LOD, Israel, Nov. 7- 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 third quarter and for nine months ended September 30, 2001.
Revenues for the third quarter of 2001 were $30.1 million, as compared to $30.3 million in the previous quarter and $36.6 million in the comparable period last year. Gross profit for the period was $11.9 million, compared to $12 million in the previous quarter and $17.2 million in the comparable period last year. Operating income for the third quarter was approximately $0.8 million versus approximately $1.0 million in the previous quarter and $4.4 in the comparable period last year. Net income for the quarter was $83,000, or $0.01 per share, compared to $40,000, or $0.00 per share fully diluted, in the previous quarter. Net income before one-time acquisition related expenses of $4.9 million were $3.7 million or $0.24 per share fully diluted in the third quarter of 2000.
Revenues for the first nine months of 2001 rose 12% to $91.8 million from $82.2 million in the first nine months of 2000. Gross profit for the period was $36.9 million excluding one-time inventory write-offs of $4.0 million and $32.9 million including such charges, as compared to $39.0 million for the comparable period last year. Operating income for the first nine months 2001 was $2.8 million excluding one-time inventory write-offs of $4.0 million and $2.5 million of restructuring costs, and a loss of ($3.7 million) including such charges, as compared to $11.1 million for the first nine months of 2000. Net profit for the nine month period excluding one-time charges was $80,000 or $0.01 per share fully diluted compared to $9.3 million or $0.64 per share fully diluted in the first nine months of 2000. Including one-time charges net loss for the nine month period was ($6.5 million) or $(0.44) per share fully diluted, as compared to net income of $4.4 million, or $0.31 per share fully diluted, for the first nine months of 2000.
Commenting on the quarterly results, Erez Shachar, CEO of NUR Macroprinters, said, "During the third quarter, we have seen the fruits of our continuing efforts to increase operational efficiencies and focus on cash flow. We have been able to maintain an operating profit and significantly improve cash flow, despite a challenging macro-economic environment and the cancellation in September of the major US industry trade show, the SGIA.''
During the third quarter, NUR Macroprinters' strengthened its product portfolio and marketing capabilities through the introduction of several new product and marketing initiatives. The Company introduced an enhanced version of its popular wide-format, screenless digital production printers, the NUR Fresco(TM) HiQ series at a trade show in Europe and at an Open House at sales subsidiary NUR America. These printers, which were well-received in the marketplace, deliver major enhancements in terms of quality, performance, reliability, control software and ease-of-use.
Earlier this week, NUR Macroprinters introduced wide-format digital production printers specialized for printing on textiles. The NUR FabriGraph(TM) 1500 and 3200 dye sublimation printers round out the company's equipment line with production-oriented products optimized for the short run, on demand, digital printing of signage textiles such as flags, banners and tradeshow exhibits. These systems are currently in beta testing and are expected to be commercially available worldwide in early 2002.
In an initiative designed to target one of the biggest barriers to sales, the Company, together with the CitiCapital division of Citigroup, implemented the "NUR Capital Business and Finance Program'' to provide ready financing for both current and prospective clients. The NUR Capital program is currently available through NUR America. NUR Macroprinters also announced and began implementing a formalized, three-tier Customer Service Program designed to revamp, upgrade and standardize customers' service, support and training offerings worldwide. This program ensures customers worldwide receive the same high level of service and is designed to turn the customer service operation into a revenue-generating profit center.
Mr. Shachar commented on the Company's new consolidation and operational improvement plans, "After taking a close look at the current business environment and forecasting near-term developments, we have modified our strategic outlook. Beginning this quarter, we are taking actions to insure that we will be profitable at our current revenue level of $30 million perquarter, in the event of a delayed economic turnaround. On the plus side, if actual market conditions improve faster than anticipated, we could benefit with even higher profitability. This reorientation will require consolidations and other cost reduction measures that we have already begun to implement.''
Earlier this year, the Company implemented a number of restructuring, consolidation and cost reduction measures that better aligned it with customer demand. As part of the new measures, the Company has appointed a new Chief Operating Officer, consolidated its R&D operations, and initiated a reduction in headcount.
Eli Shalev assumed the newly created position of COO at NUR Macroprinters. He has been with the Company since March 2001 as Vice President of R&D. Before that, Mr. Shalev worked for Scitex Corp. for many years, most recently managing the company's largest operational division. He will have worldwide responsibility for managing the NUR Macroprinters' R&D, operations, manufacturing, and customer support organizations
Commenting on Shalev's new role, Erez Shachar, NUR Macroprinters CEO said, "This new position is a reflection of our strategic commitment to ongoing investment in our organization and to improving our operational capabilities. Eli and his team are tasked with ensuring timely delivery of the highest quality products to the market at competitive costs, while ensuring the highest level of customer support and satisfaction. Since joining us earlier this year, Eli significantly improved our R&D capabilities, and was responsible for the launch of a host of new products. I am convinced that Eli will bring the same level of professionalism and enthusiasm to the operations organization in his new role.''
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