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Nur Announces Q4 Loss, Gets Former Scitex Exec as CEO

Friday, March 14, 2003

Press release from the issuing company

LOD, Israel -- March 13, 2002 - NUR Macroprinters Ltd., 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 fourth quarter and year ended December 31, 2002. The Company also announced the appointment of David Amir as its President and CEO, replacing Erez Shachar, who has resigned. Mr. Shachar will continue to serve as a senior consultant to the Company for the coming 12 months. 2002 Financial Results & Analysis The fourth quarter included several non recurring charges, including a $11.4 million non-cash charge related to devaluation of intangible assets, including goodwill, related to the Salsa acquisition completed in 2000, and $4.3 million of one-time costs, comprising of $1.0 million of inventory write-offs and $3.3 million of operating expenses, arising principally from the restructuring of the Company`s China operations. Revenues for the fourth quarter of 2002 were $19.5 million, compared to $28.6 million for the fourth quarter last year, a 32% decrease. Net loss for the fourth quarter was $(17.1) million, or $(1.00) per share, including one-time charges, and a net loss of $(1.4) million, or $(0.08) per share, excluding such charges, compared to a net loss of $(0.8) million, or $(0.05) per share, in the comparable quarter last year. Gross profit for the fourth quarter was $6.3 million, including a one-time inventory write-off of approximately $1.0 million, compared to $11.5 million in the comparable period last year. Operating expenses for the fourth quarter were $21.1 million, including restructuring and other one-time charges of approximately $14.7 million, and $6.4 million excluding such charges, compared to $9.9 million in the comparable period last year. Operating loss for the fourth quarter was approximately $(16.8) million including one-time charges, and a loss of $(1.1) million excluding such charges, compared to $(0.4) million in the comparable period last year. Revenues for the year ended December 31, 2002 were $85.3 million, compared to $120.4 million for the year ended December 31, 2001, a 29% decrease. Net loss for 2002, including restructuring and other one-time charges, was $(24) million, or $(1.42) per share, and a net loss of $(6.0) million, or $(0.35) per share, excluding such charges, compared to a net loss of $(7.2) million, including restructuring and other one-time and charges, or $(0.49) per share, in 2001. Gross profit for the year was $26.9 million, including a one-time inventory write-off of approximately $1.0 million, and $27.9 million, excluding such charges, compared to $44.5 million for the prior year. Operating loss for the year was $(22.6) million, including one-time inventory write-offs of approximately $1.0 million, one-time impairment of intangible assets of $11.4 million, and $4.2 million of restructuring and other one-time expenses, and a loss of $(4.5) million excluding such charges, as compared to $(4.1) million in the prior year. Operational Comments Erez Shachar, CEO of NUR Macroprinters, commented on the results, "NUR improved its free cash flow for the third consecutive quarter, resulting in a breakeven free cash flow for the last quarter of 2002, in spite of a decrease in revenues. During 2002, NUR reduced its operating expenses by more then $10 million compared with 2001, excluding one-time expenses. This reduction has been achieved through various improvements in NUR`s operation, building a more cost effective platform to address future challenges. Another encouraging development is the amendment of the covenants governing our long-term loans. We believe this new agreement to be another expression of the cooperation between the Company and its banking partners - bringing NUR to full compliance with the conditions of its long-term debt. NUR has succeeded in maintaining approximately the same levels of cash at the end of 2002 as it began the year with, while decreasing its debt load during the year." Erez Shachar further stated, "During the fourth quarter, we completed a restructuring process of our operations in the Asia Pacific region consisting, among other things, of the appointment of Computer and Sign Technology Co., Ltd to market and support the NUR Fresco product line in China and moving the Asia Pacific headquarters from Shanghai to a new facility located in Hong Kong. The restructuring process resulted in the termination of approximately thirty (30) employees, allowing a more cost effective operation in that region." Erez Shachar added, "In October 2002, we 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. We expect the NUR Tempo and the NUR Ultima HiQ, which generated an enormous amount of interest and enthusiasm, to be commercially available during 2003." Management Change NUR Macroprinters further announced that, effective April 1, 2003, Erez Shachar is resigning his position as President and CEO of NUR. Mr. Shachar will continue to serve as a senior consultant to the Company for a one-year period. David Amir, an industry veteran with 20 years of experience, has been appointed to replace Mr. Shachar. Mr. Amir has been working with NUR as a consultant for over a year, and is responsible for the restructuring of the Company`s service and support organizations. David Amir has been a successful, senior executive with Scitex in a number of capacities including: Corporate Vice-President for Business Development, Vice-President Customer Services of Scitex Europe, Manager of International Customer Support, and fourteen years of experience with the U.S. market. Most recently, David was the founder, CEO and President of Paspartoo Ltd., a leading company in `virtual to print` technology. Commenting on his departure, Mr. Shachar stated, "It has been a truly gratifying experience to serve as the President and CEO of NUR. I believe David Amir will bring to the Company a fresh vision and passion that will carry NUR to an era of growth and prosperity. I am more than confident that David has the ability and know-how to move the Company forward." "The Board of Directors of NUR thanks Erez Shachar for his dedication and contributions to the Company," stated Dan Purjes, Chairman of NUR. "Under his direction, the Company increased its revenues fivefold by significantly penetrating global markets. The recent installation of the 500th Salsa and 200th Fresco units attest to that growth. We are pleased that Erez will be serving as a consultant to NUR for the next twelve months, and we wish him the best of success in his future activities." Mr. Purjes also commented on the appointment of David Amir as the new CEO and President of NUR Macroprinters, "David Amir brings to NUR extensive successful experience in the digital printing industry. He has a strong understanding of NUR, having worked as a consultant to the Company and as an advisor to the Board for over a year. He has the vision, skills and experience needed to lead NUR to a successful future. We welcome David Amir to NUR and will strongly support his efforts to move the Company forward." Commenting on his appointment, David Amir said, "I am eager to assume my leadership role as the CEO of this industry leading organization. I believe NUR, as one of the leading companies in the industry, has a bright future and a strong management. I will devote my best efforts to make the organization one that our employees, customers and shareholders can be proud of." The Company will host a conference call to discuss these results on Thursday March 13th, at 10:00AM, EDT/5:00 PM, Israel time. To participate, please call; 1-800-451-7724 (U.S. toll free), 1-800-260-789 (Israel toll free), 1-785-832-0201 (international), id code: NUR. The conference call will also be webcast live at: www.nur.com/investors, and will be available for replay at that site starting 2PM EDT on the day of the call, or by calling 1-888-566-0184 (U.S.) / 1-402-351-0788 (international). The call will also be available for replay in Israel for 72 hours after the call by dialing +-972-3-925-5946

 

 

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