Ocean Harvest T Regulatory News (OHT)

16 May 2006 07:01

Orad Hi-Tec Systems16 May 2006 Orad Hi-Tec Systems Ltd. ('Orad' or the 'Company') Results for the quarter ended 31 March 2006 Tel Aviv, May 16th, 2006 - Orad Hi-Tec Systems Ltd. (Frankfurt - Prime Standard;London - AIM. Symbol: OHT), a leading developer, marketer and distributor ofstate-of-the-art, 3D graphical solutions for the broadcasting, advertising andvisual simulation markets, today announced its results for the quarter ended 31March 2006. • Second consecutive quarter of profitability and third consecutive quarter of positive cash-flow • Revenues increased by 23% to $4.3 million from $3.5 million in Q1/05 • Gross margin of 58% • Net profit of $0.1 million compared to a net loss of $1.1 million in Q1/05 • Net profit per share of $0.01 • Positive cash flow of $2.5 million in Q1-2006 • Increased back-log and improving the presence of the sport systems. We are proud to present the results for the first quarter of 2006. As weanticipated at the end of last year the results for this quarter are animprovement on the first quarter of 2005, commented Avi Sharir, Orad'sPresident and Chief Executive Officer, and added: Despite the fact that thefirst quarter is traditionally weak, we maintained profitability, achievedpositive cash flow and increased our backlog. For further information: Orad (www.orad.tv)Ehud Ben-Yair, CFO 00 972 976 768 62 Shore Capital (London)Graham Shore 00 44 20 7408 4090 Haubrok IR GmbH (Frankfurt) 00 49 211 301 260Michael KempkesOrad Hi-Tec Systems Ltd ('Orad' or the 'Company') Results for the quarter ended 31 March 2006 Chief Executive's Statement Revenues for the first quarter of 2006 were $4.3 million, compared to $3.5million in the first quarter of 2005 and $4.7 million in the fourth quarter of2005. Gross margin in the first quarter of 2006 was 58% and the net profitamounted to $0.1 million. "The first quarter is traditionally weaker. In addition some of the newagreements planned to be recognized in Q1/06 have been delayed to Q2/06.Despitethis fact, we are experiencing a general increase in our sales volume andprofitability. This is our third quarter with positive cash flow generated fromour internal resources. The backlog for 2006-7 has significantly increasedcompared to the backlog a year ago" commented Avi Sharir, Orad's President andChief Executive Officer Financial & Operational Highlights for the quarter ended 31 March 2006 comparedto the same period in 2005: General: The company has reclassified certain expenses which in 2005 were previouslyrecorded as general and administrative (G&A) , to Sales and Marketing (S&M),Research and Development (R&D) and Cost of good sold in order to reflect betterthe allocation of certain costs. The influence on the profit and Loss accountsfor Q1 2005 and for Q4 2005 is a decrease of G&A in the amount of $0.2 million ,an increase of $0.13 million in cost of good sold, an increase of $0.04 millionin R&D and an increase of $0.03 million in S&M. The company has also reclassified certain costs from the Sales and Marketingexpenses to the Cost of good sold in order to reflect better the allocation ofthese costs. The influence on the Profit and Loss accounts of Q1 2005 and Q42005 was a decrease of S&M by $0.2 million and an increase in by the sameamount in the Cost of good sold. These changes had no affect on the operating loss (income), on the net income(loss) and on the basic and diluted earning (loss) per share of Q1 2005 and Q42005 as well as on the year 2005. Revenues The revenues for the first quarter of 2006 were $4.3 million, compared to $3.5million for the first quarter of 2005, an increase of23%. Gross Margin Gross margin for the first quarter of 2006 was 58%, compared to 47% in the firstquarter of 2006, mainly as a result of different sales mix and the increase insales volume. Research & Development Research and development ("R&D") expenses were $0.7 million in the first quarterof 2006, the same as in the first quarter of 2005. Selling & Marketing Selling and Marketing ("S&M") expenses were $1.5 million in the first quarter of2006, compared to $1.4 million in the first quarter of 2005, General & Administrative General & Administrative ("G&A") expenses were $0.3 million in the first quarterof 2006, compare to $0.4 million in the first quarter of 2005. Financial income (expenses) Financial income consists of exchange rate differences related to non-US dollarbalances and interest income earned on cash and cash equivalents offset by