midastouch017
18 years ago
Lipman Electronic Engineering Ltd. Reports First Quarter 2006 Financial Results
Monday May 8, 2:00 am ET
ROSH HAAYIN, Israel--(BUSINESS WIRE)--May 8, 2006--Lipman Electronic Engineering Ltd. (Nasdaq, TASE: LPMA), a leading provider of electronic transaction systems and solutions, today announced financial results for the first quarter ended March 31, 2006.
For the first quarter of 2006, revenues were $57.6 million, an increase of 6.3% over revenues of $54.2 million for the first quarter of 2005. Excluding revenues from its Dione subsidiary, Lipman's revenues in the first quarter of 2006 increased 22.6% compared to the same period in 2005.
Net income for the quarter before cumulative effect of an accounting change was $6.6 million, or $0.24 per diluted share, compared to net income of $5.3 million, or $0.19 per diluted share, in the first quarter of 2005.
Prior to January 1, 2006, the Company recognized stock-based compensation expense based on the provisions of FAS 123. Effective January 1, 2006, recognition of this expense is based on FAS 123R which amended FAS 123. FAS 123R provides that in determining the amount of stock-based compensation expense a company must take into account an estimate of outstanding options that will be forfeited prior to vesting. Prior to the effectiveness of FAS 123R, the Company did not estimate forfeitures in determining stock-based compensation expense. FAS 123R requires the Company to recognize the cumulative effect of the change in these accounting principles to reverse compensation cost recognized in the financial statements in periods prior to January 1, 2006 for those options that are not expected to vest. As a result, $1.3 million is added to net income in the consolidated statement of operations for the quarter ended March 31, 2006 to reflect the cumulative effect of this accounting change, net of taxes. The Company's net income for the quarter after the cumulative effect of this accounting change, net of taxes, was $8.0 million, or $0.29 per diluted share.
Non-GAAP net income for the three months ended March 31, 2006, which excludes $801,000 of non-cash stock-based compensation expenses and the cumulative effect of the accounting change, was $7.4 million, or $0.27 per diluted share, compared to $6.6 million, or $0.24 per diluted share, for the comparable period of 2005. Non-cash stock-based compensation expenses for the three months ended March 31, 2005 totaled $1.3 million.
Gross profit for the quarter was $24.5 million, or 42.5% of revenues, compared to $22.9 million, or 42.2% of revenues, for the first quarter of 2005.
Cash flow from operating activities for the three months ended March 31, 2006 was $4.8 million compared to $1.9 million for the comparable period in 2005.
During the first quarter of 2006, the Company purchased 343,600 of its ordinary shares for an aggregate amount of $8.7 million in accordance with its previously announced share buyback program.
As of March 31, 2006, the Company had cash and cash equivalents of $120.0 million compared to $124.4 million as of December 31, 2005.
Recent highlights included:
Lipman and VeriFone entered into a definitive agreement for VeriFone to acquire Lipman in a transaction valued at $793 million, based on VeriFone's share price at the close of trading on April 7, 2006. The acquisition is expected to close by October 31, 2006 and is subject to approval by shareholders of both companies and customary regulatory approvals.
Lipman received a $3.2 million follow-on order for its Dione Secura(TM) PIN Entry Devices from a leading Mexican bank.
Commenting on the results, Isaac Angel, President and CEO of Lipman, said, "Our first quarter results were in line with expectations. The results reflected strength in emerging markets such as Eastern Europe and Mexico, as well as the continued improvement at Dione. Following the closing of our recently announced agreement with VeriFone, we will work to leverage our technological and geographic synergies and believe the combined company will be well positioned to lead the electronic payment industry as it continues to grow."
About Lipman
Lipman is a leading worldwide provider of electronic transaction systems and solutions. Lipman develops, manufactures and markets a variety of handheld, wireless and landline POS terminals, electronic cash registers, retail ATM units, PIN pads and smart card readers, as well as integrated PIN and smart card ("Chip & PIN") solutions. In addition, Lipman develops technologically advanced software platforms that offer comprehensive and customized transaction processing solutions for its customers, as well as managed professional services such as on-site and call-center support with remote terminal management.
Lipman's corporate headquarters and R&D facilities are located in Israel. Lipman also maintains offices in the US, United Kingdom, Turkey, China, Spain, Finland, Russia, Italy, Canada, Brazil, Argentina, Mexico, Australia and India. For more information visit www.lipman.biz
Statements concerning Lipman's business outlook or future economic performance; product introductions and plans and objectives related thereto; and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters, are "forward-looking statements" as that term is defined under U.S. Federal securities laws. Forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results to differ materially from those stated in such statements. These risks, uncertainties and factors include, but are not limited to: the risk that the transaction with VeriFone will not close; our dependence on distributors and customers; the competitive market for our products; market acceptance of new products and continuing products; timely product and technology development/upgrades and the ability to manage changing market conditions; manufacturing in Israel; compliance with industry and government standards and regulations; dependence on key personnel; possible business disruption from acquisitions; and other factors detailed in Lipman's filings with the U.S. Securities and Exchange Commission. Lipman assumes no obligation to update the information in this release.
On April 10, 2006, VeriFone Holdings, Inc. and Lipman announced that they have entered into a definitive agreement, which provides for VeriFone to acquire Lipman. In connection with the proposed transaction, VeriFone intends to file a registration statement on Form S-4, including a proxy statement/prospectus of VeriFone and Lipman, and VeriFone and Lipman will file other materials with the SEC. Investors and security holders are urged to read the registration statement and the proxy statement/prospectus which will be sent to stockholders in connection with the merger and any other relevant documents filed with the SEC when they become available, as well as any amendments or supplements to those documents, because they will contain important information. Investors and security holders may obtain a free copy of documents filed with the SEC at the SEC's Internet web site at (www.sec.gov). These documents may also be obtained free of charge from VeriFone by directing such request to the investor relations section of verifone.com.
Lipman Electronic Engineering Ltd.
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
December 31, March 31,
2005 2006
(Audited) (Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 124,413 120,039
Trade receivables, net 46,921 44,805
Other receivables and prepaid expenses 13,667 15,147
Inventories 53,906 57,432
-------------- ------------
Total current assets 238,907 237,423
Property, plant and equipment, net 14,969 16,505
Severance pay fund 3,120 3,248
Long term receivable and other 2,192 2,263
Intangible assets, net 26,247 25,618
Goodwill 39,607 40,138
Total assets 325,042 325,195
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables 20,864 19,460
Other payables and accrued expenses 28,221 29,267
-------------- ------------
Total current liabilities 49,085 48,727
Other long term liabilities 11,514 11,013
Accrued severance pay 4,394 4,535
Total shareholders' equity 260,049 260,920
Total liabilities and shareholders' equity 325,042 325,195
Lipman Electronic Engineering Ltd.
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands (except share and per share data)
Three Months
Ended March 31,
2005 2006
(Unaudited) (Unaudited)
Revenues 54,208 57,632
Cost of revenues 31,312 33,132
----------- -----------
Gross profit 22,896 24,500
Operating expenses:
Research and development 3,425 3,383
Selling and marketing 7,268 8,663
General and administrative 2,265 2,246
Special legal expenses 421 -
Stock-based compensation 1,337 801
Amortization of intangible assets 873 870
----------- -----------
Total operating expenses 15,589 15,963
Operating income 7,307 8,537
Financial income, net 250 802
Other income (expenses) ,net (31) 19
----------- -----------
Income before taxes on income 7,526 9,358
Taxes on income 2,252 2,732
----------- -----------
Net income 5,274 6,626
=========== ===========
Cumulative effect of accounting change
net of taxes - 1,338
Net Income after cumulative effect of
accounting change 5,274 7,964
=========== ===========
Diluted earnings per share 0.19 0.24
Diluted earnings per share after cumulative
effect of accounting change 0.19 0.29
Number of shares for diluted earnings
per share 27,459,411 27,324,610
Lipman Electronic Engineering Ltd.
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
Three Months Ended
March 31,
2005 2006
(Unaudited) (Unaudited)
Cash flow from operating activities:
Net income for the period 5,274 7,964
Adjustments required to reconcile net income
to net cash provided by operating activities:
Depreciation and amortization 1,343 1,640
Stock-based compensation related to options
issued to employees and others 1,337 801
Decrease (increase) in trade receivables and
other receivables (5,130) 918
Increase in inventories (245) (3,391)
Decrease in trade payables & other
liabilities (1,260) (4,019)
Increase in deferred Income 66 2,997
Deferred income taxes, net 344 (790)
Tax benefit related to exercise of options 296 -
Cumulative effect of accounting change, net of
taxes - (1,338)
----------- -----------
Other (80) 42
----------- -----------
Net cash provided by operating activities 1,945 4,824
Cash flow from investing activities:
Purchase of property, plant and equipment (1,128) (2,317)
Proceed from sales of available-for-sale
marketable securities - 428
Other 34 83
----------- -----------
Net cash used in investing activities (1,094) (1,806)
Cash flow from Financing activities:
Exercise of options granted to employees 210 1,366
Tax benefit related to exercise of options - 80
Purchase of treasury stock at cost - (8,680)
Loan received from minority shareholders in a
subsidiary 156 -
----------- -----------
Net cash provided by (used in) financing
activities 366 (7,234)
Effect of exchange rate differences on cash
and cash equivalents (326) (158)
----------- -----------
Increase (decrease) in cash and cash
equivalents 891 (4,374)
Cash and cash equivalents at the beginning of
the period 117,396 124,413
Cash and cash equivalents at the end of the
period 118,287 120,039
----------- -----------
http://biz.yahoo.com/bw/060508/20060507005036.html?.v=1
Dubi
midastouch017
18 years ago
VeriFone to Acquire Lipman
Monday April 10, 2:21 am ET
VeriFone to be #1 or #2 in Most Key Markets Worldwide
Transaction Expected to Close by the End of Current Fiscal Year (October 31, 2006)
Expected to Be Accretive to Fiscal 2007 Earnings
SAN JOSE, Calif. & ROSH HAAYIN, Israel--(BUSINESS WIRE)--April 10, 2006--VeriFone Holdings, Inc. (NYSE: PAY - News) and Lipman Electronic Engineering Ltd. (NASDAQ: LPMA - News; TASE: LPMA) today announced that they have entered into a definitive agreement for VeriFone to acquire Lipman, the Rosh Haayin, Israel-based provider of electronic payment systems. Following the acquisition, VeriFone will become the largest global provider of electronic payment solutions and services, capitalizing on accelerating growth in the emerging markets and demand for IP-based and wireless payment systems.
