ISRA Vision reports annual growth across multiple sectors

FEBRUARY 7--ISRA Vision (Darmstadt, Germany; www.isravision.com) has announced its annual financial statements for FY2005/2006 (Oct. 1 to Sept. 30).

Feb 7th, 2007

FEBRUARY 7--ISRA Vision (Darmstadt, Germany; www.isravision.com) has announced its annual financial statements for FY2005/2006 (Oct. 1 to Sept. 30). For the ninth consecutive year, the company has shown strong growth in both sales and profit. Since 1997, ISRA has increased its total operating revenue by an average of 39%. EBT grew even stronger, by an average of 55%.

The company increased its group EBT by 20% to €10.0 million in FY2005/2006.The corresponding EBT margin improved to 21%. Net sales increased by 7% to €47.7 million. Net profit for the period improved by 9% to €6.3 million. Earnings per share rose from €1.45 to €1.51, despite a capital increase of approximately 10%.

ISRA intends to start dividend payments to stockholders for FY2005/2006. The executive board and the supervisory board will propose a distribution of €0.15 per share to the general meeting on March 20, 2007. The liquid assets will remain reserved for the financing of internal and, in particular, external growth.

ISRA also continued to strengthen its financing power in FY 2005/2006. The cash flow from day-to-day business activities reached €7.7 million (previous year: €8.5 million). The net cash flow (changes to fund assets) rose to €9.7 million as a result of the good earnings situation and the March 2006 capital increase. At €15.5 million, liquid assets now account for 18% of total assets. With its unchanged 73% share of equity capital, ISRA has a sound financial basis and is equipped for further growth.

The surface vision division saw growth of 9% in FY2005/2006 to reach €39.0 million and continued to expand its market position. The EBIT for the division grew 16% to €7.3 million. The industrial automation business division displayed renewed growth following consolidation in FY2004/2005. The division's total operating revenue climbed 4% to€14.5 million; the EBIT increased by 23% to €2.5 million.

Experts estimate that less than 20% of the market potential in the machine-vision industry has been developed so far. ISRA intends to expand its position in this market, which industry experts predict will grow by 7% to 10% worldwide in the coming years. The goal is to double the sales volume to more than €100 million in the next four years.

ISRA's strategy to achieve this goal is to grow from a solid basis of several business units. After successfully entering the metals market, further expansion, such as in display glass and food & packaging, is on the agenda for the FY2006/2007. Alongside further growth in turnover, principally through expansion of its market share, expansion into new business divisions, and development of new customer groups, ISRA's strategic focus lies with increasing efficiency through fast time to the market by taking advantage of economies of scale, through further increases in productivity in all organizational units, and, in particular, from improved cash management.

Good initial success has been seen in the geographical expansion to Eastern Europe. In the new FY 2006/2007, ISRA will begin expansion into South America, beginning with the establishment of the surface inspection division. This market will initially be served from Brazil.

In addition to organic growth, acquisitions form the second important pillar in reaching the milestone of €100 million in turnover. The British company IAL was acquired by ISRA in the first quarter of FY 2006/2007, and its affiliated American company IAI in the second quarter. Through these two acquisitions, ISRA is further expanding its position as one of the world's innovators and market leaders in the glass division and strengthening its presence in Great Britain, Ireland, and the USA. Management is conducting further acquisition negotiations with companies and hopes to be able to bring them to a quick and successful close.

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