DGAP-News: Electronics Line 3000 Ltd.: Electronics Line 3000 Announces FY 2009 Results
(firmenpresse) - Electronics Line 3000 Ltd. / Final Results
18.03.2010 08:00
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Electronics Line 3000 Announces FY 2009 Results
- Positive Cash Flow of $3.4 Million
- Significant Reduction of Operating Loss and Net Loss
- Overall Recovery of Revenues During the Last Quarter of 2009
Petach Tikva, Israel (March 18, 2010) - Electronics Line 3000 Ltd. ('the
Company') (XETRA: ELN), a leading global provider of wireless security with
remote management solutions, announced its results in U.S. Dollars for the
financial year ended December 31st 2009.
Financial Highlights
Excluding the U.S. subsidiary operations, the Company shows an improved
financial standing, including an operating profit of $773,000, a net profit
of $47,000, a profit per share of $0.005, and an EBITDA of $1.6 million.
- Revenues for 2009 were $26.4 million, compared to $36.4 million for
2008. This is mainly due to the restructuring process of the Company's
U.S. subsidiary, ELUSA, as well as the decline of the GBP (British
Pound Sterling) compared to the U.S. Dollar and the global economic
recession.
- Gross Margin for 2009 was 35%, compared to 36% in 2008.
- Operating Results for 2009 showed a loss of $114,000, compared to a
loss of $1.2 million in 2008.
- Net Loss for 2009 was $886,000, compared to a net loss of $2.9 million
for 2008.
- Basic and Diluted Loss per Share for 2009 was $0.09, compared to loss
per share of $0.29 for 2008.
- Cash Flow provided by operating activities was $3.4 million for 2009,
compared to $1.8 million cash flow provided by operating activities in
2008. The cash flow resulting from operating activities was used for
investments in non-current and current assets and for loan repayments.
- EBITDA for 2009 was $702,000, compared to a loss of $308,000 in 2008.
Discussion&Overview
Revenues
The Company's 2009 revenues were affected by several factors, including the
restructuring process of the Company's U.S. subsidiary, ELUSA; the
continuous decline of the GBP against the U.S. Dollar and the ongoing
global economic crisis.
As discussed in previous reports, during Q2 2009 Electronics Line 3000's
U.S. subsidiary, ELUSA, entered into an agreement with a local U.S.-based
service provider to spin out ELUSA's non-core products. In the long term,
this is expected to reduce expenses, enhance the Company's market position
and increase profitability. However, during 2009, this move incurred
expenses which negatively affected the Company's 2009 results.
As such, when excluding the influence of the U.S. subsidiary operations,
the Company shows a significantly improved financial standing, including an
operating profit of $773,000, a net profit of $47,000, a profit per share
of $0.005, and an EBITDA of $1.6 million.
Furthermore, results from the Company's U.K. subsidiary, ESP-UK, also
continued to be negatively affected during 2009 by currency exchange rates,
with the continued decline of the GBP in relation to the U.S. Dollar.
Although revenues from the U.K. subsidiary declined from 2008 to 2009 by
only£116,000, it resulted in a $1.6 million decline, measured in U.S.
Dollars.
As shown in the table below, more than half of the Company's decline in
revenues can be attributed to its two subsidiaries, ELUSA and ESP-UK.
Revenues in $ 000's 2008 2009The global economic crisis has affected Electronics Line 3000 as well as
IL 22,180 17,846
ESP-UK 8,718 7,153
ELUSA 5,518 1,391
Total 36,416 26,390
many businesses around the world, including the Company's suppliers and
customers. The Company's European customers, which make up over 80% of its
customer base, have been greatly affected by this ongoing recession.
However, the Q4 of 2009 saw the Company revenues increase to $7.9 million,
compared to an average of $6.1 million in previous quarters during 2009.
The Company anticipates that this trend will continue, with enhanced
results at 2010.
In the year under review, the Company acquired 16 new customers, mainly
from Europe and Latin America, including Denmark, Spain, Norway, Russia,
Mexico and Brazil.
