Elbit Vision posts first annual profit since 1997
The company ended 2005 with profit of $600,000.
Gitit Pinkas 27 Feb 06 20:07
Elbit Vision Systems Ltd (OTCCBB:EVSNF) has reversed its fortunes for the first time after 9 years of repeated losses. With doubts cast over whether the Yokneam based company could ever move to growth and profitability, it finally achieved both in 2005.
The company posted revenue of $20.8 million, up 90% on figures for 2004. Net profit was $611,000, against a loss of $6 million for the previous year. Elbit Vision’s pro-forma profit for 2005, net of costs and amortization due to acquisitions was $1.2 million. Fourth quarter sales were $8.1 million, with profits totaling $1.2 million.
Elbit Vision manufactures automatic optical inspection systems that are used to improve production efficiency in diverse applications. The company has a market cap listed on the bulletin board at around $20 million. Mivtach Shamir Holdings (TASE: MISH) recently provided the company with a $3 million loan over two years, convertible at an exercise price of $0.50 per share and other options. Mivtach currently has an 11% share in the company, which on exercising its options will increase to 30%. Although Mivtach Shamir arrived on the scene just two weeks ago, it most likely was aware of the company’s fourth quarter results at the time it agreed its investment.
In a related development, the company this week appointed David Gal as chairman. Formerly, CEO at Wizcom and senior deputy CEO at Orbotech (Nasdaq: ORBK), Gal assisted Mivtach Shamir in finalizing the deal and will assume active management of the company. Moshe Shochat will remain CEO and will focus principally on management of the activities of ScanMaster, a subsidiary which Elbit Vision acquired in 2004.
Commenting on the new partnership with Mivtach Shamir, Elbit Vision chief financial officer Yaky Yanay said, ”The involvement by Mivtach Shamir, went into effect just two weeks ago and I expect their involvement and assistance to the company to increase as the year progresses. The choice of Mivtach Shamir as business partner was not a random selection on our part.”
Asked whether he believed the company had finally put its loss making days behind it, Yanay replied, “Our work plan for continued growth and increased profits in the coming year. It is still too early to make any forecasts for coming quarters but we are totally confident about our results for the year as a whole. I expect that we will be releasing both a quarterly and annual forecast in the near future.”
Published by Globes [online], Israel business news - www.globes.co.il - on February 27, 2006
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