Electronics Line 3000 Ltd.
Electronics Line 3000 Ltd.: Significant Improvement of Profitability in H1 2012
Electronics Line 3000 Ltd. / Key word(s): Half Year Results/Forecast 14.08.2012 23:19 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- - Sales increased to US$ 8.7 million (H1 2011: adjusted* US$ 8.1 million) - Gross profit margin vastly improved to 44.8% (H1 2011: adjusted* above 24.4%) - Net profit of US$ 1.8 million, including other income of US$ 0.4 million (H1 2011: adjusted* net loss of US$ 0.4 million) - Outlook for 2012 confirmed, with results for H2 2012 expected approximately at the H1 2012 level (after deducting other income included in the H1 2012 results) Rishon LeZion, Israel (August 14, 2012) - Electronics Line 3000 Ltd. ('the Company' or 'Electronics Line') (XETRA: ELN), a global provider of wireless security with remote management solutions, today published the financial results for the first six months of 2012. In the first half of 2012 ('Reporting Period') the Company was able to significantly increase its gross profit margin and thus to achieve a considerably higher profit than in the comparable period of last year. Financial Highlights - The Company's revenues in the Reporting Period amounted to US$ 8.7 million compared to adjusted* revenues of US$ 8.1 million during H1 2011. The increase in revenues was mainly due to acquiring new customers and increasing the activity in the existing markets. - The gross profit in the Reporting Period amounted to US$ 3.9 million (45% from sales) compared to adjusted* US$ 2.0 million (24% from sales) in the comparable period of the previous year. During H1 of 2012, the Company benefitted from the implementation of several streamlining measures, which had a positive effect on the Company's financial results. The major improvement of the gross margin was due to the Company's decision to outsource its production activities to sub-contractors. Additionally, during the period, new high margin products were launched, from which the Company expects positive effects on the financial results in the upcoming quarters. The gross margin for H1 2011 was affected by an increase in provision of slow moving inventory in the total amount of US$ 330,000. - The Company's operating profit amounted to US$ 2.0 million during the Reporting Period, compared to an operating loss of US$ 0.2 million (adjusted*) in the comparable period of last year. - The Company ended the Reporting Period with a net profit of US$ 1.8 million (including other income of around 0.4 million) compared to an adjusted* loss of US$ 0.4 million for the comparable period of last year. - During the Reporting Period, net cash provided by operating activities was US$ 298,000 compared to US$ 724,000 provided by operating activities during the comparable period of last year. - The Company's cash and cash equivalents as at June 30, 2012 were US$ 0.9 million, compared to US$ 1.7 million as at December 31, 2011. The reduction is mainly due to loans repayment in the amount of US$ 0.6 million and cash used in investing activities in total amount of US$ 0.4 million. - The Company's inventories as at June 30, 2012 were US$ 3.1 million compared to US$ 1.4 million as at December 31, 2011. The increase of inventory is in line with the Company's strategy to increase its inventory availability. - Shareholders' equity as at June 30, 2012 amounted to US$ 4.3 million, corresponding in an equity ratio of 46%, compared to US$ 2.5 million (29%) as at December 31, 2011 and US$ 1.5 million, or 13%, as at June 30, 2011. Currently, the Company believes that it will achieve its 2012 financial targets and expects that group sales will amount to approximately US$ 20 million this year with expected H2 2012 results approximately at the H1 2012 level after deducting other income, which was included in the H1 results. However, in view of the economic difficulties in many European markets and the continuing recession in southern Europe, the Company also realizes, that there are risks for the development of sales in those countries. More detailed information on whether this forecast is achieved will not be available until the end of the third quarter at the earliest, as economic uncertainties prevail in the major markets of the Company. * Adjustments for comparison are due to the sale of a subsidiary in November 2011 --------------------------------------------------------------------------- Information and Explaination of the Issuer to this News: The full reviewed financial report for the first six months of 2012 will be published on August 21, 2012 on the Company's website at www.electronics-line.com in the investors section. For more information please contact: Investor Relations Sari Ellenberg investor.relations@electronics-line.com 14.08.2012 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: Electronics Line 3000 Ltd. 14 Hachoma St. 75655 Rishon LeZion Israel Phone: 00972 3 9181333 Fax: 00972 3 9616 584 E-mail: investor.relations@electronics-line.com Internet: www.electronics-line.com ISIN: IL0010905052 WKN: A0B5R7 Indices: DAXsector All Technology, DAXsector Technology, DAXsubsector All Communications Technology, DAXsubsector Communications Technology , Prime All Share, Technology All Share Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, München End of Announcement DGAP News-Service ---------------------------------------------------------------------------
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