ISRA achieves 45% revenue growth into third quarter of fiscal year

AUGUST 27, 2008--ISRA VISION AG (Darmstadt, Germany; www.isravision.com), a supplier of industrial image processing and surface inspection systems, has released its earnings statement for the third quarter of its 2007/2008 fiscal year.

AUGUST 27, 2008--ISRA VISION AG (Darmstadt, Germany;www.isravision.com), a supplier of industrial image processing and surface inspection systems, has released its earnings statement for the third quarter of its 2007/2008 fiscal year.

Compared to the first nine months of the previous year, the group reports revenues have increased by 45% to EUR 46.7 million. Total operating revenue climbed by 43% to EUR 52.7 million. The EBIT more than doubled to EUR 9.1 million. The EBT rose by 80% to EUR 8.0 million, with a margin improved by 15% percent. After nine months, earnings per share reached EUR 1.22, exceeding the value for the entire previous year of EUR 1.18.

In the first nine months of the 2007/2008 fiscal year (Oct. 1, 2007 to Sept. 30, 2008), ISRA experienced significantly increased revenues especially in Germany, Europe, and Asia. The greatest growth impetus came from Asia. ISRA says it expanded its dominant market position in the Surface Vision sector. The total operating revenue increased there in the first nine months by 54% to EUR 39.1 million. The EBITDA improved by 114% to reach EUR 10.0 million; the EBIT increased by 212% percent to reach EUR 6.9 million. In the Industrial Automation segment, the total operating revenue increased by 19% to EUR 13.6 million. The EBITDA rose by 9% to EUR 3.5 million and the EBIT by 14% to EUR 2.2 million.

The increase in the costs for materials was below average compared to the total operating revenue, increasing by 37% to EUR 10.3 million. At 20%, the ratio of costs for materials fell two percentage points below the entire previous fiscal year. The total costs of production increased by 40% to EUR 21.9 million. The gross margin thus reached 58% (previous year 58%). In the third quarter, the gross margin increased to 59% percent (previous year 54%).

ISRA VISION spent EUR 7.9 million on research and development (previous year EUR 5.8 million). Marketing, sales, and administration costs increased to EUR 10.0 million (previous year EUR 7.6 million). The EBITDA improved by 71% percent to EUR 13.5 million. Thus, the EBITDA margin is 26% (as of the end of the fiscal year Sept. 30, 2007: 19%). ISRA succeeded in more than doubling its EBIT to EUR 9.1 million. The EBT, the primary performance indicator for value-oriented corporate governance, reached EUR 8.0 million--an increase of 80%. At 15% of the total operating revenue (previous year 12%), the EBT margin fully achieved the target for earnings. The net profit climbed by 71% to EUR 5.3 million. The results per share increased to EUR 1.22 (previous year EUR 0.71), thus exceeding the value of the entire previous year after only nine months.

The company is currently investing in expanding its sales team. In this fiscal year, sales and services have increased by 20%. ISRA will be opening sales offices in Russia and India in the upcoming months.

ISRA says that the integration of acquired companies is proceeding on to schedule and will be complete by the end of the year, at the latest. The goal was to bring Parsytec's profitability--measured in its EBT margin--in line with ISRA's, which has largely been reached. Another step toward further improving profitability is now effectively optimizing the administration. ISRA is also looking to acquire additional customers and increase its market penetration. In addition to this, the company will expand the target fields for its inspection systems to include solar power plants.

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