Lipman shareholders will receive for each Lipman share 0.5 shares of VeriFone common stock and $14.304 in cash, adjusted for a special dividend. The amount of the special dividend has not been finally determined but will likely exceed $23 million. Alternatively, Lipman shareholders may elect to receive either $29.07 in cash, or 0.9844 shares of VeriFone stock for each Lipman share, each adjusted for the special dividend. The cash and stock elections are subject to proration such that VeriFone will issue in the aggregate approximately 13.3 million shares of VeriFone stock and pay approximately $382 million in cash, adjusted for the special dividend. The acquisition is valued at $793 million based on VeriFone's share price at the close of trading on April 7th, 2006. VeriFone expects the transaction to be accretive to street consensus estimates for fiscal 2007 net income, as adjusted. Closing is expected to occur by the end of VeriFone's current fiscal year (October 31, 2006). Following completion of the acquisition, VeriFone will continue to trade on the New York Stock Exchange and will be dual listed on the Tel Aviv Stock Exchange.
VeriFone Chairman and CEO Douglas G. Bergeron said, "The acquisition provides exciting opportunities for VeriFone. The two companies are the fastest growing and most profitable providers of point of sale electronic payment technologies. Geographically, the businesses are complementary, and will be the leader in North America and the emerging markets, and number one or number two in most other key markets world-wide. Through this acquisition we will extend our technology leadership, particularly in the rapidly growing wireless and IP segments. Most importantly, we will be able to bring new technologies to market more quickly, offer a broader set of solutions and increased level of service and support to our customers worldwide."
"Since its founding in 1974, Lipman has established a track record of innovation and leadership in wireless payment technology, which is crucial to emerging markets that lack wired telephone infrastructure and to capture mobile payments throughout the world. The ability to leverage VeriFone's worldwide sales and marketing channels will increase the rate at which we can penetrate the emerging markets that have tremendous growth potential," said Lipman President and CEO Isaac Angel.
In its fiscal year ended October 31, 2005, VeriFone's net revenues were $485.4 million, an increase of 24% over the comparable period of 2004 with domestic and international growth well exceeding industry growth rates, indicating continued market share gain; net income, as adjusted, for the year was $49.7 million. Lipman's revenues in the fiscal year ended December 31, 2005 were $235.4 million, an increase of 30.4% over the comparable period of 2004 and net income for the year was US GAAP $20.0 million. The acquisition is subject to approval by shareholders of both companies and customary regulatory approvals.
Lehman Brothers acted as financial advisor to VeriFone on the acquisition. Merrill Lynch acted as financial advisor to Lipman.
Conference Call
The management of VeriFone and Lipman will host a conference call, which will be simultaneously webcast, on April 10th, 2006 at 08:30 AM (EST) to discuss the acquisition. Management may provide forward-looking guidance on this conference call. To access the live conference call, the dial-in numbers are as follows:
Domestic callers: 800-291-5365
International callers: 617-614-3922
Participant Passcode: 53588404
To access the audio webcast, please go to VeriFone's website (http://ir.verifone.com) at least ten minutes prior to the call to register. The recorded audio webcast will be available on VeriFone's website until April 17th, 2006.
A replay of the conference call, which can be accessed by dialing toll-free 888-286-8010, and outside the U.S. 617-801-6888, will be available until April 17th, 2006. The access code for the replay is 53209021.
About VeriFone Holdings, Inc. (www.verifone.com)
http://biz.yahoo.com/bw/060410/20060409005063.html?.v=1
Dubi
midastouch017
18 years ago
Lipman Electronic Engineering Ltd. Reports Fourth Quarter and Full Year 2005 Financial Results
Tuesday February 7, 4:15 pm ET
Record Revenues of $235.4 Million for Full Year 2005
ROSH HAAYIN, Israel--(BUSINESS WIRE)--Feb. 7, 2006--Lipman Electronic Engineering Ltd.:
Full year Non-GAAP Net Income of $35.9 Million, or $1.31 Per Diluted Share
Fourth Quarter Non-GAAP Net Income of $11.5 Million, or $0.42 Per Diluted Share
Lipman Electronic Engineering Ltd. (Nasdaq, TASE: LPMA), a leading provider of electronic transaction systems and solutions, today announced financial results for the fourth quarter and full year ended December 31, 2005.
For the fourth quarter of 2005, revenues were $68.8 million, an increase of 4.7% over revenues of $65.7 million for the fourth quarter of 2004, and an increase of 27.0% over revenues of $54.1 million for the third quarter 2005.
Net loss for the quarter was $(360,000), or $(0.01) per diluted share, which includes a non-cash goodwill impairment charge of $10.5 million related to the Company's Dione subsidiary. Lipman determined the impairment charge in accordance with SFAS 142 based on current projections of future cash flows. Net income for the comparable period in 2004 was $9.7 million, or $0.35 per diluted share.
Non-GAAP net income for the three months ended December 31, 2005, which excludes the non-cash impairment charge of $10.5 million and $1.4 million of non-cash stock-based compensation expenses, was $11.5 million, or 0.42 per diluted share, compared to $10.3 million, or 0.38 per diluted share, for the comparable period of 2004. Non-cash stock-based compensation expenses for the three months ended December 31, 2004 totaled $636,000.
Gross profit for the quarter was $27.9 million, or 40.6% of revenues, compared to $26.6 million, or 40.6% of revenues, for the fourth quarter of 2004.
Cash flow from operating activities for the three months ended December 31, 2005 was $9.4 million compared to $15.5 million for the comparable period in 2004.
As of December 31, 2005, the Company had cash and cash equivalents of $124.4 million compared to $117.4 million as of December 31, 2004 and $118.1 million as of September 30, 2005.
During the fourth quarter of 2005, the Company purchased its ordinary shares for an aggregate amount of $1.5 million in accordance with its previously announced share buyback program.
For the twelve months ended December 31, 2005, revenues increased 30.4% to $235.4 million, from $180.6 million during 2004. Net income for the year was $20.0 million, or $0.73 per diluted share, compared to $30.7 million, or $1.15 per diluted share in 2004.
Operating expenses for 2005 include the non cash impairment charge of $10.5 million, as well as non-cash stock-based compensation expenses totaling $5.3 million, compared to $4.8 million of non-cash stock-based compensation expenses in 2004. Excluding the effect of non-cash stock-based compensation and the non-cash impairment charge, non-GAAP net income for 2005 was $35.9 million, or $1.31 per diluted share, compared to $35.5 million, or $1.33 per diluted share, for 2004.
Gross profit for the year was $100.5 million, or 42.7% of revenues, compared to $81.5 million, or 45.2% of revenues, for 2004.
Key highlights for the quarter included:
Follow-on orders totaling $6 million from leading banks in India for the NURIT 8320 landline POS terminal.
Initial order valued at $2.2 million for Lipman's Dione Secura(TM) PIN Entry Device from one of Mexico's largest banks.
Initial order valued at $3 million for Lipman's Dione Secura PIN Pads and Xpress card readers from retailers in Germany.
Participation in the launch of the EMV initiative of ICBC, one of China's leading banks, and the subsequent $7 million contract with ICBC to supply our new WiFi-capable terminals for a large-scale POS deployment in petrol stations around China.
The launch of Lipman's NURIT 8210, our newest secure, multi-application integrated POS terminal, developed jointly with Yapi Kredi Bank in Turkey, which placed an order for 35,000 terminals.
Commenting on the results, Isaac Angel, President and CEO of Lipman, said, "Our results for the fourth quarter and full-year reflect the positive momentum in our core business. We continued to execute well on our strategy to advance our leadership position in the point-of-sale market in 2005 and we are enthusiastic about new growth opportunities that we see in 2006."
"During the year, we saw strength in a number of key regions, including the United States, China, India and South America. Our U.S. subsidiary showed a substantial increase in performance compared to 2004, underscoring the talent of our sales and management team, the value of our products and the overall strength of our business. In China, India and South America, our growth was driven by significant orders from leading organizations in each region. We view our growth and accomplishments in these markets as evidence of the continuing development of the infrastructure in emerging countries and the greater emphasis these nations are placing on card-based transactions."
He continued, "During the quarter we continued to address the issues in our Dione subsidiary. We rationalized Dione's cost structure in order to bring it in line with Dione's goals for the coming year. We secured contracts for the sale of Dione products to customers in Mexico and Germany, countries in which Lipman did not have a presence."
"We also realized a number of technological achievements in 2005. Throughout the year, our products received certifications from leading regional and international organizations. These certifications further broaden the reach of Lipman's products, enabling us to sell to new customers in new markets. In addition to enhancing our existing product family, we launched the NURIT 8210, our newest integrated terminal, at the CARTES 2005 Exhibition. This continued innovation underscores Lipman's commitment to providing its customers with the most advanced, most robust solutions available."
Mr. Angel concluded, "As we have previously indicated, it is Lipman's plan to grow by expanding into new markets, enhancing our suite of offerings through the introduction of new products and accessing new vertical markets. Lipman has a solid groundwork from which to build continued success. We have forged strong customer relationships and further developed our technology, all of which we expect will positively impact our business as we continue to execute on our strategic growth plan. Lipman is on target to expand its position in the point-of-sale market and we remain excited about the Company's future."
About Lipman
Lipman is a leading worldwide provider of electronic transaction systems and solutions. Lipman develops, manufactures and markets a variety of handheld, wireless and landline POS terminals, electronic cash registers, retail ATM units, PIN pads and smart card readers, as well as integrated PIN and smart card ("Chip & PIN") solutions. In addition, Lipman develops technologically advanced software platforms that offer comprehensive and customized transaction processing solutions for its customers, as well as managed professional services such as on-site and call-center support with remote terminal management.
