MIGDAL HA'EMEK, Israel, February 27 /PRNewswire-FirstCall/ -- ACS-Tech80 Ltd., (NASDAQ:ACSEFNASDAQ:-NASDAQ:news), a developer of proprietary software and advanced electronics for the production of universal, fully digital motion control products, today reports 2005 fourth quarter and year end results.
Revenues for fiscal year 2005 were $11,428,000, a decrease of 21% from the $14,376,000 revenues reported in 2004. Revenues for the fourth quarter of 2005 were $2,906,000, a decrease of 19% from the $3,584,000 revenues reported in the fourth quarter of 2004, and a decrease of 8% from the $3,173,000 revenues reported for the third quarter of 2005.
Operating income in 2005 was $1,022,000, compared to $2,534,000 in 2004. Operating income for the fourth quarter of 2005 was $148,000, compared to $421,000 in the fourth quarter of 2004, and $527,000 in the third quarter of 2005.
Net income in 2005 was $974,000, or $0.31 per share, compared to $2,253,000 net income, or $0.70 per share in 2004. Net income for the fourth quarter of 2005 was $324,000, or $0.10 per share, compared to $376,000 net income, or $0.11 per share in the fourth quarter of 2004, and $465,000 net income, or $0.15 per share in the third quarter of 2005.
The company completed fiscal year 2005 with cash, cash equivalents and marketable securities of approximately $5.1 million, compared to $3.6 million at the end of 2004, due to a positive cash flow from operations.
The decline in revenues compared to 2004 is mainly attributed to a temporary business decline experienced by a large customer in the field of Electronics manufacturing equipment.
Revenues for the second half of 2005 increased by 14% as compared to revenues in the first half of 2005, exceeding our previous estimation of 5% to 10%.
Based on current improved market conditions and backlog of customer orders, we expect that revenues in the first half of 2006 will increase by 15% to 20% as compared to revenues in the second half of 2005.
Due to our strong cash position and expected positive cash flow, the company decided to further increase its investment in product development and in pursuing additional market opportunities in 2006. It is expected that such investments will boost revenues and operating income starting in 2007.
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-Tech80 Ltd. +972-4-654-6440 Consolidated Statements of Operations Three months ended Year ended
December 31, December 31,
2005 2004 2005 2004
Consolidated
U.S. Dollars in thousands, except per
share data Revenues 2,906 3,584 11,428 14,376
Cost of revenues 1,546 1,806 5,657 7,602 Gross profit 1,360 1,778 5,771 6,774
Research and development costs
Costs incurred 437 491 1,629 1,668
Less-grants received - - (17) (247) Net research and development 437 491 1,612 1,421
costs Proceeds from insurance claim - - - (182)
Selling, general and
administrative
expenses, net 775 866 3,137 3,001 Total operating costs 1,212 1,357 4,749 4,240 Operating income 148 421 1,022 2,534
Financing income (expenses), net 26 51 12 (26)
Other expenses 1 (17) 4 (20) Income before taxes on income 175 455 1,038 2,488
Tax benefit (income taxes) 149 (79) (64) (235) Net income 324 376 974 2,253 Earnings per Ordinary Share
in U.S. dollars
Basic 0.10 0.11 0.31 0.70 Weighted average number Shares
used in computation of earnings per
share
Basic - in thousands 3,142 3,210 3,141 3,210 Consolidated Balance Sheets
December 31,
2005 2004
Consolidated
U.S. Dollars in
thousands ASSETS
Current assets
Cash and cash equivalents 1,641 2,626
Short-term marketable securities 511 -
Marketable debt securities 724 -
Trade receivables, net 2,517 3,170
Inventories 2,833 2,784
Other 330 376
Total current assets 8,556 8,956 Long-term assets
Deferred income taxes 121 142
Marketable debt securities 2,201 1000
Investment in other company 1,218 1,218
Other long-term assets 120 105
Total long-term assets 3,660 2,465 Property and equipment
Cost 3,465 3,418
Less - accumulated depreciation (2,810) (2,498)
655 920 12,871 12,341 LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Trade payables 1,118 1,376
Accounts payable and accruals 1,030 1,229
Total current liabilities 2,148 2,605 Long-term liabilities
Accrued severance pay, net 134 152
Total long-term liabilities 134 152 Shareholders' equity
Share capital - Ordinary Shares of NIS 0.01 par
value
Authorized - 8,000,000 shares as of December
31, 2005 and 2004; Issued - 3,113,577 and
3,101,647 shares as of December 31, 2005 and
2004, respectively; Outstanding - 3,088,776 and
3,076,846 shares as of December 31, 2005 and
2004, respectively 10 9 Treasury stock (December 31, 2004 and
2003 - 24,801) (346) (346)
Additional paid-in capital 6,743 6,713
Retained earnings 4,182 3,208 10,589 9,584
12,871 12,341
DATASOURCE: ACS-Tech80 Ltd.
CONTACT: Contact: Ze'ev Kirshenboim, CEO, ACS-Tech80 Ltd. , +972-4-654-6440
|