News Column

DGAP-News: Electronics Line 3000 Ltd.: Electronics Line publishes the financial results for the first three months of 2014

May 22, 2014

DGAP-News: Electronics Line 3000 Ltd. / Key word(s): Interim Report Electronics Line 3000 Ltd.: Electronics Line publishes the financial results for the first three months of 2014 22.05.2014 / 15:56 --------------------------------------------------------------------- Electronics Line publishes the financial results for the first three months of 2014 - Revenues amounted to US$ 3.5 million (Q1 2013: US$ 4.3 million) - Gross profit margin increased from 41% to 42% - Net profit of US$ 0.2 million (Q1 2013: US$ 0.7 million) - Net cash from operating activities was minus US$ 0.3 million (Q1 2013: US$ 0.6 million) - Equity ratio improved from 71% to 74% - Outlook for FY 2014 confirmed Rishon LeZion, Israel (May 22, 2014) - Electronics Line 3000 Ltd. (the "Company" or "Electronics Line") (XETRA: ELN), a global provider of wireless security with remote management solutions, today published the financial results and the interim report for the first three months of 2014 ("Reporting Period"). Though revenues declined to US$ 3.5 million in the Reporting Period, compared to revenues of US$ 4.3 million during Q1/2013, the Company managed to improve the gross profit margin from 41% to 42%. The decrease in revenues is mainly due to an overstock within the Company's customers and complies with management expectations. Looking ahead to the full business year, the Company therefore still expects an increase in revenues of 10% to approximately US$ 18 million along with a continued improvement in earnings. Financial Highlights - The Company's revenues in the Reporting Period amounted to US$ 3.5 million, a drop of 18% compared to revenues of US$ 4.3 million during Q1/2013. The decrease in revenues is mainly due to an overstock within the Company's customers and complies with management expectations. - The gross profit for the Reporting Period therefore amounted to US$ 1.5 million (gross profit margin: 42%) compared to US$ 1.8 million (gross profit margin: 41%) in Q1/2013. The slight margin increase resulted from efficiency gains, the use of outsourcing partners and continuing sales of high margin products. - The net profit amounted to US$ 0.2 million in the Reporting Period, down from US$ 0.7 million for Q1/2013. In addition to the decrease in revenues, selling and marketing expenses as well as research and development expenses increased as the Company aims to expand the existing sales network and to increase the overall awareness of the Company's products and security solutions. Administrative expenses also rose due to the fact that in September 2013, the Company's shareholders approved an amendment to the Management services agreement with the parent company (Risco Ltd.), which included an increase of the annual management fee from US$ 0.3 million to US$ 0.8 million. - During the Reporting Period, net cash used in operating activities was US$ 0.3 million compared to US$ 0.6 million provided by operating activities during Q1/2013. - The Company's cash and cash equivalents as of March 31, 2014 were US$ 1.6 million, compared to US$ 2.0 million on December 31, 2013. The decrease is mainly due to an increase in the working capital of the Company. - The Company's total equity increased from US$ 6.7 million as of December 31, 2013 to US$ 6.9 million on March 31, 2014. Accordingly, the equity ratio improved from 71% to 74% in the Reporting Period. Outlook The results of the Reporting Period were in line with management expectations. Looking ahead to the full business year, the Company therefore still expects an increase in revenues of 10% compared to fiscal year 2013 to approximately US$ 18 million, mainly from its strategic customers and markets, in particular, Northern and Western Europe, and from the new product lines (ELAS, iConnect two-way and CommPact). With the increasing revenue, the Company also anticipates a continued improvement of its earnings. The Company continues focusing on its two-way-wireless iConnect product line and its PIR camera detector with a built-in camera for video verification. In addition, The Company expects that the new Smartphone applications for iPhone and Android, will help increase sales of the iConnect and CommPact panels. However, in view of the economic difficulties in many European markets and the continuing recession in southern Europe, the Company also realizes that there are risks for the development of sales in those countries. The reviewed interim report for Q1/2014 is available on the Company's website at www.electronics-line.com in the investor relations section. Extension of the Outsourcing Services Agreement between the Company and Sogodi Ltd. The Company is disclosing in this report that, in