Ocean Harvest T Regulatory News (OHT)

14 Mar 2006 07:01

Orad Hi-Tec Systems14 March 2006 Orad Hi-Tec Systems Ltd ("Orad" or the "Company") Results for the fiscal year 2005 and the quarter ended December 31 2005 Tel Aviv, March 14, 2005 - 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, announced today its results for the fiscal year 2005and the quarter ended December 31 2005. Highlights : • Return to profitability and cash flow positive • Revenues for the year of $15.4 million in 2005 (2004: $15.7) • $4.7 million revenues in Q4/2005 (Q4/2004: $4.6 million) • Improved gross margin of 64% in Q4/2005 compared to 60% in Q4/2004 • Net profit of $0.3 million in Q4/2005 (Q4/2004: net loss of $0.4 million) • Positive cash flow of $0.9 million in Q4/2005 (Q4/2004: $0.3 million) and positive cash flow of $0.6 million in 2005 (2004: negative cash flow of $2 million) • Inventories decreased by $0.8 million during 2005 • Significant decrease in loss during 2005 to $2.9 million compared to a loss of $3.9 million in 2004 • Sales of Orad's Graphic and Sport systems in Q4/2005 to major broadcaster • increased backlog "We are pleased with the fourth quarter results which represent significantimprovements in sales, operational expenses, cash and inventories statuscompared to previous quarter Along side with increased sales of graphic sportssystems " commented Avi Sharir, Orad's President and Chief Executive Officer."Our strong back log keeps us optimistic with the coming results for 2006. Webelieve that the results for the first quarter of 2006 will show significantimprovement comparing to the first quarter of 2005". 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 Kempkes Orad Hi-Tec Systems Ltd ('Orad' or the 'Company') Results for the fiscal year 2005 and the quarter ended December 31 2005 Chief Executive's Statement Our fourth quarter results represent an improvement in revenues, operationalexpenses, cash and inventories status. Revenues for the fourth quarter of 2005were $4.7 million, compared to $4.6 million in the fourth quarter of 2004 and$3.4 million in the third quarter of 2005 (an increase of 38%). Operationalexpenses for the fourth quarter of 2005 amounted $2.8 million, compared to $3.4million in the fourth quarter of 2004. Net profit for the fourth quarter of 2005was $0.3 million, compared to net loss of $0.4 million in the fourth quarter of2004 and $0.8 million in the previous quarter. Revenues for 2005 were $15.4 million, compared to $15.7 million for the year2004. Gross profit for the fourth quarter of 2005 was $3 million (64% grossmargin) compared to gross profit of $2.8 million in the fourth quarter of 2004(gross margin of 61%). Operational expenses decreased significantly andamounted to $11.6 million in 2005, compared to $13.5 million in 2004. Net lossfor 2005 decreased to $2.9 million, compared to a net loss of $3.9 million inthe year 2004. Financial and Operational Highlights of 2005: • Orad has increased its annual revenues from Graphic Sports systems following its new agreements with CANAL+ in France and the Football Dutch league, and the continuation of the contract with TV Globo in Brazil • Orad kept its market presence in the virtual reality market with repeat orders from Peugeot and new orders from the automotive industry and universities • Orad has started recognizing revenues from the Hong-Kong Jockey club project, and will continue recognizing revenues from the project during 2006 • Orad has kept its leadership in the virtual sets segment. • Two consecutive quarters of positive cash flow and decreased inventories • Reduction of operational costs Financial & Operational Highlights for the fourth quarter of 2005 compared tothird quarter of 2005: Revenues Revenues for the fourth quarter of 2005 amounted to $4.7 million, compared to$3.4 million in the third quarter of 2005, an increase of 38%. Gross Margin and profit Gross margin in the fourth quarter of 2005 is 64%, compared to 59% in the thirdquarter of 2005. Gross profit in the fourth quarter of 2005 was $3 millioncompare to $2 million in the third quarter of 2005. The increase in the grossmargin is due to the increase in sales and product mixture. Research & Development R&D expenses in the fourth quarter of 2005 were $0.5 million, compared to $0.55million in the third quarter of 2005. Selling & Marketing S&M expenses in the fourth quarter of 2005 were $1.6 million, same as in thethird quarter of 