Electronics Line 3000 Ltd.
Electronics Line 3000 Ltd.: Profitability improved after nine months
Electronics Line 3000 Ltd. / Key word(s): Quarter Results Profitability improved after nine months – Sales during the first nine months of 2012 totaled to US$ 11.3 million (9M 2011: adjusted US$ 13.6 million) – Gross profit margin during the first nine months of 2012 improved to 42.4% (9M 2011: adjusted 31.5%) – Net profit of US$ 1.7 million (9M 2011: adjusted net profit of US$ 0.5 million) Rishon LeZion, Israel (November 15, 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 and the interim report for the first nine months of 2012. Despite significantly decreased revenues in the first nine months of 2012 ('Reporting Period'), mainly caused by the shortfall of orders in Q3 from a major client and by general adverse market conditions, Electronics Line was able to improve its profitability during the Reporting Period. Financial Highlights – The Company's revenues in the Reporting Period amounted to US$ 11.3 million compared to adjusted revenues of US$ 13.6 million during the first nine months of 2011. The decline in sales volume is mainly attributed to lower than expected order volumes by one of the Company's major customers during the third quarter of 2012 and adverse general economic conditions. The Company's sales teams continue to successfully implement the strategy of gaining new strategic customers whose order volume for Q3-Q4/2012 partially set off the impact of decline in orders by major customers. – The gross profit in the Reporting Period amounted to US$ 4.8 million (42% from sales) compared to adjusted US$ 4.3 million (31% from sales) in the comparable period of the previous year. During the Reporting Period, the Company benefitted from the implementation of several streamlining measures, which had a positive effect on the Company's profitability. The major improvement of the gross margin was due to the Company's decision to outsource its production activities to sub-contractors and to lower than expected operating costs during the quarter. Additionally, during the period, new high margin products were launched, from which the Company expects further positive effects on the profitability in the upcoming quarters. The Company forecasts that by the end of 2012 most of its production activities will be outsourced to the sub-contractor in China and that the gross profit will further increase respectively. – The Company's operating profit amounted to US$ 1.8 million during the Reporting Period, compared to an operating profit of US$ 0.7 million (adjusted) in the comparable period of last year. – The Company ended the Reporting Period with a net profit of US$ 1.7 million compared to an adjusted loss of US$ 0.5 million for the comparable period of last year. – During the Reporting Period, net cash provided by operating activities was US$ 366,000 compared to US$ 186,000 during the comparable period of last year. – The Company's cash and cash equivalents as at September 30, 2012 were US$ 0.7 million, compared to US$ 1.7 million as at December 31, 2011. The reduction is mainly due to loan repayments in the amount of US$ 0.9 million and cash used in investing activities in total amount of US$ 0.4 million. – The Company's inventories as at September 30, 2012 were US$ 3.7 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 September 30, 2012 amounted to US$ 4.2 million, corresponding in an equity ratio of 54.5%, compared to US$ 2.5 million (29%) as at December 31, 2011 and US$ 2.5 million, or 19%, as at September 30, 2011. The Company at the moment believes that it will not achieve its original financial targets for 2012 mainly due to a significant decrease of expected revenues and earnings in H2 2012. This is mainly caused by the shortfall of orders in Q3 2012 from a major client and by general adverse market conditions. As other orders from newly acquired customers cannot fully compensate the aforementioned development, the previously communicated revenue and earnings targets will likely not be met. Therefore, the Company lowers its previous revenue guidance of US$ 20 million by approximately 28%. The full reviewed financial report for the first nine months of 2012 is available on the Company's website at www.electronics-line.com in the investors section. Additional information: Adjustments for comparison are due to the sale of a subsidiary in November 2011.
For more information please contact:
Ms. Sari Ellenberg
About Electronics Line (EL):
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. 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 filed with the Israeli Securities Authority. 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.'
End of Corporate News 15.11.2012 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. 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 News | DGAP News-Service |
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