Ocean Harvest T Regulatory News (OHT)

21 Nov 2006 07:00

Orad Hi-Tec Systems21 November 2006 Orad Hi-Tec Systems Ltd. ("Orad" or "the Company") Results for the nine months and third quarter of 2006 Orad Hi-Tec Systems Ltd. (Frankfurt - Prime Standard; London - AIM. Symbol:OHT), a leading developer, marketer and distributor of state-of-the-art, 3Dgraphical solutions for the broadcasting, advertising and visual simulationmarkets, today announces its results for the nine months ended September 30,2006. • Fourth consecutive quarter of profitability • Revenues increased to $13.1 million in the nine months of 2006 and $4.2 million in Q3/06 • Cash, cash equivalents and restricted cash at $8.9 million • Gross margin improved to 60% for the nine month of 2006 and to 62% in Q3/06 • Net profit improved to $0.45 million in the nine months of 2006 and $0.05 million in Q3/06 • Net profit per share of $0.04 in the nine months of 06 and 0.01 in Q3/ 06 • Significant improvement in the graphic segment with an order worth over €1 million from a German broadcaster, Deutsche Welle. "We are pleased to present the results for the third quarter of 2006. Theresults for this quarter continue our improvement since a year ago. The resultsshow a 23% improvement in sales volume, both in Q3/06 and in the nine months of2006 compared to the same periods in 2005. Net profit and cash flow continue toimprove", commented Avi Sharir, Orad's President and Chief Executive Officer andadded, "During the third quarter of 2006 we increased our back-log, wining anumber of important contracts, which will be recognized in Q4/06 and during2007. 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 nine months and third quarter ended September 30, 2006 Chief Executive's Statement Revenues for the third quarter of 2006 increased by 23% to $4.2 million,compared to $3.4 million in the third quarter of 2005 and $13.1 million in thenine months of 2006 compared to $10.7 millions in the nine months of 2005. Grossmargin in the third quarter of 2006 was 62% and the net profit amounted to $0.05million. "The results for the third quarter of 2006 and the first nine months of 2006compared to same periods in 2005 show an increase in sales volume and positivecash flow while maintaining the same cost level. This is our fourth consecutivequarter of profitability. The backlog for 2006-7 has further increased comparedto the backlog a year ago" commented Avi Sharir, Orad's President and ChiefExecutive Officer and added: "during the third quarter we saw the results of ourinvestments in the graphic segment by signing a €1 million contract with a majorGerman broadcaster- Deutsch Welle. During IBC we presented two new products: the"Ad-Vision" which is the new generation of Virtual Advertisement. The second oneis "Channel Branding" solution which strengthen our graphic offering. These newproducts and the major contracts that we signed will further build on our growthduring 2007. Financial and Operational highlights for the three and nine months endedSeptember 30, 2006 compared to the same periods ended September 30, 2005: Revenues, net profit and cash status: Revenues in Q3/06 increased by 23% to $4.2 million compared to $3.4 million onQ3/2005. Revenues in the nine months of 2006 increased by 23% to $13.1 millioncompared to $10.7 million in the nine months of 2005. Net profit in the third quarter of 2006 was $0.05 million compared to net lossof $0.8 in the third quarter of 2005. Net profit of Q3/06 improved by $0.85million compared to Q3/05. In the nine months of 2006 net profit was $0.45million compared to net loss of $3.1 million in the first nine months of 2005,an improvement of $3.6 million. In the first nine months of 2006 cash, cash equivalents and restricted cashincreased to $8.9 million. The table below reflects the trend in the last five quarters US $'000 Q3 05 Q4 05 Q1 06 Q2 06 Q3 06Revenue 3,407 4,715 4,276 4,640 4,196Net Profit (804) 256 132 264 54Cash Status 4,964 5,838 8,279 9,487 8,940 Gross Margin Gross margin for the third quarter of 2006 improved significantly to 62%,compared to 51% in the third quarter of 2005, mainly as a result of differentsales mix and increasing in sales volume. Gross margin in the first nine months of 2006 improved significantly to 60%compared to 47% in the first nine months of 2005. Operational expenses: Operational expenses in Q3/06 were stable compared to the second quarter of 2006and compared to the third quarter of 2005. Operational expenses for the ninemonths of 2006 were similar to the same period in 2005. Q3/06 Q2/06 Q3/05 Q1-3/06 Q1-3/05 Research and Development 625 571 471 1,847 1,868 Sales and Marketing 1,602 1,706 1,552 4,791 4,638 General and Administrative 376 417 507 1,145 1,331 Total Operating expenses: 2,603 2,694 2,530 7,783 7,837 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 SHEETS U.S. dollars in thousands December 31, September 30, 2005 2006 UnauditedASSETS CURRENT ASSETS:Cash and cash equivalents $5,338 $8,690Restricted cash 500 250Trade receivables, net 3,754 1,898Other accounts receivables and prepaid expenses 719 761Inventories 2,817 2,740Work in process, net of advances from customers 466 623 Total current assets 13,594 14,962 SEVERANCE PAY FUND 817 1,021 PROPERTY AND EQUIPMENT, NET 1,914 1,677 Total assets $16,325 $17,660 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES:Trade payables $1,262 $1,500Deferred revenues 1,201 1,614Other accounts payables and accrued expenses 4,182 4,097 Total current liabilities 6,645 7,211 ACCRUED SEVERANCE PAY 1,173 1,448 SHAREHOLDERS' EQUITY:Share capital 