Electronics Line 3000 Ltd.
Electronics Line 3000 Ltd.: Revenue and profit increased significantly in FY 2013
Electronics Line 3000 Ltd. / Key word(s): Final Results Corporate News: Electronics Line 3000 Ltd. Revenue and profit increased significantly in FY 2013 – Revenues increased to US$ 16.5 million in FY 2013 (2012: US$ 14.3 million) – Gross profit margin increased from 37% to 42% – Net profit of US$ 2.9 million (2012: US$ 1.1 million), including tax income of approx. US$ 1.1 million – Net cash provided by operating activities improved to US$ 1.7 million (2012: US$ 0.6 million) – Equity ratio climbed from 52% to 71% – Further growth expected in FY 2014 – Change from the Prime Standard to the General Standard Rishon LeZion, Israel (April 10, 2014) – 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 2013 (“Reporting Period”). As sales declined less than projected in the fourth quarter of 2013, the Company significantly improved revenues and profits in the Reporting Period. The management expects this positive trend to continue in FY 2014. Financial Highlights – The Company’s revenues in the Reporting Period amounted to US$ 16.5 million, a significant rise of approx. 15% compared to revenues of US$ 14.3 million during the 12 months’ period ended at December 31, 2012. The increase in revenues is attributed to the successful implementation of the Company’s strategy to expand markets, recruit new customers and to find new opportunities. – The gross profit for the Reporting Period therefore amounted to US$ 7.0 million (gross profit margin: 42%) compared to US$ 5.3 million (gross profit margin: 37%) in 2012. The margin increase resulted from efficiency gains, the use of outsourcing partners and continuing sales of high margin products. – The net profit amounted to US$ 2.9 million in the Reporting Period, significantly exceeding the net profit of US$ 1.1 million for FY 2012. In addition to the increase in revenues and the successful reorganization of the loan structure in earlier periods, the Company recorded a tax income of approx. US$ 1.1, deriving from tax loss carry forwards. Selling and marketing expenses meanwhile increased along with the rise in sales, while administrative expenses disproportionately rose to US$ 1.6 million during the Reporting Period (2012: US$ 1.2 million) 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 management fee from US$ 0.3 million to US$ 0.8 million, retrospective as of January 1, 2013. – During the Reporting Period, net cash provided by operating activities was US$ 1.7 million compared to US$ 0.6 million during the comparable year. – The Company’s cash and cash equivalents as of December 31, 2013 were US$ 2.0 million, compared to US$ 0.8 million on December 31, 2012. The increase is mainly due to the positive cash flow as well as the successful reorganization of the loan structure. – The Company’s total equity increased from US$ 3.7 million as of December 31, 2012 to US$ 6.7 million on December 31, 2013. Accordingly, the equity ratio improved from 52% to 71% in the Reporting Period. Outlook Looking ahead to the current business year, the Company expects an increase in revenues of about 10% to approximately US$ 18 million, mainly from its strategic customers and markets, in particular, Northern and Western Europe, and from the new product line (ELAS, iConnect 2 way and CommPact). With the increasing revenue, the Company also anticipates a continued improvement of its earnings. The Company launched a pilot of its cloud-based solution, www.MyELAS.com, among a small group of customers, enabling them to independently register their wireless alarm systems to the cloud and thereby monitor and control their premises as well as receiving images from the motion detector cameras. In addition, customers can manage their installer base via the web admin application. The Company expects that these new Smartphone applications for iPhone and Android, will help increase sales of the iConnect and CommPact panels. 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 2013 annual report with the audited financial statements is available on the Company ́s website at www.electronics-line.com in the investors section. Following the Board’s resolution, dated April 8, 2014, the Company’s shares will be traded in the General Standard segment of the Frankfurt Stock Exchange instead of the Prime Standard. This change is expected to take effect on June 30, 2014. 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 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. End of Corporate News 10.04.2014 Dissemination of a Corporate News, transmitted by DGAP – a company of EQS Group 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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