NUR Macroprinters Reports Q3 Loss on Sliding Sales
Press release from the issuing company
LOD, Israel, Oct. 27 -- NUR Macroprinters, a leading supplier of wide-format inkjet production printing systems, today announced its consolidated financial results for the nine months and third quarter ended September 30, 2003.
Revenues for the third quarter of 2003 were $17.1 million compared to $20.9 million in the third quarter of 2002, where most of the decline is attributed to the discontinued substrate product line, and $13.1 million during the prior quarter, where most of the increase is attributed to increase sales of printers. Taking into account a write-off of inventory of $4.5 million, operating loss in the third quarter of 2003 was ($4.8) million. Excluding this inventory write-off, the operating loss declined to ($328,000) from an operating loss of ($684,000) in the third quarter of last year and a ($1.14) million operating loss in the prior quarter (excluding one-time charges and restructuring costs in previous quarter). Without such exclusion operating losses were ($15.4) million in the second quarter. Taking into account the above mentioned inventory write-off, net loss for the third quarter was ($5,460,000), or ($0.32) per share. Excluding this write-off, net loss for the third quarter was ($948,000), or ($0.05) per share, compared to a net loss of ($1.2) million, or ($0.07) per share, in the third quarter last year and a prior quarter loss of ($1.7) million, or ($0.10) per share, (excluding one-time costs and write-offs in the previous quarter).Without such exclusions net losses in the previous quarter were ($16.0) million.
Revenues for the first nine months of 2003 were $47.3 million, compared to $65.7 million during the first nine months of 2002. Taking into account one- time costs and write-off of inventory operating loss for the first nine months of 2003 was approximately ($21.3) million versus ($5.8) million in the same period last year. Excluding one-time costs and write-offs, operating loss for the first nine months of 2003 was approximately ($2.5) million versus ($4.9) million in the same period last year. Taking into account the above mentioned one-time costs and write-offs net loss for the first nine months of 2003 was ($22.9) million, or ($1.33) per share, as compared to a net loss of ($7.0) million, or ($0.41) per share, in the comparable period last year. Excluding one-time costs and write-offs net losses in the first nine months 2003 and prior year were $4.1 million, or ($0.24) per share, and ($6.1) million, or ($0.36) per share, respectively.
The Company has reported that during the third quarter 2003 it had completed the previously announced consolidation of its production facilities in Israel, which involved a revaluation process of its inventory. As a result of the completion of the consolidation and in order to better reflect inventory value the Company decided on a write-off of inventory of $4,512,000.
Based on the third quarter results, the Company does not meet certain of the financial covenants set forth in its loan agreements. The Company is currently in the process of obtaining a waiver from the banks for the above- mentioned non-compliance. Based on preliminary discussions with the banks, the Company believes that such waiver will be granted. Should the waiver not be obtained, the Company's long-term debt of $30.7 million shall be reclassified as short-term debt, resulting in a short term debt of $42.6 million and not as presented herein.
David Seligman, Chief Financial Officer of NUR Macroprinters, commented, "We believe that the results that we are reporting today, clearly indicate that NUR is on the right path to return to growth and profitability. We've been successful in increasing the level of quality of our receivables while lowering our DSOs, as well as reducing our operating expenses. Going forward, we expect to return to profitability in the fourth quarter of 2003 and to continue to improve our balance sheet and financial performance."
David Amir, CEO and President of NUR Macroprinters, commented, "During the third quarter we launched two new products - the NUR Tempo flatbed presses and the NUR Ultima mid-range volume inkjet production printers. The Ultima has been well received and has already been installed in several sites, including a U.S. site with two machines.. The Tempo flatbed presses completed a successful beta testing program and began shipping commercially in September. Seven units were sold during the third quarter and we anticipate a great potential market for this product. We feel confident of future sales of these two new products."
Amir continued, "As recently announced, we have completed the consolidation of all of NUR's equipment manufacturing operations in one facility in Israel. A second Israel based facility has become our ink production center, where we produce the inks for most of our printers. Last week we announced the relocation and consolidation of all of our North American activities to a new North American headquarters and training facility, located in the New York metro area. Following the successful model of NUR Europe, we have re-aligned NUR America and NUR Asia Pacific so that each region now has a local management team. This allows for a stronger market presence and greater customer responsiveness."
Mr. Amir concluded, "During the past few quarters, we have made major changes in operations and senior management designed to enhance our financial controls. We believe that this, together with the additions to our product offering, will enhance our ability to successfully compete in the wide-format digital printing arena."
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