NUR Announces Q2 Loss: Revamped Product Offerings Paying Off
Press release from the issuing company
Second Quarter Revenues of $23.4 Million; Net Loss of $(1.0) Million, Excluding Restructuring Expenses of $(0.9) Million
LOD, Israel, Aug. 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 second quarter and six months ended June 30, 2002.
Revenues for the second quarter of 2002 were $23.4 million, compared to $21.4 million in the first quarter of 2002 and $30.3 million during the second quarter of 2001. Net loss for the second quarter of 2002, excluding restructuring charges of $0.9 million, was $(1.0) million, or $(0.06) per share, as compared to a net loss of $(3.8) million, or $(0.23) per share, for the first quarter of 2002, and a net profit of $40,000, or $0.00 per share, for the 2001 second quarter.
Gross profit for the second quarter of 2002 was $7.2 million, compared to $5.9 million in the first quarter of 2002 and $12.0 million in the second quarter of 2001. Operating expenses for the second quarter were $9.0 million, and $8.1 million excluding restructuring expenses, compared to $9.2 million in the first quarter of 2002 and $11.0 million in the comparable quarter last year. Operating loss for the second quarter, excluding the restructuring charges, was approximately $(1.0) million compared to $(3.3) million in the first quarter of 2002 and an operating income of $1.0 million in the second quarter last year.
Revenues for the first six months of 2002 were $44.8 million compared to $61.7 million in the first six months of 2001. Net loss for the six month period, excluding restructuring charges of $0.9 million, was $(4.9) million, or $(0.29) per share fully diluted, and $(5.7) million or $(0.34) per share fully diluted including such charges. Net loss for the first half of 2001, excluding restructuring charges of $2.5 million was $(4.0) million, or $(0.27) per share fully diluted, and $(6.5) million or ($0.45) per share fully diluted including such charges.
Gross profit for the six-month period was $13.1 million, as compared to a gross profit of $25.0 million excluding one-time inventory write-offs of $4.0 million, and $21.0 million including such charges, for the first half of 2001. Operating expenses for the period were $18.2 million, and $17.3 million excluding restructuring charges, compared to $25.5 million, and $23.0 million excluding restructuring charges, in the first half of 2001. Operating loss for the first half of 2002 was $(4.2) million excluding restructuring charges of $0.9 million, and a loss of $(5.1) million including such charges, as compared to an operating income for the first half of 2001 of $2.0 million excluding one-time inventory write-offs of $4.0 million and $2.5 million of restructuring charges, and an operating loss of $(4.5) million including such charges.
Based on the second quarter results, the Company does not meet one of the financial covenants set forth in one of its long-term loan agreements. The Company is currently in the process of obtaining a waiver from the bank for the above mentioned non-compliance."
Erez Shachar, CEO of NUR Macroprinters, stated "Results for the second quarter represent the first period of growth after five quarters of decline in revenues. We have also seen an improvement in other aspects of the financial results of the Company. Compared to the prior quarter, revenues grew 9%, gross profit grew by more than 20%, operating expenses decreased by more than 10% (excluding the restructuring charges), as a result of which our operating loss decreased from $(3.3) million in the first quarter to $(1.0) million in the second quarter."
"The growth generated during the quarter is an indication of the success of our revamped product offerings. We have seen growing demand for the Fresco since the introduction of the HiQ version in the fourth quarter last year. With the commercial introduction of the Fresco HiQ 8 Color expected during the third quarter, we have taken the product to a new level of quality and performance. We are receiving enthusiastic reviews of the product from our customers and prospects. Our consumables business has also shown growth this quarter."
Mr. Shachar continued: "During the second quarter, we continued to implement our program for corporate reorganization which called for the reduction of headcount by 15% and salary cuts across the board. We also rejuvenated and expanded our portfolio of products."
Mr. Shachar concluded, "While the business environment continues to be challenging, we believe that the cumulative effect of all of our 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 to better face these challenges."
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