ISRA VISION AG: Once again a double-digit organic growth - Guidance confirmed

ISRA VISION AG  / Key word(s): Half Year Results

31.05.2012 08:01

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ISRA VISION AG: 1st Half Year of 2011/2012: Revenues grow by 14%, EBT by
15%
 

Once again a double-digit organic growth - Guidance confirmed
 
  - Revenue growth in the 1st half year plus 14% to 37.3 mill.
    Euros (compared to HY1 10/11)

  - EBT growth in the 1st half year plus 15% (compared to HY1 10/11)

  - Gross margin to total output stabilized at 60% (HY1 10/11: 60%)

  - Margins to total output constant at a high level:

      - EBITDA margin at 26% (HY1 10/11: 26%)

      - EBIT margin at 17% (HY1 10/11: 17%)

      - EBT margin at 16% (HY1 10/11: 16%)

  - Operative cash-flow slightly improved, despite high order backlog
    (compared to Q1 11/12)

  - Current order backlog of approx. 55 mill. euros

  - Earnings per share (EPS) increased to 1.02 euros (PY: 0.90 euros)

  - Guidance for the financial year 2011/2012 confirmed: Organic revenue
    growth to more than 80 mill. euros

ISRA VISION AG (ISIN: DE 0005488100), one of the world's leading companies
of industrial image processing (Machine Vision), global market leader for
surface inspection systems, and one of the leading 3D machine vision
providers increased revenues in the first six months of the 2011/2012
financial year (October 01, 2011 to March 31, 2012) by 14 percent to 37.3
million euros compared to the same period of the previous year (PY: 32.6
mill. euros). On the way to ISRA's mid-term goal of surpassing the revenue
mark of 100 million euros, this double-digit organic growth is an
additional important step.

Profitability continues where the first quarter of 2011/2012 left off, with
once again a double-digit increase, whereby the earnings margins carry on
to be at a high level. EBT margin based on total output was at 16 percent
(PY: 16%), and EBT (Earnings Before Taxes) increased by 15 percent to 6.5
million euros compared to the first six months of 2010/2011 (PY: 5.7 mill.
euros). Referenced to total output, the EBIT margin was at 17 percent as in
the previous year (PY: 17%). After depreciation totaling to 3.7 million
euros in the first six months (PY: 3.5 mill. euros), EBIT (Earnings Before
Interest and Taxes) increased by 14 percent to 6.9 million euros (PY: 6.1
mill. euros). For EBITDA (Earnings Before Interest, Taxes, Depreciation and
Amortization), the margin also stabilized at 26 percent to total output
(PY: 26%).

With 60 percent based on total output (PY: 60%), gross margin (total output
minus material and labor costs for production and engineering) is in the
mid-term target range and emphasizes the overall strong margin level. The
equity ratio rose by one percentage point to 58 percent (PY: 57%).
Cash-flow from operating activities improved in the first six months from
1.0 million euros in the first quarter to 5.6 million euros. As of March
31, 2012, cash and cash equivalents in the amount of 8.5 million euros were
available (PY: 5.8 mill. euros).

 
Regarding the regional development of the business, ISRA is profiting from
its strong worldwide presence. In the second quarter of the 2011/2012
financial year, the double-digit growth is again supported by all regions.
In Asia, growth continued at a high level. Europe and the Americas
demonstrated similar dynamics as Asia in the previous year. The new
location in Russia has already established itself and shows first impulses.
With investments in Brazil, ISRA is expanding its presence in South
America. Indonesia is the next market which ISRA plans to establish.

In both business segments, ISRA further expanded its good market position.
In the Surface Vision area, revenues rose by 15 percent to 32 million euros
(PY: 27.8 mill. euros) compared to the first six months of the previous
year. EBIT reached 5.9 million euros (PY: 5.2 mill. euros), which placed it
15 percent higher than the previous year's value. This development was
carried, in particular, by the business units Plastics, Paper, Specialty
Paper and Print. The Glass and Metal units were further strengthened by
investing in sales, which also led to important order entries in the
current quarter. Product innovations for quality assurance in the Solar
unit show impulses for further growth, particularly in Asia. For the second
half of the financial year, the company anticipates a continuation of the
good development of the first six months in nearly all industries that are
being addressed - an expectation that is also based on the new product
introductions and the intensification of marketing and sales activities.

In the Industrial Automation segment, in which ISRA concentrates almost
exclusively on the automotive industry, revenues increased in the first six
months of 2011/2012 to 5.2 million euros (PY: 4.8 mill. euros). For the
same period, EBIT increased to 1.0 million euros (PY: 0.9 mill. euros). The
expected positive development in this area is essentially carried by the
strong demand for automation technology at the premium manufacturers in the
automotive sector. Additional high order entries are being recorded from
Germany as well as Europe and Asia. The successful exhibition presentation
of the new generic 3D Vision product portfolio will be an additional driver
of growth for the Industrial Automation segment in the future.

On the cost side, the company will continue to consequently pursue its
projects to increase efficiency and productivity as well as to optimize
production (lean production). In addition, management expects that the
revenue growth will develop more strongly in the future than investments
and this dynamics will have a positive impact on cash-flow. ISRA also
expects additional positive cash-flow effects from optimizing of
production, thereby reducing the working capital. The technology and cost
leadership significantly contribute to maintaining the profitability of the
company and continuously increasing it.

In addition, part of the long-term growth strategy is the external growth
by means of acquiring suitable companies. Several strategic acquisition
targets are currently being analyzed. For the year 2012, management
anticipates the completion of at least one acquisition.

The good revenue growth in the first six months of 2011/2012, the order
backlog of approximately 55 million euros and the strong order entries form
a solid base for additional growth, thereby underscoring the guidance for
the current financial year. For 2011/2012 (October 01, 2011 to September
30, 2012), the company plans a double-digit organic revenue growth to more
than 80 million euros and at least stable margins. Management continuously
focuses on the improvement of margins as well as the goal of surpassing the
revenue mark of 100 million euros in the medium-term.


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Language:     English
Company:      ISRA VISION AG
              Industriestr. 14
              64297 Darmstadt
              Germany
Phone:        +49 (0)6151 9 48-0
Fax:          +49 (0)6151 9 48-140
E-mail:       investor@isravision.com
Internet:     www.isravision.com
ISIN:         DE0005488100
WKN:          548810
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Düsseldorf, Hamburg, München, Stuttgart
 
End of Announcement                             DGAP News-Service
 
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