ISRA achieves 3% growth in 1Q

FEBRUARY 27, 2009--Industrial image-processing and surface-inspection system supplier ISRA Vision has posted its 1Q08/09 financial results.

Feb 27th, 2009

FEBRUARY 27, 2009--Industrial image-processing and surface-inspection system supplier ISRA Vision (Darmstadt, Germany; www.isravision.com) has posted its 1Q08/09 financial results. In the first quarter of financial year 2008/2009 (Oct. 1, 2008 to Sept. 30, 2009), the ISRA Group was able to boost net sales by 3% to EUR 15.5 million, while increasing EBITDA by 10% to EUR 4.4 million. Therefore, the EBITDA margin (based on total output) rose to 26% -- two percentage points more than in the entire financial year 2007/2008 and three percentage points more than in the corresponding period in the previous year.

EBT, one of the group's key performance indicators, followed revenue growth by climbing 1% to EUR 2.5 million. The EBT margin amounted to 15% of total output and 16% of revenue. The result per share rose to EUR 0.40 (PY: EUR 0.38). Cash flow from operating activities improved over the prior year, rising by EUR 4.3 million to EUR 5.3 million. Net cash debt decreased by more than EUR 1 million to EUR 24.7 million. The equity ratio improved further, from 51% to 54%.

ISRA heads into the rest of financial year 2008/2009 with an order backlog amounting to EUR 33 million. The company says that due to its solutions for increasing efficiency and quality it stands to gain from the stimulus and rescue packages being adopted by governments worldwide.

At present, the Business Unit Glass is showing the most dynamic growth within the group; the company says that current order backlog indicates that the growth can be increased. Management also has high expectations for the new products launched in the solar industry. The company reports that in the Print sector, where it has invested heavily in sales and marketing, it may see an acceleration of growth. The Automotive sector's 3-D in-line measurement technology for measuring car bodies was given the green light in December 2008 by a leading German car manufacturer.

Following an analysis of revenue streams from customers and a critical review of deals currently being negotiated, ISRA expects to earn total revenues of approximately EUR 60 million in FY2008/2009. Given the current economic uncertainty, the extent by which this volume could fluctuate and/or be met is not able to be precisely predicted. Extended negotiations are underway with regard to potential volume orders, which have only been partly considered in revenue planning.

Given the uncertainty about the future trend of the global economy, measures have already been initiated and implemented and ISRA cannot exclude the possibility that further organizational restructuring may occur. The goal will be to stabilize the ISRA Group's profitability by maintaining the EBT margin at or close to 15%, while striving to improve this number over the medium term.

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

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