DGAP-News: Electronics Line 3000 Ltd.: Profitability Increased Despite Sales Decline in the First Quarter
(firmenpresse) - DGAP-News: Electronics Line 3000 Ltd. / Key word(s): Quarter
Results/Interim Report
Electronics Line 3000 Ltd.: Profitability Increased Despite Sales
Decline in the First Quarter
31.05.2012 / 17:45
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Profitability Increased Despite Sales Decline in the First Quarter
- Sales of US$ 3.2 million in Q1 2012 (Q1 2011: adjusted sales of US$ 4.7
million)
- Gross profit margin increased to 40.5% (Q1 2011: adjusted 26.3%)
- Net profit of US$ 76,000 (Q1 2011: adjusted net loss of US$ 37,000)
- New product line launched
- Outlook for 2012 confirmed
Rishon LeZion, Israel (May 31, 2012) - Electronics Line 3000 Ltd. ('the
Company' or 'Electronics Line') (XETRA: ELN), a global provider of wireless
security with remote management solutions, today published its financial
results and the full interim report for the first three months of fiscal
2012.
Although the Company's sales in the first three months of the year
decreased compared to the corresponding period in 2011, the Company's
operating profit and net profit increased.
During Q1 of 2012, the Company benefitted from the implementation of
several streamlining measures which started last year and had a positive
effect on the Company's financial results. Additionally, during the
quarter, new high margin products were launched, from which the Company
expects positive effects on the financial results in the upcoming quarters.
Financial Highlights
- The Company's revenues in the reporting period amounted to US$ 3.2
million, compared to adjusted revenues of US$ 4.7 million during the
comparable period last year (adjustments for comparison are due to the
sale of a subsidiary in November 2011).
The decrease in revenues was mainly due to the recent change in the
Scandinavian market, where a long-term customer relationship was
discontinued because of a recent M&A transaction of the client and the
postponement of orders from a major customer following overstock with
the client warehouse. The discontinuation of selling low-margin
products also impacted the Company's turnover in the reporting period.
- The gross profit in the first three months of 2012 amounted to US$ 1.3
million (40.5% from sales) compared to adjusted US$ 1.2 million (26.3%
from sales) in the comparable period of the previous year.
- The Company's operating profit amounted to US$ 131,000 during first
three months of 2012, compared to an operating profit of US$ 114,000
(adjusted) in the comparable period of last year.
- The Company ended the first quarter with a net profit of US$ 76,000
compared to an adjusted loss of US$ 37,000 for the comparable period of
last year.
- During the reporting period, net cash used in operating activities was
US$ 360,000 compared to US$ 515,000 used in operating activities during
the comparable period of last year.
- The Company's cash and cash equivalents as at March 31, 2012 were US$
0.7 million, compared to US$ 1.7 million on December 31, 2011. The
reduction is mainly due to an increase of inventory , cash used in
investing activities in total amount of US$ 357,000 and loan repayment
in total amount of US$ 309,000.
- The Company's inventories as at March 31, 2012 were US$ 2.4 million
compared to US$ 1.4 million as at December 31, 2011. The increase of
inventory is in line with the Company's strategy to increase its
inventory availability.
- Shareholders' equity as at March 31, 2012 amounted to US$ 2.6 million,
corresponding in an equity ratio of 33%, compared to US$ 2.5 million
(29%) as at December 31, 2011 and US$ 1.7 million, or 13%, as at March
31, 2011.
Looking ahead to the full business year, the Company expects an increase in
revenues from its strategic customers and markets, in particular, Northern
and Western Europe, and from the new product line (ELAS, iConnect and
CommPact). In view of first success in gaining new customers for the
Company's two-way iConnect and CommPact systems for the residential and
small commercial markets, the Company at the moment believes that it will
achieve the 2012 financial targets. However, in view of the economic
difficulties in many European markets and the continuing recession in
southern Europe, the Company also realizes that there are risks for the
development of sales in those countries.
The reviewed financial report for the first three months of 2012 is
available on the Company's website at www.electronics-line.com in the
investors section.
About Electronics Line (EL):
EL is a pioneer in next-generation security solutions for the residential
and small commercial markets. The Company designs and produces cutting-edge
solutions for security and control of living and working environments. The
EL line provides comprehensive security protection, as well as
sophisticated system and home management functionality, for optimal
comfort, safety and peace of mind. This new industry standard is further
upgraded with enhanced remote management capabilities that give homeowners
instant access to their system from anywhere in the world.
Upgrading Everyday Security
EL solutions enable new levels of control and maintenance in protected
sites through the ELAS, a proprietary remote management server. The Company
enjoys a unique market position in supplying ELAS-governed systems for the
home and workplace, which provide the multiple benefits of a virtual
security presence, convenient home automation, and energy efficiency, all
customized by the end-user and/or the service provider.
EL's extensive product line includes both wired and wireless solutions, as
well as the integration of both types into one hybrid system. EL solutions
offer enhanced detection and PSTN/IP/GSM/GPRS-based event reporting, along
with advanced remote management tools. The back-office support and
customized branding of EL solutions provide superior security with
significant business benefits and market expansion potential.
Global Partnerships
Nearly three decades of cutting-edge leadership have earned EL a solid
market position, allowing users worldwide to benefit from EL's ongoing
development of upgraded security solutions. The Company maintains long-term
partnerships worldwide.
EL has made emerging technology, user-friendly design and exceptional
quality the benchmarks for serving its international network of clients and
partners. Drawing on a tradition of pioneering expertise, EL specialists
also provide security integration consultancy, installation service,
training and technological support.
EL was established in 1982 and is headquartered in Israel. The Company is
publicly traded on the Frankfurt Stock Exchange (ELN) and is part of the
RISCO Group, an established leader in the international security market.
Disclaimer:
'This release contains forward-looking statements, which express the
current beliefs and expectations of management. Such statements involve a
number of known and unknown risks and uncertainties that could cause the
Company's future results, performance or achievements to differ
significantly from those expressed or implied by such forward-looking
statements. A number of these risks and other factors that might cause
differences, some of which could be material, along with additional
discussion of forward-looking statements, are set forth in the Company's
Annual Reportand its other filings filed with the Israeli Securities
Authority. Forward-looking statements speak only as of the date on which
they are made and the Company undertakes no obligation to update publicly
or revise any forward-looking statement, whether as a result of new
information, future developments or otherwise.'
For more information please contact:
Investor Relations
Sari Ellenberg
investor.relations(at)electronics-line.com
End of Corporate News
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Language: English
Company: Electronics Line 3000 Ltd.
14 Hachoma St.
75655 Rishon LeZion
Israel
Phone: 00972 3 9181333
Fax: 00972 3 9616 584
E-mail: investor.relations(at)electronics-line.com
Internet: www.electronics-line.com
ISIN: IL0010905052
WKN: A0B5R7
Indices: DAXsector All Technology, DAXsector Technology,
DAXsubsector All Communications Technology, DAXsubsector
Communications Technology , Prime All Share, Technology
All Share,
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, München
End of News DGAP News-Service
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