Wizcom Technologies Releases Nine Months 2011 Results - Additional Funding Required to Complete Turnaround
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Wizcom Technologies Ltd. /
Wizcom Technologies Releases Nine Months 2011 Results - Additional Funding
Required to Complete Turnaround
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The issuer is solely responsible for the content of this announcement.
Rosh Ha'ayin, November 30th, 2011 - Wizcom Technologies Ltd. (Prime Standard:
WZM, IL 0010830706), a leading global provider of handheld scanning and
translation tools, today announces its results for the first nine months of
2011. Figures are according to US-GAAP and in US$ thousands.
Financial Highlights
* Revenues for the first nine months of 2011 rose by 42.2% compared to the
same period last year, from US$2,898 to US$4,122.
* The gross profit margin for the first nine months of 2011 came in at 32%,
compared to 29.1% for the same period last year.
* An operating loss of US$1,925 was posted for the first nine months of 2011,
as compared to a US$1,232 operating loss for the first nine months of 2010.
* Total operating expenses for the first nine months of 2011 were US$3,235, a
rise of 56% compared to the US$2,074 in the same period of 2010. The
increase in operating expenses was in part due to a $513 impairment charge
Wizcom recorded in relation to a revaluation of its subsidiary Galil
Microwaves.
* Wizcom recorded a financial gain in relation to a positive change of $507 in
the fair value of derivatives. This positive effect was in part offset by
$223 in financial expenses.
* Net loss decreased marginally compared to the same period last year from
US$1,710 to US$1,632.
* Basic and diluted net loss per common share was US$0.11, compared to US$0.14
for the same period last year.
* As of September 30th, 2011, the Company had cash and cash equivalents of
US$666, compared to US$639 for December 31st, 2010. Compared to 30th
September 2010, cash was up from US$190
* For the first nine months of 2011, the company recorded a negative cash flow
from operations of $1,332. As a result, Wizcom will have to raise
additional funds, as presently the Company does not have sufficient cash to
satisfy its operational requirements for the coming 12 months, raising
substantial doubt about the Company's ability to continue as a going concern
unless additional capital is raised. The company is putting together a
funding package, consisting of a bridge loan and a convertible debenture, to
ensure sufficient funds are available to complete the turnaround program and
develop its markets.
Operations
Mr. Shimon Amouyal, CEO for Wizcom, stated, "In the past two years we have made
sweeping changes and rebuilt the company completely. We have new management, a
new Board and a new sales organization with recent appointments in important
regions such as the US, the UK and Russia. Our commercial model has changed in
that we are more focused on key regions and specific target markets. We also
increased our single tier sales capabilities, rather than indirect sales, as was
the case before. This gives us much more control and enables us to take direct
action. These appointments have already had a positive impact, partially
offsetting the negative effect of the issue with our Asian distributor. In
addition, we have made key appointments in R&D, which has enabled us to develop
a clear and visionary technology roadmap for the year ahead."
"We have now gotten to a situation where three quarters of our turnaround
program has been implemented. To complete the final part and to see us through
to when we believe we will become cash flow positive, we are looking to raise
approximately $2 million. We have designed a funding package to help raise this
money, consisting of a bridge loan of up to $800k, to be raised within the next
few weeks, and a convertible debenture. We will be calling an Extraordinary
Shareholder Meeting to obtain approval for the convertible in the coming weeks.
I am confident we will be able to complete this coming round and I am pleased to
share that some of our Board members have already committed funds, conditional
upon full subscription. We will make more announcements on the funding as and
when new material information becomes available."
"What we are really excited about, and what forms the basis of our belief in
Wizcom's future as a financially strong company, is that we are in the process
of developing an entirely new generation of products, slated for launch around
the middle of 2012. We are looking to bring out three new product lines that
share a common platform, using generic components as much as possible, rather
than expensive bespoke ones. This should make a very positive contribution to
our gross margin. The new products will be differentiated towards each of our
three target groups; special needs (e.g. dyslexia), consumers and business
professionals, and have additional functionality that the current generation
does not have. Additionally, we are looking to launch a cheaper, entry level
model. Finally, both design and ergonomics will play an important part in the
appeal of our new product lines."
"We believe that these exciting new products, assuming a timely launch and
completion of the commercial part of our turnaround program, will herald the
start of a new era for Wizcom and we expect significantly accelerated sales, as
well as a marked improvement of our bottom line."
Outlook
After two years of hard turnaround work, we now have an organization that is
operationally much improved and well positioned to benefit from the
opportunities we have identified in the market, such as reading aides for people
with learning difficulties. We strongly believe that what we have built is the
blue print for a vibrant, profitable growth story, given that we manage to
secure the required funding, which is critical for the future operations of the
company. Although too early to give accurate guidance, we believe that the
quarters from now up to the planned product launch will see sales somewhat below
Q3 levels."
The full Q3 report is provided as PDF download attached to this message.
About Wizcom Group:
Wizcom Technologies Ltd. is the world's leading producer of personal, portable
scanning pens that help people read and process text. These pocket-sized, user-
friendly devices enable people to understand and use printed material, anytime
and anywhere, without disrupting their reading process. Our pens help students
of English as a first or second language, as well as people working in
multilingual environments, enhancing their fluency and expediting reading
comprehension.
For further information, please contact:
Wizcom Technologies Ltd.
Shimon Amouyal, CEO
13 Hamelacha St.
Rosh Ha'ayin, 48091, Israel
Phone +972-3-9103330
shimona(at)Wizcomtech.com
http://www.Wizcomtech.com
SCHWARZ Financial Communication
Frank Schwarz
Investor Relations
Germany
Phone +49-611-1745-398-11
Schwarz(at)schwarzfinancial.com
--- End of Message ---
Wizcom Technologies Ltd.
13 Hamelacha St. Rosh Ha'ayin Israel
WKN: 915856;ISIN: IL0010830706;Index:Prime All Share,TECH All Share;
Listed: Freiverkehr in Börse Stuttgart,
Freiverkehr in Börse Berlin,
Freiverkehr in Börse Düsseldorf,
Freiverkehr in Bayerische Börse München,
Prime Standard in Frankfurter Wertpapierbörse,
Regulierter Markt in Frankfurter Wertpapierbörse;
9M Report as PDF Version:
http://hugin.info/130210/R/1567815/487158.pdf
This announcement is distributed by Thomson Reuters on behalf of
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Wizcom Technologies Ltd. via Thomson Reuters ONE
[HUG#1567815]
Unternehmensinformation / Kurzprofil:
Datum: 30.11.2011 - 17:40 Uhr
Sprache: Deutsch
News-ID 92681
Anzahl Zeichen: 9054
contact information:
Town:
Rosh Ha'ayin
Kategorie:
Business News
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