Second Quarter Highlights
June 30, (U.S. dollars in thousands)
-------------------------------------
2006 2005
----------------- ------------------
Net Sales $5,706 $4,446
Net Loss $ 344 $ 225
Net Income (Loss) before
amortization and stock based
compensation $ 21 $ (71)
Elbit Vision Systems, Ltd. (OTCBB:EVSNF), a leading provider of automatic optical inspection and quality non-destructive ultrasound inspection systems, today announced its consolidated financial results for the first half and second quarter ended June 30, 2006.
Financial Results
Revenues for the first half of 2006 were $9,758,000, an increase of 14% compared with $8,589,000 in the first half of 2005. Revenues for the second quarter of 2006 were $5,706,000 an increase of 28% compared with $4,446,000 in the second quarter of 2005.
Revenues for the first half and for the second quarter of 2006 from the sale of Automatic Optical Inspection systems and services were $4,718,000 and $1,916,000 respectively compared with $3,099,000 and $1,428,000 in the same periods in 2005. Revenues for the first half and for the second quarter of 2006 from the sale of non-destructive ultrasound inspection systems and services were 5,040,000 and $3,790,000 respectively compared with $5,490,000 and $ 3,018,000 in the same periods in 2005.
Net loss for the first half of 2006 was $1,433,000, or $0.052 per share, compared to a net loss of $342,000, or $0.013 per share, for the first half of 2005. Net loss for the second quarter of 2006 was $344,000, or $0.012 per share, compared to a net loss of $225,000, or $0.009 per share, for the second quarter of 2005.
Excluding amortization related to acquisitions and stock based compensation, the Company recorded net income of $21,000 in the second quarter of 2006, compared with a net loss of $71,000 in the second quarter of 2005.
Comments of Management
Commenting on this latest financial report, Mr. David Gal EVS' Chairman said: "We are pleased with the fact that our sales have increased during the first half and the second quarter of 2006. During the past year we have invested our resources building our marketing and service infrastructure in the emerging markets of Asia and Russia and the best evidence that we are on the right path are the significant new orders of our products, which have been recently announced. Over the past few months we have been focusing on adjusting our cost level following completion of a recent acquisition. We believe that the positive momentum in generating new orders together with efficient operational cost controls will enable us to keep improving our operational results."
About Elbit Vision Systems Ltd. (EVS): www.evs.co.il
EVS offers a broad portfolio of automatic in-line inspection and quality monitoring systems used to improve product quality and increase production efficiency. The Company's Industrial Division provides automatic optical inspection (AOI) and non-destructive ultrasound inspection systems for heavy manufacturing (automotive, aeronautics, steel and others). EVS maintains headquarters and manufacturing in Israel, R&D operations in Israel, and offers global sales and support coverage.
Safe Harbor:
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.
This press release and other releases are available on www.evs.co.il
ELBIT VISION SYSTEMS LTD.
