TEL AVIV, Israel, August 3 -- Scitex Corporation Ltd. today announced its unaudited financial results for the second quarter ended June 30, 2004.
Results of Operations
For the second quarter of 2004, Scitex's revenues were $30.8 million, an increase of 25.2% from $24.6 million in the second quarter of 2003. Operating income was $0.2 million compared to an operating loss of $2.2 million in the second quarter of 2003. Net loss for the second quarter of 2004 was $1.2 million compared to a net loss of $4.8 million in the second quarter of 2003.
Raanan Cohen, Interim President and CEO of Scitex, commented: "I am pleased with the performance of our principal operating subsidiary, Scitex Vision, achieving a sixth consecutive quarter of revenue growth, with record revenue of over $30 million, net income of $1.2 million and positive cash flow. During the quarter, Scitex Vision strengthened its leadership in the wide and super-wide format graphic arts markets, and its diversified product offering and advanced technologies attracted substantial attention and business at the May 2004 DRUPA trade fair in Germany. I congratulate management and employees of Scitex Vision for the impressive results."
Scitex's cash, cash equivalents and short-term investments at the end of the second quarter of 2004, on a consolidated basis, were $234.0 million (excluding a restricted deposit of $18.1 million). This amount gives effect to the approximately $28 million repurchase of shares by Scitex in the self tender offer that was completed in June 2004; however the approximately $90.0 million cash distribution being effected in the third quarter of 2004 is not reflected in said item. Scitex's cash, cash equivalents and short-term investments balance is expected to be approximately $135 million, excluding $10 million retained in custodial accounts in connection with the transaction to sell the business of SDP to Eastman Kodak Company that was completed in January 2004, and after giving effect mainly to the approximately $90 million cash distribution and to the estimated remaining tax payments relating to U.S. federal income tax audit of Scitex's U.S. subsidiaries for the years 1992 through 1996. Trade receivables at the end of the second quarter of 2004 increased to $36.8 million from $36.0 million at the end of 2003, and inventory increased to $27.1 million from $22.6 million, both primarily as a result of the increase in revenues and business activities.
The second quarter of 2004 continues the solid quarter-to-quarter revenue growth demonstrated by Scitex Vision since the beginning of 2003. During the quarter, Scitex Vision's sales of its various product lines were characterized by continuing demand for the XLjet and Grandjet super wide-format digital presses and sales of several wide-format Turbojet presses that were introduced in late 2003. Solid growth in ink sales reflecting stable Scitex Vision market share and increasing consumption by its customers also contributed to the increase in revenues compared to the previous quarters.
Scitex Vision's revenues for the second quarter of 2004 were $30.8 million, an increase of 25.2% from $24.6 million in the corresponding quarter of 2003 and an increase of 5.5% from $29.2 million in the first quarter of 2004. Scitex Vision had operating income of $2.0 million in the second quarter of 2004, compared to an operating loss of $1.2 million in the second quarter of 2003, and operating income of $2.6 million in the first quarter of 2004. Scitex Vision had net income of $1.2 million in the second quarter of 2004, compared to a net loss of $2.9 million in the second quarter of 2003, and net income of $2.1 million in the first quarter of 2004. The decrease in operating and net income compared to the prior quarter is mainly attributable to the expenses relating to three major international trade shows in which Scitex Vision participated during the second quarter.
Scitex Vision's geographic distribution of business this quarter was led by Europe, contributing 46% of revenues, followed by the Americas with 32% of revenues, and the rest of the world (primarily the Far East) with 22% of revenues.
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