Lipman's corporate headquarters and R&D facilities are located in Israel. Lipman also maintains offices in the US, United Kingdom, Turkey, China, Spain, Finland, Russia, Italy, Canada, Brazil, Argentina, Mexico, Australia and India. For more information visit www.lipman.biz
http://biz.yahoo.com/bw/060207/20060207006126.html?.v=1
Dubi
midastouch017
18 years ago
Lipman USA Signs Distribution Agreement with Conquest Financial
Monday January 23, 2:00 am ET
Conquest to Sell NURIT 2159 Electronic Cash Registers
ROSH HAAYIN, Israel--(BUSINESS WIRE)--Jan. 23, 2006--Lipman Electronic Engineering Ltd. (Nasdaq, TASE: LPMA) today announced that its U.S. subsidiary, Lipman USA, Inc., has signed a distribution agreement with Conquest Financial, LLC. Under this agreement, Conquest will sell complete systems consisting of Lipman's NURIT 2159 Electronic Cash Register (ECR) and the NURIT 222 PIN Entry Device. In addition, Conquest will purchase licenses for Lipman's NURIT Store, a web-based solution that provides end users with full-featured store management functionality including back-end reporting and product management capabilities.
Product deliveries began in December 2005, and Lipman expects to recognize approximately $4 million of revenue by the end of 2006 from the sale of systems, as well as the provision of recurring services, to Conquest. Conquest will be distributing and servicing Lipman's solutions not only to traditional ECR channels, but also to the shopping mall operator channel.
Conquest Financial offers a complete array of solutions across all payment forms, card brands and merchant segments. Conquest's solutions enable merchants to accommodate a customer's preferred form of payment, from cash to checks and smart cards. Conquest serves businesses in a wide range of markets including hospitality, retail, delivery and transportation.
Michael Schvartsman, President of Conquest Financial, said, "We are pleased to begin distribution for Lipman of the NURIT 2159. We place a great emphasis on meeting the needs of our customers, and believe that the NURIT 2159 is a best-in-class product. In addition, when combined with the NURIT 222 PIN Entry Device and the NURIT Store software, we are able to offer our customers a truly complete solution that we are confident will exceed our customers' needs."
Robert Striano, President and CEO of Lipman USA, said, "Conquest Financial is a significant new customer for Lipman USA and this agreement will help set the foundation for our ECR business as we head into 2006. In addition, the agreement opens a new distribution channel for Lipman USA, one which we believe can help us grow our ECR business and, potentially, our traditional POS terminal business. With Conquest's strong position in the market place, we are confident that this partnership will be a success and help to further drive the growth of Lipman USA."
About Lipman
Lipman is a leading worldwide provider of electronic payment systems. Lipman develops, manufactures and markets a variety of handheld, wireless and landline POS terminals, electronic cash registers, retail ATM units, PIN pads and smart card readers, as well as integrated PIN and smart card ("Chip & PIN") solutions. In addition, Lipman develops technologically advanced software platforms that offer comprehensive and customized transaction processing solutions for its customers, as well as managed professional services such as on-site and call-center support with remote terminal management.
Lipman's corporate headquarters and R&D facilities are located in Israel. Lipman also maintains offices in the US, United Kingdom, Turkey, China, Spain, Finland, Russia, Italy, Canada, Brazil, Argentina, Mexico, Australia and India. For more information visit www.lipman.biz.
http://biz.yahoo.com/bw/060123/20060122005085.html?.v=1
Dubi
midastouch017
18 years ago
Lipman's NURIT 8000 Used by Industrial and Commercial Bank of China to Launch EMV Initiative
Wednesday January 18, 9:15 am ET
ROSH HAAYIN, Israel--(BUSINESS WIRE)--Jan. 18, 2006--Lipman Electronic Engineering Ltd. (Nasdaq, TASE: LPMA) today announced that its terminals were used to launch the EMV initiative of Industrial and Commercial Bank of China (ICBC), one of the leading banks in that country. On December 16, 2005, ICBC and MasterCard International held a joint ceremony to introduce the Peony MasterCard, the first EMV chip-based card available in China.
EMV is the uniform technology standard for bank chip card debit/credit applications jointly established by the international credit card organizations of Europay, MasterCard and Visa. The chip card has independent functions for, among other things, operation, encryption and decipherment. Its safety is higher than magnetic cards as it effectively prevents transactions with false or counterfeit cards and safeguards the funds of the cardholder.
Lipman has been working closely with ICBC on this EMV migration, from development through implementation. In addition, Lipman was selected to work with ICBC on an EMV pilot project at one of the bank's branches in the Shandong Province of China. Several of Lipman's leading NURIT products were used during these evaluation and pilot projects, including the NURIT 8320 landline and NURIT 8000 wireless POS terminals, as well as the NURIT 222 Secure PIN Pad.
Lipman is one of the first POS terminal vendors with products meeting the EMV requirements of both ICBC and China UnionPay, the country's leading financial institutions, and certified by MasterCard TIP, Visa ADVT, and JCB J/Smart.
Lazy Yanay, Executive Vice President Sales and Marketing of Lipman, said, "We are extremely pleased that our NURIT 8000, NURIT 8320 and NURIT 222 were selected to be a part of this milestone event in the Chinese banking industry. The commencement of ICBC's EMV initiative marks a significant development in the payments industry in China. The country is poised for tremendous growth in the use of credit and debit cards, both in anticipation of the upcoming Beijing Olympics and to support the overall increase in non-cash transactions. We are proud to be working with both ICBC and China UnionPay, the country's two leading finance organizations, on their overall POS terminal rollout efforts and, more specifically, their EMV migration initiatives."
Mr. Yanay continued, "We have long believed that the Chinese market represents a substantial growth opportunity for Lipman. While we have historically enjoyed a strong position in this market, it has not yet shown the high growth expected given its potential size. With the efforts by banks to build their infrastructure in advance of the 2008 Olympics and the shift to EMV now underway, we are excited about the opportunities that lie ahead and believe that Lipman will remain at the forefront of this sizeable market as it evolves."
About Lipman
Lipman is a leading worldwide provider of electronic payment systems. Lipman develops, manufactures and markets a variety of handheld, wireless and landline POS terminals, electronic cash registers, retail ATM units, PIN pads and smart card readers, as well as integrated PIN and smart card ("Chip & PIN") solutions. In addition, Lipman develops technologically advanced software platforms that offer comprehensive and customized transaction processing solutions for its customers, as well as managed professional services such as on-site and call-center support with remote terminal management.
Lipman's corporate headquarters and R&D facilities are located in Israel. Lipman also maintains offices in the US, United Kingdom, Turkey, China, Spain, Finland, Russia, Italy, Canada and Latin America. For more information visit www.lipman.biz
http://biz.yahoo.com/bw/060118/20060118005516.html?.v=1
Dubi
midastouch017
18 years ago
Lipman Receives NOVA Certification for Four NURIT Terminals
Tuesday January 10, 2:00 am ET
ROSH HAAYIN, Israel--(BUSINESS WIRE)--Jan. 10, 2006--Lipman Electronic Engineering Ltd. (Nasdaq, TASE: LPMA) today announced that its NURIT 8000S, 8230 and 2085 Point of Sale terminals have received Class A certification and the NURIT 8100 Class B certification from NOVA Information Systems (NOVA), an industry leading provider of payment processing infrastructure in the United States and Europe. The 8000S, 8100 and 8230 can support the full range of NOVA payment processing applications, including credit, debit, checks and gift cards, electronic checks and dynamic currency conversion, while the 2085 can support credit, debit and gift card transactions. With this certification, these terminals can be sold and supported by NOVA to its merchant and financial institution customers.
David Strider, executive vice president, business development and global operations of NOVA said, "The addition of the NURIT terminals to our already broad range of offerings will help to ensure that our customers can select from among the leading solutions in the market, further enhancing the level of value we provide our members. With the vast array of features, communications options, and the high level of security that Lipman's products are known for, we are confident that NOVA can offer a terminal to meet the needs of any merchant or financial institution within our network. We are pleased to incorporate Lipman to our list of industry leading partners and look forward to a long, successful relationship."
Robert Striano, President and CEO of Lipman USA said, "With a broad range of Lipman's POS solutions now certified by NOVA, we believe our NURIT products are better positioned to meet the diverse needs of merchants and financial institutions in the United States. Receipt of these certifications is an important stepping-stone in our strategy to grow Lipman's U.S. business both with financial institutions as well as with the ISO market, which has traditionally represented our primary focus. We have made a great deal of progress in this respect during 2005 and have laid the foundation for the continued growth of Lipman USA in 2006."
About Lipman
Lipman is a leading worldwide provider of electronic payment systems. Lipman develops, manufactures and markets a variety of handheld, wireless and landline POS terminals, electronic cash registers, retail ATM units, PIN pads and smart card readers, as well as integrated PIN and smart card ("Chip & PIN") solutions. In addition, Lipman develops technologically advanced software platforms that offer comprehensive and customized transaction processing solutions for its customers, as well as managed professional services such as on-site and call-center support with remote terminal management.
Lipman's corporate headquarters and R&D facilities are located in Israel. Lipman also maintains offices in the US, United Kingdom, Turkey, China, Spain, Finland, Russia, Italy, Canada and Latin America. For more information visit www.lipman.biz
About NOVA
NOVA Information Systems, a leader in the payment processing industry, is a wholly owned subsidiary of U.S. Bancorp (NYSE: USB - News). Combined, NOVA and its affiliate euroConex and Elan, provide global merchant processing services to financial institutions and customers in the United States, Canada, and Europe. NOVA offers integrated payment processing services to more than 800,000 merchants in the United States and Europe. For more information visit www.novainfo.com.
http://biz.yahoo.com/bw/060110/20060109006119.html?.v=1
Dubi
midastouch017
18 years ago
Lipman Receives Initial Orders Totaling $3 Million from Leading German Retailers
Tuesday December 6, 4:15 pm ET
Dione Xpress Card Readers and Secura PIN Pads to begin Shipping to Lipman's First Customers in Germany in Q4 2005
ROSH HAAYIN, Israel--(BUSINESS WIRE)--Dec. 6, 2005--Lipman Electronic Engineering Ltd. (Nasdaq, TASE: LPMA) today announced that it has received orders totaling $3 million from retailers in Germany. These orders, for Lipman's Dione Secura PIN Pads and Xpress card readers, are Lipman's first sales to customers in the German market. Product deliveries are expected to begin in the fourth quarter of 2005 and to continue through the first half of 2006.