CONSOLIDATED BALANCE SHEETS
Jun-30 Dec-31
------------------- --------
2006 2005 2005
--------- --------- --------
------------------- --------
U.S. dollars in thousands
(except per share data)
----------------------------
Assets
CURRENT ASSETS:
Cash and cash equivalents 635 476 886
Restricted deposit (short term) 1,766 1,961 1,810
Accounts receivable:
Trade 3,810 1,842 3,600
Other 1,374 1,275 1,148
Inventories 4,219 5,107 4,559
--------- --------- --------
Total current assets 11,804 10,661 12,003
--------- --------- --------
LONG-TERM RECEIVABLES:
Severance pay fund 1,785 1,485 1,633
Other long-term receivables 154 205 180
--------- --------- --------
Total long-term receivables 1,939 1,690 1,813
--------- --------- --------
PROPERTY, PLANT AND
EQUIPMENT - net of
accumulated depreciation and
amortization 915 938 918
--------- --------- --------
OTHER ASSETS AND DEFERRED CHARGES -
net of accumulated amortization:
Goodwill 3,911 3,893 3,847
Other intangible assets 4,607 3,722 3,483
Deferred charges - 343 -
--------- --------- --------
8,518 7,958 7,330
--------- --------- --------
--------- --------- --------
Total assets 23,176 21,247 22,064
--------- --------- --------
Jun-30 Dec-31
--------------- -------
2006 2005 2005
------- ------- -------
--------------- -------
In thousands
-----------------------
Liabilities and shareholders' equity
CURRENT LIABILITIES:
Credit from banks 2,755 2,422 2,191
Current maturities of loan from shareholder 160 160 160
Credit from Cornell Capital Partners L.P. - 2,455 1,449
Accounts payable and accruals:
Trade 2,543 2,227 2,479
Deferred revenues 2,690 3,347 2,514
Other 4,657 4,684 5,114
------- ------- -------
Total current liabilities 12,805 15,295 13,907
------- ------- -------
LONG-TERM LIABILITIES:
Loans from Related Parties (net of current
maturities) 395 219 236
Loans and other liabilities (net of current
maturities) 2,106 182 1,626
Accrued severance pay 2,307 2,100 2,196
------- ------- -------
Total long-term liabilities 4,808 2,501 4,058
------- ------- -------
Total liabilities 17,613 17,796 17,965
------- ------- -------
SHAREHOLDERS' EQUITY (a) 5,563 3,451 4,099
------- ------- -------
Total liabilities and shareholders' equity 23,176 21,247 22,064
======= ======= =======
(a) After reduction of $1,168 shares held in escrow
ELBIT VISION SYSTEMS LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
Year
6 months ended 3 months ended ended
--------------- ---------------- --------
December
Jun-30 Jun-30 31,
--------------- ---------------- --------
2006 2005 2006 2005 2005
------- ------- ------- -------- --------
--------------- ---------------- --------
U.S. dollars in thousands
(except per share data)
-----------------------------------------
REVENUES 9,758 8,589 5,706 4,446 20,791
COST OF REVENUES 6,016 5,113 3,199 2,566 12,223
------- ------- ------- -------- --------
GROSS PROFIT 3,742 3,476 2,507 1,880 8,568
RESEARCH AND DEVELOPMENT
EXPENSES - net 1,647 1,005 815 399 2,193
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES:
Marketing and selling 2,076 1,652 1,241 930 3,765
General and administrative 1,115 949 562 618 1,565
------- ------- ------- -------- --------
OPERATING INCOME (LOSS) (1,096) (130) (111) (67) 1,045
FINANCIAL EXPENSES - net (392) (230) (285) (157) (471)
OTHER INCOME (EXPENSES) - net 56 18 53 (1) 41
------- ------- ------- -------- --------
INCOME (LOSS) BEFORE TAXES ON
INCOME (1,432) (342) (343) (225) 615
TAXES ON INCOME 1 - 1 - 4
------- ------- ------- -------- --------
INCOME (LOSS) FOR THE PERIOD (1,433) (342) (344) (225) 611
======= ======= ======= ======== ========
NON GAAP ITEMS:
AMORTIZATION DUE TO
ACQUISITIONS 392 308 196 154 548
STOCK BASED COMPENSATION
EXPENSES 318 - 169 - -
------- ------- ------- -------- --------
EARNING (LOSS) BEFORE
AMORTIZATION (723) (34) 21 (71) 1,159
======= ======= ======= ======== ========
EARNING (LOSS) PER SHARE -
BASIC (0.052) (0.013) (0.012) (0.009) 0.023
EARNING (LOSS) PER SHARE
- DILUTED (0.052) (0.013) (0.012) (0.0090) 0.021
WEIGHTED AVERAGE NUMBER
OF SHARES USED IN
COMPUTATION OF LOSS PER
SHARE
BASIC (IN THOUSANDS) 27,714 25,042 28,111 25,042 26,500
DILUTED (IN THOUSANDS) 27,714 25,042 28,111 25,042 28,421
