Indigo Reports 4Q Net Profit of $2.9 million on Record Revenues
Press release from the issuing company
Maastricht, The Netherlands, February 20, 2001 - Indigo N.V. (NASDAQ: INDG), a leader in digital color printing systems, today reported 2000 fourth quarter revenues of $49.4 million, a record high for the Company. This compares with fourth quarter 1999 revenues of $42.0 million. Operating revenues, net of royalties and license fees, grew 17 percent to $49.3 million from $42.0 million in the fourth quarter of 1999. For the year ended December 31, 2000, operating revenues, net of royalties and license fees, were $164.7 million, compared with $140.7 million in 1999.
Revenues from equipment sales in the quarter increased 20 percent to $30.5 million, compared to fourth quarter 1999 equipment revenues of $25.5 million. For the full year, unit shipments increased 24 percent, attributable largely to the introduction (in mid-1999) of the e-Print Pro+, Indigo’s entry-level digital press, as well as the successful introduction of the top-of-the-line UltraStream 2000.
Commenting on the fourth quarter results, Benny Landa, Indigo’s Chairman and Chief Executive Officer, said: “We are very happy to report this quarter’s record results. Revenue growth was fueled primarily by shipments of our UltraStream 2000 product. We are particularly pleased by the strong activity in the US and our distributor channels, which was somewhat offset by Europe, which had a relatively weak quarter.“ Mr. Landa added, “2000 was a good year for Indigo, with the Company increasing the size of its direct installed base by close to 50%. That we were able to grow unit shipments by 24 percent this year, while maintaining post-sales gross margin in the mid 50 percent range and growing post-sales revenues, is further confirmation that our penetration strategy is working.”
“This year’s highlights included strong showings at DRUPA 2000 and Graph-Expo, as well, of course, as Hewlett-Packard’s $100 million equity investment in Indigo. In addition, HP will be an OEM channel for certain Indigo products, commencing in the spring of 2001, and Indigo and HP will collaborate to develop and bring to market future digital color printing solutions”, added Mr. Landa. “And finally, we were able to convert the preferred A shares to common shares, eliminating the quarterly preferred dividend.” Indigo’s Chief Financial Officer, Alon Bar-Shany, commented, “Pursuant to SAB 101, the Company has implemented a change in its revenue recognition policy that has added installation as a requirement for recognition of direct sales of equipment. The results of the current quarter and the yearly results for 2000 are presented according to this new policy. The cumulative effect of this accounting change as at the beginning of year 2000 was a net charge to the Statements of Income of $1.9 million. The income statements for each of the four quarters of the year 2000, reflecting this change in policy, are also presented below.”
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