Profitability improved - positive outlook for financial year 2009/2010

ISRA VISION AG: 2009/2010 1st Quarter Report

(PresseBox) ( Darmstadt, )
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- EBITDA margin increased to 26% of total output (FY 2008/2009: 23%)
- EBT margin rised to 15% (FY 2008/2009: 13%)
- Q1 revenues: € 14.0 million or -10% compared to previous year, which was aided by a high order backlog from the "precrisis" period
- Revenues in the largest segment, Surface Vision, rised slightly to € 11.7 million
- Negotiations for new acquisitions underway
- Order backlog increased to € 33 million
- Prognosis: Increased revenues with stable profits expected for financial year 2009/2010 based on growth in the second half of the year

ISRA VISION AG (ISIN: DE0005488100), one of the world's top five suppliers of industrial image processing (machine vision) solutions and the global market leader in surface inspection systems, has managed to hold steady during the crisis despite economic fluctuations. Robust business during the first quarter of financial year 2009/2010 - the threemonth period from October to December 2009 - is indication that the worst of the temporary dip in revenues is now over. Timely costreduction and efficiency measures have begun to take effect, showing reduced costs of more than 0.8 million euros in the first quarter compared to previous year. Profitability figures thus showed good improvement.

Compared to last year's Q1 results, which were aided by a large order backlog from the period prior to the global economic crisis, in Q1 2009/2010 ISRA earned stable revenues of 14.0 million euros (PY: 15.5 million euros). This was in favorable contrast to the rest of relevant industry. The best performance was seen in Asia, while business declined slightly in Western Europe and did not recover in the US.

EBITDA (earnings before interest, taxes, depreciation and amortization) totaled 4.0 million euros (PY: 4.4 million euros). The EBITDA margin came in at 26 percent of total output and 29 percent of revenues, or three percentage points higher than in financial year 2008/2009. EBT - a key performance indicator for valueoriented corporate governance - totaled 2.4 million euros (PY: 2.5 million euros). The EBT margin improved by two percentage points over financial year 2008/2009 to 15 percent of total output (and 17 percent of revenues). After taxes and minority interest, consolidated net profit totaled 1.6 million euros (PY: 1.7 million euros). Net profit relative to total output totaled ten percent (PY: ten percent), while earnings per share equaled 0.36 euros (PY: 0.40 euros/share).

ISRA is prepared for a return to profitable growth with a sales and marketing offensive and the planned introduction of more than 20 new customer solutions and applications, more than ten of which are planned for the current financial year alone. Last year, the industry was forced to postpone several important investment projects. The past has shown that these will likely be completed in the near future. The rise in the order backlog to around 33 million euros is indicating that the worst of the economic slowdown might be over. Information from the market indicates possible growth in the second half of the financial year 2009/2010. Timely costsaving measures have already led to permanent cost reductions as of the first quarter. These efforts will continue with three large programs aimed at increasing efficiency and productivity and further streamlining production (lean production).

A key component of ISRA's longterm growth strategy is external expansion through acquisitions. Currently, multiple projects are underway, with one new acquisition about to be completed.

Assuming the economy will recover continuesly, the management expects a slight increase in revenues and stable profits for financial year 2009/2010 (10/01/2009 - 09/30/2010).
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