Scitex Announces Fourth Quarter and Full Year 2000 Results
Press release from the issuing company
HERZLIA, Israel, Feb. 27- Scitex Corporation Ltd. (Nasdaq: SCIX) (TASE: SCIX), a world leader in inkjet and digital imaging solutions, today announced results for the fourth quarter and fiscal year 2000, which ended December 31, 2000. The 2000 financial statements are significantly affected by Scitex's transaction with Creo Products Inc., in which Scitex sold its preprint operations in return for 28% of Creo's shares, and also include the planned conclusion of its equity involvement in its joint venture activities, Vio Worldwide Limited and Karat Digital Press.
Revenues for the fourth quarter were $64.5 million, operating profits before amortization of goodwill (of $2.8 million) and other non-recurring expenses (of $2.5 million) were $5.4 million. Net loss, including the effect of equity investments, was $16.0 million.
Revenues for the year were $344 million, including $116 million of preprint revenue from the first quarter of the year. Net income was $76 million, including the capital gain from the sale of the preprint operations included in other income.
Yoav Z. Chelouche, President and Chief Executive Officer said, "The fourth quarter of 2000 marks the end of an exciting and historic year for Scitex as we substantially changed the model and composition of the business. The merger of our preprint operations with Creo, the focus on our inkjet businesses, and the investments we entered into during the year, all emphasize Scitex's future role as a leading force in digital printing and imaging solutions.
"I am pleased to report strong quarterly and yearly revenue growth in our digital printing activities, Scitex Digital Printing and Scitex Vision. Both companies are expecting to see double digit growth and increased profitability in 2001.
"The conclusion of our participation in the joint ventures, Karat and Vio, reflects the strategic change in our operating model. As well as preserving our cash position in the future, we have retained the potential for upside for Scitex under their new ownership.
"Our strategy of investing in opportunities within specific high-growth segments of the digital printing and digital imaging markets remains unchanged."
As stated in our second and third quarter press releases, since Scitex's involvement in the digital preprint business has changed from full ownership during the first quarter of 2000 to an equity investment in Creo Products Inc. beginning in the second quarter of 2000, direct comparison to the Company's consolidated results for the fourth quarter and full year of 1999 is not meaningful.
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