Revenues grew 4% to $8.4M in the first half of 2007
MediVision Presents Management’s Report for the Period ended June 30, 2007
Noam Allon, President & CEO of MediVision commented: “During the second quarter, the Company experienced steady sales for its digital imaging equipment business. However, the impact of two large contracts over the second and third quarters of 2006 offset potential sales growth in the second quarter. The company remains committed to improving and expanding its digital imaging and information technology product lines and continues to invest significant amounts in that direction to keep it’s leading position in the market in various territories.”
Highlights of the period ended June 30, 2007 Belgium Branch - As of Mid March 2007, the Company opened a Branch office in Belgium for selling and servicing its products in the Belgian market, and supporting the sales activity in the French market.
Development costs - In the six months period ended June 30, 2007, the Company recognized development costs in the amount of $682,000 as an intangible asset in accordance with the criteria for recognition as set forth in IAS 38 “Intangible Assets”. Therefore gross R&D spending for the period totaled $1,498,000.
Receipt of a $500,000 long term loan - During the reported quarter, the Company received a long term loan from United Mizrachi Bank Ltd. in the amount of $500,000. The loan will be paid in eighteen monthly installments, commencing on April 2008, under certain conditions set forth in the loan agreement.
Management's Discussion and Analysis of the Financial Condition and Results of Operations of the Company Sales - The consolidated Sales for the three and six months periods ended June 30, 2007 aggregated to $3,855,000 and $8,444,000 compared to sales of $4,116,000 and $8,149,000 for the comparable periods of 2006, reflecting a decrease of 6% and an increase of 4% accordingly. Gross Profit - Gross profit for the three and six months periods ended June 30, 2007 were $2,144,000 and $4,834,000 or 56% and 57% of sales revenues, as compared with $2,321,000 and $4,612,000 which were 56% and 57% of sales revenues for the comparable periods of 2006.
Research and Development Expenses - Net R&D expenses for the three and six months ended June 30, 2007 amounted to $382,000 and $816,000 or 10% and 10% of Sales revenues. During the reported period, the Company recognized development costs in the amount of $682,000 as an intangible asset in accordance with the criteria for recognition as set forth in IAS 38 “Intangible Assets”. The total R&D spending during the period was $1,498,000 or 17.7% of Sales revenues compared to $1,518,000 or 18.6% of Sales revenues in the first half 2006.
Selling and Marketing Expenses - Total Selling and Marketing expenses for the three and six months ended June 30, 2007 amounted $975,000 and $2,033,000 which are 25% and 24% of total Sales revenues, as compared with $954,000 and $1,939,000 which were 23% and 24% of total Sales revenues for the comparable periods in 2006.
General and Administrative Expenses - General and Administrative expenses include mainly salaries, professional services, rental, maintenance and various provisions. Total General and Administrative expenses for the three and six months ended June 30, 2007 were $629,000 and $1,316,000 which are 16% of the total Sales in both periods, as compared to $600,000 and $1,125,000, which were 15% and 14% of total Sales for the comparable periods of 2006.
3 Other Income (expenses), Net – During the three and six months periods the Company recorded other expenses associated with Capital losses from the exercise of Options by the minority shareholders of the Company's American subsidiary. During of the equivalent period of 2006 the Company sold 1,000,000 of OIS’s Common Stock for the consideration of approximately $1,772,000 (net of expenses of $28,000), the associated capital gain for this transaction amounted to $1,149,000. The Company also recorded during the comparable period (first quarter of 2006) a gain of $226,000 from the issuance of shares by OIS upon conversion of a note.
Minority Interest - Minority interest for the three and six months periods ended June 30, 2007 are attributed mainly to the part of OIS minority shareholders in the profits of OIS. In addition part of the minority interest is attributed to the minority shareholders of CCS Pawlowski GmbH, the company’s German subsidiary.
MediVision Medical Imaging Ltd. / Headquarters and Manufacturing Facility
MediVision specializes in digital imaging devices for medical ophthalmic applications with an emphasis on diagnostics related to the eye retina. MediVision's products are designed to provide digital upgrades for a range of ophthalmic imaging systems, thus significantly enhancing imaging capability and providing its users with advanced diagnostic tools. The company has significant market share and is a market leader in the ophthalmic digital imaging field. As of the balance sheet date, the Company owns 56% interest in Ophthalmic Imaging Systems Inc. based in Sacramento, California, USA and 63% interest in CCS Pawlowski GmbH based in Jena, Germany.