ISRA to report strong cash flow, profit and revenues on target

DECEMBER 17, 2009--Machine-system suppler ISRA Vision reports that according to the preliminary annual financial statement for the financial year 2008/2009 (Sept. 30), its operating cash flow has been improved by more than 150%.

Dec 17th, 2009

DECEMBER 17, 2009--Machine-system suppler ISRA Vision (Darmstadt, Germany; www.isravision.com) reports that according to the preliminary annual financial statement (which was audited but not certified) for the financial year 2008/2009 (Sept. 30), its operating cash flow has been improved by more than 150% or EUR 10 million to EUR 16.4 million. Due to strong cash flow, short-term bank liabilities declined by EUR 11.3 million. Overall, net debt improved by 15% to EUR 22.0 million. Interest expenses were reduced by more than one third to EUR 1.0 million. As in the previous financial year, ISRA achieved a net profit margin (group profit to revenues) of 11% (10% based on total output). Due to profitability, ISRA's equity strengthened by EUR 5.5 million to EUR 81.2 million. The equity ratio improved by six percentage points to 57% and thus, the company says, provides a strong basis for future growth.

In the financial year 2008/2009, ISRA was able to achieve revenues of EUR 58.2 million (previous year: EUR 68.3 million). The EBIT reached EUR 9.3 million (previous year: EUR 12.9 million) and the EBT EUR 8.3 million (previous year: EUR 11.3 million). The EBIT margin of 16% and the EBT margin of 14% of revenues (based on total output: EBIT margin 14% and EBT margin 13%) thus lie within the target corridor communicated by the board. Considerable expenditures related to measures undertaken to reduce costs have a one-off character and are already considered in the 2008/2009 result. The group's net profit reached EUR 6.5 million (previous year: EUR 7.6 million). This results in an earnings-per-share of EUR 1.52 (previous year: EUR 1.76).

The profit situation and sustained reduction of receivables, due to a further intensified financial and receivables management, significantly contributed to the strong increase of the operating cash flow, says the company. After investments, dividend and interest payments, as well as the considerable reduction of bank liabilities, liquid funds declined by EUR 5.4 million to EUR 7.2 million. In the cash flow, if one took out all positions related to acquisitions, a real cash flow of EUR 6.4 million would remain. Overall, short-term liabilities were reduced by EUR 16.2 million to EUR 18.9 million and long-term liabilities increased by EUR 2.8 million to EUR 41.8 million.

The company's total output in surface vision reached EUR 52.9 million (previous year: EUR 58.3 million) and an EBIT of EUR 7.9 million (previous year: EUR 9.9 million). The EBIT margin was 15% (previous year: 17%). The division industrial automation achieved a total output of EUR 12.9 million (previous year: EUR 18.0 million). The EBIT declined to EUR 1.3 million (previous year: EUR 3.0 million). ISRA thus reached an EBIT margin of 10% (previous year: 17%) in this area.

The company claims its multisegment strategy was the reason why it has not suffered significantly by the economic crisis. ISRA is diversified via different industrial image-processing technologies for different applications as well as throughout different industries and regions with varying economic cycles. The company serves a large number of customers globally.

With a further sales and innovation offensive in the financial year 2009/2010, ISRA prepares to return to its course of long-term growth. Accordingly, management is planning to introduce more than 20 new solutions to customers within the next two years. Positive trends are coming especially from the Asian market. In China, ISRA plans to further extend its sales team.

The company continues to focus on long-term growth. In terms of revenues, it is planning to surpass the benchmark of EUR 100 million within the next few years. One component of its growth strategy is external growth. The company reports that management is conducting "promising" talks with some targets so that a further acquisition may be possible even in the first half of financial year 2009/2010. In November 2009, the group acquired a 24% minority interest in the Turkish company Vistek, a spinoff of the Sabanci University. The participation in the Istanbul Machine Vision specialist provides higher market penetration in Turkey and within the Middle East region and Southwest Asia.

The company repports an order backlog of more than EUR 30 million and offers submitted to customers in the total value of several hundred million euros. Management is currently observing a slight stimulation of orders such as from the steel industry. These may indicate that the market is already beyond the recession's low point and in a state of recovery.

-- Posted by Vision Systems Design, www.vision-systems.com

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