DGAP-News: Electronics Line 3000 Ltd.: Electronics Line 3000 Ltd. announces the results for the Year 2010
(firmenpresse) - DGAP-News: Electronics Line 3000 Ltd. / Key word(s): Final Results
Electronics Line 3000 Ltd.: Electronics Line 3000 Ltd. announces the
results for the Year 2010
26.04.2011 / 14:45
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- Revenues in 2010 total US$ 26.7 million
- Outsourcing of Production and the Move of Corporate Administration cause
onetime, Non-Cash Expenses of US$ 4.4 million
- Negative Shareholder's Equity at Dec. 31, 2010 compensated by Risco
investment in early 2011
- Revenue increase and positive effect on financial results expected to
materialize in H2 2011
Rishon Le Zion, Israel (April 26, 2011) - Electronics Line 3000 Ltd. ('the
Company') (XETRA: ELN), global provider of wireless security with remote
management solutions, announced its financial results in U.S Dollars for
the financial Year ended December 31, 2010.
Financial Highlights
- Revenues The Company's revenues in the Reported Year amounted to US$ 26.7
million, compared to US$ 26.4 million for the Year ended December 31, 2009.
- Gross margin During the Reported Year the gross margin was 31.4% of
sales, compared to 32.9% last Year. The decrease in gross margin resulted
from a US$ 280,000 provision for slow moving inventory in the Company's US
subsidiary.
- Other Expenses During the Reported Year the company had US$ 4.4 million
onetime, non-cash, other expenses as a result of vacate its plant and
administration buildings and its decision to outsource its production
activity. Thus, during the Reported Year the Company had to accelerate
depreciation expenses for leasehold improvements in the amount of US$ 2.6
million. In addition, the Company had to recognize the remaining obligation
of lease expenses in the amount of US$ 1.7 million.
- Operating Results for 2010 showed a loss of US$ 5.0 million, compared to
a loss of US$ 1.6 million in 2009
- Net loss for 2010 was US$ 5.9 million, compared to a net loss of US$ 2.3
million in 2009.
- Basic and Diluted loss per share for 2010 was US$ 0.58, compared to loss
per share of US$ 0.23 in 2009.
Discussion&Overview
Financing Sources
Shareholders' equity as of December 31, 2010 was negative and amounted to
minus US$ 3.5 million, compared to US$ 2.7 million positive shareholders'
equity as of December 31, 2009.
In March 2011, the company signed an agreement with Risco Ltd., the
Company's largest and controlling shareholder ('Risco'), in order to
strengthen the company's equity and provide the Company financial resources
through the issuance of 3,550,000 ordinary shares of the Company
(comprising 25.9% of the Company's share capital following the issuance) at
a price per each share of NIS 5.00 (approximately EUR 1.01 per share), for
a total consideration of NIS 17,750,000 (approximately US$ 5 Million). The
Company's special general meeting of shareholders held on February 16, 2011
approved the agreement with Risco.
The proceeds from the issue will be used for working capital and to
strengthen the Company's equity.
Looking forward, the Company expects an increase in revenues from its
strategic markets, in particular, Northern and Western Europe. In these
locations, the Company intends to address non-traditional marketing
channels, in addition to the traditional security channels.
In addition, the Company has signed a distribution agreement with Risco
Ltd. and its subsidiaries, which will broaden the Company's marketing and
sales as well as logistic global coverage.
The Company plans to focus on its iConnect product line and its PIR
Detector with a built-in camera for video verification, which will support
a wide range of solutions and services that the Company offers to its
customers. The Company believes that the new solution will be well received
in the market place.
The Company is reorganizing its sales force in order to achieve a better
coverage in its target markets. Mr. Douglas Luscombe, the Company's CEO,
was located in the UK, several new Regional Sales Managers (RSM) were
assigned to cover the rest of Europe. Also the Company plans to hire
further new additional Sales Manager (SM) for Europe in the near future.
While Risco focuses exclusively on the commercial markets, Electronics Line
is the group's specialist for the attractive and fast growing residential
mass market and SOHO segment.
Among its goals, the Company will also continue its efforts to obtain and
maintain international standard approvals for its products.
The Company is outsourcing its production activity, both to
sub-contractors and to Risco Ltd., in order to achieve better efficiency
and margins. The Company believes that this will have a positive effect on
its financial results starting H2 2011.
The full annual report for 2010 is available on the Company's website at
www.electronics-line.com under Investors/Financials.
For more information please contact:
Investor Relations
Claudia Press
ir(at)electronics-line.com
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 Report and 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.'
End of Corporate News
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Language: English
Company: Electronics Line 3000 Ltd.
14 Hachoma St.
Rishon LeZion 75655
Israel
Phone: 00972 3 9181333
Fax: 00972 3 9616 584
E-mail: ir(at)electronics-line.com
Internet: www.electronics-line.com
ISIN: IL0010905052
WKN: A0B5R7
Listed: Regulierter Markt in Frankfurt (General Standard);
Freiverkehr in Berlin, München
End of News DGAP News-Service
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121365 26.04.2011
Datum: 26.04.2011 - 14:45 Uhr
Sprache: Deutsch
News-ID 33873
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