Alon Named to Scitex Board and Reports Q2 Loss on 16% Rise in Sales
Press release from the issuing company
TEL AVIV, Israel, Aug. 11 -- Scitex Corporation, a world leader in industrial inkjet digital printing solutions, today announced that Shimon Alon has joined Scitex's board of directors.
Nachum "Homi" Shamir, president and CEO of Scitex Corporation expressed similar praise: "We are fortunate to have Mr. Alon as part of our board. He not only brings a tremendous amount of experience in growing companies, IPO's, mergers and acquisitions, but will also be a key contributor to Scitex's strategy to enhance our global investor communications and shareholder value."
Prior to joining Scitex's board, Mr. Alon held the position of CEO of Precise Software Solutions, a provider of application performance products. Previously, he enjoyed a 14-year career at Scitex and held senior positions in sales, support and marketing, including his last as CEO of Scitex America and president of the Graphic Arts Division.
Also Scitex announced its financial results for the second quarter ended June 30, 2003.
Scitex's revenues for the second quarter of 2003 were $68.6 million, an increase of 16.6% from $58.8 million in the second quarter of 2002. Operating income was $3.1 million (before amortization of intangibles of $1.5 million), compared to operating income of $0.8 million in the second quarter of 2002 (before amortization of intangibles of $0.8 million). Other expenses of $3.3 million include a loss from the sale of 3.0 million common shares of Creo Inc. and the impairment of certain investments. Net loss for the quarter was $4.8 million, compared to a net loss of $2.2 million in the corresponding quarter of 2002.
During the quarter we continued to generate cash from our operations and further strengthened our cash position by selling 3.0 million Creo shares. We now have $41 million of cash and short-term investments on hand (not including restricted deposit funds). Accounts receivable increased to $97 million as a result of the increased activity, and inventories also increased slightly to $56.8 million.
Geographically, Europe contributed 40% of the revenues in the second quarter of 2003, followed by the Americas with 39% of revenues, and the Far East with 20% of revenues.
"Record revenues from inkjet operations has made the quarter especially rewarding," said Nachum "Homi" Shamir, president and CEO of Scitex Corporation. "This important growth indicator validates our strategic plan of concentrating on core technologies and competencies. In addition, we have taken investment-only positions in many of our business holdings, noted by the further disposition of shares in Creo. Finally, changes in leadership reinforce our focus on delivering continued profitability for all Shareholders."
A $5 million investment in Scitex Vision further emphasized our commitment to our core technology and inkjet business. "We are now beginning to explore possible efficiencies in our inkjet businesses," commented Mr. Shamir. "We are enthusiastic about our technical resource depth and its impact on our graphic arts, industrial, and data center product offerings."
As a key component of our global strategy, Scitex Corporation will maintain the office of the CEO in the United States, a move to strengthen both investor communications and ties to international markets.
Scitex Digital Printing, Inc. (SDP)
Revenues of Scitex Digital Printing, our wholly owned subsidiary based in Dayton, Ohio, for the second quarter of 2003 were $43.9 million, an increase of 15.5% from $38.0 million in the second quarter of 2002 and an increase of 11% from $39.6 million in the first quarter of 2003. Operating income was $3.9 million (8.9% of revenues), compared to $1.5 million in the second quarter of 2002 and $3.0 million in the first quarter of 2003 (figures are before amortization of intangibles).
During the second quarter of 2003, Scitex Digital Printing shipped two systems to the Caisse Nationale d'Assurance Maladie des Travailleurs Salaries (CNAMTS), the health branch of the French social security system, beginning the fulfillment of a multi-year contract. The original contract, as previously reported, was to supply high-speed digital printing systems to CNAMTS - a sale with a potential to generate $30 million in equipment and service revenue over a 5-year period.
In addition to strong growth in the data center market, Scitex Digital Printing also saw a continued and growing interest from its graphic arts customers for full-page (9") printing capabilities. This trend may indicate a substantial opportunity for the company in system upgrades and component sales to its extensive user base of commercial printers.
Scitex Vision Ltd. (the combined entity of Scitex Vision Ltd. and Aprion Digital Ltd., which currently holds the name of Aprion Digital Ltd., but it is in the process of adopting the name Scitex Vision Ltd.)
Revenues of Scitex Vision for the second quarter of 2003 were $24.6 million, an increase of 18% from $20.8 million in the corresponding quarter of 2002 and an increase of 7% from $23 million in the first quarter of 2003. The company had an operating loss of $0.1 million, compared to operating income of $0.2 million in the second quarter of 2002 and operating loss of $2.4 million in the first quarter of 2003 (figures are before amortization of intangibles).
As previously noted, Scitex Vision also concluded a round of financing of $6 Million (out of which Scitex invested $5 Million), which supports Scitex Vision's financial strength and further growth.
Scitex Vision reported a solid quarter in the graphic arts sector. Operations at Scitex Vision and Aprion have been consolidated with the two companies now assessing their core technologies and business portfolios to optimize efficiencies in research, development and marketing. Providing world-class inkjet solutions to the graphic arts, textile and industrial markets as well as the best possible value to their shareholders remain the highest priority for the company.
Explanatory Note to Financial Statements
Commencing on January 1, 2003, Scitex consolidates in its financial statements a majority owned company - the combined Aprion Digital/Scitex Vision entity, in which it holds approximately 75.5% (compared to incorporating Scitex Vision's results as a wholly-owned subsidiary). As a result, all assets and liabilities of the combined entity are included in Scitex's balance sheet, with a deduction of the relative minority interest in the combined entities equity.
Scitex fully consolidates the combined entities Statement of Income, with a deduction of the relative minority interest in the combined entities Statement of Income. Similarly, Scitex's financial results for 2002 did not include figures for Aprion Digital Ltd. (on a consolidated basis, as Scitex then held only a minority interest in Aprion), and Scitex Vision's financial results for 2002 did not include figures for Aprion Digital Ltd. (as the Aprion Digital/Scitex Vision combination transaction occurred on January 1, 2003).
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