2005. General & Administrative G&A expenses amounted to $0.6 million in the fourth quarter of 2005, compare to$0.7 million in the third quarter of 2005. Financial expenses Financial income consists primarily of exchange rate differences related tonon-US dollar balances and interest income earned on short-term deposits offsetby bank charges. Financial expenses for the fourth quarter of 2005 were $0.01million, compared to the same financial expenses in the third quarter of 2005. Net Profit / Loss Net profit for the fourth quarter of 2005 amounted to $0.3 million, compared toa net loss of $0.8 million in the third quarter of 2005. Net profit/ loss per share Net profit per share for the fourth quarter of 2005 was $0.024, compared to anet loss per share of $0.07 for the third quarter of 2005. Financial & Operational Highlights for the fiscal year of 2005 and the quarterended 31 December 2005 compared to the same periods in 2004: Revenues The revenues for the year 2005 were $15.4 million, compared to $15.7 million forthe year 2004. The revenues for the fourth quarter of 2005 were $4.7 million,compared to $4.6 million for the fourth quarter of 2004. During 2005 revenuesfrom Sports systems increased significantly and represented 26% of sales (15% in2004). Revenues from the Hong-Kong Jockey Club amounted $0.9 million. Gross Margin Gross margin was 59% (without the HKJC the gross margin in 2005 was 62%)compared to 61% in 2004. Gross margin for the fourth quarter of 2005 was 64%compared to 60% in the fourth quarter of 2004. Research & Development Research and development ("R&D") expenses were $2.3 million in the year 2005,compared to $2.8 million in the year 2004. R&D expenses in the fourth quarter of2005 were $0.5 million compared to $0.7 million in the fourth quarter of 2004.The decrease is mainly the results of continuing actions taken by the Company toconsolidate the R&D efforts of subsidiaries using complementary technologies andthe grants received from the Le-Match European program. Selling & Marketing Selling and Marketing ("S&M") expenses were $6.8 million in the year of 2005,compared to $8.2 million in the year of 2004. S&M expenses in 2005 decreasedmainly due to the organizational changes. S&M expenses in the fourth quarter of2005 were $1.6 million, compared to $2 million in the fourth quarter of 2004. General & Administrative General & Administrative ("G&A") expenses were $2.5 million in the year of 2005compared to $2.4 million in the year of 2004. G&A expenses in the fourth quarterof 2005 were $0.6 million the same as in the fourth quarter of 2004. Other Expenses Other expenses during 2004 (in Q3/04) were $0.2 million, mainly because of costsrelating to the share transfer agreement of Orad's subsidiary in Hong Kong,under which Orad became the sole owner of the Company. These costs were notrepeated during 2005. Financial income Financial income consists primarily of exchange rate differences related tonon-US dollar balances and interest income earned on short-term deposits offsetby bank charges. Financial income for the year of 2004 was $0.2 million comparedto financial expenses of $0.3 million during 2005. The increase in financialexpenses is mainly due to exchange rate differences resulting from strengtheningof the dollar compared to the Euro during 2005. Financial expenses for thefourth quarter of 2005 were $0.01 million compared to financial income of $0.2million in the fourth quarter of 2004. Net profit/ Loss Net loss for the year 2005 was $2.9 million compared to $3.9 million for theyear 2004. Net profit for the fourth quarter of 2005 was $0.3 million comparedto net loss of $0.4 million for the fourth quarter of 2004. Net profit/ loss per share Net loss per share for the year of 2005 was $0.268 compared to a net loss pershare of $0.36 for the year of 2004. Net profit per share for the fourth quarter of 2005 was $0.024 compared to a netloss per share of $0.04 for the fourth quarter of 2004. Cash Position As of December 31, 2005, cash and short-term bank deposits amounted to $5.8million compared to $5 million at the end of the third quarter of 2005 (anincrease of $0.8 million) and $5.5 million as at 31 December 2004, an increaseof $0.3 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, 2004 2005ASSETS CURRENT ASSETS:Cash and cash equivalents $ 4,752 $ 5,338Restricted cash 750 500Trade receivables, net 4,154 3,754Other accounts receivables and prepaid expenses 