The Secura(TM) PIN Entry Device is based on Lipman's SecuraCell(TM) Transaction Technology Platform, a unified technology platform certified as complying with the highest security standards, including ZKA and PCI PED among others. Comprised of five leading German banks and processors, ZKA sets the strict standards of security for PIN pads and terminals used in Germany. Designed for ease of use by both consumers and merchants, the Secura features both a magnetic card reader and an EMV chip card reader, a backlit keyboard and LCD display, and a physical privacy shield to ensure transaction security.
The Xpress(TM) is a patented card reading device featuring Lipman's Swipe & Park design, which is capable of reading both a magnetic stripe and EMV chip in a single movement. Designed to allow retailers to comply with EMV security standards with minimal impact on checkout times, the Xpress compares magnetic stripe data with chip data, preventing acceptance of 'skimmed' cards and reducing the risk of financial loss through fraud. The Xpress can act as an EMV Level 1 card interface device or perform full EMV Level 2 transactions. This significantly reduces transaction times and simplifies the authorization procedure.
Isaac Angel, President and CEO of Lipman said, "We are very pleased to receive these initial orders from several leading German retailers and believe that these orders validate our significant efforts directed toward penetration of the German market. We believe that opportunities in the German market will increase as the country's migration to EMV-compliant payment systems is expected to begin in the near future. With our recent receipt of ZKA security certification, we believe we are well positioned to capitalize on opportunities in Germany as they continue to emerge."
About Lipman
Lipman is a leading worldwide provider of electronic payment systems. Lipman develops, manufactures and markets a variety of handheld, wireless and landline POS terminals, electronic cash registers, retail ATM units, PIN pads and smart card readers, as well as integrated PIN and smart card ("Chip & PIN") solutions. In addition, Lipman develops technologically advanced software platforms that offer comprehensive and customized transaction processing solutions for its customers, as well as managed professional services such as on-site and call-center support with remote terminal management.
Lipman's corporate headquarters and R&D facilities are located in Israel. Lipman also maintains offices in the US, United Kingdom, Turkey, China, Spain, Finland, Russia, Italy, Canada, Brazil, Argentina, Mexico, Australia and India. For more information visit www.lipman.biz
http://biz.yahoo.com/bw/051206/20051206005989.html?.v=1
Dubi
midastouch017
18 years ago
Lipman Board of Directors Authorizes the Repurchase of up to $30 Million of Lipman's Ordinary Shares
Monday November 28, 2:00 am ET
ROSH HAAYIN, Israel--(BUSINESS WIRE)--Nov. 28, 2005--Lipman Electronic Engineering Ltd. (Nasdaq, TASE: LPMA) today announced that its Board of Directors has authorized the Company to purchase up to $30 million worth of its ordinary shares. Purchases of shares may be made from time to time at the discretion of management in the open market or through privately negotiated transactions. The timing and amount of shares purchased will be subject to share prices, market conditions and other factors. The purchase of shares will be made using the Company's cash resources and may be commenced or suspended at any time, or from time-to-time. As of November 24, 2005, the Company had outstanding 27,042,436 ordinary shares.
Isaac Angel, President and Chief Executive Officer of Lipman, said, "We believe that the current valuation of Lipman's shares makes the repurchase of our shares a sound investment, as well as an attractive opportunity to enhance shareholder value in the long-term. Lipman has a strong balance sheet with approximately $118 million in cash and no debt. Our financial strength makes it possible for us to invest in our shares without sacrificing our ability to grow, either organically or through acquisition."
About Lipman
Lipman is a leading worldwide provider of electronic payment systems. Lipman develops, manufactures and markets a variety of handheld, wireless and landline POS terminals, electronic cash registers, retail ATM units, PIN pads and smart card readers, as well as integrated PIN and smart card ("Chip & PIN") solutions. In addition, Lipman develops technologically advanced software platforms that offer comprehensive and customized transaction processing solutions for its customers, as well as managed professional services such as on-site and call-center support with remote terminal management.
Lipman's corporate headquarters and R&D facilities are located in Israel. Lipman also maintains offices in the US, United Kingdom, Turkey, China, Spain, Finland, Russia, Italy, Canada, Brazil, Argentina, Mexico, Australia and India. For more information visit www.lipman.biz
http://biz.yahoo.com/bw/051128/20051127005033.html?.v=1
Dubi
midastouch017
18 years ago
Lipman Receives Order from Yapi Kredi Bank in Turkey for the New Nurit 8210
Monday November 14, 2:00 am ET
35,000 Terminals to Be Delivered in Q4 2005 and Q1 2006
Nurit 8210, Lipman's Newest Secure Multi-Application Integrated Payment Terminal to Be Launched at Cartes 2005
ROSH HAAYIN, Israel--(BUSINESS WIRE)--Nov. 14, 2005--Lipman Electronic Engineering Ltd. (Nasdaq, TASE: LPMA) today announced that Yapi Kredi Bank, one of the largest banks, a leader of the acquiring and issuing card market in Turkey and Lipman's first customer in the region, has placed an initial 35,000 terminal order for Lipman's new NURIT 8210 Point of Sale (POS) terminal. Shipments to Yapi Kredi will begin during the fourth quarter of 2005, and the order is expected to be supplied in full during the first quarter of 2006.
Lipman will formally launch the NURIT 8210, its newest multifunction terminal, at the CARTES 2005 Exhibition in Paris. Yapi Kredi worked closely with Lipman throughout the development process, and made substantial contributions to both the final design and end-user interface of the terminal. In addition, Yapi Kredi was actively involved in the extensive testing and field trials that have been conducted in advance of the launch.
The unique design of the exceptionally secure NURIT 8210 simplifies cardholder Personal Identification Number entry and merchant operation for easy EMV migration. It comprises a convenient handover customer interface unit with integrated EMV PIN Pad, and a stationary base unit.
The NURIT 8210 provides a superior level of security, designed to meet or exceed widely recognized global and regional standards.
The NURIT 8210 also offers users many value-added features and options, including audio and voice guidance and expandable SD and MMC Flash memory for large audio and vertical application data storage.
The NURIT Operating System ensures compatibility with all existing NURIT terminal applications, protecting customer investment and reducing Total Cost of Ownership.
Isaac Angel, President and CEO of Lipman said, "We are extremely pleased to receive this significant order from Yapi Kredi, one of our most significant customers, and to introduce the NURIT 8210 at CARTES, the world's foremost event for the smart card and payment card industry. We believe that demand for this innovative solution will be significant, as the NURIT 8210's convenience and broad feature set are complimented by its robust security. The launch of this terminal comes following extensive work, both independently and in conjunction with Yapi Kredi, and underscores Lipman's commitment not only to technological innovation, but our dedication to our customers and philosophy that each customer is in fact a partner. We believe this new terminal represents an optimal value-added solution for Lipman's customers in a variety of markets throughout the world and we are excited about its potential for success upon commercial launch."
Nazan Somer, Executive Vice President, Credit Cards and Retail Banking of Yapi Kredi Bank said, "We are pleased to once again be working with Lipman on an important project in conjunction with a significant nationwide terminal deployment. Lipman's innovative solutions and commitment to offering highly customized, best of breed solutions will enable us to bring value to both our merchant customers and Turkish consumers."
About Lipman
Lipman is a leading worldwide provider of electronic payment systems. Lipman develops, manufactures and markets a variety of handheld, wireless and landline POS terminals, electronic cash registers, retail ATM units, PIN pads and smart card readers, as well as integrated PIN and smart card ("Chip & PIN") solutions. In addition, Lipman develops technologically advanced software platforms that offer comprehensive and customized transaction processing solutions for its customers, as well as managed professional services such as on-site and call-center support with remote terminal management.
Lipman's corporate headquarters and R&D facilities are located in Israel. Lipman also maintains offices in the United States, United Kingdom, Turkey, China, Spain, Finland, Russia, Italy, Canada, Brazil, Argentina, Mexico, Australia and India. For more information visit www.lipman.biz
http://biz.yahoo.com/bw/051114/20051113005045.html?.v=1
Dubi
midastouch017
18 years ago
Lipman Receives Key Security Certifications for Dione Xplorer(TM) and Secura(TM) Products
Thursday November 10, 8:55 am ET
ROSH HAAYIN, Israel--(BUSINESS WIRE)--Nov. 10, 2005--Lipman Electronic Engineering Ltd. (Nasdaq, TASE: LPMA) today announced that its Dione Xplorer, Dione Secura and Dione Secura Integration Module have received several significant security certifications. All three products have received PCI PED (Payment Card Industry PIN Entry Device) approval, and the Xplorer and Secura received certification from the Australian Payments Clearing Association (APCA). In addition, the Xplorer terminal has received APACS Common Criteria certification from the UK payments association.
These approvals are in addition to previously issued Interpay and ZKA security approvals applying to the Netherlands and Germany, respectively, as well as Visa PED approvals.
The Xplorer is the first full-function payment terminal to receive such broad security approvals.
To receive these certifications, the systems were tested at both the hardware and software levels by a independent laboratories for fraud protection, including tamper resistance and tamper responsiveness as well as other stringent criteria, to ensure transaction security and protect customer PINs, or Personal Identification Numbers, and other sensitive data at the point of sale. In addition, APACS certification required evaluation of the security of the development and production environments.
PCI PED is the alignment of PIN entry device security requirements and approval processes jointly agreed by Visa International, MasterCard International and JCB. It is an evolution of the previous Visa PED program instituted in 2002 by Visa International, and addresses the need for unified requirements and increased levels of security to combat new methods and technologies for payment fraud.
