PresseBox
Press release BoxID: 157241 (ISRA VISION)
  • ISRA VISION
  • Industriestr. 14
  • 64297 Darmstadt
  • http://www.isravision.com
  • Contact person
  • Sandra Braun
  • +49 (6151) 948209

ISRA VISION AG Report for the first three months of 2007/2008 fiscal year

ISRA has launched into the new fiscal year with both growth in its revenue and success in integrating its four acquisitions

(PresseBox) (Darmstadt, ) .
- Revenue growth of 27 percent in comparison to the previous year’s quarter
- EBT margin of 15 percent, six percentage points better than the previous
quarter
- A solid order book of 32 million Euros
- Four acquisitions are being quickly integrated into the ISRA group

ISRA VISION AG, one of the global top five suppliers for industrial image processing (Machine Vision) and the world's market leader for surface inspection systems, has launched successfully into the new 2007/2008 fiscal year (October 1, 2007 to September 30, 2008). The sales increased by 27 percent to 15.1 million Euros in comparison to the previous quarter. The integration of the three acquisitions from the 2006/2007 fiscal year (IAL, IAI and Parsytec) and the takeover of Metronom from the first quarter of 2007/2008 are all progressing very well. The EBT margin (profit before taxes to total operating revenue) improved to 15 percent - six percentage points more than in the previous quarter (Q4 2006/2007) and four percentage points more than in the entire year (2006/2007).

ISRA s business was affected by an improved order situation in the first quarter of 2007/2008. Its revenue in Europe and Asia turned out well. The North-American market remained underachieved without growth impulse. ISRA is globally the world market leader in the surface visions segment. Its dominating market position here was further expanded. In comparison to the corresponding period in the previous year, the total operating revenue increased by 35 percent to 12.7 million Euros. The EBITDA improved by 13 percent, while the EBIT improved by 12 percent. The Industrial Automation segment has been ceaselessly continuing to grow in a friendly environment. The total operating revenue here climbed by 12 percent. The EBITDA increased by ten percent, while the EBIT grew by five percent.

Revenue increased, costs lowered, profitability improved

In the first quarter 2007/2008, the ISRA group s sales increased by 27 percent to 15.1 million Euros and the total operating revenue rose by 28 percent to 17.1 million Euros. The ratio of material costs to total operating revenue dropped to 19 percent. In the previous quarter, it was still 26 percent and 22 percent for the entire previous fiscal year. 16 percent of the total operating revenue was spent on research and development. It was 17 percent in the previous quarter. The proportion of the expenditure on administration fell to six percent of the total operating revenue. It was ten percent in the previous quarter, while 8 percent in the previous fiscal year. The expenditure on sales and administration together dropped to 20 percent of the total operating revenue - down from 25 percent in the previous quarter and 22 percent in the past fiscal year. In comparison to the previous year, the cash flow from operating activities increased by 0.3 million to 1.2 million Euros. At the end of the first quarter, the ISRA group s total assets had decreased by 4.9 million to 138.1 million Euros. The equity ratio improved from 48.9 percent at the end of the previous fiscal year to 51.5 percent.

Acquisition of Metronom broadens ISRA's know-how in measurement technology

ISRA VISION took over the Mainz company Metronom Automation GmbH at the beginning of November 2007. Metronom is specialized in the areas of in-line quality measurement technology. Metronom s technology constitutes an important part in continuing to improve ISRA's market position in the control and automation of measurement procedures. Metronom s products are now enhancing the product range of the ISRA business units.

The integration of the four acquisitions is running full steam ahead

The integration of the four acquisitions is progressing well. The restructuring with the objective of increasing efficiency and optimizing productivity are close to completion. The potential synergies are being tapped gradually. The most important organizational measures for increasing revenues and profit have been put in motion and some of them have already advanced very far. ISRA s global purchasing policy has also proved successful, having lead to improved conditions and significant cost savings because of the increased purchase volume. After the expansion boost provided by its acquisitions, ISRA will initially be focusing on organic growth and synergies from the integration of the acquisitions which is progressing successfully. The international sales and distribution are being quickly expanded - after South-America Eastern Europe and India will follow. In addition to this, production will be increasingly moved to China and the USA in order to reduce costs and take advantage of the persistent weakness in the US dollar.

With its current order book of 32 million Euros (previous year: 17 million), ISRA intends to reach more than 65 million Euros in revenue in this fiscal year, which corresponds to growth of clearly more than 25 percent. The earnings target for 2007/2008 is an EBT margin of 15 percent of the total operating revenue, which corresponds to a four percentage point increase in the margin in comparison to the previous year.

ISRA VISION

ISRA VISION is a leading supplier of machine vision systems for surface inspection and robot guidance. Clients include Daimler, KUKA, ABB, BMW, Volkswagen, General Motors, Ford, Schott, Saint Gobain, Pilkington, MAN Roland, Asahi, 3M, DuPont, Stora Enso, Weyerhaeuser and Crane, among others.

Operating EBT in fiscal year 2006/2007 (ending Sept. 30) was € 6.3 million (2005/2006: € 10.0 million). Total output for 2006/2007 came to € 58.6 million (2005/2006: € 53.5 million). During the past ten years, ISRA was able to increase its total output by close to 31% per year on average, while EBT grew by an average 36% per year. ISRA is active world-wide and employs some 300 staff at its locations in Darmstadt, Karlsruhe, Herten, Oerlinghausen, Aachen, Atlanta, Columbus, Lansing, London, Shanghai, Beijing and Taoyuan.

ISRA uses digital image processing technology for the optical inspection of endless web materials (such as glass, film, nonwoven, paper) and for robot guidance tasks in the context of automated production and packaging. According to expert estimates, at present only some 25% of possible applications are being exploited. Currently the global market volume comes to some € 6.5 billion. Annual growth rates world-wide are currently estimated between 7% and 10%.