Furthermore, in 2009, the Company signed a strategic contract for supplying
advanced wireless security solutions to G4S Plc Security Services in
Northern and Western Europe. This major agreement has the potential to
enhance 2010 revenues
Continued Efficiency
In light of the global financial downturn, during 2009 the Company set in
place enhanced operational measures. These included organizational actions
relating to the Company's U.S. subsidiary, ELUSA, as well as significant
cost-cutting measures across the board that were set to reduce expenses.
As a result, during the year under review, despite the decrease in revenues
the Company succeeded in significantly improving its net loss to $886,000
compared to $2.9 million in 2008. Furthermore, the Company's 2009 operating
results showed a loss of $114,000, compared to a loss of $1.2 million in
2008. The Company also significantly improved its cash flow to $3.4 million
in 2009, compared to $1.8 million in 2008.
The Company is set to continue to enforce enhanced operational efficiency
measures throughout its activities in order to maintain these positive
results.
New Products Development
During 2009, the Company continued to invest in key R&D projects in order
to remain at the forefront of its targeted global security market, and
provide customers with advanced and attractive solutions. As such, the
Company focused on the development of a new innovative, uniquely small,
cost-optimized wireless residential security solution, which will be
launched during the first half of 2010. This new cost-effective solution is
set to enhance the Company's offering and will allow the Company to open
new markets and create new sales channels.
Mr. Amir Hayek, President and CEO commented: 'During 2009, the Company
succeeded in improving key criteria in times of crisis - including
operating efficiency and positive cash flow. Still, we continue to be
cautious - both financially and in terms of our ongoing operations -
because of the slow recovery from the global economic crisis and as
currencies remain volatile. We remain hopeful that the positive improvement
in the results in Q4 2009 will set the trend for a successful 2010'.
Summary financial tables are listed below. Please see the Director's Report
posted on the Company's website for more details and the accompanying notes
which are an integral part of the consolidated financial statements.
For more information please contact
Electronics Line 3000 Ltd. Kontaktperson in Deutschland:
Shoshan Nitzan Claudia Press
VP Marketing
shoshan.nitzan(at)electronics-line.com ir(at)electronics-line.com
About Electronics Line 3000
Electronics Line 3000 Ltd. (EL3K) is a leading global provider of wireless
security with remote management solutions for the mass residential and
commercial markets. Multiple technologies and applications are integrated
in the solutions to enablereal-time, two-way data, audio and video
solutions. The Company has over 25 years of experience in the electronic
security industry, and is well recognized for its technological innovations
and for the high quality of its products. The Company partners with leading
monitoring companies, distributors and residential service providers to
create unique solutions.
Disclaimer:
'This release contains forward-looking statements, which express the
current beliefs and expectations of management. Such statements involve a
number of known and unknown risks and uncertainties that could cause the
Company's future results, performance or achievements to differ
significantly from those expressed or implied by such forward-looking
statements. A number of these risks and other factors that might cause
differences, some of which could be material, along with additional
discussion of forward-looking statements, are set forth in the Company's
Annual Report and its other filings filed with the Israeli Securities
Authority. Forward-looking statements speak only as of the date on which
they are made and the Company undertakes no obligation to update publicly
or revise any forward-looking statement, whether as a result of new
information, future developments or otherwise.'
Contact:
For more information please contact:
Electronics Line 3000 Ltd.
Shoshan Nitzan
VP Marketing
shoshan.nitzan(at)electronics-line.com
For information in German please contact:
Claudia Press
ir(at)electronics-line.com
18.03.2010 08:00 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv atwww.dgap-medientreff.deandwww.dgap.de---------------------------------------------------------------------------
Language: English
Company: Electronics Line 3000 Ltd.
2 Granit St.
49130 Petach Tikva
Israel
Phone: 00972 3 918 1344
Fax: 00972 3 921 1137
E-mail: ir(at)electronics-line.com
Internet: www.electronics-line.com
ISIN: IL0010905052
WKN: A0B5R7
Indices: General All-Share , DAXsector All Technology , DAXsubsector
All Communications Technology
Listed: Regulierter Markt in Frankfurt (General Standard);
Freiverkehr in Berlin, München
End of News DGAP News-Service
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