MIGDAL HA'EMEK, Israel, October 31 /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 third quarter revenues and earnings.
Revenues for the third quarter of 2005 were $3,173,000, a decrease of 22.7% from the $4,108,000 revenues reported in the third quarter of 2004, and an increase of 11.5% from the $2,846,000 revenues reported for the second quarter of 2005. Revenues for the first nine months of 2005 were $8,522,000, a decrease of 21% from the $10,792,000 revenues reported in the first nine months of 2004.
Operating income for the third quarter of 2005 was $527,000, compared to $785,000 in the third quarter of 2004, and $319,000 in the second quarter of 2005. Operating income for the first nine months of 2005 was $874,000, compared to $2,113,000 in the first nine months of 2004.
Net income for the third quarter of 2005 was $465,000, or $0.15 per share, compared to $735,000 net income, or $0.22 per share in the third quarter of 2004, and $145,000 net income, or $0.05 per share in the second quarter of 2005. Net income for the first nine months of 2005 was $650,000, or $0.21 per share, compared to $1,877,000 net income, or $0.56 per share reported in the first nine months of 2004.
The company completed the third quarter of 2005 with cash, cash equivalents, marketable securities and 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 in the last quarter of this year and throughout fiscal year 2006.
We expect that for the second half of 2005 the total revenues will be in the upper range of our previous estimation of 5% to 10% increase when compared to the first half of 2005. 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 first half of 2006 to increase by approximately 5% to 10% when compared to the second 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.
Contact: Ze'ev Kirshenboim, CEO, ACS-Tech80 Ltd. (+972-4-654-6440) 2005, Q3 Consolidated Nine months Three months Year
Statements of Operations ended ended ended
September 30, September 30, December
31,
2005 2004 2005 2004 2004
Consolidated
U.S. Dollars in thousands Revenues 8,522 10,792 3,173 4,108 14,376
Cost of revenues 4,111 5,796 1,482 2,242 7,602 Gross profit 4,411 4,996 1,691 1,866 6,774
Research and development costs
Costs incurred 1,192 1,177 374 439 1,668
Less-grants received (17) (247) (17) (77) (247)
Net research and development costs 1,175 930 357 362 1,421 Proceeds from insurance claim - (182) - - (182)
Selling, general and administrative 2,362 2,135 807 719 3,001
expenses, net
Total operating costs 3,537 2,883 1,164 1,081 4,240 Operating income 874 2,113 527 785 2,534
Financing income (expenses), net (14) (77) 9 (13) (26)
Other income (expenses), net 3 (3) 4 - (20)
Income before taxes on income 863 2,033 540 772 2,488
Taxes on income, net (213) (156) (75) (37) (235) Net income 650 1,877 465 735 2,253 Earnings per Ordinary Share in U.S. Dollars
Basic 0.21 0.56 0.15 0.22 0.70
Diluted 0.17 0.56 0.11 0.22 0.66 Weighted average number of Shares
used
in computation of earnings per share
Basic - in thousands 3,133 3,334 3,133 3,334 3,210
Diluted - in thousands 3,475 3,394 3,481 3,392 3,383 2005, Q3 Consolidated Balance Sheets September 30, December
31,
2005 2004 2004
Consolidated
U.S. Dollars in thousands
ASSETS
Current assets
Cash and cash equivalents 1,309 2,147 2,626
Marketable securities 304 - -
Debt securities held to maturity 713 - -
Trade receivables, net 2,725 3,747 3,170
Inventories 2,998 2,933 2,784
Other 311 577 376
Total current assets 8,360 9,404 8,956 Long-term assets
Deferred income taxes 128 130 142
Debt securities held to maturity 1,931 500 1,000
Investment in other company 1,218 1,218 1,218
Other long-term assets 110 100 105
3,387 1,948 2,465 Property and equipment
Cost 3,448 3,428 3,418
Less - accumulated depreciation 2,724 2,456 2,498
724 972 920 12,471 12,324 12,341 LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Trade payables 1,062 2,132 1,376
Accounts payable and other accruals 1,033 893 1,229
Total current liabilities 2,095 3,025 2,605
Long-term liabilities
Long-term accrued expenses - 23 -
Accrued severance pay, net 139 145 152
Total long-term liabilities 139 168 152
Shareholders' equity
Share capital - Ordinary Shares of
NIS 0.01 par value
(Authorized: 8,000,000; Issued and
outstanding:
September 30, 2005 - 3,102,147,
September 30, 2004- 3,051,346
Dec 31, 2004 - 3,101,647) 9 9 9
Treasury stock (September 30, 2005 (346) (346) (346)
and 2004 - 24,801, Dec 31, 2004- 24,801)
Additional paid-in capital 6,716 6,636 6,713
Retained earnings 3,858 2,832 3,208
10,237 9,131 9,584 12,471 12,324 12,341
DATASOURCE: ACS-Tech80 Ltd.
CONTACT: Contact: Ze'ev Kirshenboim, CEO, ACS-Tech80 Ltd.
(+972-4-654-6440)
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