Isaac Angel, President and CEO of Lipman said, "We are pleased to receive these new certifications for our Xplorer, which is already installed and in use by a number of customers in the United Kingdom, and our Secura, which is currently being used by customers in both the United Kingdom and Spain. That we were the first vendor in the world to have devices receive such broad certification, speaks to the quality of our technology and the success of our efforts to continuously lead the market with new solutions that meet the latest security requirements."
He continued, "APCA certification forms the basis for our continued introduction of next generation terminals into the Australian market, which is important to the growth of our business and continued expansion of the Dione product family. APACS certification provides us with another important advantage in the UK market, as well as a significant endorsement of the security of our products in other regions. PCI PED is an emerging global standard for PIN Entry Devices which we believe will be of increasing importance going forward as we work to penetrate new geographic and vertical markets."
Mr. Angel concluded, "With liability for fraud shifting from issuers to acquirers, and in some situations to individual merchants, it is imperative that terminals in the field meet the highest security standards possible. With the establishment of the PCI PED standards, a greater emphasis is being placed on security at the terminal level as the most effective way to combat credit and debit card fraud as the number of card-based transactions continues to grow throughout the world. With advanced technology solutions that effectively address the needs of the payment industry, we are confident in our ability to remain at the forefront of the markets we serve and further solidify Lipman's position as a leader in secure payment solutions."
About Lipman
Lipman is a leading worldwide provider of electronic payment systems. Lipman develops, manufactures and markets a variety of handheld, wireless and landline POS terminals, electronic cash registers, retail ATM units, PIN pads and smart card readers, as well as integrated PIN and smart card ("Chip & PIN") solutions. In addition, Lipman develops technologically advanced software platforms that offer comprehensive and customized transaction processing solutions for its customers, as well as managed professional services such as on-site and call-center support with remote terminal management.
Lipman's corporate headquarters and R&D facilities are located in Israel. Lipman also maintains offices in the United States, United Kingdom, Turkey, China, Spain, Finland, Russia, Italy, Canada, Brazil, Argentina, Mexico, Australia and India. For more information visit www.lipman.biz.
http://biz.yahoo.com/bw/051110/20051110005433.html?.v=1
Dubi
midastouch017
18 years ago
Lipman Receives Notification of Motion to Withdraw Class Action Lawsuit in Israel
Thursday October 27, 4:38 pm ET
ROSH HAAYIN, Israel--(BUSINESS WIRE)--Oct. 27, 2005--Lipman Electronic Engineering Ltd. (Nasdaq, TASE: LPMA) today announced that the plaintiff in the purported securities class action in Israel has filed a motion in the Tel Aviv district court to withdraw the claim without prejudice. The motion to withdraw this lawsuit is subject to court approval. The Company believes that such approval will be granted.
http://biz.yahoo.com/bw/051027/276087.html?.v=1
Investors May Seek Appointment as Lead Plaintiff in Litigation Against Lipman Electronic Engineering, Ltd. -- LPMA
Thursday October 27, 6:26 pm ET
NEW YORK, Oct. 27, 2005 (PRIMEZONE) -- Pomerantz Haudek Block Grossman & Gross LLP (http://www.pomerantzlaw.com) filed a class action complaint in the United States District Court, Eastern District of New York, against Lipman Electronic Engineering, Ltd. (``Lipman'' or the ``Company'') (NasdaqNM:LPMA - News)and certain of its officers and directors. The class action was filed on behalf of public investors who purchased the common stock of Lipman on the Nasdaq National Market and/or the Tel Aviv Stock Exchange during the period of October 4, 2004 through September 27, 2005, inclusive (the ``Class Period'').
Lipman Electronic Engineering, a corporation organized under the laws of the State of Israel and headquartered in Rosh Haayin, Israel, develops, manufactures, markets and sells electronic payment systems and software worldwide. The Complaint alleges that throughout the Class Period, Lipman issued public statements in press releases and to analysts which fraudulently created a false impression concerning the Company's business operations and prospects following the acquisition of Dione, Plc (``Dione''), a United Kingdom based supplier of so-called ``smart card'' payment systems. Defendants claimed that the Dione acquisition would add to Lipman's earnings within one year and ``provide important new customer relationships that would add critical mass to our U.K. presences'' when, in fact, at the time of these statements, defendants knew or recklessly disregarded the substantial difficulty the Company was facing in integrating and exploiting the Dione acquisition.
Less than one year after completing the Dione acquisition, the misleading nature of defendants' Class Period statements was revealed on September 28,2005, in a stunning admission by the Company that the ``weaker than expected performance of Dione'' caused the Company to slash its 2005 earnings estimates, from a previous forecast of $1.39 to $1.42 per share down to $0.88 to $0.98 per share. The Company also announced that it had terminated the employment of Dione CEO Shaun Gray and that the Company anticipated it would take a non-cash impairment charge relating to goodwill and other intangible assets in 2005. Investor reaction was sharply negative to the news of the Dione unit's shockingly poor performance causing Lipman's share price to plunge nearly 22 percent following the disclosure of the Company's inability to leverage the Dione acquisition to expand Lipman's European market presence. Additionally during the Class Period, defendants materially misleading statements and omissions enabled the Company to complete a secondary offering of 1,973,044 shares at $29.75 per share in May 2005.
If you purchased the securities of Lipman during the Class Period, you have until December 12, 2005 to ask the Court to appoint you as lead plaintiff for the Class. Lead plaintiffs must meet certain legal requirements. Shareholders outside the United States may also join the action, regardless of where they live or which exchange was used to purchase the securities. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact Teresa L. Webb (tlwebb@pomlaw.com) or Carolyn S. Moskowitz (csmoskowitz@pomlaw.com) of the Pomerantz Firm at 888.476.6529 (or 888.4-POMLAW), toll free. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz Firm, which has offices in New York, Chicago and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 50 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members.
http://biz.yahoo.com/pz/051027/88711.html
Dubi
midastouch017
19 years ago
Glancy Binkow & Goldberg LLP, Representing Investors Who Purchased Lipman Electronic Engineering, Ltd., Announces Class Action Lawsuit and Seeks to Recover Losses
Tuesday October 11, 6:10 pm ET
LOS ANGELES, Oct. 11, 2005 (PRIMEZONE) -- Notice is hereby given by Glancy Binkow & Goldberg LLP that a Class Action lawsuit was filed in the United States District Court for the Eastern District of New York on behalf of a class (the ``Class'') consisting of all persons or entities who purchased or otherwise acquired securities of Lipman Electronic Engineering, Ltd. (``Lipman'' or the ``Company'') (Nasdaq:TASE:)(TASE:LPMA) on the Nasdaq National Market and/or Tel Aviv Stock Exchange between October 4, 2004 and September 27, 2005, inclusive (the ``Class Period'').
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at http://www.glancylaw.com.
The Complaint charges Lipman and certain of the Company's executive officers with violations of federal securities laws. Among other things, plaintiff claims that defendants' material omissions and dissemination of materially false and misleading statements caused Lipman's stock price to become artificially inflated, inflicting damages on investors. Lipman maintains its principal corporate offices at Rosh Haayin, Israel, and engages in the development, manufacture, marketing and sale of electronic payment systems and solutions worldwide. The Complaint alleges that defendants issued public statements which fraudulently created a false impression concerning the Company's business operations and prospects following the acquisition of Dione, Plc (``Dione''), a United Kingdom-based supplier of ``smart card'' payment systems. Defendants claimed that the Dione acquisition would add to Lipman's earnings within one year and ``provide important new customer relationships that would add critical mass to our U.K. presences.''
During the Class Period, defendants touted the Dione acquisition, claiming it would provide ``important new customer relationships'' and enable the Company to penetrate new markets, among other things. Defendants' public statements, however, misled the public concerning Lipman's ability to leverage purported ``operational and technological synergies that exist between the two companies.'' The Complaint alleges defendants knew or recklessly disregarded and failed to disclosed that the Dione acquisition would not provide an immediate boost to Lipman's earnings or easily establish the Company's presence in the United Kingdom and other European countries. Instead, defendants' statements misled Lipman shareholders and artificially inflated the Company's stock price. Additionally during the Class Period, defendants' materially misleading statements and omissions enabled to Company to complete a secondary offering of 1,973,044 shares at $29.75 per share in May 2005.
On September 28, 2005, less than one year after completing the Dione acquisition, Lipman made a stunning admission that the ``weaker than expected performance of Dione'' caused the Company to slash its 2005 earnings estimates, from a previous forecast of $1.39 to $1.42 per share, down to $0.88 to $0.98 per share. The Company also announced that it had terminated the employment of Dione CEO Shaun Gray and that the Company anticipated it would take a non-cash impairment charge relating to goodwill and other intangible assets in 2005.
Investor reaction was sharply negative to this news, causing Lipman's share price to plunge nearly 22 percent following the disclosure of the Company's inability to leverage the Dione acquisition to expand Lipman's European market presence.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than December 12, 2005, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Lionel Z. Glancy, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.
More information on this and other class actions can be found on the Class Action Newsline at http://www.primezone.com/ca
http://biz.yahoo.com/pz/051011/87703.html
Dubi
midastouch017
19 years ago
Lipman Electronic Engineering Ltd. to Report Third Quarter 2005 Financial Results on November 7, 2005
Monday October 10, 3:00 am ET
Webcast Scheduled for November 7, 2005
ROSH HAAYIN, Israel--(BUSINESS WIRE)--Oct. 10, 2005--Lipman Electronic Engineering Ltd. (Nasdaq, TASE: LPMA), a leading provider of electronic payment systems, will release third quarter 2005 financial results on Monday, November 7, 2005 during pre-market hours.
ADVERTISEMENT
The Company will conduct a conference call at 9:00 a.m. EST on Monday, November 7, 2005 to discuss the third quarter 2005 results, which will be simultaneously webcast. The call will be hosted by Isaac Angel, Lipman's President and Chief Executive Officer, and Mike Lilo, Lipman's Chief Financial Officer.
Investors are invited to listen to the call via a live webcast at the Lipman corporate Web site at http://www.lipman.biz or at http://www.kcsa.com. Please visit the sites approximately twenty minutes before the conference call is scheduled to begin, as users will need to register as well as download and install any necessary audio software. A replay of the call will be available on the corporate Web site approximately two hours after the conference is completed.