bankcharges. Financial income for the first quarter of 2006 was $0.1 million,compared to financial expenses of $0.2 million in the first quarter of 2005. Thefinancial income in the first quarter of 2006 has been derived mainly fromexchange rate differences resulting from strengthening of the Euro against theUS Dollar during the period and an the increase in the interest rate on USdollar deposits. Net Profit/ (Loss) Net profit for the first quarter of 2006 was $0.1 million, compared to net lossof $1.1 million for the first quarter of 2005. The decrease in losses is due tothe increase in sales and gross profit, decrease in operational expenses andincrease in financial income. Net Profit/ (loss) per share Net profit per share for the first quarter of 2006 was $0.01, compared to a netloss per share of $0.1for the first quarter of 2005. Financial & Operational Highlights for the first quarter of 2006 compared to thefourth quarter of 2005: Revenues Revenues for the first quarter of 2006 amounted to $4.3 million, compared to$4.7 million in the fourth quarter of 2005. Gross Margin Gross margin in the first quarter of 2006 is 58% the same as in the fourthquarter of 2005 Research & Development R&D expenses in the first quarter of 2006 were $0.7 million, compared to $0.6million in the fourth quarter of 2005. Selling & Marketing S&M expenses in the first quarter of 2006 were $1.5 million compared to $1.4million in the fourth quarter of 2005,. General & Administrative G&A expenses were $0.3 million in the first quarter of 2006, compare to 0.4 inthe fourth quarter of 2005. Financial income (expenses) Financial income consists of exchange rate differences related to non-US dollarbalances and interest income earned on cash and cash equivalents offset by bankcharges. Financial income for the first quarter of 2006 was $0.1 million,compared to financial expenses of $0.01 million in the fourth quarter of 2005.The difference is largely as a result of exchange rate differences resultingfrom strengthening of the Euro against the US Dollar, and from an increase inthe interest rate on the US Dollar deposits. Net profit Net profit for the first quarter of 2006 amounted to $0.1 million, compared to$0.3 million in the fourth quarter of 2005. Net profit per share Net profit per share for the first quarter of 2006 was $0.01 compared to a netprofit per share of $0.02 for the fourth quarter of 2005 Cash Position. As of March 31, 2006, cash and short-term bank deposits amounted to $8.3 millioncompared to $5.8 million at the end of 2005 (an increase of $2.5 million) Contact: Orad Hi-Tec Systems Ltd.Ehud Ben-YairChief Financial OfficerPO Box 2177Kfar Saba 44425, IsraelTel: +972-9-767-6862Fax: +972-9-767-6861E-Mail: ehudb@orad.tvwww.orad.tv CONSOLIDATED BALANCE SHEETSU.S. dollars in thousands December 31, March 31, 2005 2006 UnauditedASSETS CURRENT ASSETS:Cash and cash equivalents $ 5,338 $ 8,029Restricted cash 500 250Trade receivables, net 3,754 2,553Other accounts receivables and prepaid expenses 719 825Inventories 2,817 2,766Work in process, net of advances from customers 466 474 Total current assets 13,594 14,897 SEVERANCE PAY FUND 817 852 PROPERTY AND EQUIPMENT, NET 1,914 1,758 Total assets $ 16,325 $ 17,507 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES:Trade payables $ 1,262 $ 1,369Deferred revenues 1,201 2,880Other accounts payables and accrued expenses 4,182 3,380 Total current liabilities 6,645 7,629 ACCRUED SEVERANCE PAY 1,173 1,232 SHAREHOLDERS' EQUITY:Share capital 28 28Additional paid-in capital 75,281 75,288Accumulated other comprehensive loss (547) (547)Accumulated deficit (66,255) (66,123) Total shareholders' equity 8,507 8,646 Total liabilities and shareholders' equity $ 16,325 $ 17,507 CONSOLIDATED STATEMENTS OF OPERATIONSU.S. dollars in thousands, except per share data Year ended Three months ended December 31, March 31, 2005 2005 2006 Unaudited Revenues:Product sales $ 14,485 $ 3,468 $ 4,276Long-term contracts 916 - - Total revenues 15,401 3,468 4,276 Cost of revenues:Cost of product sales *) 6,646 1,849 1,783Cost of long-term contracts 1,047 - - Total cost of revenues 7,693 1,849 1,783 Gross profit 7,708 1,619 2,493 Operating expenses:Research and development, net *) 2,451 676 650Sales and marketing *) 6,078 1,418 1,510General and administrative *) 1,754 428 325 Total operating expenses 10,283 2,522 2,485 Operating income (loss) (2,575) (903) 8 Financial income (expenses), net (316) (170) 131Other expenses, net - 5 7 Net income (loss) $ (2,891) $ (1,078) $ 132 