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Orad Hi-Tec Systems returns to profitability in the third quarter of 2013
- Third-quarter revenues are $8.7 million
- Improve of gross margin to 69.5%
- Cost reduction program starts to shows results
- All earnings figures back in the black
- Continue of high level of Bookings, two consecutive quarters
- Record number of new customers
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 announces its return to profitability in the third quarter of 2013. The operating profit in the third quarter of 2013 was $0.4 million after a loss of $1.5 million in the previous quarter. In the prior-year quarter (Q3 2012), the operating profit had been just $0.06 million. At $0.2 million, Orad also showed a net profit again after posting a net loss of $1.3 million in the second quarter of 2013 and a net profit of $0.2 million in the prior-year period.
At $8.7 million, revenues in the third quarter of 2013 came in just below the prior-year figure of $8.8 million. Gross profit rose from $5.9 million in the third quarter of 2012 by 3.4% to $6.1 million. As a result, the gross margin improved from 66.8% in the third quarter of 2012 to 69.5% in the third quarter of 2013. Compared with the second-quarter figure of $4.5 million, gross profit improved by 33.7% in the third quarter of 2013. The company's cash and cash equivalents increased from $5.7 million at the end of June 2013 to $6.1 million at the end of September 2013.
In the third quarter of 2013, sales have increased considerably in all territories, and primarily in Orad's solutions sports and graphics offerings. Even though the economic climate in Europe is still challenging, the Group's bookings increased for the second quarter in a row. Furthermore, the cost reduction program implemented in the third quarter of 2013 has already produced the first results. Orad expects this program to show further positive results in the fourth quarter of 2013. Despite the decrease in operating costs, Orad continues to invest in new products.
Overall, revenues fell from $27.9 million in the first nine months of 2012 by 17.1% to $23.1 million in the first nine months of 2013. At the same time, gross profit declined from $19.1 million in prior-year period to $15.2 million, which represents a gross profit margin of 65.8% for 2013, compared with 68.3% in the prior-year period. The net loss in the first nine months of 2013 was $2.0 million after a net profit of $1.9 million in 2012.
The nine-month report is available for download from the Internet at www.orad.tv.
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