loss) before minority interest in earnings of a subsidiary, earnings from affiliated company and income tax expenses (2,315,736) (3,501,420) 475,579 (715,045) Income tax expenses (386,690) (298,193) (374,862) (123,287) Loss from affiliated company (261,207) (139,725) (145,121) (27,546) Minority interest in loss (earnings) of subsidiaries - (27,402) - 82,929 ------------ ------------ ------------ ------------ Net loss $ (2,963,633) $ (3,966,740) $ (44,404) $ (782,949) ============ ============ ============ ============ Basic and diluted net loss per share $ (0.24) $ (0.35) $ (0.00) $ (0.06) ============ ============ ============ ============ Weighted average number of shares used in computing basic net loss per share 12,595,987 11,315,676 12,604,715 12,161,564 ============ ============ ============ ============
