Elbit Vision Systems Ltd. Announces Second Quarter 2004 Financial Results
YOKNEAM, Israel--Aug. 1, 20042, 2004--Elbit Vision Systems Ltd. (OTCBB: EVSNF.OB) today announced consolidated financial results for the second quarter ended June 30, 2004.Revenues for the second quarter of 2004 were $2.4 million compared to $1.8 million for the second quarter of 2003, and $0.8 million for first quarter of 2004. Revenues for the quarter include approximately $0.3 million related sales of the products of EVS' majority-owned subsidiary, Yuravision Co. Ltd. for the month of June. Net loss for the second quarter of 2004 was $0.52 million or $0.03 per share, compared to net loss of $0.24 million, or $0.02 per share for the second quarter of 2003, and $0.89 million or $0.06 per share for the first quarter of 2004.
Research and Development expenses for the second quarter of 2004 were $0.65 million compared to $0.45 million for the second quarter of 2003, and $0.26 million for first quarter of 2004. Sales and Marketing expenses for the second quarter of 2004 were $0.93 million compared to $0.39 million for the second quarter of 2003, and $0.42 million for first quarter of 2004.
The Company completed the quarter with cash, cash equivalents and short-term investments of $2 million. Non-operating disbursements totaled approximately $0.75 million, as a result of an investment in Yuravision, a South Korean company, in which EVS has acquired a majority stake.
Commenting on the results, Yaky Yanay, CFO of EVS said: "Our second quarter revenues were in line with our expectations and reflect the recovery in business conditions throughout the primary industries we serve. Following the completion of the second phase of our acquisition of Yuravision, we became active in the microelectronic and display manufacturing technology space. We expect to expand our business and revenues in those industries as our products continue to gain traction in the market.
He continued, "Following completion of our acquisition of the ScanMaster group, we expect our revenues for the third quarter will increase by more than 50% compared to the second quarter. We anticipate continued growth going forward as a result of the further successful implementation of our growth strategy. We plan to continue working to penetrate new markets through the introduction of new products, as well as to continue to pursue strategic acquisitions that will enhance our presence in the markets we serve while contributing to our financial performance"
About Elbit Vision Systems:
Elbit Vision Systems Limited designs, develops, manufactures, markets and supports automatic optical inspection and quality monitoring systems for the industrial web and microelectronic industries. The Company's product lines improve product quality and increase production efficiency in the textile, automotive, non-woven, plastics, wafer and LCD industries.
Forward looking statements in this release with respect to the Company's business, financial condition and results of operations are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward looking statements, including, but not limited to, product demand, pricing, market acceptance, changing economic conditions, risks in product and technology development, the effect of the Company's accounting policies as well as certain other risk factors which are detailed from time to time in the Company's SEC filings.
The transaction described in the press release attached is subject to the satisfaction of any conditions to effectiveness contained in any definitive documentation. Furthermore, risks associated with the transaction include (i) any difficulties encountered in the adaptation of EVS' business to accommodate new industrial applications, which may affect the timing and quality of production; and (ii) conditions in the market for the sales of new applications, as a result of which the results of any acquisition may vary from those anticipated.
(Tables to Follow)
ELBIT VISION SYSTEMS LTD.
CONDENSED CONSOLIDATED BALANCE SHEET
AT JUNE 30, 2004
IN U.S. DOLLARS
June 30 December 31
2004 2003 2003
(Unaudited) (Audited)
In thousands
Assets
CURRENT ASSETS:
Cash and cash equivalents 1,517 1,508 1,789
Restricted deposit 506 - 537
Accounts receivable:
Trade 1,887 348 1,021
Other 927 809 620
Inventories 3,426 2,920 3,139
-------- -------- --------
Total current assets 8,263 5,585 7,106
-------- -------- --------
LONG-TERM RECEIVABLES:
Funds in respect of employee rights
upon retirement 534 568 622
Other long-term receivables 112 79 99
-------- -------- --------
Total long-term receivables 646 647 721
-------- -------- --------
PROPERTY, PLANT AND
EQUIPMENT, net of accumulated
depreciation and amortization 705 494 414
-------- -------- --------
OTHER ASSETS -
net of accumulated amortization 1,520 - -
-------- -------- --------
Total assets 11,134 6,726 8,241
======== ======== ========
June 30 December 31
2004 2003 2003
(Unaudited) (Audited)
In thousands
Liabilities and shareholders' equity
CURRENT LIABILITIES:
Credit from banks 828 236 1,006
Current maturities of loan from shareholder 181 442 160
Accounts payable:
Trade 1,189 886 651
Deferred revenues 693 631 355
Other 3,375 2,906 2,427
-------- -------- -------
Total current liabilities 6,266 5,101 4,599
-------- -------- -------
LONG-TERM LIABILITIES:
Loans from banks and shareholder - net of
current maturities:
From shareholder 369 - 287
From banks 197 - -
Liability for employee rights upon
retirement 912 683 979
-------- -------- -------
Total long-term liabilities 1,478 683 1,266
-------- -------- -------
Total liabilities 7,744 5,784 5,865
-------- -------- -------
SHAREHOLDERS' EQUITY:
Share capital 2,594 1,208 1,856
Receipt on account of shares to be
allotted 320 - 140
Warrants 496 - 267
Additional paid-in capital 19,940 17,785 18,662
Accumulated deficit (19,960)(18,051) (18,549)
-------- -------- -------
3,390 942 2,376
-------- -------- -------
Total liabilities and shareholders' equity 11,134 6,726 8,241
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ELBIT VISION SYSTEMS LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE SIX AND THREE-MONTH PERIODS ENDED JUNE 30, 2004
IN U.S. DOLLARS
6 months 3 months Year
ended ended ended
June 30 June 30 December 31,
2004 2003 2004 2003 2003
(Unaudited) (Unaudited) (Audited)
U.S. dollars in thousands
(except per share data)
REVENUES 3,232 3,661 2,402 1,840 6,328
COST OF REVENUES 1,866 1,866 1,137 1,017 3,748
------ ------ ------ ------- --------
GROSS PROFIT 1,366 1,553 1,265 823 2,580
------ ------ ------ ------- --------
RESEARCH AND DEVELOPMENT
EXPENSES - net 907 793 647 452 1,431
SELLING AND MARKETING
EXPENSES 1,355 783 932 385 1,598
GENERAL AND ADMINISTRATIVE
EXPENSES 576 462 269 201 637
------ ------ ------ ------- --------
OPERATING LOSS (1,472) (485) (583) (215) (1,086)
FINANCIAL INCOME (EXPENSES) -
net (46) 4 (40) (9) 60
OTHER INCOME (EXPENSES) - net 110 - 104 - 47
------ ------ ------ ------- --------
LOSS BEFORE TAXES
ON INCOME (1,408) (481) (518) (224) (979)
TAXES ON INCOME 3 3 2 3
------ ------ ------ ------- --------
LOSS FOR THE PERIOD (1,411) (484) (521) (224) (982)
====== ====== ====== ======= ========
LOSS PER SHARE - BASIC AND
DILUTED 0.09 0.05 0.03 0.02 0.1
====== ====== ====== ======= ========
WEIGHTED AVERAGE NUMBER
OF SHARES USED IN
COMPUTATION OF LOSS PER
SHARE
BASIC AND DILUTED (IN
THOUSANDS) 15,313 10,167 15,313 10,167 10,175
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