ACS Motion Control Ltd. Reports Second Quarter Results

Date : 07/31/2006 @ 11:07AM
Source : PR Newswire
Stock : Acs-Tech80 Limited (MM) (ACSEF)
Quote : 2.4  0.0 (0.00%) @ 8:00PM
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ACS Motion Control Ltd. Reports Second Quarter Results

MIGDAL HA'EMEK, Israel, July 31 /PRNewswire-FirstCall/ -- ACS Motion Control Ltd., (NASDAQ:ACSEFNASDAQ:-NASDAQ:news), a developer and manufacturer of advanced motion control products, reports second quarter revenues and earnings.

Revenues for the second quarter of 2006 were $3,822,000, compared to $2,846,000 revenues reported in the second quarter of 2005, and $3,801,000 revenues reported for the first quarter of 2006. Revenues for the first six months of 2006 were $7,623,000 compared to $5,349,000 revenues reported in the first six months of 2005.

Operating income for the second quarter of 2006 was $550,000, compared to $319,000 in the second quarter of 2005, and $589,000 in the first quarter of 2006. Operating income for the first six months of 2006 was $1,139,000, compared to $347,000 in the first six months of 2005.

Net income for the second quarter of 2006 was $522,000, or $0.16 per share, compared to $145,000 net income, or $0.05 per share in the second quarter of 2005, and $624,000 net income, or $0.20 per share in the first quarter of 2006. Net income for the first six months of 2006 was $1,146,000, or $0.36 per share, compared to $185,000 net income, or $0.06 per share reported in the first six months of 2005.

The company completed the second quarter of 2006 with cash, cash equivalents, marketable securities and long-term debt securities of approximately $6.7 million, compared to $4.3 million at the end of the second quarter of 2005.

Investment in Netzer Precision motion Sensors Ltd. - Netzer sold part of its assets for cash, part of which was received and part of which is due in future installments subject to some performance based conditions. Part of the first installment received was distributed to the shareholders as dividends. All future proceeds from this transaction are expected to be distributed to the shareholders. The company has received $196,000 in cash and reduced the "Investment in other company" item in the balance sheet by an equal amount.

Based on current slower market conditions and the loss of a major application which was reported on June 26, it is expected that revenues in the second half of 2006 will be between $5.6 million to $6 million.

This press release contains forward-looking statements. Such statements involve various risks that may cause actual results to differ materially. These risks and uncertainties include, but are not limited to: market demand for the Company's product, successful implementation of the Company's product, competitive factors, the ability to manage the Company's growth and the ability to recruit additional personnel.

Contact: Ze'ev Kirshenboim, CEO, ACS Motion Control Ltd. (+972-4-654-6440)

2006, Q2 Six months ended Three months ended Year ended Consolidated Statements of Operations June 30, June 30, December 31, 2006 2005 2006 2005 2005

Consolidated U.S. Dollars in thousands

Revenues 7,623 5,349 3,822 2,846 11,428

Cost of 3,906 2,629 2,050 1,348 5,657 revenues

Gross profit 3,717 2,720 1,772 1,498 5,771 Research and development costs Costs incurred 974 818 474 410 1,629 Less-grants (110) - (110) - (17) received Net research 864 818 364 410 1,612 and development costs

Selling, 1,714 1,555 858 769 3,137 general and administrative expenses, net Total operating 2,578 2,373 1,222 1,179 4,749 costs

Operating 1,139 347 550 319 1,022 income Financing 59 (23) (5) (57) 12 income (expenses), net Other income - (1) - - 4 (expenses), net Income before 1,198 323 545 262 1,038 taxes on income Taxes on income (52) (138) (23) (117) (64)

Net income 1,146 185 522 145 974

Earnings per Share - in U.S.

Dollars Basic net 0.36 0.06 0.16 0.05 0.32 earnings per share

Weighted average number of Shares outstanding Basic - in 3,156 3,077 3,223 3,077 3,078 thousands

2006, Q2 June 30, December Consolidated 31, Balance Sheets 2006 2005 2005

Consolidated U.S. Dollars in thousands ASSETS Current assets Cash and cash 1,926 1,898 1,641 equivalents Short-term - 294 511 marketable securities Marketable debt 1,696 - 724 securities Trade receivables, 3,339 1,883 2,517 net Inventories 3,110 3,049 2,833 Other 637 430 330 Total current 10,708 7,554 8,556 assets

Long-term assets Deferred income 121 133 121 taxes Marketable debt 3,100 2,155 2,201 securities Investment in 1,020 1,218 1,218 other company Long-term assets 89 105 120 4,330 3,611 3,660

Property and equipment Cost 3,588 3,508 3,465 Less - accumulated (2,979) (2,680) (2,810) depreciation 609 828 655 Total assets 15,647 11,993 12,871

LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Trade payables 1,824 1,004 1,118 Other 1,165 1,082 1,030 Total current 2,989 2,086 2,148 liabilities

Long-term liabilities Accrued severance 175 137 134 pay, net Total long-term 175 137 134 liabilities Total liabilities 3,164 2,223 2,282

Shareholders' equity Share capital - Ordinary Shares of NIS 0.01 par value Authorized - 8,000,000 shares Issued - June 30, 2006 - 3,290,052, June 30, 2005 - 3,102,147, Dec 31, 2005 - 3,113,577 Outstanding - June 30, 2006 - 3,290,051, June 10 9 10 30, 2005 - 3,077,346, Dec 31, 2005 - 3,088,776 Treasury stock - June 30, 2006 - 1, June 30, 2005 and (150) (346) (346) Dec 31, 2005 - 24,801 Additional paid-in 7,295 6,714 6,743 capital Retained earnings 5,328 3,393 4,182 Total 12,483 9,770 10,589 Shareholders' equity

Total Liabilities 15,647 11,993 12,871 and Shareholders' equity

Net Tangible 12,483 9,770 10,589 Assets

DATASOURCE: ACS Motion Control

CONTACT: Contact: Ze'ev Kirshenboim, CEO, ACS Motion Control Ltd.

(+972-4-654-6440)

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