NUR Macroprinters Reports Q1 Results: SARS/War affect sales
Friday, May 30, 2003
LOD, Israel; May 29, 2003 - 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 first quarter ended March 31, 2003. Revenues for the first quarter of 2003 were $17.1 million, compared to $21.4 million during the first quarter of 2002, and $19.5 million in the prior quarter. This decrease was mainly attributable to a weakening in sales by SARS uncertainties in Asia and by unsettled business climate and hostilities in Iraq, which affected Northern America. Net loss for the first quarter was $(1.5) million, or $(0.09) per share, as compared to a net loss of $(3.8) million, or $(0.23) per share, in the comparable quarter last year, and a loss of $(1.4) million, or $(0.08) per share (net of intangibles impairment and one time expenses) in the prior quarter. Gross profit for the first quarter was $5.7 million, compared to $5.9 million in the first quarter of 2002 and $6.3 million last period. Gross margin for the first quarter of 2003 was 33.4%, compared to 27.6% for the first quarter of 2002, and 37.2% for the prior period. Operating expenses for the first quarter were $6.8 million, down 25% from $9.2 million in the comparable quarter last year, and a 19% decrease from $8.4 million last period. Operating loss for the first quarter was approximately $(1.1) million, versus $(3.3) million in the year prior same period, and $(1.1) million in the prior period (net of intangibles impairment and one time expenses). David Amir, recently appointed CEO and President of NUR, commented on first quarter operating results, "During the first quarter, we further reduced our operating expenses - particularly selling, general and administrative expenses, and research and development - and are continuing to focus on reducing costs. For example, we recently announced that we are acquiring the remaining 50% of NUR Pro Engineering and that in connection with this acquisition, we intend to consolidate all of our equipment manufacturing in a single facility in Israel. We expect that the consolidation of our manufacturing operations will result in a one time charge in the second quarter of 2003. We further expect that the consolidation of our equipment manufacturing facilities will result in reduced overhead costs, improved efficiency, and will allow us greater real-time production flexibility." Mr. Amir further stated, "We believe the two most recent industry events in which we have participated in the second quarter, Sign UK/Digital Expo in the U.K. and the International Sign Association`s Sign 2003 in the U.S., were both encouraging. The customers and prospects we met at those events expressed interest in both our current products and in those we plan to introduce later this year – the NUR Ultima series of mid-range photorealistic printers currently in beta testing and the NUR Tempo flatbed digital inkjet press expected to enter beta testing in June." Mr. Amir concluded, "We recognize that there are major challenges ahead of us. Nonetheless, we are confident that the new management team we have put in place at our corporate headquarters and in our sales and service subsidiaries will help us better address these challenges in the coming months."