910 719Inventories 3,646 2,817Work in process, net of advances from customers 1,063 466 Total current assets 15,275 13,594 SEVERANCE PAY FUND 773 817 PROPERTY AND EQUIPMENT, NET 2,195 1,914 Total assets $ 18,243 $ 16,325 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES:Trade payables $ 1,761 $ 1,262Deferred revenues 741 1,201Other accounts payables and accrued expenses 3,280 4,182 Total current liabilities 5,782 6,645 ACCRUED SEVERANCE PAY 1,103 1,173 SHAREHOLDERS' EQUITY:Share capital 28 28Additional paid-in capital 75,241 75,281Accumulated other comprehensive loss (547) (547)Accumulated deficit (63,364) (66,255) Total shareholders' equity 11,358 8,507 Total liabilities and shareholders' equity $ 18,243 $ 16,325 CONSOLIDATED STATEMENTS OF OPERATIONSU.S. dollars in thousands, except share and per share data Year ended Three months ended December 31, December 31, 2004 2005 2004 2005Revenues:Product sales $ 15,728 $ 14,485 $ 4,571 $ 4,715Long-term contracts - 916 - - Total revenues 15,728 15,401 4,571 4,715 Cost of revenues: Cost of product sales 6,188 5,287 1,815 1,482Cost of long-term contracts - 1,047 - 200 Total cost of revenues 6,188 6,334 1,815 1,682 Gross profit 9,540 9,067 2,756 3,033 Operating expenses:Research and development, net 2,844 2,300 667 511Sales and marketing 8,224 6,813 2,045 1,645General and administrative 2,388 2,529 649 608 Total operating expenses 13,456 11,642 3,361 2,764 Operating income (loss) (3,916) (2,575) (605) 269 Financial income (expenses), net 189 (316) 232 (13)Other expenses, net 148 - 9 - Net income (loss) $ (3,875) $ (2,891) $ (382) $ 256 Basic net earnings (loss) per share $ (0.36) $ (0.27) $ (0.04) $ 0.02 Diluted net earnings (loss) per share $ (0.36) $ (0.27) $ (0.04) $ 0.02 Weighted average number of shares used in 10,698 10,781 10,756 10,786computing basic net earning (loss) per share (inthousands) Weighted average number of shares used in 10,698 10,781 10,756 10,804computing diluted net earning (loss) per share(in thousands) 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 loss Balance as of January 1, 2004 10,650,726 $ 28 $ 75,107 $ (547) $ (59,489) $ 15,099 Comprehensive loss:Net loss - - - - (3,875) (3,875)Total comprehensive loss (3,875)Compensation expenses in - - 38 - - 38respect of share optionswhose terms have beenmodifiedIssuance of shares upon 100,000 *) - 96 - - 96exercise of employees' shareoptions Balance as of December 31, 10,750,726 28 75,241 (547) (63,364) 11,3582004 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, 10,790,621 $ 28 $ 75,281 $ (547) $ (66,255) $ 8,5072005 *) Represents an amount lower than $ 1. CONSOLIDATED STATEMENTS OF CASH FLOWSU.S. dollars in thousands Year ended December 31, 2004 2005Cash flows from operating activities: Net loss $ (3,875) $ (2,891)Adjustments to reconcile net loss to net cash provided by (used in) operatingactivities:Depreciation 1,091 623Compensation expense in respect of share options whose terms have been 38 -modifiedDecrease in trade receivables, other accounts receivables and prepaid 890 591expensesDecrease in inventories 234 591Decrease in work in process, net of advances from customers 277 597Increase (decrease) in trade payables, other accounts payable and accrued (592) 429expenses and accrued severance pay, netIncrease in deferred revenues 217 460Other 28 31 Net cash provided by (used in) operating activities (1,692) 431 Cash flows from investing activities: Purchase of property and equipment (298) (231)Proceeds from sale of property and equipment 88 127Decrease (increase) in restricted cash (227) 250 Net cash provided by (used in) investing activities (437) 146 Cash flows from financing activities: Repayment of long-term loan (16) -Proceeds from exercise of employees' share options 96 9 Net cash provided by financing activities 80 9 Increase (decrease) in cash and cash equivalents (2,049) 586Balance of cash and cash equivalents at beginning of year 6,801 4,752 Balance of cash and cash equivalents at end of year $ 4,752 $ 5,338 Supplemental disclosure of cash flows activities: Cash received during the year for Interest, net $ 62 $ 109 SUPPLEMENTARY INFORMATION 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 - 29,630 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. b. As of December 31, 2005, the Company employs 113 employees. - - - - - - - - - - This information is provided by RNS The company news service from the London Stock Exchange