Vancouver, BC, CANADA (February 7, 2001) – Creo Products Inc. today announced financial results for the quarter ended December 31, 2000 reported in U.S. dollars.
For the first fiscal quarter of 2001, Creo’s revenues were $170.4 million compared to $54.1 million in the first quarter of fiscal 2000. This increase was primarily the result of the company’s April 2000 acquisition of the pre-press division of Scitex Corporation Ltd. Excluding the effect of business integration costs of $6.7 million, and goodwill and other intangible assets amortization of $19.2 million, Creo’s adjusted earnings were $10.0 million or $0.20 per share (diluted) compared to net income of $5.2 million or $0.15 per share (diluted) for the same period a year ago. Earnings under Canadian GAAP were a loss of $13.7 million or ($0.29) per share (diluted) and earnings under U.S. GAAP were a loss of $12.2 million or ($0.25) per share (diluted).
Creo increased its ownership of Nihon CreoScitex, formerly a minority-owned subsidiary, to 81% percent on January 1, 2001, allowing Creo to play a stronger role in the strategic development and management of the organization in order to further penetrate the graphics arts industry in Japan.
Creo increased its investment in printCafe Inc., an Internet-based, business-to business printing and graphic arts communication solution provider, by $25.5 million, bringing its total investment to $65.5 million. Working together with printCafe provides Creo access to the printing and graphic arts industries e-commerce opportunity and to an installed base of about 7000 printer management (ERP) systems in North America.
“We have made great progress during the quarter” stated Amos Michelson, chief executive officer of Creo. “Shortly after the merger, we renewed our product development focus on the rapidly growing print on-demand systems (POS) business, and we are pleased to say that we saw significantly increased revenue in this quarter as new products reached the market. As well, our European organization has made tremendous gains in the last six months and showed excellent results this quarter. We believe that we are still on target to finish most of the outstanding integration issues by April this year.”
“We are advancing our leadership in the prepress industry and furthering our vision of digitizing the graphic arts industry. Our goal is to digitize the graphic arts industry while providing unique and sustainable value to our customers. We will sustain long-term growth by increasing market share in existing markets and by introducing our innovative technology into select new markets. In fiscal Q2 we expect to ship the first Lotem Quantum 800, a new computer-to-plate (CTP) product that is one of the first fruits of our combined technology."
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