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VUANCE Reports Record Profit for 3Q and First Nine Months 2012

HERZLIYA, Israel, Dec. 26, 2012 (GLOBE NEWSWIRE) -- VUANCE Ltd. (Pink Sheets:VUNCF), a leading provider of Wireless Identification, e-ID and Security Solutions, completed its unaudited condensed financial statements for the three and nine month periods ended September 30, 2012

Financial Highlights for the Three Months Periods Ended September 30, 2012

  • Gross profit increased to $1.3 million, compared to $1.2 million for the same period in 2011.
  • Gross profit margin was 73% compared to 62% in the same period in2011.
  • Operating expenses decreased to $769,000, compared to $1,169,000 for the same period in 2011.
  • Operating income increased to $528,000, compared to $38,000 for the same period in 2011.
  • Operating Margin increased to 30%, compared to 2% for the same period in 2011.
  • Net income increased to $510,000, compared to a net loss of $230,000 in the same period in 2011

"This was a quarter of progress for Vuance, as we refocused the enterprise on our core competencies while continue to increase profitability," commented Arie Trabelsi, CEO of Vuance. "We are fortunate to have built a team of experts in National e-ID and RFID and information systems. This talented team is driving Vuance forward with leading edge solutions on every front."

Financial Highlights for the Nine Months Period Ended September 30, 2012

  • Revenues decreased 4% to $5.73 million compared to $5.98 million in the same period in 2011.
  • Gross profit increased to $4.1 million, compared to $3.5 million for the same period in 2011,
  • Gross profit margin increased to 72%, compared to 58% in the same period in 2011.
  • Operating expenses decreased to $2.68 million, compared to $3.47 million for the same period in 2011.
  • Operating income increased to $1,426,000, compared to $4,000 for the same period in 2011.
  • Net income increased to $3,268,000, compared to a net income of $16,000 in the same period in 2011.
  • Net Income increased to $0.15 per basic share, compared to $0.00 per basic share in the same period in 2011.

"The strong and steady profitability, approaching 25% Operating Margin, was a key milestone for Vuance," Mr. Trabelsi added. "In comparison to last year, during the third quarter, we successfully expanded our gross profit margin and significantly reduced our operating expenses by implementing our restructuring plan. This effort positions us well to complete our financial strengthen process, putting us on the right path to achieve our business goals to become a global key player in the rapidly growing RFID and e-ID arena. We are optimistic of our ability to build on this progress within two of the most dynamic industries in the world, as we focus on delivering value for our customers, employees and shareholders."

Safe Harbor

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements preceded or followed by or that otherwise include the words "believes", "expects", "anticipates", "intends", "projects", "estimates", "plans", and similar expressions or future or conditional verbs such as "will", "should", "would", "may" and "could" are generally forward-looking in nature and not historical facts. Forward-looking statements in this release also include statements about business and economic trends. Investors should also consider the areas of risk described under the heading "Forward Looking Statements" and those factors captioned as "Risk Factors" in the Company's periodic reports under the Securities Exchange Act of 1934, as amended, or in connection with any forward-looking statements that may be made by the Company. These statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements arising from the annual audit by management and the Company's independent auditors. The Company undertakes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this press release.

VUANCE LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
Sep-30 Sep-30 Dec-31
2012 2011 2011
Unaudited Audited
U.S. dollars in thousands
(except per share data)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 67 161 215
Trade receivables, net 738 891 1,542
Other accounts receivable and prepaid expenses 70 236 105
Inventories, net 310 301 269
Total current assets 1,185 1,589 2,131
SEVERANCE PAY FUND 219 208 228
PROPERTY AND EQUIPMENT, NET 84 94 96
Total assets 1,488 1,891 2,455
VUANCE LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
Sep-30 Sep-30 Dec-31
2012 2011 2011
Unaudited Audited
U.S. dollars in thousands
(except per share data)
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term bank credit 101 101 112
Trade payables 1,015 1,918 2,439
Employees and payroll accruals 86 106 139
Advances from customers -- 628 --
Accrued expenses and other liabilities 1,030 1,417 2,164
Convertible bonds -- 2,967 2,519
Short-term loan and others -- 1,960 456
Total current liabilities 2,232 9,097 7,829
LONG-TERM LIABILITIES:
Accrued severance pay 221 227 227
Total long-term liabilities 221 227 227
SHAREHOLDERS' EQUITY(DEFICIT):
Ordinary shares 558 192 192
Additional paid-in capital 43,535 41,703 41,713
Amount of liability extinguished on account of shares -- -- 819
Accumulated deficit (45,058) (49,328) (48,325)
Total shareholders' deficit (965) (7,433) (5,601)
Total Liabilities and Shareholders' Equity 1,488 1,891 2,455
VUANCE LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
9 months ended 3 months ended year ended
Sep-30 Sep-30 Dec-31
2012 2011 2012 2011 2011
Unaudited Unaudited Audited
U.S. dollars in thousands, except share data
REVENUES 5,726 5,980 1,786 1,942 7,922
COST OF REVENUES 1,621 2,506 489 735 3,306
GROSS PROFIT 4,105 3,474 1,297 1,207 4,616
OPERATING EXPENSES:
Research and development 215 372 73 92 462
Selling and marketing 1,987 2,621 523 907 3,505
General and administrative 664 621 173 170 732
Other (income) expense (187) (144) -- -- (137)
Total operating expenses 2,679 3,470 769 1,169 4,562
OPERATING INCOME 1,426 4 528 38 54
FINANCIAL (EXPENSES) INCOME , NET 1,860 35 (13) (259) 990
INCOME (LOSS) BEFORE INCOME TAX 3,286 39 515 (221) 1,044
INCOME TAX (18) (23) (5) (9) (25)
NET INCOME (LOSS) 3,268 16 510 (230) 1,019
INCOME (LOSS) PER SHARE :
Basic 0.15 0.00 0.01 (0.02) 0.11
Diluted 0.12 0.00 0.01 (0.02) 0.09
Weighted average number of ordinary shares used in computing basic income (loss) per share 22,265,685 9,280,432 35,714,828 9,807,753 9,126,327
Weighted average number of ordinary shares used in computing diluted income (loss) per share 26,299,289 10,311,720 40,491,568 9,807,753 11,710,254

CONTACT: Tali Gudovich +972-9-8890850 tali@vuance.comSource:VUANCE Ltd.