Business News
AVT Reports Record Results
Sunday 01. June 2008 - First quarter revenues up 118% to US$ 17.1 million Consolidation of GMI results (acquired October 2007) contributed US$ 8.5 million to revenues Gross profit doubled to US$ 9.54 million 74% order book growth to US$ 17.4 million
Advanced Vision Technology Ltd., (AVT, Prime Standard of the Frankfurt Stock Exchange, ISIN: IL00138748), the world’s leading supplier of automatic optical inspection and quality assurance systems for the printing and packaging industry, announces sales for Q1 2008 of US$ 17.1 million, an increase of 118% over the same period in 2007. Graphics Microsystems, Inc.(GMI), acquired by AVT in October 2007, contributed US$ 8.5 million to Q1 revenues. AVT recorded an increase of 8.1% over Q4 2007 (US$ 15.81 million).
GMI is the world’s premier supplier of closed loop colour control (CLC) systems, colour management and reporting software, and remote digital ink fountain control systems to leading commercial printers and press manufacturers worldwide. Excluding GMI’s results AVT recorded a 9.8% revenue increase in Q1 2008 over the respective quarter in 2007 and 3.6% increase over Q4 2007. GMI’s revenues increased this quarter13% over Q4 2007.
AVT’s Q1 2008 service revenues increased to US$ 2.7 million, 383.4% over same period last year and 21.6% over Q4 2007. The sharp increase in service revenues is mostly attributable to the acquisition of GMI that increased AVT’s service revenues to 16% of total revenues compared with 7.2% at the same period last year. Service orders received during the first quarter of 2008 totalled US$ 3.0 million.
During the first three months of 2008, order bookings totalled US$ 17.4 million, an increase of 74% over Q1 2007 (US$ 10 million), and up 13% over Q4 2007 (US$ 15.4 million).
AVT’s gross profit in Q1 2008 totaled US$ 9.54 million almost double the US$ 4.83 million gross profit recorded in the respective quarter last year.
2008 first quarter operating income decreased 22.5% from US$ 1.0 million in Q1 2007 to US$ 791 thousand. Excluding the amortization of GMI intangibles and integration costs, proforma operating income increased by 101% from US$ 1.0 million in Q1 2007 to US$ 2.1 million in Q1 2008.
Net income decreased to US$ 1.1 million (US$ 1.5 million for the respective period in 2007), mostly attributable to the amortization of GMI’s intangibles. Proforma net income (excluding amortization of intangibles) increased 38.5% from US$ 1.5 million to US$ 2.1million.
“AVT continues to experience solid growth based on our vision of product development and business strategy,” said Shlomo Amir, AVT President and CEO. “While the markets are challenging, AVT and GMI solutions are aimed at improving the profitability of their users, making the competitive edge they provide are particularly attractive.
“The integration of GMI has progressed well. We will jointly present our AVT and GMI product line solutions at the DRUPA trade show in Düsseldorf, Germany, this month and will demonstrate the strength of our combined organisation. Together we make the difference’ is our theme for DRUPA, and our vision is proving itself to be one that the industry welcomes.”
Safe Harbor Statement
Certain statements in this press release are forward-looking statements. Because such statements deal with future events, they are subject to various risks and uncertainties and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include, but are not limited to: the impact on revenues of economic and political uncertainties and weaknesses in various regions of the world, including the commencement or escalation of hostilities or acts of terrorism; any unforeseen developmental or technological difficulties with regard to our products; changes in the competitive landscape, including new competitors or the impact of competitive pricing and products; a shift in demand for products such as ours; unknown factors affecting third parties with which we have formed business alliances; timely availability and customer acceptance of our new and existing products, and other factors and risks discussed in our Annual Report for the year ended December 31, 2007. We assume no obligation to update information concerning our expectations.