ISRA to Integrate Parsytec Quickly and Efficently and Return to its Previous Earning Potential

Slower incoming orders cause temporary drop in sales and earnings in second half of fiscal year 2006/2007

Darmstadt, (PresseBox) - ISRA VISION AG, one of the world’s leading suppliers of industrial image processing systems (Machine Vision), due to noticeably slower incoming orders and the resulting lower sales and profits, is now focusing more closely on external expansion in its development of profitable, high-growth market segments. An important step in this direction is the acquisition of a majority shareholding in Parsytec AG. In tandem with Parsytec, ISRA intends to achieve systematic profitable growth, particularly in the metals and paper markets.

The traditional increase in the incoming-orders trend in the second half of the fiscal year (October 1 to September 30) has thus far only manifested itself in the Industrial Automation business division, where sales increased by almost 20 percent. Incoming orders have continued to slow in the largest business division, Surface Vision: sales in some segments experienced a noticeable downturn. During preparations for the acquisition of Parsytec, ISRA invested late in some segments in strengthening Sales staff.

Overall, preliminary figures show that total operating revenue in the ISRA group in the first nine months of fiscal year 2006/2007 stagnated at 36.8 million euros (previous year: 36.7 million euros) and net sales at 32.3 million euros (previous year: 33.0 million euros). At the same time, the gross profit margin (total operating revenue minus production costs in relation to total operating revenue) remained stable at 58 percent. Sales and marketing expenditures increased by eleven percent to 5.4 million euros as a result of creating new sales teams and strengthening existing ones, and expanding marketing. EBT (earnings before taxes) thus decreased to 4.5 million euros (previous year: 6.5 million euros).

Certain of our customer sectors are currently experiencing a temporary decline in orders. This can also be observed at Parsytec, ISRA’s investment (Parsytec was not an ISRA group company in the first nine months of 2006/2007 and was consolidated effective July 23, 2007). As planning currently stands, therefore, the objective of growing the ISRA group internally and externally for the whole of fiscal year 2006/2007 at the same rate as in the first half of the year will not be achieved. It can be assumed that the pro rata temporis consolidation of Parsytec in the ISRA group will compensate for the anticipated shortfall in sales. As a consequence of the decreased margins and higher sales expenditures, earnings will be considerably lower than the previous year's.

The majority shareholding in Parsytec is a major step in ISRA’s growth strategy, which aims to increase sales in the group to over 100 million euros by 2011. Expeditious and efficient integration of Parsytec into the ISRA group now lies at the heart of this strategy. Parsytec has a strong market position and a product range that ideally complements ISRA’s offerings. The combined range of products will make the Metal and Paper business units even stronger and enable them to extend their share of the market faster and more efficiently. With Parsytec taking over the organizational leadership of these business units, the ISRA group, with the combined market presence of the Parsytec and ISRA brands, will immediately become the world leader in the metal and paper segment.

Extensive synergies in the areas of technology, purchasing and sales have already been identified. ISRA intends to leverage these synergies and exploit economies of scale in order to return swiftly to its previous earning potential. Furthermore external growth is aimed to acquisitions, of smaller importance as Parsytec. A smaller acquisition in the Industrial Automation field is about to be concluded.

ISRA VISION

Die ISRA VISION AG ist ein führender Hersteller von Machine Vision Systemen für die Oberflächeninspektion und die industrielle Roboterführung. ISRA-Kunden sind heute u.a. Daimler, KUKA, ABB, BMW, Volkswagen, General Motors, Ford, Schott, Saint Gobain, Pilkington, MAN Roland, Asahi, 3M, DuPont, Stora Enso, Weyerhaeuser und Crane.

Das Betriebsergebnis vor Steuern (EBT) liegt im Geschäftsjahr 2006/2007 (30. September) bei € 6,3 Mio. (2005/2006: € 10,0 Mio.). Die Gesamtleistung belief sich 2006/2007 auf € 58,6 Mio. (2005/2006: € 53,5 Mio.). In den letzten zehn Jahren hat das Unternehmen seine Gesamtleistung um durchschnittlich rund 31% pro Jahr gesteigert und sein Ergebnis vor Steuern sogar um rund 36% pro Jahr verbessert. ISRA ist weltweit tätig und beschäftigt an Standorten in Darmstadt, Karlsruhe, Herten, Oerlinghausen, Aachen, Atlanta, Columbus, Lansing, London, Shanghai, Peking und Taoyuan rund 300 Mitarbeiter.

ISRA setzt die Technologie der digitalen Bildverarbeitung bei der optischen Inspektion endloser Bahnwaren (z. B. Glas, Folien, Vlies, Papier) und zur optisch gestützten Robotersteuerung im Rahmen automatisierter industrieller Fertigungs- oder Verpackungsprozesse ein. Nach Expertenschätzungen sind derzeit nur ca. 25% der möglichen Anwendungen erschlossen. Derzeit beträgt das Marktvolumen global ca. € 6,5 Mrd. Die geschätzten jährlichen Marktwachstumsraten liegen weltweit zwischen 7% und 10%.

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