Electronics Line 3000 Ltd.
Electronics Line 3000 Ltd.: Net profit after nine months increased significantly while revenue guidance for FY 2013 has been reduced
Electronics Line 3000 Ltd. / Key word(s): Quarter Results/Change in Forecast 21.11.2013 17:37 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Ad-hoc release according to Section 15 WpHG Electronics Line 3000 Ltd.: Net profit after nine months increased significantly while revenue guidance for FY 2013 has been reduced - Revenues after nine months increased to US$ 13.1 million (9 months 2012: US$ 11.3 million) in line with expectations for the period - Gross profit of US$ 5.5 million (9 months 2012: US$ 4.7 million) at a stable margin of 42% - Net profit of US$ 2.9 million (9 months 2012: US$ 1.7 million), including tax income of around US$ 1.1 million - Net cash provided by operating activities improved to US$ 2.1 million (9 months 2012: US$ 0.4 million) - Shareholders' equity on September 30, 2013 increased to US$ 6.6 million (December 31, 2012: US$ 3.7 million) - Outlook adjusted, revenues of ca. US$ 16 million expected for FY 2013 Rishon LeZion, Israel (November 21, 2013) - Electronics Line 3000 Ltd. ('the Company' or 'Electronics Line') (XETRA: ELN), a global provider of wireless security with remote management solutions, today announces the results for the first nine months of 2013 ('Reporting Period'). While net profit climbed to US$ 2.9 million in the Reporting Period due to tax income of US$ 1.1 million, 16% increase in sales and lower financing costs in consequence of a reorganized loan structure, the Company had to adjust its revenue guidance for fiscal 2013. Due to lower than expected order volumes in the last quarter of 2013 and adverse general market conditions, revenues are likely to decrease in Q4 2013. The Company therefore lowered its revenue guidance by approximately 10% and now expects sales of approximately US$ 16 million for fiscal 2013. In the Reporting Period, the Company's revenues amounted to US$ 13.1 million, compared to revenues of US$ 11.4 million during the same period last year. The gross profit increased from US$ 4.7 million in the first nine months of the previous year to US$ 5.5 million in the Reporting Period. The gross profit margin remained stable at the high level of 42%. Due to the fact, that the Company's shareholders approved an amendment to the Management services agreement with the parent company (Risco Ltd.), which included an increase of the annual payments from US$ 0.3 million to US$ 0.8 million, retrospective as of January 1, 2013, General and Administrative expenses rose to US$ 1.6 million during the Reporting Period (9M 2012: US$ 1.2 million). Tax income in total amount of US$ 1.1 million was recorded in the Reporting Period, principally for tax loss carry forwards. During the last 12 months, the Company repaid loans in a total amount of US$ 0.6 million and successfully reorganized its loan structure. As a result, the company's financing costs decreased significantly, which in turn led to a decline of the overall financial expenses. In sum, the net profit for the Reporting Period amounted to US$ 2.9 million, compared to a net profit of US$ 1.7 million in the respective period 2012. The Company's cash and cash equivalents as of September 30, 2013 (hereafter: 'the Reporting Date') were US$ 2.6 million, compared to US$ 0.8 million on December 31, 2012. Shareholders' equity on the Reporting Date amounted to US$ 6.6 million, corresponding to an equity ratio of 68%, compared to US$ 3.7 million (52%) as at December 31, 2012. In the Reporting Period net cash provided by operating activities amounted to US$ 2.1 million compared to US$ 0.4 million during the respective nine months period last year. The reviewed interim report for the first nine months of 2013 will be available on November 27, 2013, on the Company's website at www.electronics-line.com in the investors section. For more information please contact: Ms. Sari Ellenberg investor.relations@electronics-line.com --------------------------------------------------------------------------- Information and Explaination of the Issuer to this News: About Electronics Line (EL): EL is a pioneer in next-generation security solutions for the residential and small commercial markets. The Company designs and produces cutting-edge solutions for security and control of living and working environments. The EL line provides comprehensive security protection, as well as sophisticated system and home management functionality, for optimal comfort, safety and peace of mind. This new industry standard is further upgraded with enhanced remote management capabilities that give homeowners instant access to their system from anywhere in the world. Upgrading Everyday Security EL solutions enable new levels of control and maintenance in protected sites through the ELAS, a proprietary remote management server. The Company enjoys a unique market position in supplying ELAS-governed systems for the home and workplace, which provide the multiple benefits of a virtual security presence, convenient home automation, and energy efficiency, all customized by the end-user and/or the service provider. EL's wireless solutions offer enhanced detection and PSTN/IP/GSM/GPRS-based event reporting, along with advanced remote management tools. The back-office support and customized branding of EL solutions provide superior security with significant business benefits and market expansion potential. Global Partnerships Nearly three decades of cutting-edge leadership have earned EL a solid market position, allowing users worldwide to benefit from EL's ongoing development of upgraded security solutions. The Company maintains long-term partnerships worldwide. EL has made emerging technology, user-friendly design and exceptional quality the benchmarks for serving its international network of clients and partners. Drawing on a tradition of pioneering expertise, EL specialists also provide security integration consultancy, installation service, training and technological support. EL was established in 1982 and is headquartered in Israel. The Company is publicly traded on the Frankfurt Stock Exchange (ELN) and is part of the RISCO Group, an established leader in the international security market. Disclaimer: This release contains forward-looking statements, which express the current beliefs and expectations of management. Such statements involve a number of known and unknown risks and uncertainties that could cause the Company's future results, performance or achievements to differ significantly from those expressed or implied by such forward-looking statements. A number of these risks and other factors that might cause differences, some of which could be material, along with additional discussion of forward-looking statements, are set forth in the Company's Annual Report and its other filings and releases. Forward-looking statements speak only as of the date on which they are made and the Company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. Contact: For more information please contact: Investor Relations Sari Ellenberg investor.relations@electronics-line.com 21.11.2013 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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