NUR Reports Q3 Loss: Revenue Falls from $30 Million to Nearly $21 Million
Friday, November 15, 2002
LOD, Israel; November 14, 2002 - NUR Macroprinters, a world leading manufacturer of wide-format and superwide digital printing systems and consumables for the out-of-home advertising market, today announced its consolidated financial results for the third quarter and nine months ended September 30, 2002. Revenues for the third quarter of 2002 were $20.9 million compared to $30.1 million during the third quarter of 2001. Net loss for the third quarter of 2002 was $(1.2) million, or $(0.07) per share, as compared to a net profit of $83,000, or $0.01 per share, during the third quarter of 2001. Gross profit for the third quarter was $7.6 million compared to $11.9 million in the third quarter of 2001. Operating expenses for the third quarter were $8.3 million compared to $11.1 million in the comparable quarter last year. Operating loss for the third quarter was approximately $(0.7) million, compared to an operating income of $0.8 million in the third quarter last year. Revenues for the first nine months of 2002 were $65.7 million compared to $91.8 million in the first nine months of 2001. Net loss for the nine month period was $(7.0) million or $(0.41) per share compared to a net loss of $(6.5) million for the first nine months of 2001 or $(0.44) per share. Gross profit for the first nine months of 2002 was $20.6 million, compared to a gross profit of $32.9 million for the first nine months of 2001. Operating expenses for the period were $26.4 million compared to $36.7 million in the first nine months of 2001. Operating loss for the first nine months of 2002 was $(5.8) million, as compared to an operating income of $(3.7) million for the first nine months of 2001. Erez Shachar, CEO of NUR Macroprinters, commented on the results, “Although we faced a decrease in our revenues this quarter, we managed to improve our gross margin, resulting in a higher gross profit compared to the second quarter of this year. Another encouraging figure is the decline in quarterly operating loss compared to second quarter 2002 results; this, we believe, reflects the Company’s ability to manage our resources and expenses during tough times. As for the cash-flow figures, we managed to improve our cash flow from operating activities compared to both first and second quarter 2002 results. Erez Shachar further stated, “During the fourth quarter 2002, we began a restructuring process of our operations in the Asia Pacific region. We are working with third-party distributors that have a strong presence in specific markets and regions. We appointed the Computer And Sign Technology Co., Ltd (CAST), part of the Kobond Group, as NUR Asia Pacific’s exclusive distributor for the NUR Fresco product line in the People’s Republic of China. CAST is now responsible for sales and support of the NUR Fresco product line to new customers throughout the Chinese market. In conjunction with the appointment of CAST to market and support the NUR Fresco product line in China, we are moving the Asia Pacific headquarters to a new and significantly expanded facility located in Hong Kong. By revitalizing our presence in this part of the world, we seek not only to reduce costs and streamline our operations, but also to update our sales, marketing and support strategy to better focus on the needs of our Asian customers and the changing conditions in the marketplace overall. We believe this new strategy will put us in a better position to more effectively pursue the variety of new opportunities that are emerging in countries throughout the Asia Pacific region.” Finally, Erez Shachar added, “We recently attended the SGIA 2002 trade show in St. Louis (US), where we unveiled several new products, including two new wide-format printing systems ¯ the NUR Tempo, a flatbed digital inkjet press that will print on a wide variety of both rigid and flexible materials, and the NUR Ultima HiQ, a new family of lower cost printers to complement the top-of-the-line NUR Fresco series of production printers. Also introduced were new substrates and consumables that extend the usability and vibrancy of the prints. Our entire product line generated an enormous amount of interest and enthusiasm."