1st Quarter Results
Orad Hi-Tec Systems
15 May 2007
Orad Hi-Tec Systems Ltd. ('Orad' or the 'Company')
Results for the first quarter of 2007
Orad Hi-Tec Systems Ltd. (Frankfurt - Prime Standard; London - AIM. Symbol:
OHT), a leading developer, marketer and distributor of state-of-the-art, 3D
graphical solutions for the broadcasting, advertising and visual simulation
markets, today announces its results for the first quarter of 2007.
• Continued profitability and positive cash flow
• Revenues increased by 11% to US$4.7 million compared to US$4.3 million
in Q1/06.
• Cash, cash equivalents and restricted cash increased by US$1 million to
US$10.6 million
• Gross margin improved to 68% compared to 58% in Q1/06
• Net profit remained at US$0.1 million.
• Significant improvement in the on-air graphics segment with another
order worth over $1 million from a Belgian broadcaster, RTBF.
'We are proud to present the results for the first quarter of 2007. The results
for this quarter continue to improve from 2006. Revenue and cash continues to
increase each quarter. During NAB we presented several new products, some of
them are already installed and operational with customers. The adoption of the
new products will assist us to secure our growth strategy for 2007. Sales of our
on-air graphics products continue to increase, which translates immediately to
higher gross margins due to the higher share of software based revenue in each
contract'.
For further information:
Orad (www.orad.tv)
Ehud Ben-Yair, CFO + 972 976 768 62
Shore Capital (London)
Graham Shore + 44 20 7408 4090
Edicto Investor Relations + 49 608494859-1
Dr. Sonke Knop, Frankfurt Germany
Orad Hi-Tec Systems Ltd ('Orad' or the 'Company')
Results for the first quarter of 2007
Financial and Operational highlights for the first quarter of 2007 compared to
the first quarter of 2006:
Revenues, net profit and cash status:
Traditionally Q1 revenues are lower than Q4. However, Revenues in Q1/07
increased by 11% to US$4.7 million compared to US$4.3 million on Q1/2006 and
compared to US$4.6 million in Q4/06.
Net profit remained the same at the level of US$0.1 million
In the first quarter of 2007 cash, cash equivalents and restricted cash
increased to US$10.6 million.
The table below reflects the trend in the last five quarters
US$'000's Q1/06 Q2/06 Q3/06 Q4/06 Q1/07
Revenue 4,276 4,640 4,196 4,607 4,743
Net Profit 132 264 54 185 117
Cash Status 8,279 9,487 8,940 9,662 10,629
Gross Margin
Gross margin for the first quarter of 2007 improved significantly to 68%,
compared to 58% in the first quarter of 2006, mainly as a result of different
sales mix and the increases in sales volume.
Operational expenses:
Operational expenses in Q1/07 increased to US$3.1 million compared to US$2.5
million. This is mainly due to the increase in the sales and marketing efforts
resulting from increasing territory coverage and the continued R&D effort
deployed to release new applications to the market.
Q1/06 Q4/06 Q1/07
Research and Development 650 660 776
Sales and Marketing 1,510 1,840 1,904
General and Administrative 325 362 491
Total Operating expenses: 2,485 2,862 3,171
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share and per share data
December 31, March 31,
2006 2007
Unaudited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 9,091 $ 9,547
Restricted cash 571 1,082
Trade receivables, net 2,422 1,987
Other accounts receivable and prepaid expenses 837 959
Inventories 2,696 2,717
Work in process, net of advances from customers 444 154
Total current assets 16,061 16,446
SEVERANCE PAY FUND 1,017 1,057
PROPERTY AND EQUIPMENT, NET 1,530 1,456
Total assets $ 18,608 $ 18,959
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables $ 1,354 $ 1,020
Deferred revenues 1,841 1,922
Other accounts payable and accrued expenses 4,691 5,086
Total current liabilities 7,886 8,028
ACCRUED SEVERANCE PAY 1,503 1,572
SHAREHOLDERS' EQUITY:
Share Capital 28 28
Additional paid-in capital 75,357 75,380
Foreign currency translation adjustments (547) (547)
Accumulated deficit (65,619) (65,502)
Total shareholders' equity 9,219 9,359