Basic net earnings (loss) per share $ (0.27) $ (0.10) $ 0.01 Diluted net earnings (loss) per share $ (0.27) $ (0.10) $ 0.01 Weighted average number of shares used in computing basic 10,781 10,779 10,791net earnings (loss) per share (in thousands) Weighted average number of shares used in computing 10,781 10,779 10,813diluted net earnings (loss) per share (in thousands) *) Reclassified- see note a STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITYU.S. dollars in thousands, except share data Number of Share Additional Accumulated Accumulated Total outstanding paid-in other deficit ordinary capital capital comprehensive shares income (loss) Balance as of January 1, 2005 10,750,726 $ 28 $ 75,241 $ (547) $ (63,364) $ 11,358 Comprehensive loss:Net loss - - - - (2,891) (2,891)Total comprehensive loss (2,891)Issuance of earn-out shares 28,645 *) - 31 - - 31Issuance of shares upon 11,250 *) - 9 - - 9exercise of employees' shareoptions Balance as of December 31, 2005 10,790,621 28 75,281 (547) (66,255) 8,507 Comprehensive income:Net income - - - - 132 132Total comprehensive income 132Share-based compensation - - 7 - - 7 Balance as of March 31, 2006 10,790,621 28 75,288 (547) (66,123) 8,646(unaudited) Balance as of January 1, 2005 10,750,126 $ 28 $ 75,241 $ (547) $ (63,364) $ 11,358 Comprehensive loss:Net loss - - - - (1,078) (1,078)Total comprehensive loss (1,078) Balance as of March 31, 2005 10,750,126 $ 28 $ 75,241 $ (547) $ (64,442) $ 10,280(unaudited) *) Represent an amount lower than $ 1. CONSOLIDATED STATEMENTS OF CASH FLOWSU.S. dollars in thousands Year ended Three months ended December 31, March 31, 2005 2005 2006 UnauditedCash flows from operating activities: Net income (loss) $ (2,891) $ (1,078) $ 132Adjustments to reconcile net income (loss) to net cashprovided by (used in) operating activities:Depreciation 623 167 140Share based compensation - - 7Decrease in trade receivables, other accounts receivable 591 674 1,095and prepaid expensesDecrease in inventories 591 274 45Decrease (increase) in work in process, net of advances 597 (57) (8)from customersIncrease (decrease) in trade payables, other accounts 429 (204) (671)payable and accrued expenses and accrued severance pay, netIncrease (decrease) in deferred revenues 460 (157) 1,679Other 31 5 7 Net cash provided by (used) in operating activities 431 (376) 2,426 Cash flows from investing activities: Purchase of property and equipment (231) (145) (16)Proceeds from sale of property and equipment 127 10 31Decrease in restricted cash 250 250 250 Net cash provided by investing activities 146 115 265 Cash flows from financing activities: Issuance of shares upon exercise of employees' share 9 - -options Net cash provided by financing activities 9 - - Increase (decrease) in cash and cash equivalents 586 (261) 2,691Cash and cash equivalents at the beginning of the period 4,752 4,752 5,338 Cash and cash equivalents at the end of the period $ 5,338 $ 4,491 $ 8,029 Supplemental disclosure of cash flows activities: Cash received during the period for:Interest, net $ 109 $ 22 $ 53 a. The company reclassified certain expenses which in 2005 were recordedin the general and administrative expenses ("G&A") and sales and marketingexpenses ("S&M") to other operating expenses and to the cost of product sales ("COS"). The influence on the consolidated statements of operations for thethree months ended March 31, 2005 is a decrease of the G&A in the amount of $0.2million, an increase of $0.33 million in COS, an increase of $0.04 million inresearch and development costs ("R&D") and a decrease of $0.17 million of S&M.The influence on the consolidated financial statements for the year endedDecember 31, 2005 was a decrease in G&A of $0.8 million, an increase of $1.4million of COS, an increase of $0.2 million in R&D and an decrease of $0.8 in S&M. These changes had no effect on the reported operating loss, net loss andbasic and diluted loss per share. b. The Company's shares and options held by members of the Board of Directorsand officers of the Company: Number of Number of Ordinary share shares options *) Avi Sharir 2,143,238 184,932 Daniel Furman 753,300 - Moshe Nissim - 20,000 Ehud Ben-Yair - 25,000 Orna Nehustan - 20,000 Amos Horev - 10,000 Dan Falk - 10,000 Anat Segal - 10,000 *) Each share option is convertible into one Ordinary share. c. As of March 31, 2006, the Company employs 114 employees. - - - - - - - - - - - - - - - - - This information is provided by RNS The company news service from the London Stock Exchange