NUR Announces 1Q Results, Net Loss of $3.8 million
Thursday, May 09, 2002
First Quarter Revenues of $21.4 Million; Net Loss of $3.8 million Announce Three-pronged Growth Renewal Plan LOD, Israel, May 8 -- 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, 2002. Revenues for the first quarter of 2002 were $21.4 million compared to $31.4 million during the first quarter of 2001. Net loss for the first quarter was $(3.8) million, or $(0.23) per share, as compared to a net loss of $(6.5) million or $(0.45) per share fully diluted, including one-time inventory write-offs of $4.0 million and $2.5 million of restructuring costs in the comparable quarter last year. Gross profit for the first quarter was $5.9 million compared to $9.0 million, including a one-time inventory write-off of $4.0 million during the first quarter of 2001. Operating expenses for the first quarter were $9.1 million, compared to $14.5 million, including $2.5 million of restructuring costs in the comparable quarter last year. Operating loss for the first quarter was approximately $(3.3) million, compared to $(5.5) million, including one-time charges, in the first quarter last year. Commenting on the results, Erez Shachar, CEO of NUR Macroprinters, said, "The results of the first quarter were disappointing, the shortfall in sales has turned into a loss for the quarter. We believe the Company's performance in the first quarter of 2002 has been affected by factors such as continued slowdown in capital equipment investments, a weaker than expected performance in the North American and Japanese markets, a slow demand of consumables, and delays in purchasing decisions by our customers in expectation of the International Sign Association (ISA) show, held during the first week of April in Orlando, Fl. "As a result of the decreasing sales, we are instituting a major three-pronged growth-renewal program. First, we are implementing a corporate reorganization creating a more centralized, functional and cost-effective organization. Second, we are reducing headcount by sixty positions, or 15%, and implementing salary cuts across the board. Third, we are rejuvenating and expanding our portfolio of products. We plan to release new products currently in the pipeline to increase market share and spur growth." Mr. Shachar continued, "We are totally committed and determined to this turn-around plan. Recently, we have re-engineered our leading product the Fresco line of printers, and now firmly believe that our product lines are highly competitive with those of our competitors and will regain market share. For example, at the International Sign Association (ISA) Expo 2002, which we recently attended in Orlando, our entire product line, especially the Fresco 8-Color model, generated an enormous amount of interest and enthusiasm. The Fresco 8-Color was hailed by many as the best model on the market for production wide format printing." Mr. Shachar concluded, "We believe that the cumulative effect of all the restructuring and reorganization efforts of the past twelve months, the dedication and commitment of the NUR staff, combined with our current highly competitive product portfolio, positions NUR for an effective recovery. During the first quarter of 2002, we improved our financial position with a$7.0 million private placement in the Company; this follows the rescheduling of our long-term debt in the fourth quarter of 2001, which delays most of our principal payments to the end of 2005."