ACS-Tech80 Ltd. Reports Second Quarter Results
MIGDAL HA'EMEK, Israel, July 20 /PRNewswire-FirstCall/ -- ACS-Tech80 Ltd.,
(NASDAQ:ACSEF), a developer of proprietary software and advanced electronics
for the production of motion control products, today reports second quarter
revenues and earnings.
Revenues for the second quarter of 2005 were $2,846,000, a decrease of 23% from
the $3,689,000 revenues reported in the second quarter of 2004, and an increase
of 14% from the $2,503,000 revenues reported for the first quarter of 2005. Revenues for the first six months of 2005 were $5,349,000, a decrease of 20%
from the $6,684,000 revenues reported in the first six months of 2004.
Operating income for the second quarter of 2005 was $319,000, compared to
$736,000 in the second quarter of 2004, and $28,000 in the first quarter of
2005. Operating income for the first six months of 2005 was $347,000, compared
to $1,327,000 in the first six months of 2004.
Net income for the second quarter of 2005 was $145,000, or $0.05 per share,
compared to $668,000 net income, or $0.20 per share in the second quarter of
2004, and $40,000 net income, or $0.01 per share in the first quarter of 2005. Net income for the first six months of 2005 was $185,000, or $0.06 per share,
compared to $1,142,000 net income, or $0.34 per share reported in the first six
months of 2004.
The company completed the second quarter of 2005 with cash, cash equivalents,
marketable securities and long-term debt securities of approximately $4.3
million, compared to $3.6 million at the end of 2004, due principally to a
positive operating cash flow.
The decline in revenues compared to the same period in 2004 is mainly
attributed to a temporary business decline experienced by a large customer in
the field of Electronics manufacturing equipment, who expects business increase
later this year. On the other hand, we have experienced an increase in demand
from our customers in the Medical Imaging and Digital Printing equipment
industries.
Our solid financial and cash position enabled us to increase our investment in
development of new products and in marketing activities, to forgo applying for
Chief Scientist grants, funding R&D activities using our own resources.
Based on current market conditions and new design wins that will positively
affect our results in the next 12 months, we expect our revenues in the second
half of 2005 to increase by approximately 5% to 10% when compared to the first
half of 2005.
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.
2005, Q2 Consolidated Statements of Operations Six months Three months Year
ended ended ended
June 30, June 30, December 31,
2005 2004 2005 2004 2004 Consolidated
US Dollars in thousands Revenues 5,349 6,684 2,846 3,689 14,376 Cost of revenues 2,629 3,555 1,348 1,985 7,602 Gross profit 2,720 3,129 1,498 1,704 6,774
Research and development
costs
Costs incurred 818 739 410 376 1,668
Less-grants received - (171) - (171) (247)
Net research and development
costs 818 568 410 205 1,421 Proceeds from insurance claim - (182) - - (182)
Selling, general and
administrative expenses, net 1,555 1,416 769 763 3,001
Total operating costs 2,373 1,802 1,179 968 4,240 Operating income 347 1,327 319 736 2,534
Financing expenses, net (23) (64) (57) (28) (26)
Other income (expenses), net (1) (2) - (2) (20)
Income before taxes on income 323 1,261 262 706 2,488
Taxes on income (138) (119) (117) (38) (235) Net income 185 1,142 145 668 2,253 Earnings per Share -
in US Dollars
Basic net earnings per share 0.06 0.34 0.05 0.20 0.70
Diluted net earnings per share 0.06 0.34 0.04 0.20 0.66 Weighted average number of
shares outstanding
Basic - in thousands 3,111 3,339 3,111 3,339 3,210
Diluted - in thousands 3,455 3,339 3,483 3,339 3,383 2005, Q2 Consolidated Balance Sheets June 30, December 31,
2005 2004 2004
Consolidated
US Dollars in thousands
Assets
Current assets
Cash and cash equivalents 1,898 2,273 2,626
Marketable securities 294
Short-term bank deposits - 578 -
Accounts receivable:
Trade 1,883 3,576 3,170
Inventories 3,049 2,966 2,784
Other 430 583 376
Total current assets 7,554 9,976 8,956 Long-term assets
Deferred income taxes 133 193 142
Debt securities held to maturity 2,155 - 1,000
Investment in Held Company 1,218 1,218 1,218
Long-term balances 105 98 105
3,611 1,509 2,465 Property and equipment
Cost 3,508 3,415 3,418
Less - accumulated depreciation 2,680 2,360 2,498
828 1,055 920
11,993 12,540 12,341 Liabilities and Shareholders' Equity Current liabilities
Current maturities of
long-term loans - 181 -
Accounts payable and accruals:
Trade 1,004 2,715 1,376
Other 1,082 1,082 1,229
Total current liabilities 2,086 3,978 2,605
Long-term liabilities
Long-term accrued expenses - 36 -
Accrued severance pay, net 137 145 152
Total long-term liabilities 137 181 152
Shareholders' equity
Share capital - Ordinary Shares of NIS
0.01 par value
(Authorized: 8,000,000; Issued and
outstanding:
June 30, 2005 - 3,102,147, June 30, 2004
- 3,070,147
Dec 31, 2004- 3,101,647) 9 9 9
Treasury stock
(June 30, 2005 and 2004 - (346) (346) (346)
24,801 Dec 31, 2004 - 24,801)
Additional paid-in capital 6,714 6,621 6,713
Retained earnings 3,393 2,097 3,208
9,770 8,381 9,584 11,993 12,540 12,341
Contact: Ze'ev Kirshenboim, CEO, ACS-Tech80 Ltd. +972-4-654-6440
DATASOURCE: ACS-Tech80 Ltd.
CONTACT: Ze'ev Kirshenboim, CEO, ACS-Tech80 Ltd. +972-4-654-6440
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