Orad Hi-Tec Systems Ltd reports net profit of US-Dollar 1.2 million for 2012

Orad Hi-Tec Systems Ltd. (ISIN IL0010838071; symbol: OHT), a world-leading provider of real-time 3D broadcast graphic, video server, and media asset management solutions for the broadcasting markets, today announced a net profit of US-Dollar 1.2 million for the 2012 financial year. Net profit in the previous year had been US-Dollar 3.7 million. The revenues for 2012 of US-Dollar 35.0 million came in same level as previous year (US-Dollar 35.3 million). The gross profit of US-Dollar 23.5 million, was down 3.2 percent compared to the previous year's figure of USD 24.3 million. Cash and cash equivalents as of the end of 2012 amounted to US-Dollar 7.1 million. The annual financial statements were prepared in accordance with IFRS; US GAAP had been applied in the previous year financial reports.

In the second half of 2012, the company's business was affected from the economic uncertainty especially in Europe, resulting in longer sales cycles and delays in customers' investment decisions. Furthermore, the slowdown in the second half of the year is mainly due to less investments post big events such as U.S. elections, Olympic Games and other sport events.

The fourth quarter of 2012 in particular was impacted by these changes. Revenues in the fourth quarter of 2012 were US-Dollar 7.1 million, a decline of 25.8 percent compared to the previous year's figure of US-Dollar 9.6 million. The company posted a net loss of US-Dollar 0.6 million in the fourth quarter of 2012. This compares to a net profit of USD 1.1 million in the prior-year quarter.

Given its good positioning in the market, Orad expects to return to a course of growth in 2013.

The 2012 Annual Report is available online at www.orad.tv under Investor