NUR Macroprinters Reports Earnings, Resurgence in Second Quarter U.S. Sales
Thursday, August 09, 2001
LOD, Israel, Aug. 8 NUR Macroprinters Ltd., a world leading manufacturer of wide and superwide format digital printing systems and consumables for the out-of-home advertising market, today announced financial results for the second quarter and six months ended June 30, 2001. Revenues for the second quarter of 2001 increased by 25.2% to $30.3 million. Gross profit for the period was approximately $12.0 million, the same as the comparable period last year. Operating income for the second quarter was approximately $1.0 million versus $3.8 million for the year prior same period. Net incomefor the quarter was $40,000, or $0.00 per share, compared to $3.1 million, or $0.22 per share fully diluted, in the second quarter of 2000. Revenues for the first six months of 2001 rose 35.2% to $61.7 million from $45.6 million in the first six months of 2000. Gross profit for the period was $25.0 million excluding one-time inventory write-offs of $4.0 million, and $21.0 million including such charges, as compared to $21.8 million for the year prior same period. Operating income for the first half of 2001 was $2.0 million excluding one-time inventory write-offs of $4.0 million and $2.5 million of restructuring costs, and a loss of $(4.5 million) including such charges, as compared to $6.7 million for the first half of 2000. Net loss for the six month period was $(3,000) pro forma and $(6.5 million) or $(0.45) per share fully diluted, as reported, as compared to net income of $5.6 million, or $0.40 per share fully diluted, for the first half of 2000. Erez Shachar, NUR Macroprinters CEO, commented, "While we are happy to see the period- over-period sales growth, the developments within these numbers are more interesting. Sales in North America, the primary reason behind our first quarter revenue drop, have strongly improved in the second quarter. Also, our worldwide sizable and growing installed base is generating an increasing recurring revenues base of consumables sales. We believe that the growing consumables sales are a good indicator of the relative strength of the out of home advertising market, and the robust demand for our customers' print services. In the next several years, we see consumables sales accounting for half of all of our sales annually. As recently announced, NUR Macroprinters together with CitiCapital, a division of Citigroup, have launched ''NUR Capital Business and Finance Programs" to provide ready financing for both current and prospective clients -- one of the biggest barriers to sales.'' NUR's Chief Financial Officer, Hilel kremer commented, "On an operating basis, we are pleased to report that we have significantly lowered expenses as planned, compared to both the first quarter of 2001 and the fourth quarter of 2000. The Company successfully implemented its previously announced restructuring plan, both in Europe and the U.S., with the resultant adjustment of its cost structure in line with current economic conditions. Since the beginning of the year, NUR Macroprinters has reduced its worldwide workforce by fourteen percent. The Company remains positive in its long-term strategic outlook for the growth prospects of the wide and superwide format digital printing market, and its leadership position in it.''