About Lipman
Lipman is a leading worldwide provider of electronic payment systems. Lipman develops, manufactures and markets a variety of handheld, wireless and landline POS terminals, electronic cash registers, retail ATM units, PIN pads and smart card readers, as well as integrated PIN and smart card ("Chip & PIN") solutions. In addition, Lipman develops technologically advanced software platforms that offer comprehensive and customized transaction processing solutions for its customers, as well as managed professional services such as on-site and call-center support with remote terminal management.
Lipman's corporate headquarters and R&D facilities are located in Israel. Lipman also maintains offices in the US, United Kingdom, Turkey, China, Spain, Finland, Russia, Italy, Canada, Brazil, Argentina, Mexico, Australia and India. For more information visit www.lipman.biz
http://biz.yahoo.com/bw/051010/105312.html?.v=1
Dubi
midastouch017
19 years ago
Lipman's liabilities
02.10.2005 | 15:06
Uri Ronnen
The Wall Street Journal revealed further escalation in the battle between Overstock.com (Nasdaq:OSTK), short-sellers, and unkind analysts. Short-sellers are speculators who think a share price is too high. They borrow the share from a shareholder and sell it, assuming the price will drop. Then (if all goes well) they buy it back at the lower price to return to the lender, and pocket the difference.
About 50% of Salt Lake City-based Overstock's floating stock has been sold short. Overstock sued Gradient Analytics and the hedge fund Rocker Partner, for alleged collusion. It claims Gradient, ostensibly an objective source of analysis, wrote downbeat reports at the behest of Rocker, which had gone short on the stock. Rocker is a Gradient customer.
Since January, Overstock stock has dived 50%, a fate the company insists is unwarranted. It is all because of a conspiracy between the independent agency and short-sellers, it argues.
It all sounds rather other-worldly to our local market players, not the sort of thing that could happen over here. Israel has very little tradition of short selling, and independent research not written by investment banks is a rarity.
The Wall Street Journal story had another thing we deal much in here. Almost as an aside the paper wrote that the first negative report from Gradient expressed concern about Overstock's accounting policy and the independence of its board of directors.
Independence of its board? How many Wall Street traders really believe that the composition of a company's board changes the probability of its stock soaring or tanking?
Certainly, nobody here has any such convictions.
The Wall Street Journal ran its story on Tuesday. On Wednesday, Lipman stock plunged 23%. Here is the question: would Lipman's stock have behaved any differently if other people had been sitting on its board of directors?
Lipman stock in Tel Aviv
Expand the empire
Lipman's share price dived because the management admitted that Dione, its British acquisition dating from October 2004, had surprised it by underperforming expectations. 'Surprise' is to points it mildly.
When buying Dione, Lipman's management had expected it to produce $80 million sales in 2005. Now they're looking at half that sum. Investors have good reason to wonder how thoroughly Lipman performed its due diligence.
Managers like to expand their empires, even at a high cost. The board is supposed to stop them when the cost or risk to shareholders are too high. Experts in corporate regimes say that lavishing stock options on directors ruins the balance of interests between the shareholders and directors.
Shareholders benefit from the rising value of an investment in the long run, but directors who get options for free benefit from short-term fluctuation in share price, and may support adventurism by the management.
Moreover, a director glutted on options loses his ability to supervise the management from the outside.
In 2003, Lipman gave its chairman, Jacob Perry, a mega-burst of options that according to Black & Scholes, were worth NIS 3.4 million. No wonder that Perry, an insider, chose to join chief executive Isaac Angel and the controlling shareholders – Mivtach Shamir Holdings (TASE: MISH ) and First Israel Mezzanine Investors - in selling shares four months ago, at 40% more than the share prices today. Perry alone made $1.5 million on that exit.
Activist American institutional investors tend to vote against any appointment to the board of a person unlikely to devote sufficient time and attention to the company's affairs. The September 2005 edition of TheMarker 100, listing the hundred most influential people in Israel, needed a whole page to list the high-ranking jobs Perry presently holds, from chairman of United Mizrahi Bank (TASE: MZRH) to chairman of the Israeli Cinema Fund.
During the little time he has left for Lipman, Perry is supposed, says the company, to "develop its business connections inside and outside Israel" – which again begs the question of whether Perry fulfills any supervisory role on the board.
Lipman also lavished options on other people, from which it also seems to expect less supervision than advice and services. Usually a company's board supervises while it pays good money for such services.
Present for Nephew
Of all the possible worthy candidates, Lipman appointed one Yitzhak Davidi as an external director on its audit committee.
Yitzhak Davidi is the uncle of Ishay Davidi, who runs FIMI, which is one of Lipman's major shareholders.
Formally speaking, Uncle Itzik fulfills even the strictest requirements of Nasdaq regarding independent directors on the audit committee; he is a highly worthy director, too. But how can Uncle Itzik be 100% objective when it's his nephew in the controlling group?
How often as doting parent or aunt, or uncle, have you bought a toy for a beloved son or nephew? A toy the child demanded to have, though you knew full well it would last maybe a day before the little genius hammered it into powder? Maybe the nephew had a powerful hankering for Dione and Uncle Itzik had the feeling it wasn't the smartest thing to buy – would you expect him to lead the board or audit committee to vote against it?
In the three weeks before Lipman stock crashed 23%, its stock was busy losing 20% of its value. Stock market sources view that as the result of leaks and wonder why the management maintained opacity for so long, without admitting to the facts.
The answer may lie in the composition of the board and the manner of its remuneration. Rot starts at the top.
It is too soon to say when and how Lipman will recover from the blow. Before its starts to recuperate, it should look closely at another Israeli company that went from bad to worse after making an acquisition. Its board is headed by a very busy man with myriad contacts and business in Israel and abroad, who was also heaped with options before the crash. The man is Jacob Frenkel, the former Bank of Israel governor. The company is Lumenis (Nasdaq:LUME.PK) and the acquisition was of Coherent, in April 2001. The great exit was in June 2001 and the collapse, in early 2002.
http://tinyurl.com/cgew4
Dubi
midastouch017
19 years ago
Lipman leaped then looked
The company’s adventure with Dione shows how tricky foreign acquisitions are for Israeli companies.
Shlomo Greenberg
Lipman Electronic Engineering (Nasdaq: LPMA; TASE: LPMA) took a big hit yesterday on Wall Street. The company lost a quarter of its value two days ago. Why? First of all, its downward revision of its forecasts was disappointing. Secondly, and far more important, in my opinion, the behavior of the company’s management, and the inability of analysts to foresee what happened, was also a disappointment.
At the beginning of July, the company published its report for the second quarter and first half of 2005. Sales rose 52.2% to $58.8 million. The steep rise in sales was a result of consolidating sales by the British company acquired last year by Lipman, plus impressive rises in sales in North and South America. Net profit rose to $7.4 million, 12% more than in the second quarter of 2004. Profit per share was up only 8%, but the main reason for that was an increase in the number of share. Expense rose sharply in the second quarter, which kept the increase in profit lower than it was in the first quarter. These differences are clearly visible in the company’s semi-annual report. In any case, the general picture was extremely optimistic.
In May, two months earlier, parties at interest sold 2.3 million shares, raking in a nice sum, which was legitimate. After the company published its quarterly results, I read that Lipman president Isaac Angel had expressed great satisfaction at the company’s progress. He cited places like Turkey, Spain, and Latin America as regions where the company was achieving great breakthroughs. The share responded to the report with rises that began before it was published, and continue for several days afterward.
That’s how things looked from Wall Street. Now let’s switch to Main Street. Last October, Lipman acquired British company Dione. This company deals in the production and supply of systems for reading smart cards. According to what was reported, Dione was one of the world’s leading companies in smart card reading. Lipman paid $69 million in cash for Dione, and undertook to pay its shareholders (including GE Equity) a further $33.4 million if Dione met annual milestones in 2005-2006, following the acquisition. Dione’s management predicted that its revenue would reach $46 million in 2004.
Angel was very satisfied with the acquisition, which was a Lipman’s springboard for entering new markets, growth, and so on. Judging by the acquisition announcement, the match looked wonderful. The announcement stressed Lipman’s confidence in Dione’s management, and, in truth, the hope that Dione would be the Israeli company’s growth engine appeared plausible.
As far as I remember, analysts also responded positively to the announcement; at least, I didn’t see any hostile responses anywhere to the acquisition. The share rose 30% between October 2004 and July 2005. In early June, the share a peak of nearly $34, then started July at $28.50, a 16% drop. The share recovered in July, however, and touched its record again, following the publication of the company’s report. Between early August and two days ago, the share lost 21%. Since publishing its report on July 26, the company published only one announcement before yesterday, concerning the signing of a nice agreement, and nothing else.
Yesterday’s announcement was completely clear. The acquisition of Dione was not the wonderful match they thought it was. It seems to me that due diligence was not conducted with the diligence that was due. Ladies and gentlemen, that’s nothing unusual in the world of mergers and acquisitions, certainly not when it comes to the mergers and acquisitions of Israeli companies that lack experience in such matters. It took Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) many years of learning and careful planning, because buying a foreign company is the hardest thing that an Israeli will ever do.
Take G. Willi-Food International (Nasdaq: WILCF; TASE: WLFD), for example, which announced two days ago that it was calling off its acquisition of New Jersey-based food distributor Vitarroz. G. Willi-Food chairman and COO Zwi Williger explained that, after a long and careful due diligence process, G. Willi-Food had decided to withdraw from the acquisition. “There are too many pitfalls there,” he told us. Williger will find another company, because there are many such companies in the US. Imagine what would have happened if they had decided to buy the company, and had discovered the pitfalls a year later. What would G. Willi-Food have looked like in that case?
Published by Globes [online] - www.globes.co.il - on September 29, 2005
Dubi
midastouch017
19 years ago
Lipman Revises Guidance for the Full Year 2005
Wednesday September 28, 7:00 am ET
Conference Call to Be Held Today at 9:00 EDT
ROSH HAAYIN, Israel--(BUSINESS WIRE)--Sept. 28, 2005--Lipman Electronic Engineering Ltd. (Nasdaq, TASE: LPMA) today announced that it is revising its full year 2005 guidance.
