WizCom Technologies Releases H1 2009 Results
(Thomson Reuters ONE) - Corporate news announcement processed and transmitted by Hugin AS.The issuer is solely responsible for the content of this announcement. ------------------------------------------------------------------------------------ Rosh Ha'ayin, August 31st, 2009 - WizCom Technologies Ltd. ("WizCom")(Prime Standard: WZM, IL 0010830706), a leading global provider ofhandheld scanning and translation tools, announces its results forthe first six months of 2009. Figures in this press release areaccording to US-GAAP and in US$ thousands.Financial Highlights# Revenues for H1 of 2009 dropped by 36% compared to H1 2008, fromUS$4,305 to US$2,762.# Revenues for Q2 fell by 38% compared to Q1 from US$1,705 toUS$1,057# Gross profit margin for H1 2009 came in at 38%, the same level asfor H1 2008.# An operating loss of US$279 was posted, as compared to a US$536operating loss for H1 2008.# A net loss was posted of US$203, compared with last year's H1 netloss of US$584.# Total operating expenses for the first six months of 2009 were down39% to US$1,334 from US$2,182.# Basic and diluted net loss per common share was US$0.017, comparedto US$0.05 for H1 2008.# As of 30 June 2009, the Company had cash and cash equivalents ofUS$68, as compared to US$194 for 31 December 2008, representing anegative cash-flow of US$126, while net cash used in operatingactivities was a negative US$ 167.OperationsMr Shimon Amouyal, CEO for WizCom, stated, "After the first quarter,which showed a promising development compared to Q4 of 2008, wewitnessed a further decline in our sales performance during thesecond quarter. One of the main reason was the general economicenvironment, which caused a slow-down in our sales. In addition, weare still in a turnaround phase, as announced previously, part ofwhich are our efforts to expand and develop our distributionchannels, among others through web-based sales. Furthermore, we arelooking to concentrate on key markets and key products.""We are now coming out of the transition phase and we are looking toroll our new strategy out fully in Q1 of calendar year 2010. Thisdoesn't mean we only anticipate improvements from that point onwards,as mentioned many measures have already been implemented, as can beseen from the reduction in costs.""We are continuing to control our costs. Although part of thisdecline is related to the fall in revenues, the majority is due tocost savings, resulting from our turnaround program as discussed inour Q1 release. The program has led to our operating expensesdropping as a percentage of revenue from nearly 51% for H1 2008 to48% for H1 2009. We anticipate that going forward our absolute costbase will remain round current levels when revenues increase, whichwill make the effects of our measures even more clearly visible."Despite the fall in revenues, we have managed to improve our bottomline. Though not profitable yet, we reduced our net loss from US$584to just US$203 and continue to work on improving our bottom line.Outlook"Although it is too early to make statements on our revenues goingforward, our backlog is very promising and I feel confident that weare able to capitalize on the changes and developments I havedescribed and we feel there is strong cause for optimism.This brings me to my final two points. As announced previously, wehad identified a supply problem, which we believed could have asignificant negative effect on our ability to deliver products andhence generate revenues and thereby cause liquidity shortages.As published in our Ad Hoc announcement of 26 August, we have managedto find a solution to solve this supply problem, and as a result wewill be able to ship deliveries throughout Q3, and pressure onrevenues from this problem will be limited in scale and scope.Following this episode, we have immediately initiated a program toreduce our dependence on single suppliers and we are currentlyworking on a long-term solution to prevent this from happening again.Finally, as announced in the same Ad Hoc announcement, we intent toissue a convertible loan note to a group of existing and externalshareholders. The proceeds will be between US$800,000 and US$1.3million. This will solve our short term liquidity problems and allowus to branch out our sales channel and distribution networks. Theissuance of the convertible note is subject to approval by the EGM,to be held on 1 October 2009."About Wizcom Group:WizCom Technologies Ltd. is the world's leading producer of personal,portable scanning pens that help people read and process text. Thesepocket-sized, user-friendly devices enable people to understand anduse printed material, anytime and anywhere, without disrupting theirreading process. Our pens help students of English as a first orsecond language, as well as people working in multilingualenvironments, enhancing their fluency and expediting readingcomprehension.WizCom Technologies Inc, Boston, US-based entity, responsible forWizCom Group operations in the Americas.Ligature Ltd. is a world leader developer of Optical CharacterRecognition (OCR) technologies and applications. The company offersinnovative approach to OCR based solutions for specialized marketspartnering with OEMs, VARs and system integrators incorporatingCharacterEyes into software applications and hardware products.Galil Microwaves Israel (2003) Ltd. is a third party manufacturer andassembler of electronic modules for microelectronic and microwavecomponents.For further information, please contact:WizCom Technologies Ltd.Shimon Amouyal, CEO13 Hamelacha St.Rosh Ha'ayin, 48091, IsraelPhone +972-3-9103330shimona(at)wizcomtech.comhttp://www.wizcomtech.comSCHWARZ Financial CommunicationFrank SchwarzInvestor RelationsGermanyPhone +49-611-1745-398-11Schwarz(at)schwarzfinancial.comhttp://hugin.info/130210/R/1338222/319214.pdf --- End of Message ---WizCom Technologies Ltd.8B Hamarpe St. Jerusalem IsraelWKN: 915856; ISIN: IL0010830706; Index: Prime All Share, TECH All Share;Listed: Freiverkehr in Börse Berlin, Freiverkehr in Börse Düsseldorf, Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg, Freiverkehr in Niedersächsische Börse zu Hannover, Freiverkehr in Bayerische Börse München, Freiverkehr in Börse Stuttgart, Prime Standard in Frankfurter Wertpapierbörse, Regulierter Markt in Frankfurter Wertpapierbörse;
Datum: 31.08.2009 - 10:35 Uhr
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