compliance with the Israeli Companies Law 5759-1999, the Company's audit committee and board of directors approved, in accordance with section 1(1) of the Israeli Companies Regulations (Relief from Related Parties' Transactions) 5760-2000 (the "Regulations"), an extension to the Outsourcing Services Agreement between the Company and Sogodi Ltd, for an additional term of 3 years as of the current termination date of the Agreement. The Company's audit committee and board of directors also approved, in compliance with the Regulations, that there was no significant change in the terms of the Agreement and in the relevant circumstances. The Company's special general meeting of the shareholders authorized the Company on June 16, 2011, to enter into the Agreement with Sogodi Ltd, a Bulgarian Company controlled by Mr. Moshe Alkelai, the controlling shareholder of the Company and the Chairman of the board of directors. The terms of the Agreement, the details of which are set forth in section 3 to the Statement of the Company dated May 11, 2011, will remain the same. Under Section 1C of the Regulations, each shareholder that holds at least 1% of the Company's issued share capital or voting rights is entitled to object to the approval of the aforementioned resolution, provided, however, that such objection is submitted in writing to the Company within 14 days of the date of this announcement. If such objection is received by the Company within such 14 days period, the aforementioned resolution will require shareholders' approval by a special majority pursuant to section 275 of the Companies Law. For more information please contact: Ms. Sari Ellenberginvestor.relations@electronics-line.com About Electronics Line (EL): EL is a pioneer in next-generation security solutions for the residential and small commercial markets. The Company designs and produces cutting-edge solutions for security and control of living and working environments. The EL line provides comprehensive security protection, as well as sophisticated system and home management functionality, for optimal comfort, safety and peace of mind. This new industry standard is further upgraded with enhanced remote management capabilities that give homeowners instant access to their system from anywhere in the world. Upgrading Everyday Security EL solutions enable new levels of control and maintenance in protected sites through the ELAS, a proprietary remote management server. The Company enjoys a unique market position in supplying ELAS-governed systems for the home and workplace, which provide the multiple benefits of a virtual security presence, convenient home automation, and energy efficiency, all customized by the end-user and/or the service provider. EL's wireless solutions offer enhanced detection and PSTN/IP/GSM/GPRS-based event reporting, along with advanced remote management tools. The back-office support and customized branding of EL solutions provide superior security with significant business benefits and market expansion potential. Global Partnerships Nearly three decades of cutting-edge leadership have earned EL a solid market position, allowing users worldwide to benefit from EL's ongoing development of upgraded security solutions. The Company maintains long-term partnerships worldwide. EL has made emerging technology, user-friendly design and exceptional quality the benchmarks for serving its international network of clients and partners. Drawing on a tradition of pioneering expertise, EL specialists also provide security integration consultancy, installation service, training and technological support. EL was established in 1982 and is headquartered in Israel. The Company is publicly traded on the Frankfurt Stock Exchange (ELN) and is part of the RISCO Group, an established leader in the international security market. 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 and releases. 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. End of Corporate News --------------------------------------------------------------------- 22.05.2014 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: Electronics Line 3000 Ltd.14 Hachoma St. 75655 Rishon LeZion Israel Phone: 00972 3 9181333 Fax: 00972 3 9616 584 E-mail: investor.relations@electronics-line.com Internet: www.electronics-line.com ISIN: IL0010905052 WKN: A0B5R7 Indices: DAXsector All Technology, DAXsector Technology, DAXsubsector All Communications Technology, DAXsubsector Communications Technology , Prime All Share, Technology All Share, Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, MÜnchen End of News DGAP News-Service --------------------------------------------------------------------- 270095 22.05.2014


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: DGAP Corporate News


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters