Ocean Harvest T Regulatory News (OHT)

12 Nov 2007 07:00

Orad Hi-Tec Systems12 November 2007 Orad Hi-Tec Systems Ltd. Results for the first nine months and third quarter of 2007 Tel Aviv, November 12, 2007 - Orad Hi-Tec Systems Ltd. (Frankfurt - PrimeStandard; London - AIM. Symbol: OHT), a leading developer, marketer anddistributor of state-of-the-art, 3D graphical solutions for the broadcasting andadvertising markets, today announces record results for the nine months endedSeptember 30, 2007: • Sales in Q3/07 increased by 46% to a quarterly record of USD6.1 million compared to USD4.2 million in Q3/06 • Sales in the first nine months of 2007 increased by 23% to a record of USD16 million compared with USD13.1 million in the first nine months of 2006. • Eight consecutive quarters of profitability and positive cash flow • Net profits in Q3/07 increased by 1,050% to USD621 thousand compared to USD54 thousand in Q3/06 • Net profits in the first nine months of 2007 increased by 137% to USD1,070 thousand compared with USD450 thousand in the first nine months of 2006 • Cash increased by USD 3.6 millions in the first nine months of 2007 and by USD1.8 million in Q3/07 reaching to USD13.3 million • Gross margin has improved to 67% in the nine months of 07 and to 64% in Q3/07 compared to 60% in the first nine months of 06 and 62% in Q3/06 "We are proud again to present another record quarter. The result for the thirdquarter of 2007 and the first nine months of 2007 shows a significantimprovement in all major aspects: sales, gross margin, operational expenses, netprofit and cash flow. The increase in profitability is higher than the increasein the sales as Orad has managed to improve gross margins by reducing materialcosts whilst improving production efficiencies. The net profit also improved dueto efficiencies achieved in managing operational expenses" commented Avi SharirPresident and CEO of Orad and added, "The strong cash flow is an evidence of ourincreased backlog with higher amount of deferred revenues recognizable in thenear future". 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 608494859-1Dr. Sonke Knop, Frankfurt Germany Financial and Operational highlights for the three and nine months endedSeptember 30, 2007 compared to the same periods ended September 30, 2006: Revenues, net profit and cash status Revenues in Q3/07 increased by 46% to USD6.1 million compared to USD4.2 millionduring Q3/2006. Revenues in the nine months of 2007 increased by 23% to USD16million compared to USD13.1 million in the nine months of 2006. Net profit in the third quarter of 2007 was USD0.6 million compared to netprofit of USD0.05 in the third quarter of 2006 an improvement of 1,050%. Thenet profit for the nine months of 07 improved by 137% to USD1million compared toUSD0.45 million in the first nine months of 06. In the first nine months of 2007 cash, cash equivalents and restricted cashincreased to USD13.3 million. The table below reflects the trend in the last four quarters and over the lastthree years: Q1-3/05 Q1-3/06 Q1-3/07 '000s '000s '000sRevenue 10,686 13,112 16,065Gross Profit 4,992 7,901 10,742Net profit (3,147) 450 1,070Cash status 4,964 8,940 13,306 Q4/06 Q1/07 Q2/07 Q3/07 '000s '000s '000s '000sRevenue 4,607 4,743 5,194 6,128Gross Profit 2,961 3,221 3,603 3,918Net profit 185 117 332 621Cash status 9,662 10,629 11,443 13,306 Gross Margin Gross margin for the third quarter of 2007 was 64%, compared to 62% in the thirdquarter of 2006, mainly as a result of increases in sales volumes and improvedefficiencies together with a different sales mix. Gross margin in the first nine months of 2007 improved significantly to 67%compared to 60% in the first nine months of 2006. This is a result of a decreasein the cost of materials, increased sales volumes and a different sales mixture. Operational expenses Operational expenses in Q3/07 were stable compared to the second quarter of2007. Q3/07 operational expenses reflected a much lower percentage of sales,compared to previous quarter and compared to Q3/06. Orad has efficiently managedto increase its sales volume with much lower increase in operational expenses.The result is a much higher profitability. Q3/06 Q3/07 Q2/07 Q1-3/06 Q1-3/07Research and Development 625 696 774 1,847 2,246Sales and Marketing 1,602 2,327 2,048 4,791 6,279General and Administrative 376 498 556 1,145 1,544Total Operating expenses: 2,603 3,521 3,378 7,783 10,069 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, except share and per share data December September 31, 2006 30, 2007 UnauditedASSETS CURRENT ASSETS:Cash and cash equivalents $ 9,091 $ 12,250Restricted cash 571 1,056Trade receivables, net 2,422 1,483Other accounts receivable and prepaid 837 1,095expensesInventories 2,696 2,978Work in process, net of advances from 