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Some of the following statements are forward-looking in nature, and actual results may differ materially:
Valor Computerized Systems Ltd. [Prime Standard: VCR], a global provider of productivity improvement software solutions for the printed circuit board industry, announced today its financial results for the period ending June 30, 2008.
“Q2 was a good quarter for Valor, despite the slowdown in global economy and the weakness of the US$.” -- said Dan Hoz, Valor’s CEO -- “In addition, our efforts to improve overall profitability are working out well and we saw a very nice increase in profits in the first six months of 2008, visible all the way from EBITDA to Net profits, despite a one-time expense of $0.7 Million related mainly to the retirement of the former CEO. We also had a positive cash flow from operations of $5.7 Million, bringing our current cash position to over $33 Million. In order to support our future growth, we are currently exploring some M&A opportunities which we plan to act on when the time is right, and our strong cash position will assist us in doing so.”
“During the quarter we established 3 new OEM agreements with major machine vendors, who will be selling our products together with their machines. This will allow us to expand our distribution channels, mainly in the Electronic Assembly Process Engineering arena at the moment. We are also in the process of releasing new products for quality management and business intelligence for electronics manufacturing. We see growing demand for solutions in those areas, and we believe that our knowledge and technology can allow us to come out with winning products for those markets” added Hoz.
In addition to investing in its business development, Valor has recently engaged in a process of repurchasing its own shares, up to a total of $US 3 Million (at management discretion). “We consider this to be an attractive investment opportunity for us and believe that it will also have a positive contribution to the earnings per share. We have confidence in our long-term growth and profitability, and have therefore chosen to engage in this process.” explained Hoz.
Summary of Financial Data (in $US thousands, unless otherwise noted):
|
|
H1 / 2008
(Unaudited) |
H1 / 2007
(Unaudited) |
% Change |
Q2 / 2008 (Unaudited) |
Q2 / 2007 (Unaudited) |
% Change |
|
Product Sales |
12,396 |
12,626 |
(1.8)% |
6,137 |
6,173 |
(0.6)% |
|
Maintenance Income |
8,966 |
8,226 |
9.0% |
4,573 |
4,377 |
4.5% |
|
Total Revenues |
21,362 |
20,852 |
2.4% |
10,710 |
10,550 |
1.5% |
|
Gross Profit |
18,226 |
18,126 |
0.6% |
9,173 |
9,247 |
(0.8)% |
|
One Time Expense |
731 |
0 |
100.0% |
731 |
0 |
100.0% |
|
EBITDA* |
2,431 |
2,101 |
15.7% |
773 |
863 |
(10.4)% |
|
EBIT* |
1,347 |
1,150 |
17.1% |
256 |
453 |
(43.7)% |
|
Net Profit* |
2,083 |
1,456 |
43.0% |
602 |
569 |
5.8% |
|
EPS in US$ (diluted) |
0.10 |
0.07 |
42.9% |
0.03 |
0.03 |
0.0% |
|
Shareholder’s Equity |
48,389 |
40,963 |
18.1% |
48,389 |
40,963 |
18.1% |
|
Total Assets |
61,988 |
53,913 |
15.0% |
61,988 |
53,913 |
15.0% |
|
Research & Development |
5,822 |
6,895 |
(15.6)% |
2,984 |
3,408 |
(12.4)% |
|
Employees (Period End) |
256 |
259 |
(1.2)% |
256 |
259 |
(1.2)% |
* Including a one-time expense of $0.7 Million related mainly to the retirement of the former CEO
Revenues in the first six months of 2008 were $21.4 Million, an increase of 2% as compared with $20.9 Million in the first six months of 2007. Revenues in the second quarter of 2008 were $10.7 Million, an increase of 2% as compared with $10.6 Million in the second quarter of 2007.
Positive cash flow from operating activities in the second quarter of 2008 was $5.7 Million, as compared with a negative cash flow from operating activities of $66 thousand in the second quarter of 2007.
Net profit increased by 43% in the first six months of 2008, standing at $2.1 Million as compared with $1.5 Million in the first six months of 2007. Net profit in the second quarter of 2008 accumulated to $0.6 Million, an increase of 6% as compared with $0.57 Million in the second quarter of 2007.
EBITDA increased by 16%, standing at $2.4 Million in the first six months of 2008 as compared with $2.1 Million in the parallel period of the previous year. EBITDA in the second quarter of 2008 was $0.8 Million, a decrease of 10% as compared with $0.9 Million in the second quarter of 2007.
EBIT excluding a one-time expense was $2.1 Million in the first half of 2008, an increase of 81% as compared with $1.2 Million in the first half of 2007. The one-time expense of $0.7 Million was related mainly to the retirement of the former CEO. In the second quarter of 2008, EBIT excluding the one-time expense was $1 Million, an increase of more than 100% as compared with $0.5 Million in the second quarter of 2007.
Earning per Share (diluted) in the first half of 2008 was $0.10, as compared with $0.07 in the parallel period of the previous year.
The complete financial report can be downloaded from the Investor Relations section on the Valor corporate website: www.valor.com
About Valor
Valor is a global provider of productivity improvement software solutions for the printed circuit board, or PCB, manufacturing supply chain. PCBs are the principal electronic interconnect technology used in the vast majority of electronic products sold today. Valor’s solutions target three key segments in the PCB manufacturing market: design of the physical layout of the PCB, fabrication of the bare PCB, and assembly of PCB components. Valor is listed on the Prime Standard of the Frankfurt Stock Exchange [WKN 928731]. More information about Valor can be found on www.valor.com. |
