Electronics Line 3000 Ltd.
Electronics Line 3000 Ltd.: Results for the first nine months of 2014 in line with adjusted expectations
Electronics Line 3000 Ltd. / Release of an announcement according to Article 37x of the WpHG [the German Securities Trading Act] 20.11.2014 14:25 Interim report according to Article 37x of the WpHG, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Electronics Line 3000 Ltd.: Results for the first nine months of 2014 in line with adjusted expectations - Revenues after nine months decreased to US$ 9.8 million (9 months 2013: US$ 13.1 million) - Gross profit of US$ 3.4 million (9 months 2013: US$ 5.5 million) - Net loss of US$ 0.9 million (9 months 2013: Net profit of US$ 2.9 million) - Revised outlook confirmed Rishon LeZion, Israel (November 20, 2014) - 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 fiscal year 2014 ('Reporting Period'). The Company's sales volume decreased by 25% from US$ 13.1 million in the first nine months of 2013 to US$ 9.8 million in the Reporting Period mainly as a result of the delay in launching of a new product line, which served as the basis for the Company's volume expectations. Accordingly, the gross profit decreased from US$ 5.5 million in the comparable period to US$ 3.4 million in the Reporting Period. The gross profit margin decreased to 34.5% (9 months 2013: 42.3%). In addition to the sales drop, the sharp decrease in the gross margin was amplified by special discounts and promotion activities carried out in order to stimulate sales. Amounting to US$ 3.7 million, operating expenses remained roughly stable in the Reporting Period, compared to the first nine months of 2013 (9 months 2013: US$ 3.8 million). Tax expenses in total amount of US$ 0.5 million were recorded in the Reporting Period, principally because of the revaluation of tax loss carry forwards. The net loss amounted to US$ 0.9 million in the Reporting Period, compared to a net profit of US$ 2.9 million in the respective period 2013. The Company's cash and cash equivalents as of September 30, 2014 were US$ 0.8 million, compared to US$ 2.0 million on December 31, 2013. The decrease was mainly due to increasing working capital requirements. Shareholders' equity amounted to US$ 5.8 million as of September 30, 2014, corresponding to an equity ratio of 77%, compared to US$ 6.7 million (71%) as of December 31, 2013. In the Reporting Period, net cash used by operating activities amounted to US$ 0.9 million compared to net cash provided of US$ 1.4 million during the first nine months of 2013. The results of the first nine months of 2014 were in line with management's expectations. Consequently, the Company confirms its revised outlook, still expecting sales of approximately US$ 14 million for fiscal 2014. For more information please contact: Ms. Sari Ellenberg investor.relations@electronics-line.com 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. 20.11.2014 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 Internet: www.electronics-line.com End of Announcement DGAP News-Service ---------------------------------------------------------------------------
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