Optimal Robotics Corp. Reports Record Revenue and Earnings For The Second Quarter and Six Months Ended June 30, 2001 (Part 1 of 2)
MONTREAL--(BUSINESS WIRE)--August 2, 2001--Optimal Robotics Corp. (NASDAQ: OPMR - news), North America's leading provider of self-checkout systems to retailers, today announced record results for the second quarter and six months ended June 30, 2001. All references are to U.S. dollars.
Optimal Robotics reported record revenues of $31,084,738 for the second quarter as compared to $16,123,099 for the same period of 2000, an increase of 93%.
Operating income for the quarter was a record $6,169,947 as compared to $1,139,133 for the same period of 2000, an increase of 442%. Operating margin for the quarter was 19.7% as compared to 7.1% for the same period of 2000.
Net earnings for the quarter were a record $4,247,881 as compared to net earnings of $2,047,361 for the second quarter of 2000, an increase of 107%.
Fully diluted earnings per share for the quarter were $0.28 as compared to $0.14 for the second quarter of 2000, an increase of 100%.
Revenues for the six months ended June 30, 2001 were a record $50,692,736 as compared to $28,127,258 for the same period of 2000, an increase of 80%.
Operating income for the six months ended June 30, 2001 was a record $9,360,383 as compared to 1,911,367 for the same period of 2000, an increase of 390%. Operating margin for the six months ended June 30, 2001 was 18.5% as compared to 6.8% for the same period of 2000.
Net earnings for the six months ended June 30, 2001 were a record $6,767,319 as compared to net earnings of $2,748,579 for the same period of 2000, an increase of 146%.
Fully diluted earnings per share for the six months ended June 30, 2001 were $0.45 as compared to $0.20 for the same period of 2000, an increase of 125%.
Optimal Robotics delivered 1258 U-Scan® self-checkout terminals, or 315 U-Scan® systems, in the quarter, an increase of 99% from 627 U-Scan® terminals, or 158 U-Scan® systems, delivered in the first quarter of 2000.
``The second quarter was a very exciting one for the Company and we are proud to announce yet another record quarter'', said Holden L. Ostrin, Co-Chairman of Optimal Robotics. ``We exceeded our expectations on every level, including revenue, gross margin, operating income and net income'', continued Mr. Ostrin. ``Our operating margin of 19.7% was extremely strong and is a testimony to the strong operational capabilities of the Company's organization. Also, net income would have been greater by approximately $0.02 per share if not for the reduction in interest rates that caused lower earnings on the Company's substantial cash balances.''
``We continue to be impressed by the growth in demand for self-checkout, particularly in difficult economic times, and believe that as the market leader in the industry, we are well-positioned to capitalize on that growth'', added Mr. Ostrin. ``As the year progresses, we will remain focused on execution and begin to engage our customers in planning for their 2002 needs.''
``Finally, we are pleased with the progress that we have made in integrating our recent acquisition of the information technologies service business of Alpha Microsystems LLC (''Alpha``) and we believe that our customers will significantly benefit from the increased capabilities of our service organization'', said Mr. Ostrin.
Certain additional information follows:
Gross Margin
Gross margin for the quarter was 37.8% as compared to 25.8% for the second quarter of 2000. Increased gross margins were a direct result of the Company assembling its systems in-house and increased efficiencies, particularly in purchasing and procurement.
Working Capital and Liquidity
Working capital at quarter-end was $106,397,102, as compared to $98,583,787 at the end of the second quarter of 2000, an increase of 7.9%. Cash and short-term investments were $71,824,950 at quarter-end, as compared to $76,009,421 at the end of the second quarter of 2000.
Accounts Receivable
Accounts receivable at quarter-end were $29,767,742, of which $29,143,154 was trade accounts receivable.
Under generally accepted accounting principles (``GAAP''), days outstanding of accounts receivable (``DSO's'') as at June 30, 2001 were 77 days. The Company did not sell any accounts receivable in the second quarter of 2001.
Inventory
Inventory at quarter-end was $21,327,841. The quarter-end inventory position included $2,143,242 of finished goods; $3,014,630 of work in process; $5,571,381 of raw materials; and $10,598,588 of replacement parts, including approximately $1.25 million in replacement part inventory that Alpha uses to service its customers.
The Company is comfortable with its inventory position in view of its current and projected order flow and to properly service and support its current installed base.
Shareholders' Equity
Shareholders' equity was $114,984,162 at quarter-end, as compared to $102,493,924 at the end of the second quarter of 2000, an increase of 12%.
Long-Term Debt
The Company has no long-term debt.
It is the intent of Optimal's conference call to have the question and answer session limited to institutional analysts and investors. The call can be heard beginning at 5:00pm EST as an audio webcast via Optimal's website at www.opmr.com. As well, Optimal invites retail brokers and individual investors to hear the first quarter conference call replay by dialing 1-888-716-7820--Pass Code: 804571#. The replay may be heard beginning at 9 pm (EDT) on August 2, 2001 and will be available for 5 business days.
Optimal Robotics Corp. is the leading provider of self-checkout systems to retailers in North America. The Company's principal product is U-Scan®, an automated self-checkout system that enables shoppers to scan, bag and pay for their purchases with limited or no assistance from store personnel. U-Scan®, which the Company anticipates will process over 350 million shopper transactions in 2001, is designed to reduce retailer checkout costs and increase shoppers' convenience.
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This news release may contain forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These forward-looking statements may include projecting revenue and profit growth, and statements expressing comfort with analysts' earnings estimates. These forward-looking statements are based on current expectations and assumptions and involve known and unknown risks and uncertainties that could cause Optimal's actual results to differ materially.
These risks and uncertainties include price and product competition, dependence on new product development, reliance on major customers, customer demand for our product and services, control of costs and expenses, domestic and international growth, general industry and market conditions and growth rates and general domestic and international economic conditions including interest rate and currency exchange rate fluctuations. For a further list and description of such risks and uncertainties, see the reports filed by Optimal with the Securities and Exchange Commission. Optimal disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise
Consolidated statements of operations and balance sheet follow. |