28 28Additional paid-in capital 75,281 75,325Accumulated other comprehensive loss (547) (547)Accumulated deficit (66,255) (65,805) Total shareholders' equity 8,507 9,001 Total liabilities and shareholders' equity $16,325 $17,660 CONSOLIDATED STATEMENTS OF OPERATIONS U.S. dollars in thousands, except share and per share data Year Nine months Three months ended ended ended December September September 30, 31, 30, 2005 2005 2006 2005 2006 UnauditedRevenues:Product sales $14,485 $9,770 $13,112 $3,407 $4,196 Long term contracts 916 916 - - - Total revenues 15,401 10,686 13,112 3,407 4,196 Cost ofrevenues:Cost of products sales*) 6,646 4,846 5,210 1,664 1,581Cost of long term contracts 1,047 847 - - - Total cost of revenues 7,693 5,693 5,210 1,664 1,581 Gross profit 7,708 4,993 7,902 1,743 2,615 Operatingexpenses:Research and development,net *) 2,451 1,868 1,847 471 625Sales and marketing *) 6,078 4,638 4,791 1,552 1,602General and administrative*) 1,754 1,331 1,145 507 376 Total operatingexpenses 10,283 7,837 7,783 2,530 2,603 Operating income (loss) (2,575) (2,844) 119 (787) 12 Financial income(expenses),net (316) (303) 335 (19) 41Other income (expenses),net - - (4) 2 1 Net income (loss) $(2,891) $(3,147) $450 $(804) $54 Basic net earnings(loss) per share $(0.27) $(0.29) $0.04 $(0.07) $0.01 Diluted net earnings(loss) per share $(0.27) $(0.29) $0.04 $(0.07) $0.01 Weighted average numberof shares usedin computingbasic netearnings(loss) pershare (inthousands) 10,781 10,779 10,791 10,779 10,791 Weighted average numberof shares usedin computingdiluted netearnings(loss) pershare (inthousands) 10,781 10,779 10,817 10,779 10,819 *) Reclassified, see Note a. STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY U.S. dollars in thousands Number of Share Additional Accumulated Accumulated Total outstanding capital paid-in other deficit ordinary 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 exercise of employees' shareoptions 11,250 *) - 9 - - 9 Balance as of December 31, 2005 10,790,621 28 75,281 (547) (66,255) 8,507 Comprehensive income: - -Net income 450 450Total comprehensive income 450Share-based compensation 44 44 Balance as of September 30, 10,790,621 28 75,325 (547) (65,805) 9,0012006 (unaudited) Balance as of January 1, 2005 10,750,726 $28 $75,241 $(547) $(63,364) $11,358 Issuance of earn-out shares 28,645 *) - 31 - - 31Comprehensive loss:Net loss - - - - (3,147) (3,147)Total comprehensive loss (3,147) Balance as of September 30, 2005 (unaudited) 10,779,371 $28 $75,272 $(547) $(66,511) $8,242 *) Represent an amount lower than $1. CONSOLIDATED STATEMENTS OF CASH FLOWS U.S. dollars in thousands Year ended Nine months ended December 31, September 30, 2005 2005 2006 UnauditedCash flows from operating activities: Net income (loss) $(2,891) $(3,147) $450 Adjustments to reconcile net income (loss) to net cash usedin operating activities:Depreciation 623 490 420Share-based compensation - - 44Decrease in trade receivables, other accounts receivables and prepaid expenses 591 1,598 1,814Decrease (increase) in inventories 591 275 (37)Decrease (increase) in work in process, net of advances from customers 597 273 (157)Increase (decrease) in trade payables, other accounts payable and accrued expenses and accrued severance pay, net 429 (166) 224Increase in deferred revenues 460 287 413Other 31 27 4 Net cash provided by (used in) operating activities 431 (363) 3,175 Cash flows from investing activities: Purchase of property and equipment (231) (201) (110)Proceeds from sale of property and equipment 127 26 37Decrease in restricted cash 250 250 250 Net cash provided by investing activities 146 75 177 Cash flows from financing activities: Issuance of shares upon exercise of employees' share options 9 - - Net cash provided by financing activities 9 - - Increase (decrease) in cash and cash equivalents 586 (288) 3,352Cash and cash equivalents at beginning of period 4,752 4,752 5,338 Balance of cash and cash equivalents at end of period $5,338 $4,464 $8,690 Supplemental disclosure of cash flows activities: Cash received during the period for:Interest, net $109 $67 $208 SUPPLEMENTARY INFORMATION 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 and for the nine months ended September 30, 2005 is a decrease ofthe G&A in the amount of $ 0.2 million and $0.59 million, respectively, anincrease in COS of $ 0.33 million and $ 1.04 million, respectively, an increase(decrease) in research and development costs ("R&D") of $ (0.07) million and$0.08 million, respectively, and a decrease in S&M of $ 0.06 million and $ 0.53million, respectively. The influence on the consolidated financial statementsfor the year ended December 31, 2005 was a decrease in G&A of $ 0.8 million, anincrease of $ 1.4 million of COS, an increase of $ 0.2 million in R&D and adecrease of $ 0.8 in S&M. These changes had no effect on the reported operatingloss, net loss, basic and diluted loss per share and shareholders equity. b. The Company's shares and options held by members of the Board ofDirectors and officers of the Company: Number of Number of Ordinary share shares options *) Avi Sharir 2,143,238 184,932 Daniel Furman 753,300 10,000 Ehud Ben-Yair - 45,000 Orna Nehustan - 40,000 Moshe Nissim - 35,000 Dan Falk - 20,000 Anat Segal - 20,000 Amos Horev - 10,000 Uzi Peled - 10,000 Shimon Ravid - 10,000 *) Each share option is exercisable into one Ordinary share. c. As of September 30, 2006, the Company employs 122 employees. - - - - - - - - - - - - - - - - - This information is provided by RNS The company news service from the London Stock Exchange