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Elbit Vision Systems Announces Third Quarter 2017 Results

Third quarter 2017 highlights

  • Revenue at $2.5 million, up 10% sequentially;
  • Gross and operating margins at 50% and 14%, respectively;
  • Net income of $350 thousand, representing 14% of revenues;
  • Shareholders’ equity reached $7.1 million with cash and equivalents at $4.0 million;

CAESAREA, Israel, Dec. 05, 2017 (GLOBE NEWSWIRE) -- Elbit Vision Systems Ltd. (OTCBB:EVSNF), a pioneer in the science of machine vision inspection for textile fabrics and technical webs, today presented its consolidated financial results for the quarter ending September 30, 2017.

Sam Cohen, CEO of EVS commented, “As we expected, the third quarter shows sequential improvement in our revenues due to a growth in orders across all of our product lines. Although we have seen exciting growth in the US and Europe, slower sales in China have kept our revenues flat. However, November saw some significant successes in iBar trials with customers in Asia and we believe this will improve our results in the upcoming quarters in Asia.

We know from our customers that for EVS to realize its full potential, we must continue to improve our capabilities and expand our features. To that end we have hired new skilled field engineers and increased our software development team.”

Third Quarter 2017 Results

Revenues for the quarter were $2.5 million, a 2% increase over the $2.5 million reported in the third quarter of last year and a 10% increase compared to the $2.3 million reported in the previous quarter.

Gross profit for the quarter was $1.3 million, representing 50.0% of revenues. This is compared to $1.4 million for the third quarter of 2016, which represented 54.9 % of revenues and $1.3 million as reported in the previous quarter.

Operating income for the quarter was $343 thousand (13.6% of revenue), compared to $554 thousand (22.3% of revenues) in the third quarter of 2016 and $427 thousand (18.7% of revenues) as reported in the previous quarter. The lower level of operating income in the quarter was due primarily to increase R&D and sales and marketing expenses.

Net income was $350 thousand (13.9% of revenue), compared to $528 thousand (21.3% of revenues) in the third quarter of 2016 and $396 thousand (17.4% of revenues) in the prior quarter.

Conference call details

The Company will also host a conference call later today at 9:00 am ET. Sam Cohen, Chief Executive Officer and Yaron Menashe, Chief Financial Officer, will host the call and will be available to answer questions after presenting the results.

To participate, please call one of the following telephone numbers at least 10 minutes before the start of the call:

US: 1 888 668 9141 at 9am Eastern Time
Israel: 03 918 0609 at 4pm Israel Time
International: +972 3 918 0609

For those unable to participate, the teleconference will be available for replay on Elbit Vision Systems’ website at http://www.evs.co.il/ beginning the day after the call.

About Elbit Vision Systems Ltd. (EVS): www.evs.co.il

EVS offers a broad portfolio of automatic State-of-the-Art Visual Inspection Systems for both in-line and off-line applications, and process monitoring systems used to improve product quality, safety, and increase production efficiency. EVS' systems are used by over 800 customers, many of which are leading global companies.

This press release and other releases are available on www.evs.co.il

Safe Harbor Statement

This press release contains forward-looking statements. Such statements are subject to certain risks and uncertainties, such as market acceptance of new products and our ability to execute production on orders, which could cause actual results to differ materially from those in the statements included in this press release. Although EVS believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved. EVS disclaims any intention or obligation to update or revise any forward-looking statements, which speak only as of the date hereof, whether as a result of new information, future events or otherwise. EVS undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances.

FINANCIAL TABLES FOLLOW

ELBIT VISION SYSTEMS LTD.
CONDENSED CONSOLIDATED BALANCE SHEET
AT SEPTEMBER 30, 2017
IN U.S. DOLLARS
Sep-30 Dec-31
2017 2016 2016
U.S. dollars in thousands
(except per share data)
Assets
CURRENT ASSETS:
Cash and cash equivalents3,819 3,794 4,528
Restricted deposits (short term)150 150 111
Trade accounts receivable2,366 1,452 1,136
Other receivables237 197 286
Inventories1,943 1,417 1,651
Total current assets8,515 7,010 7,712
LONG-TERM RECEIVABLES:
Severance pay fund54 143 140
Other long-term receivables and investment161 63 35
Total long-term receivables215 206 175
PROPERTY, PLANT AND
EQUIPMENT – net of
accumulated depreciation and
amortization105 32 29
OTHER ASSETS
Goodwill242 242 242
Total assets9,077 7,490 8,158


Sep-30 Dec-31
2017 2016 2016
U.S. dollars in thousands
(except per share data)
Liabilities and shareholders’ equity
CURRENT LIABILITIES:
Trade account payable869 976 776
Deferred revenues390 290 231
Other payables590 541 1,031
Total current liabilities1,849 1,807 2,038
LONG-TERM LIABILITIES:
Other Long Terms liabilities91 210 165
Accrued severance pay 69 158 155
Total long-term liabilities160 368 320
Total liabilities2,009 2,175 2,358
SHAREHOLDERS’ EQUITY7,068 5,315 5,800
Total liabilities and shareholders’ Equity9,077 7,490 8,158


ELBIT VISION SYSTEMS LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE NINE AND THREE-MONTHS PERIOD ENDED SEPTEMBER 30, 2017
IN U.S. DOLLARS
9 months ended 3 months ended year ended
Sep-30 Sep-30 December 31,
2017 2016 2017 2016 2016
U.S. dollars in thousands (except per share data)
Revenues7,307 7,363 2,526 2,479 10,146
Cost of Revenues3,416 3,269 1,262 1,119 4,530
Gross Profit3,891 4,094 1,264 1,360 5,616
Research and development922 764 327 241 1,378
Marketing and selling1,007 1,027 352 360 1,254
General and administrative687 623 242 205 826
Operating Income1,275 1,680 343 554 2,158
Financial (Expenses) income - net(47) (105) 7 (26) (134)
Profit before taxes on income1,228 1,575 350 528 2,024
Taxes on Income - - - - -
Net profit for the period1,228 1,575 350 528 2,024
Profit per share basic0.13 0.17 0.04 0.06 0.22
Profit per share diluted0.13 0.17 0.04 0.06 0.21
Weighted average number
of shares used in Computation
of profit per share:
Basic (in thousands)9,384 9,344 9,390 9,339 9,338
Diluted (in thousands)9,401 9,367 9,407 9,363 9,593


Company Contact Information:
Yaron Menashe, CFO
Tel: +972 4 6107609
yaron@evs.co.il
Investor Relations Contact:
Ehud Helft/Gavriel Frohwein
Tel: +1 646 688 3559
evs@gkir.com

Source:Elbit Vision Systems Ltd.