The Company has revised its full year 2005 guidance to a range of $230 million to $240 million in revenues and $0.88 to $0.98 of diluted net income per share. Excluding stock-based compensation, which is estimated to be approximately $5.4 million in 2005 (equal to approximately $0.20 per share), pro forma net income per diluted share is expected to be in the range of $1.08 to $1.18. This compares with previous guidance of $273 million to $285 million in revenues and diluted net income per share of $1.39 to $1.42. Previous guidance for pro forma net income per diluted share was $1.59 - $1.62.
The Company said that its performance during the third quarter, anticipated performance during the fourth quarter, and as a result, its expected results for the full year, have been impacted by the substantially weaker than expected performance of its subsidiary, Dione, due in part to a significant slowdown in the United Kingdom point of sale terminal market.
Lipman management, in conjunction with Dione, has been working aggressively from the beginning of the third quarter to secure additional orders in markets outside of the United Kingdom. Several such orders, which the Company expected to close toward the end of the third quarter, failed to materialize.
The Dione acquisition, which was completed in October 2004, provided for additional purchase price to be paid contingent on Dione meeting certain financial targets in 2005 and 2006. Based on Dione's current financial results and those expected for the year, Lipman believes that Dione will not meet the 2005 financial targets. As a result, Lipman expects that it will not be obligated to pay Dione's previous shareholders the earnout of up to $33.4 million in cash and 442,105 shares of Lipman's ordinary shares. In addition, Lipman expects that due to Dione's lower then expected results, a non-cash impairment charge relating to goodwill and other intangible assets, will be required to be taken in 2005.
Lipman also announced that the employment of Shaun Gray, Chief Executive Officer of Dione since 2002, has been terminated, effective immediately. Ricky Garrido, Dione's founder and Chief Technology Officer has been named interim CEO until a permanent replacement is nominated.
Excluding the Dione business, Lipman expects that revenues for the rest of its business will grow approximately 20% in 2005 compared to 2004.
Isaac Angel, President and CEO of Lipman said, "We are disappointed with the performance of Dione in the second half of 2005 in which certain large orders that were expected did not materialize. We have taken steps to rectify this situation. We believe that these steps, in addition to an analysis and rationalization of the cost structure across the entire organization, will help Lipman achieve growth in revenues and profitability."
He added, "Notwithstanding this setback, the integration of Dione into Lipman is continuing and we maintain our belief in the overall U.K. market opportunity. During the third quarter, we began pilot programs for two rental projects with major financial institutions in the U.K. which are expected to provide recurring revenues to Lipman over the life of the contracts. We are pursuing similar terminal rental opportunities with other financial institutions in the region. The manufacturing pilot program, in which Dione products are manufactured by Lipman, continues. In addition, during the third quarter we shipped certain Dione-branded products which were manufactured at our facility in Israel to customers in both the U.K. and Spain. We maintain our belief in the strong prospects for the Dione brand and in our ability to grow the business of Dione in the U.K. and other parts of the world."
Mr. Angel concluded, "Our business throughout the rest of the world is strong and excluding the U.K., we are on track for organic growth of approximately 20% this year. Our performance in a number of key markets has been strong since the beginning of the year while we have made continued progress in other markets such as Spain and Italy, where we have established a solid foundation for future growth. While we face significant challenges in the U.K., Lipman is a strong organization with a history of achievement and execution that gives us confidence in our ability to overcome the disappointing results of Dione."
Conference Call Details
Lipman will host a conference call to discuss this press release and other matters at 9:00 a.m. U.S. EDT today, September 28, 2005. The call can be accessed by dialing: +1 (973) 935-2101. The call will also be available live on the Internet at www.lipman.biz or http://www.kcsa.com. Following the call, the webcast will be archived for a period of 90 days. A replay of the call will be available beginning at approximately 11:00 a.m. EDT. To listen to the replay, please call +1 (973) 341-3080. To access the replay, users will need to enter the following code: 6542777.
About Lipman
Lipman is a leading worldwide provider of electronic payment systems. Lipman develops, manufactures and markets a variety of handheld, wireless and landline POS terminals, electronic cash registers, retail ATM units, PIN pads and smart card readers, as well as integrated PIN and smart card ("Chip & PIN") solutions. In addition, Lipman develops technologically advanced software platforms that offer comprehensive and customized transaction processing solutions for its customers, as well as managed professional services such as on-site and call-center support with remote terminal management.
Lipman's corporate headquarters and R&D facilities are located in Israel. Lipman also maintains offices in the US, United Kingdom, Turkey, China, Spain, Finland, Russia, Italy, Canada and Latin America. For more information visit www.lipman.biz
http://biz.yahoo.com/bw/050928/285428.html?.v=1
Market Pulse: Lipman cuts forecast on U.K. systems slowdown
Wednesday September 28, 7:19 am ET
By Steve Goldstein
LONDON (MarketWatch) -- Lipman Electronic Engineering said it's cutting 2005 guidance, seeing sales between $230 million and $240 million for the year on proforma EPS between $1.08 and $1.18. The Israeli electronic payment systems provider previously forecast revenue of $273 million to $285 million on proforma EPS between $1.59 and $1.62. It cited a significant slowdown in U.K. point of sale terminals at its Dione subsidiary, whose CEO, Shaun Gray, it terminated. Lipman added it doesn't expect to pay performance-related contingent payments to Dione from its acquisition in 2004.
http://biz.yahoo.com/cbsmb/050928/4e8337f1799f4418a0e6c6107e92b2a6.html?.v=1
Dubi
midastouch017
19 years ago
Lipman Receives Order from the CBORD(R) Group, Inc.
Monday September 12, 2:00 am ET
Company Began Supplying NURIT 8320 Terminals During Q2 2005
ROSH HAAYIN, Israel--(BUSINESS WIRE)--Sept. 12, 2005--Lipman Electronic Engineering Ltd. (Nasdaq, TASE: LPMA) today announced that The CBORD Group, Inc., one of the world's leading suppliers of campus card, housing and foodservice management systems for the college and university market, has selected Lipman as the preferred Point-of-Sale ("POS") terminal provider for its Odyssey Campus Card solution.
CBORD made its preferred vendor selection following a Request for Proposal that was released by it to POS vendors in late 2004. The Lipman 8320 will be CBORD-branded and marketed by CBORD as the CBORD "Epic" Card Reader.
Lipman received and supplied its initial order from CBORD in June 2005, after being selected from over 30 POS vendors responding to CBORD's fall 2004 RFP. Lipman expects to receive additional orders from CBORD later this year and in the future. The order from CBORD represents an entirely new market segment for Lipman, namely, campus card systems that include customers in the healthcare, corporate and higher education sectors.
Robert Striano, President and CEO, Lipman USA, said, "This order from CBORD represents the success of our continuing strategic efforts to achieve growth in new market segments. We are pleased to have been selected as the Preferred POS vendor for CBORD and are confident that the Lipman POS Solution will be an integral part of the continued success of CBORD's Integrated Card System Solution."
Bill Bischoff, CBORD's Hardware Operations Manager, commented, "CBORD is pleased to have Lipman as its Preferred POS Solution provider. In addition to the quality and reliability advantages of the NURIT terminals over other solutions we tested, we were extremely impressed by Lipman's service and support capabilities, as well as the dedication of the Lipman staff to CBORD's success."
Read Winkelman, CBORD National Sales Manager, said, "We've been looking for a reader that would provide integrated TCP/IP communications as well as meet our requirements for user-friendly operation. When evaluating new hardware offerings, we pay attention to the number of keystrokes required to perform certain transactions, key location, and card swipe read rate because those things are important to our customers and end users. The Epic met our requirements and proved to be an optimal solution for our preferred suite of applications."
About Lipman
Lipman is a leading worldwide provider of electronic payment systems. Lipman develops, manufactures and markets a variety of handheld, wireless and landline POS terminals, electronic cash registers, retail ATM units, PIN pads and smart card readers, as well as integrated PIN and smart card ("Chip & PIN") solutions. In addition, Lipman develops technologically advanced software platforms that offer comprehensive and customized transaction processing solutions for its customers, as well as managed professional services such as on-site and call-center support with remote terminal management.
Lipman's corporate headquarters and R&D facilities are located in Israel. Lipman also maintains offices in the US, United Kingdom, Turkey, China, Spain, Finland, Russia, Italy, Canada and Latin America. For more information visit www.lipman.biz
About CBORD
The CBORD Group, Inc., founded in 1975, is currently marking thirty years of service to the campus-wide needs of higher-education facilities. CBORD works with a wide variety of clients and markets, including more than 850 colleges and universities, corporations, and healthcare institutions with its cashless and ID card privilege control systems, housing management systems, and Webfood® online ordering service. In addition, CBORD serves thousands of chain restaurants, hospitals, universities, supermarkets, and gaming facilities with its suite of foodservice, catering, and nutrition software products. The CBORD Group has customers in the U.S., Canada, Europe, the Middle East, and Australia.
http://biz.yahoo.com/bw/050912/115048.html?.v=1
Dubi
midastouch017
19 years ago
Lipman posts 52.2% rise in Q2 revenue
Revenue for the second quarter of 2005 was $58.3 million, over revenues of $38.3 million for the second quarter of 2004. Net profit was $7.4 million.
Globes correspondent 27 Jul 05 09:51
Electronic payment systems provider Lipman Electronics Engineering (Nasdaq: LPMA; TASE: LPMA), has announced financial results for the second quarter ended June 30, 2005.
Net profit for the quarter was $7.4 million, or $0.27 per diluted share, compared to a net profit of $6.6 million, or $0.25 per diluted share, for the comparable period in 2004.
There were 27,536,901 diluted shares outstanding in the second quarter of 2005 compared to 26,991,269 diluted shares outstanding in the second quarter of 2004. All share and per share data were adjusted to reflect a two-for-one stock split effected on June 22, 2004.
For the second quarter of 2005, revenue was $58.3 million, an increase of 52.2% over revenue of $38.3 million for the second quarter of 2004.
Revenues increased due to the consolidation of Dione's results of operations, as well as increased sales in the United States and Latin America. Lipman acquired privately-held Dione Plc in October 2004.
