Elbit Vision Systems Ltd. (OTC Bulletin Board: EVSNF; Caesarea, Israel), a global provider in the field of automatic in-line optical web inspection and quality monitoring systems, has announced its consolidated financial results for the three month period which ended Sept. 30, 2010.
Elbit Vision Systems offers a broad portfolio of automated visual inspection systems for both in-line and off-line applications, and process monitoring systems used to improve product quality, safety, and increase production efficiency.
The company recorded a net profit of $5.3 million from the sale of its subsidiary ScanMaster Systems (IRT) Ltd. in June 2010. A restructuring of the company, which commenced with the sale and included debt arrangements with the company's banks and investors, significantly improved its financial situation and reduced short-term debt by nearly 60%.
Third Quarter 2010 Results
Revenues for the third quarter of 2010 were $1.1 million, representing an increase of 22% compared to $0.9 million for 3Q09.
Gross profit on a GAAP basis was $0.7 million, representing 63% of revenues, compared with $0.4 million or 44% of revenues for 3Q09. Gross margins increased substantially due to the reductions in fixed costs after the restructuring in June 2010.
Operating profit on a GAAP basis was $167,000 compared with an operating loss of $392,000 in 3Q09. Operating profit on a non-GAAP basis for 3Q10 was $243,000, compared with a loss of $297,000 in 3Q09. Operating expenses in the quarter decreased primarily due the restructuring plan which began in June 2010 and the reduction in fixed costs. Elbit Vision Systems also increased its efficiency in operating expenses.
Net profit on a GAAP basis for 3Q10 was $34,000, compared to a net loss of $559,000 in 3Q09. Net profit per share on a GAAP basis was zero. Net profit on a non-GAAP basis for 3Q10 was $109,000, compared to a net loss of $373,000 in 3Q09.
EBITDA for 3Q10 was $243,000, compared to a loss of $282,000 in 3Q09.
Sam Cohen, Chairman and CEO of Elbit Vision Systems, commented, "We are beginning to see the positive impact of the company's reorganization which commenced with the sale of ScanMaster in June 2010. By restructuring our debt with our banks, investors, and certain state institutions for repayment over a 5-10 year period, we have created a healthy and stable financial environment for growth. Furthermore, we believe that by showing a profit, regardless of size, represents proof of the effectiveness of our long term strategy.
"We believe the significant achievements in the percentage of gross and operating profits shown in these results, which are particularly high in relation to other companies in the markets in which we operate, provide additional validation of our accomplishments. This achievement has been the result of continual improvements in our development and production processes. We are encouraged that the company has reclaimed its future after several years of stagnation and losses. We believe that these positive trends will be reflected in the financial results for the coming quarters," concluded Cohen.
SOURCE: Elbit Vision Systems Ltd.
-- Posted by Vision Systems Design