Creo Write Downs Cause Scitex to Write Down $35 Million
Thursday, October 18, 2001
HERZLIA, Israel, Oct. 17 -- Scitex Corporation Ltd., a world leader in inkjet technologies and digital imaging solutions, today announced that its third quarter results will be affected by write downs announced by Creo Products Inc. on October 11, 2001. The Scitex results are expected to include a one-time charge of approximately $35 million reflecting Scitex's share in these write-downs. Creo announced one-time write-downs of $266 million of goodwill and other intangibles; $70 million of investments; $16 million of future tax assets; $10 million (after tax) of accounts receivable, obsolete inventory and other assets; and $4 million personnel reduction costs. Scitex holds 27% of Creo's shares. Scitex's revenues for the third quarter 2001 are expected to be in the range of $65 - $67 million. Based on this estimate, Scitex expects a pro forma net income of $2 - $3 million ($0.05 to $0.07 per share). Under US GAAP, the net loss for the third quarter 2001 is expected to be approximately $40 - $41 million, which includes the approximate $35 million charge resulting from the write-downs announced by Creo. Yeoshua Agassi, Chief Executive Officer of Scitex Corporation Ltd., commented, "In spite of current difficult market conditions, both Scitex Digital Printing and Scitex Vision continued to demonstrate year on year revenue growth. Scitex remains focused on its digital printing operations to ensure strong performance in these core businesses.'' Scitex Corporation Ltd. will report its definitive third quarter 2001 financial results after the market closes on November 6, 2001. A conference call with management will be held on November 7, 2001 at 10 am EST. For more information, please visit http://www.scitex.com.