Gross profit for the second quarter of 2005 was $25.2 million, or 43.3% of revenues, compared to $18.0 million, or 47.1% of revenues, for the second quarter of 2004.
Lipman stated that the lower gross margin was due mainly to the consolidation of Dione's results, as gross margin on products sold by Dione was lower than Lipman's gross margin prior to the Dione acquisition.
During the second quarter of 2005, Lipman had amortization of intangible assets expenses of $746,000, compared to $52,000 of such expenses in the second quarter of 2004.
Operating expenses for the second quarter of 2005 included $478,000 in special legal expenses in connection with patent infringement claims brought against the company, and most of the other major point of sale (POS) terminal vendors serving the US market, by Verve LLC and filed with the US International Trade Commission. In February 2005, Verve filed a motion to withdraw the complaint and terminate the ITC action without prejudice. The ITC administrative law judge terminated the ITC investigation.
Financial income for the second quarter of 2005 was $787,000, compared to $415,000 for the second quarter of 2004. Financial income in the second quarter of 2005 included $522,000, or approximately $0.02 per share related to a one-time gain from the sale of Lipman's shares in Wizcom Technologies Ltd.
Operating expenses for the three months ended June 30, 2005 also included $1.3 million of non-cash stock-based compensation expenses compared to $1.2 million of similar expenses in the comparable period in 2004. Excluding the effect of stock-based compensation, non-GAAP net income for the quarter was $8.7 million, or $0.31 per diluted share, compared to non-GAAP net income of $7.8 million, or $0.29 per diluted share, for the same period last year.
As of June 30, 2005, the company had cash and cash equivalents of $121.5 million compared to $117.4 million as of December 31, 2004.
Net profit for the first six months of 2005 was $12.6 million, or $0.46 per diluted share, compared to a net profit of $11.5 million, or $0.44 per diluted share, in the same period in 2004. There were 27,498,156 diluted shares outstanding in the six months ended June 30, 2005 compared to 26,148,486 diluted shares outstanding in the first six months of 2004.
Revenue for the six month period increased 59.8% to $112.5 million, from $70.4 million in the same period last year. Revenues increased due to the consolidation of Dione's results of operations, as well as increased sales in the US, Latin America and Turkey.
For the six months ended June 30, 2005, gross profit was $48.1 million, or 42.8% of revenues, compared to $33.8 million, or 48.0% of revenues, for the same period in 2004. The lower gross margin was due mainly to the consolidation of Dione's results.
During the first half of 2005, Lipman had amortization of intangible assets expenses of $1.6 million, compared to $103,000 of such expenses in the comparable period in 2004 and incurred $899,000 in special legal expenses related to the patent infringement claims by Verve.
Operating expenses for the six months ended June 30, 2005 included $2.6 million of non-cash stock-based compensation expenses, compared to $3.0 million of non-cash stock-based compensation expenses in the six-month period in 2004. Excluding the effect of stock-based compensation, non-GAAP net income for the period was $15.3 million, or $0.55 per diluted share, compared to non-GAAP net income of $14.5 million, or $0.56 per diluted share, for the six months ended June 30, 2004.
Cash flow from operating activities for the six months ended June 30, 2005 was $5.2 million.
In May, 2005, a public offering of 2,269,000 Lipman ordinary shares was completed by certain shareholders. Proceeds from the offering went to the selling shareholders. Lipman received approximately $1.2 million upon the exercise of options for shares sold in the offering by two of the selling shareholders.
Lipman president and CEO Isaac Angel said, "Our revenues for the second quarter were driven in part by strength in our international markets, notably Turkey, Spain and Latin America where our performance remained strong as we received major orders from a number of key customers. We believe our success in these markets is indicative of the strong relationships that we have been able to develop.
"We are also encouraged by the momentum and solid performance Lipman achieved in the United States, which we attribute to the success of our new US management team and the receipt of key certifications in 2004."
Published by Globes [online], Israel business news - www.globes.co.il - on Wednesday, July 27, 2005
Dubi
midastouch017
19 years ago
Lipman Electronic Engineering Ltd. Reports Second Quarter 2005 Results
Tuesday July 26, 4:10 pm ET
Revenues of $58.3 Million
Net Income of $7.4 Million, or $0.27 Per Diluted Share
Excluding Stock-Based Compensation, Non-GAAP Net Income of $8.7 Million, or $0.31 Per Diluted Share
ROSH HAAYIN, Israel--(BUSINESS WIRE)--July 26, 2005-- Lipman Electronic Engineering Ltd. (Nasdaq, TASE: LPMA), a leading provider of electronic payment systems, today announced financial results for the second quarter ended June 30, 2005.
For the second quarter of 2005, revenues were $58.3 million, an increase of 52.2% over revenues of $38.3 million for the second quarter of 2004. Revenues increased due to the consolidation of Dione's results of operations, as well as increased sales in the United States and Latin America. Net income for the quarter was $7.4 million, or $0.27 per diluted share, compared to $6.6 million, or $0.25 per diluted share, for the comparable period in 2004. There were 27,536,901 diluted shares outstanding in the second quarter of 2005 compared to 26,991,269 diluted shares outstanding in the second quarter of 2004. All share and per share data have been adjusted to reflect a two-for-one stock split effected on June 22, 2004.
Gross profit for the quarter was $25.2 million, or 43.3% of revenues, compared to $18.0 million, or 47.1% of revenues, for the second quarter of 2004. The lower gross margin is due mainly to the consolidation of Dione's results as the gross margin on products sold by Dione is lower than the Company's gross margin prior to Dione's acquisition.
During the second quarter of 2005, the Company had amortization of intangible assets expenses of $746,000, compared to $52,000 of such expenses in the second quarter of 2004. In addition, operating expenses for the second quarter of 2005 included $478,000 (equal to approximately $.02 per share) in special legal expenses in connection with patent infringement claims brought against the company, and most of the other major POS terminal vendors serving the US market, by Verve, LLC and filed with the US International Trade Commission. In February 2005, Verve filed a motion to withdraw the complaint and terminate the ITC action without prejudice. The ITC Administrative Law Judge has terminated the ITC investigation ending the case against the Company.
Financial income for the second quarter of 2005 was $787,000, compared to $415,000 for the second quarter of 2004. Financial income in the second quarter of 2005 included $522,000, or approximately $0.02 per share related to a one-time gain from the sale of the Company's shares in Wizcom Technologies Ltd.
Operating expenses for the three months ended June 30, 2005 also included $1.3 million of non-cash stock-based compensation expenses compared to $1.2 million of similar expenses in the comparable period in 2004. Excluding the effect of stock-based compensation, non-GAAP net income for the quarter was $8.7 million, or $0.31 per diluted share, compared to non-GAAP net income of $7.8 million, or $0.29 per diluted share, for the same period last year.
As of June 30, 2005, the Company had cash and cash equivalents of $121.5 million compared to $117.4 million as of December 31, 2004.
For the six months ended June 30, 2005, revenues increased 59.8% to $112.5 million, from $70.4 million in the same period last year. Revenues increased due to the consolidation of Dione's results of operations, as well as increased sales in the United States, Latin America and Turkey. Net income for the six months was $12.6 million, or $0.46 per diluted share, compared to $11.5 million, or $0.44 per diluted share, in the same period in 2004. There were 27,498,156 diluted shares outstanding in the six months ended June 30, 2005 compared to 26,148,486 diluted shares outstanding in the first six months of 2004.
For the six months ended June 30, 2005, gross profit was $48.1 million, or 42.8% of revenues, compared to $33.8 million, or 48.0% of revenues, for the same period in 2004. The lower gross margin is due mainly to the consolidation of Dione's results as the gross margin on products sold by Dione is lower then the Company's gross margin prior to Dione's acquisition.
During the first half of 2005, the Company had amortization of intangible assets expenses of $1.6 million, compared to $103,000 of such expenses in the comparable period in 2004 and incurred $899,000 in special legal expenses related to the patent infringement claims by Verve. Operating expenses for the six months ended June 30, 2005 included $2.6 million of non-cash stock-based compensation expenses, compared to $3.0 million of non-cash stock-based compensation expenses in the six-month period in 2004. Excluding the effect of stock-based compensation, non-GAAP net income for the period was $15.3 million, or $0.55 per diluted share, compared to non-GAAP net income of $14.5 million, or $0.56 per diluted share, for the six months ended June 30, 2004.
Cash flow from operating activities for the six months ended June 30, 2005 was $5.2 million.
In May, 2005, a public offering of 2,269,000 Lipman ordinary shares was completed by certain shareholders. Proceeds from the offering went to the selling shareholders. Lipman did receive approximately $1.2 million upon the exercise of options for shares sold in the offering by two of the selling shareholders.
Commenting on the results, Isaac Angel, President and CEO of Lipman said, "Our revenues for the second quarter were driven in part by strength in our international markets, notably Turkey, Spain and Latin America where our performance remained strong as we received major orders from a number of key customers. We believe our success in these markets is indicative of the strong relationships that we have been able to develop, and of the appreciation institutions have for the technological benefits of our solutions. We are also encouraged by the momentum and solid performance Lipman achieved in the United States, which we attribute to the success of our new U.S. management team and the receipt of key certifications in 2004."
"During the quarter, we achieved Sistema 4B certification in Spain. This certification positions Lipman to take better advantage of this market as it allows us to begin selling our NURIT 8010 wireless terminals to all banks that process payment transactions through Sistema 4B, one of the leading network authorization centers for electronic payments in Spain. This certification should help Lipman to effectively implement its growth strategy just as the Company has done in other regions around the world."
Mr. Angel concluded, "We will continue to build on Lipman's strong performance, and we remain focused on driving growth through innovation and the successful execution of our long-term business strategy. We remain positive about the trends in our business, and we believe the combination of our solid financial position, strong customer relationships, and our commitment to leadership and quality, will enable us to continue expanding our business in the point of sale market for the rest of the year and beyond."
http://biz.yahoo.com/bw/050726/266046.html?.v=1
Dubi
Register for streaming realtime charts, analysis tools, and prices.
Hot Features
Premium
