CIMdata PLM Industry Summary Online Archive
25 February 2009
Financial News
Valor Concludes 2008 with Record Cash Flow from Operating Activities of $5.5M
Valor Computerized Systems Ltd. announced its financial results for the period ending December 31, 2008.
Revenues in the 2008 were $40.4M, a decrease of 3.7% as compared with $41.9M in 2007.
Operating income in 2008 was $2.8M, not including issuance costs of cancelled IPO in amount of $1.4M and restructuring expenses of $1.7M, representing a growth of 12% in operating margin as compared with 2007.
Net income in 2008 was $3.5M not including the issuance costs of cancelled IPO and restructuring expense, net of tax, representing a growth of 17% in net profit as compared with 2007.
Cash flow from operating activities in 2008 accumulated to $5.5M, as compared with 4.6M in 2007.
Earnings per Share (diluted) in 2008 were $0.04, as compared with $0.14 in the parallel period of the previous year.
Revenues in the fourth quarter of 2008 were $9.1M, a decrease of 14% as compared with $10.6M in the fourth quarter of 2007.
Net profit was $0.4M in the fourth quarter of 2008, excluding restructuring expenses, net of tax, as compared with a net profit of $0.8M in the same period of the previous year.
Summary of Financial Data (in $US thousands, unless otherwise noted):
|
|
1-12 / 2008 |
1-12 / 2007 |
% Change |
Q4 / 2008 |
Q4 / 2007 |
% Change |
|---|---|---|---|---|---|---|
Product Sales |
21,995 |
24,881 |
(11.6)% |
4,357 |
6,055 |
(28.0)% |
Maintenance Income |
18,437 |
17,089 |
7.9% |
4,712 |
4,507 |
4.5% |
Total Revenues |
40,432 |
41,970 |
(3.7)% |
9,069 |
10,562 |
(14.1)% |
Gross Profit |
34,497 |
34,726 |
0% |
7,762 |
8,813 |
(11.9)% |
Issuance Costs of cancelled IPO |
1,422 |
- |
100% |
- |
- |
- |
Restructuring Expenses |
1,710 |
- |
100% |
1,107 |
- |
100% |
EBITDA* |
1,753 |
4,582 |
(61.7)% |
(520) |
1,801 |
(128.8)% |
EBIT* |
(342) |
2,485 |
(113.7)% |
(1,014) |
1,225 |
(182.7)% |
Net Profit* |
746 |
2,975 |
(74.9)% |
(587) |
776 |
(175.6)% |
EPS in US$ (diluted) |
0.04 |
0.14 |
(71.4)% |
(0.03) |
0.04 |
(175.0)% |
Shareholder’s Equity |
43,442 |
44,908 |
(3.3)% |
43,442 |
44,908 |
(3.3)% |
Total Assets |
54,872 |
56,792 |
(3.4)% |
54,872 |
56,792 |
(3.4)% |
Research & Development |
11,194 |
13,248 |
(15.5)% |
2,622 |
3,201 |
(18.1)% |
Employees (Period End) |
231 |
263 |
(12.2)% |
231 |
263 |
(12.2)% |
* Including issuance costs of cancelled IPO, and restructuring expenses totalling $3.1 Million
Some of the following statements are forward-looking in nature, and actual results may differ materially:
“Valor concluded 2008 in a relatively good position, with a substantial cash flow from operating activities of $5.5M,” said Dan Hoz, Valor’s CEO. “We all know these are challenging times for the electronics industry and the market as a whole, and yet the decrease in our revenues stems mainly from weakness in the fabrication market, in which we operate via Frontline - our joint venture with Orbotech. In our other market segments we actually demonstrated relative stability, and even some increase in market share thanks to our software solutions which assist electronics manufacturers in reducing their operating costs and are therefore in high demand during times like these.”
“We are also very pleased to see our maintenance contracts renewals and customer retention maintaining a stable trend, even in Japan and APAC, which seem to have been affected more severely by the economic conditions” said Hoz. “In addition, we are strengthening our business through the recent acquisition of PCB Matrix, as well as the appointment of a new EVP of Business and Strategy.”
“We are putting a lot of emphasis on our contribution in 2009” said Hoz. “In line with that approach we have made some necessary adjustments to our expenses during 2008, some of which resulted in restructuring expenses of $1.7M and issuance costs of cancelled IPO totaling $1.4M. Nevertheless, our cash position remains firm at $30M, and our ability to sell our products has not been affected. It is important for us to continue supporting our customers, and we believe that we are fully capable of continuing to do so throughout 2009 as well.”
The complete financial report can be downloaded from the Investor Relations section on the Valor corporate website: www.valor.comBecome a member of the CIMdata PLM Community to receive your daily PLM news and much more.
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