Electronics Line 3000 Ltd.
Electronics Line 3000 Ltd.: Decrease in revenues resulted in net loss in FY 2014
Electronics Line 3000 Ltd. / Key word(s): Final Results
Decrease in revenues resulted in net loss in FY 2014
– Revenues decreased to US$ 12.2 million in FY 2014 (2013: US$ 16.5 million) – Gross profit margin dropped from 42% to 32% – Net loss of US$ 2.2 million (2013: net profit of US$ 2.9 million) – Net cash outflow by operating activities of US$ 1.5 million (2013: inflow of US$ 1.7 million) – Distribution agreement with parent company Risco extended – Stabilization expected in FY 2015 Rishon LeZion, Israel (March 31, 2015) – 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 and the annual report for fiscal year 2014 (“Reporting Period”). Ongoing economic weakness in major sales markets as well as delayed product launches resulted in a significant sales reduction and a net loss of USD 2.2 million. Looking ahead to the current business year, the Company expects a stabilization in the revenue line in light of the territorial expansion of the distribution agreement with parent company Risco, in accordance with its terms. Financial Highlights – The Company’s revenues in the Reporting Period amounted to US$ 12.2 million, a significant drop of approx. 26% compared to revenues of US$ 16.5 million during the 12 months’ period ended at December 31, 2013. The decrease in revenues is attributed to the weak economic growth in major sales markets as well as delayed product launches. – The gross profit for the Reporting Period therefore amounted to US$ 3.9 million (gross profit margin: 32%) compared to US$ 7.0 million (gross profit margin: 42%) in 2013. In addition to unfavorable currency effects, the margin decrease resulted from a low-margin deal with a major customer in H2 2014. – Shrinking revenues and reduced profitability resulted in a net loss of US$ 2.2 million in the Reporting Period, compared to a net profit of US$ 2.9 million for FY 2013. Whereas the Company recorded a tax income of approx. US$ 1.1, deriving from tax loss carry forwards, in 2013, tax expenditure amounted to US$ 1.4 million in the Reporting Period, significantly contributing to the net loss. In contrast, selling and marketing expenses as well as administrative expenses and research and development costs decreased in parallel to the reduction in revenues. – During the Reporting Period, net cash outflow by operating activities was US$ 1.5 million compared to a net inflow of US$ 1.7 million last year. – The Company’s cash and cash equivalents as of December 31, 2014 were US$ 0.2 million, compared to US$ 2.0 million on December 31, 2013. The decrease is mainly due to the negative operating cash flow. – The Company’s total equity decreased from US$ 6.7 million as of December 31, 2013 to US$ 4.4 million on December 31, 2014. Accordingly, the equity ratio dropped from 71% to 63% in the Reporting Period. Outlook Looking ahead to the current business year, the Company expects a stabilization of revenues along with an improved operational profitability. Particularly, the territorial expansion of the distribution agreement with Risco is expected to have a positive impact as it enables the Company to fully rely on the parent company’s sales channels. This increases the opportunity to develop new sales markets and cut operational costs. The Company continues focusing on its two-way-wireless iConnect product line and its PIR camera detector with a built-in camera for video verification, in addition to the release of new complimentary products such as the two-way repeater for extending the detectors’ range and the two-way vibration detector, all sustaining market expansions and increased sales. The full 2014 annual report with the audited financial statements is available on the Company ́s website at www.electronics-line.com in the investors section.
Ms. Sari Ellenberg
Upgrading Everyday Security 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 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.
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. 2015-03-31 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP 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: | Regulated Market in Frankfurt (General Standard); Regulated Unofficial Market in Berlin, Munich, Stuttgart | |
End of News | DGAP News-Service |
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