520 280customers*) Total current assets 16,137 19,142 SEVERANCE PAY FUND 1,017 1,184 PROPERTY AND EQUIPMENT, NET 1,530 1,525 Total assets $ 18,684 $ 21,851 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES:Trade payables $ 1,354 $ 2,049Deferred revenues 1,841 1,794Other accounts payable and accrued expenses*) 4,767 5,915 Total current liabilities 7,962 9,758 ACCRUED SEVERANCE PAY 1,503 1,721 SHAREHOLDERS' EQUITY:Share capital 28 29Additional paid-in capital 75,357 75,439Foreign currency translation adjustments (547) (547)Accumulated deficit (65,619) (64,549) Total shareholders' equity 9,219 10,372 Total liabilities and shareholders' equity $ 18,684 $ 21,851 *) Reclassified CONSOLIDATED STATEMENTS OF INCOME U.S. dollars in thousands, except share and per share data Year ended Nine months ended Three months ended December 31, September 30, September 30, 2006 2006 2007 2006 2007 Unaudited Revenues $17,719 $13,112 $ 16,065 $4,196 $6,128 Cost of sales 6,901 5,210 5,323 1,581 2,210 Gross profit 10,818 7,902 10,742 2,615 3,918 Operatingexpenses:Research and 2,507 1,847 2,246 625 696development,netSales and 6,631 4,791 6,279 1,602 2,327marketingGeneral and 1,506 1,145 1,544 376 498administrative Total 10,644 7,783 10,069 2,603 3,521operatingexpenses Operating 174 119 673 12 397incomeFinancial 467 335 401 41 225income, netOther income (5) (4) (4) 1 (1)(expenses),net Net income $ 636 $ 450 $ 1,070 $ 54 $ 621 Basic net $0.06 $0.04 $0.1 $0.01 $0.06earnings pershare Weighted 10,791 10,791 10,821 10,791 10,821average numberof shares usedin computingbasic netearnings pershare (inthousands) Diluted net $ 0.06 $ 0.04 $ 0.1 $ 0.01 $ 0.06earnings pershare Weighted 10,781 10,817 10,991 10,819 10,988average numberof shares usedin computingdiluted netearnings pershare (inthousands) STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY U.S. dollars in thousands, except share data Number of Foreign outstanding Additional currency Ordinary Share paid-in translation Accumulated shares capital capital adjustments deficit Total Balance as of 10,790,621 $ 28 $ 75,281 $ (547) $ (66,255) $ 8,507January 1, 2006 Comprehensiveincome: Net income - - - - 636 636Issuance of 10,000 *) - 9 - - 9shares uponexercise ofemployee shareoptionsShare based - - 67 - - 67compensation Balance as of 10,800,621 28 75,357 (547) (65,619) 9,219December 31,2006 Comprehensiveincome:Net income - - - - 1,070 1,070Issuance of 19,929 1 22 - - 23shares uponexercise ofemployee shareoptions Share-based - - 60 - - 60compensation Balance as of 10,820,550 $ 29 $ 75,439 $ (547) $ (64,549) $ 10,372September 30,2007 (unaudited) Balance as of 10,790,621 $ 28 $ 75,281 $ (547) $ (66,255) $ 8,507January 1, 2006 Comprehensiveincome:Net income - - - - 450 450Share-based - - 44 - - 44compensation Balance as of 10,790,621 $ 28 $ 75,325 $ (547) $ (65,805) $ 9,001September 30,2006 (unaudited) *) Represents an amount lower than $ 1. CONSOLIDATED STATEMENTS OF CASH FLOWS U.S. dollars in thousands Year ended Nine months ended December 31, September 30, 2006 2006 2007 UnauditedCash flows from operatingactivities: Net income $ 636 $ 450 $ 1,070Adjustments to reconcile netincome to net cash provided byoperating activities:Depreciation 569 420 469Share-based compensation 67 44 60Decrease in trade receivables, 1,214 1,814 681net and other accountsreceivable and prepaid expensesDecrease (increase) in 29 (37) (339)inventoriesDecrease (increase) in work in (54) (157) 240process, net of advances fromcustomers*)Increase in trade payables, 807 224 1,894other accounts payable andaccrued expenses and accruedseverance pay, net*)Increase (decrease) in deferred 640 413 (47)revenuesOther 5 4 4 Net cash provided by operating 3,913 3,175 4,032activities Cash flows from investingactivities: Purchase of property and (146) (110) (420)equipmentProceeds from sale of property 48 37 9and equipmentDecrease (increase) in (71) 250 (485)restricted cash Net cash provided by (used in) (169) 177 (896)investing activities Cash flows from financingactivities: Issuance of shares upon exercise 9 - 23of employees share options Net cash provided by financing 9 - 23activities Increase in cash and cash 3,753 3,352 3,159equivalentsCash and cash equivalents at the 5,338 5,338 9,091beginning of the period Cash and cash equivalents at the $ 9,091 $ 8,690 $ 12,250end of the period *) Reclassified. a. 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 2,143,238 169,253Moshe Nissim - 35,000Ehud Ben-Yair - 45,000Orna Nehustan - 30,000Dan Falk - 20,000Shimon Ravid - 10,000Uzi Peled - 10,000Daniel Furman 753,300 10,000Anat Segal - 20,000 *) Each share option is convertible into one Ordinary share. b. As of September 30, 2007, the Company employs 147 employees. This information is provided by RNS The company news service from the London Stock Exchange