NUR Macroprinters Reports 2006 Results: Revenue Increased and Net Losses Decreased Significantly
Monday, July 02, 2007
Press release from the issuing company
LOD, Israel, June 29 -- NUR Macroprinters Ltd., a leading supplier of wide-format inkjet production printers for the printing industry, reported its financial results for the full year ended December 31, 2006, which are also reflected in the annual report on Form 20-F filed with the Securities and Exchange Commission on June 29, 2007.
Revenues from product sales and services were approximately $78.0 million in the year ended December 31, 2006, a 9.2% increase compared to approximately $71.4 million in the year ended December 31, 2005. The increase in revenues of $6.6 million is primarily due to the increased demand for our UV based inkjet printers in Europe and America and the increased revenue from ink products and services.
The gross margin in the year ended December 31, 2006 was 34.3% compared to 27.2% in the year ended December 31, 2005. The increase in the gross margin is primarily attributable to the better management of our spare parts inventory that resulted in a significant decrease of inventory write off ($0.8 in 2006 compared with $2.7 in 2005) and the improvement of our margins on ink revenue as the percentage of ink manufactured by NUR increased compared to ink purchased from third parties
Operating loss in the year ended December 31, 2006 was $0.5 million compared to $9.8 million in the year ended December 31, 2005. Excluding "share based payment" expenses (see bellow), the year ended December 31, 2006 would have resulted with operating income in the amount of $0.8.
Beginning January 1, 2006, we account for equity-based compensation in accordance with SFAS No. 123(R), "Share-Based Payment". As a result of adopting SFAS 123(R) our loss before income taxes for 2006 is $1.3 million higher than if we had continued to account for equity-based compensation under APB No. 25.
Interest payments, in connection with bank debt that was restructured in 2005, in the amount of $1.3 million were recorded as a reduction to the carrying amount of the debt (accrued interest) in accordance with the provisions of SFAS No. 15 "Accounting by Debtors and Creditors for Troubled Debt Restructuring".
Net loss in the year ended December 31, 2006 was $1.9 million, or $0.03 net loss per share compared to $14.7 million, or $0.46 net loss per share in the year ended December 31, 2005.
In the beginning of 2007, $6.1 million (net) was raised through the private placement of 11,734,950 ordinary shares to various investors at a price of $0.54 per share. The investors also received warrants to purchase additional 3,520,485 ordinary shares at an exercise price of $0.65 per share, exercisable for a period of five years following the closing of the private placement. The private placement included two stages, an initial closing resulting in net proceeds in the amount of $3.7 million in January 2007 and a follow-on investment resulting in net proceeds of $2.4 million in February 2007.