Financial year starts with strong order entries - guidance 13/14: 100 million euros forecasted

ISRA VISION AG: 1st Quarter 2013/2014 - Revenues grow by 9%, EBT by 13%

(PresseBox) ( Darmstadt, )

Revenues grow by 9% to 21.9 million euros (Q1 12/13: 20.2 mill. euros)
EBT grow by 13% to 4.0 million euros (Q1 12/13: 3.5 mill. euros)
EBT margin increases to 17% with respect to total output (Q1 12/13: 16%)
Continued high margins with respect to total output:
- EBITDA margin at 26% (Q1 12/13: 26%)
- EBIT margin at 17% (Q1 12/13: 17%)
Gross margin at 61% to total output (Q1 12/13: 60%)
Operative cash flow improved
High order backlog of 55.5 million euros (PY: approx. 46 mill. euros)
Proposed dividend for the 12/13 financial year raised to 0.35 euros (PY: 0.30 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, profits at the beginning of the 2013/2014 financial year from strong order entry dynamics in almost all markets. Consequently, ISRA continues the growth course of the previous year in the first quarter of 2013/2014. Revenues rise almost in double-digit figures by 9 percent compared to the same period of the previous year, EBT by 13 percent. The EBT margin also records a plus and grows to 17 percent to total output (Q1 12/13: 16%). This is another important optimization on the way to improving the margin over the long-term. With the dynamic start into the new financial year, the company has taken another important step closer to the revenue goal of 100 million euros for 2013/2014.

In particular, revenues increase in the first quarter of 2013/2014 to 21.9 million euros (+9%) (Q1 12/13: 20.2 mill. euros), EBT (Earnings Before Taxes) grow to 4.0 million euros (+13%) (Q1 12/13: 3.5 mill. euros). EBIT (Earnings Before Interest and Taxes) raise by 12 percent to 4.2 million euros (Q1 12/13: 3.7 mill. euros). The EBIT margin amounts to 17 percent to total output (Q1 12/13: 17%). EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) rise to 6.3 million euros (Q1 12/13: 5.7 mill. euros), and EBITDA margin is at 26 percent to total output (Q1 12/13: 26%). The gross margin (total output minus cost of materials and labor of production and engineering) reaches a high level with 61 percent (Q1 12/13: 60%). The operative cash flow improves to 1.9 million euros (Q1 12/13: 0.7 mill. euros) - a first result of the intensive optimization activities. The equity ratio increases to 60 percent (Sept. 30, 2013: 57%). Together with the available credit lines, ISRA has solid capital resources for future growth.

Following the good results in 2012/2013, the business performance in the regions also continued in the first quarter of 2013/2014. In particular, Asia confirms the development of the previous quarters with additional growth. The order entries in North and South America are also at a good level. After a phase of investment restraint, Europe is recording increasing revenues. For the current financial year, the company expects a positive revenue development in all regions.

In the reporting quarter, ISRA continued to grow in both segments - Surface Vision and Industrial Automation. In the Industrial Automation division, in which the sales activities with solutions for "vision-based automation" are directed particularly at customers from the automotive industry, the business develops significantly in the double-digit range in revenues and earnings. The high demand comes especially from premium German manufacturers, but also from the United States. Revenues rise in the reporting quarter by 14 percent to 3.6 million euros (Q1 12/13: 3.2 mill. euros). EBIT grow by 15 percent and reach 0.8 million euros (Q1 12/13: 0.7 mill. euros). This corresponds to an EBIT margin increase to 18 percent (Q1 12/13: 17%) to total output. For the entire financial year, a continuously strong order entry is emerging- management expects in this division a growth rate at a similar level like the first quarter.

In the Surface Vision segment, revenues rise by 8 percent to 18.3 million euros (Q1 12/13: 17.0 mill. euros). EBIT improve by 9 percent to 3.4 million euros (Q1 12/13: 3.1 mill. euros). This corresponds to a margin to total output of 17 percent (Q1 12/13: 17%). High order entries come particularly from the Glass and Specialty Paper industries. The Plastics and Print markets also contribute to the business success with good growth. After an extended phase of restrained demand, the expected order increase in the Metal segment shows a positive trend of the investment activities. The company supports the business development in the Paper industry with targeted sales and marketing activities and investments in new products.

With the integration of GP Solar, ISRA strengthened the good market position through additional investments in sales and the expansion of the product portfolio. This strategy is being confirmed by order entries in the middle single-digit million range, specifically from Taiwan, China and Korea. For the current financial year, the company is forecasting significant growth rates in the Solar segment. The sales activities in the area of the intelligent Yield Management product series "EPROMI" (Enterprise Production Management Intelligence), which supports the customer in improving production efficiency, will be strongly continued. ISRA expects a further contribution to an increase in revenues from the expansion of the product portfolio in the service business.

Besides the organic growth, the external growth through acquisitions of suitable companies is also an additional important component of the long-term strategy. With the full integration of the Machine Vision specialist Vistek, located in Istanbul, the company has successfully expanded its initial investment from 2009. With this acquisition, ISRA expands its product portfolio by an additional application for the inspection of glassware. At the same time, the company gains good access to the markets - in Turkey as well as in the Middle East. Following the positive integration of GP Solar, ISRA will intensify the activities with respect to new acquisition projects and, upon positive outcome of analyses, plans on concluding an additional project in the current financial year.

In the course of the 2013/2014 financial year, the company will concentrate strategically as well as operationally on activities that will prepare ISRA for revenue dimensions beyond 100 million euros. Developing new growth opportunities in existing as well as new markets plays a key role that is just as important as the expansion of the operational company structures and the strengthening of management for future team sizes. In order to prepare the organization, the company also continues the measures for increasing productivity and efficiency. The optimization of the cash management remains in focus, particularly by improving the working capital on the basis of further enhanced lean production. Additionally, the implementation of the new ERP system as well as the support of the marketing and sales activities is being continued as planned with the introduction of a new Internet presence.

For 2013/2014, management forecasts a revenue growth to approx. 100 million euros. The strong order entries in the first three months of the year under review and the high order backlog of 55.5 million euros (PY: approx. 46 mill. euros) form a good basis. The margin optimization will be continued, just like in previous quarters. For the current financial year, management plans margins at the same level as in the first quarter of 2013/2014.
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