Total liabilities and shareholders' equity $ 18,608 $ 18,959
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. $'000's, except share and per share data
Year ended Three months ended
December 31, March 31,
2006 2006 2007
Unaudited
Revenues:
Sales $ 17,719 $ 4,276 $ 4,743
Cost of sales 6,901 1,783 1,522
Gross profit 10,818 2,493 3,221
Operating expenses:
Research and development, net 2,507 650 776
Sales and marketing 6,631 1,510 1,904
General and administrative 1,506 325 491
Total operating expenses 10,644 2,485 3,171
Operating income 174 8 50
Financial income, net 467 131 70
Other expenses, net 5 7 3
Net income $ 636 $ 132 $ 117
Basic net earnings per share $ 0.06 $ 0.01 $ 0.01
Weighted average number of shares used in computing basic net
earnings per share (in thousands) 10,791 10,791 10,802
Diluted net earnings per share $ 0.06 $ 0.01 $ 0.01
Weighted average number of shares used in computing diluted
net earnings per share (in thousands) 10,823 10,813 10,971
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
U.S. $'000's, except share data
Number of Share Additional Foreign Accumulated Total
outstanding paid-in currency deficit
ordinary capital capital translation
shares adjustments
Balance as of January 1, 2006 10,790,621 $ 28 $ 75,281 $ (547) $ (66,255) $ 8,507
Comprehensive income:
Net income - - - - 636 636
Issuance of shares upon exercise of 10,000 *) - 9 - - 9
employee share options
Share based compensation - - 67 - - 67
Balance as of December 31, 2006 10,800,621 28 75,357 (547) (65,619) 9,219
Comprehensive income:
Net income - - - - 117 117
Issuance of shares upon exercise of 1,500 *) - 3 - - 3
employee share options
Share-based compensation - - 20 - - 20
Balance as of March 31, 2007 10,802,121 28 75,380 (547) (65,502) 9,359
(unaudited)
Balance as of January 1, 2006 10,790,621 $ 28 $ 75,281 $ (547) $ (66,255) $ 8,507
Comprehensive income:
Net income - - - - 132 132
Share-based compensation - - 7 - - 7
Balance as of March 31, 2006 10,790,621 $ 28 $ 75,288 $ (547) $ (66,123) $ 8,646
(unaudited)
*) Represents an amount lower than US$1.
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. $'000's
Year ended Three months ended
December 31, March 31,
2006 2006 2007
Unaudited
Cash flows from operating activities:
Net income $ 636 $ 132 $ 117
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation 569 140 142
Share-based compensation 67 7 20
Decrease in trade receivables, net and other accounts 1,214 1,095 313
receivable and prepaid expenses
Decrease (increase) in inventories 29 45 (21)
Decrease (increase) in work in process, net of advances from 22 (8) 290
customers
Increase (decrease) in trade payables, other accounts payable 731 (671) 90
and accrued expenses and accrued severance pay, net
Increase in deferred revenues 640 1,679 81
Other 5 7 3
Net cash provided by in operating activities 3,913 2,426 1,035
Cash flows from investing activities:
Purchase of property and equipment (146) (16) (80)
Proceeds from sale of property and equipment 48 31 9
Decrease (increase) in restricted cash (71) 250 (511)
Net cash provided by (used) investing activities (169) 265 (582)
Cash flows from financing activities:
Issuance of shares upon exercise of employees share options 9 - 3
Net cash provided by financing activities 9 - 3
Increase in cash and cash equivalents 3,753 2,691 456
Cash and cash equivalents at the beginning of the period 5,338 5,338 9,091
Cash and cash equivalents at the end of the period $ 9,091 $ 8,029 $ 9,547
a. The Company's shares and options held by members of the Board of
Directors and officers of the Company:
Number of Number of
Ordinary share
shares options *)
Avi Sharir 2,143,238 184,932
Moshe Nissim - 35,000
Ehud Ben-Yair - 45,000
Orna Nehustan - 30,000
Dan Falk - 20,000
Shimon Ravid - 10,000
Uzi Peled - 10,000
Daniel Furman 753,300 10,000
Anat Segal - 20,000
*) Each share option is convertible into one Ordinary share.
b. As of March 31, 2007, the Company employs 131 employees.
- - - - - - - - - - - - - - - - -
This information is provided by RNS
The company news service from the London Stock Exchange