Good performance of first 6 month confirms positive forecast for the total year 2009/2010
- EBT increases by 9 percent to 4.6 million Euros compared to 1st half of 2008/2009
- EBT margin rises to 15 percent (1st half of 2008/2009 and FY 2008/2009: 13 percent)
- Q2 revenues grow by 3 percent to 13.3 million Euros (compared to previous year's quarter)
- Stable revenues in 1st half of the year: 27.3 million Euros (PY: 28.4 million Euros)
- Largest segment, Surface Vision, grows by 4 percent in 1st half of the year to 22.8 million Euros
- Negotiations with good prospects for acquisitions
- Order backlog grows to approx. 36 million Euros (PY: 31 million Euros)
- Forecast for FY 2009/2010 as a whole: revenue growth with at least stable profit margins, thanks to continuing growth in 2nd half ot the year expected
ISRA VISION AG (ISIN: DE 0005488100) one of the world's leading providers of industrial image processing (Machine Vision), global market leader in surface inspection systems and one of the leading supplier in 3D Machine Vision solutions, has managed to achieve stable revenues and rising earnings in the 1st half of financial year 2009/2010 (Oct. 1 to Sept. 30), the financial crisis notwithstanding. After doing robust business in Q1 2009/2010, ISRA saw its revenues increasing again in Q2 (January 1 to March 31, 2010). Thus, ISRA is gradually finding its way back to the path of sustainable growth. During the first 6 months, revenues reached 27.3 million Euros (PY 2008/2009: 28.4 million Euros), once again ISRA has been able to outperform the industry average. Particularly well business performance was achieved in Asia and South America, while results in Western Europe remained more or less stable. The company's business on the North American continent has not yet recovered, however.
The timely implementation of measures to reduce costs and boost efficiency led to cost savings in the amount of approx. 1.0 million Euros in the 1st half of the financial year compared to the previous year. EBT (earnings before taxes) increased by 9 percent to 4.6 million Euros in the 1st half of the year. The EBT margin, a key performance indicator within the ISRA Group, rose to 15 percent of total output - two percentage points higher than in the 1st half of 2008/2009 and in FY 2008/2009 as a whole.
The financial and economic crisis has had no impact on ISRA's longterm growth strategy. The company continues to strive toward its goal of surpassing 100 million Euros in revenues in the near future. ISRA has launched a sales and marketing offensive to pave the way for a return to profitable growth. More than 20 new solutions and applications will be introduced to customers during the current and upcoming financial years. First deliveries of systems to customers have already been carried out. Overall, more than 8 of these new products will be brought to market in the current financial year alone.
The revenues growth achieved in the 2nd quarter, coupled with an increase in the order backlog to a current level of approx. 36 million Euros (PY: 31 million Euros), are indications for the management that the temporary slump in revenues may well be easing. Information from customers indicates that we can expect to see accelerating growth in the 2nd half of 2009/2010. The initiated costsaving measures will be further advanced with the help of 3 major projects to boost efficiency, raise productivity and further streamline production processes (Lean Production).
A key component of ISRA's growth strategy is external growth through acquisitions of appropriate targets. A number of such acquisition projects are currently in preparation. Moreover, the company is working intensively to close the acquisition deal already announced.
The current good business performance clearly reaffirms the forecast of Management. Assuming the economy continues to recover, and the current uncertainty on the industrial and financial markets - e.g. currency fluctuations in the case of the Euro - does not cause further turmoil on the capital markets, Management expects slight growth in revenues and stable profit margins for financial year 2009/2010 as a whole (Oct. 1, 2009 - Sept. 30, 2010).
Machine Vision - the technology of optical systems that imitate the human eye - is one of today's key technologies. In this global growth market, currently worth approx. 6.5 billion euro, ISRA VISION is one of the leading global players. ISRA focuses on BRAINWARE. The core competence that is BRAINWARE encompasses scientific expertise from the fields of optics, lighting technology, measuring technology, physics, image processing and classification algorithms, and complex system design combined with innovative software. For its current product portfolio, ISRA estimates a market potential of more than two billion euro, and this is on the assumption that only 25 per cent of the potential applications of Machine Vision Systems have been tapped. ISRA's present applications focus primarily on automating production and quality assurance in a wide range of production lines.
The objectives of all ISRA solutions are short payback periods and high ROIs for customers. The additional software modules for yield maximisation offer the customer even further significant economic benefits. Today, ISRA is a global market leader for surface inspection systems for different types of continuous materials, and one of the leading companies in the field of 3D Machine Vision, and "3D robot vision" in particular. ISRA currently provides applicationoptimised solutions for customers - mainly the global market leaders in their respective industries - in the fields of metal, glass (including display and solar glass), paper (including bank notes), printing, plastic foils and non wovens, as well as automotive and general industries. ISRA systems automate manufacturing processes for goods and products supplied to large growth markets such as energy, healthcare, food, transportation and information. With more than 20 locations in Asia, Europe, the Middle East and North and South America, ISRA is close to its customers, which ensures optimum service and support.
In the past twelve years, ISRA has seen profitable growth, with its revenues increasing on average 30 per cent per annum. Its profit increased by around 35 per cent per annum. Even during the financial crisis, ISRA has developed significantly more favourably than the industry average. This is because, with the two divisions Surface Vision and Industrial Automation, ISRA serves customers in various sectors in the different regions of the world seeing strong growth. This reduces dependence on region and industryrelated cyclical variations.
After almost 60 million euro revenues in the last financial year (2008/2009), the shortterm goal is to exceed the 100 million euro mark in just a few years, by means of organic growth and acquisitions. Among others, this will involve tackling new markets.