Orad Hi-Tec Systems returns to profitable growth in the fourth quarter of 2013
- Fourth-quarter revenues total USD 8.7 million, up 21.9% from Q4/12
- Net profit in the fourth quarter of USD 0.2 million
- Recovery after weak first half of 2013
- Order intake remains positive
Orad Hi-Tec Systems Ltd. (ISIN IL0010838071; Symbol: OHT), a leading developer, marketer and distributor of state-of-the-art 3D real-time graphics, video servers, and MAM solutions for the broadcasting markets, today announced that it was able to continue the positive performance of the third quarter of 2013 in the fourth quarter as well. Revenues improved by 21.9 percent year-on-year, from USD 7.1 million to USD 8.7 million. The operating profit was USD 0.1 million after a loss of USD 1.1 million in the fourth quarter of 2012. The net profit was USD 0.2 million after a net loss of USD 0.6 million in the previous year. Cash and cash equivalents as of the end of 2013 amounted to USD 5.8 million, compared to USD 6.1 million at the end of September 2013. The positive business performance is reflected in a considerably improved gross margin of 68.6 percent. This compares to a gross margin of 62.5 percent in the fourth quarter of 2012.
The positive order situation of the previous two quarters continued in the fourth quarter of 2013 and into the 2014 financial year. Order intake in the Server business and for the bundled product solution comprising video server, graphics and media asset management saw a particularly positive development. As a result, business in 2014 shows signs of improvement compared to the previous year.
The figures for the full 2013 financial year are dominated by the weak performance in the first half of the year, during which key sales markets faced a difficult economic development. At USD 31.8 million, revenues for 2013 were down 9.2 percent compared to the previous year's figure of USD 35.0 million. The operating loss was USD 1.6 million after an operating profit of USD 0.7 million in 2012. The net loss came to USD 1.9 million after a net profit of USD 1.2 million in the previous year. The second half of 2013 saw a substantial recovery and Orad's return to profitability. Accordingly, revenues and all key earnings figures in the second half of 2013 were considerably higher compared to both the first half of 2013 and the second half of 2012.
The annual financial statements are available for download from the Internet at www.orad.tv.
Forward Looking Statements
This press release contains forward-looking statements that are based on the knowledge of the environment in which the Company currently operates, but because of factors beyond its control, actual results may differ materially from the expectations expressed in the forward-looking statements.
Important factors that may cause actual results to differ from anticipated results include, but are not limited to, financial risk, acquisition risk, changes in technology, as well as other risks.
The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. As a result, investors should not place undue reliance on these forward-looking statements.
ORAD Hi Tec Systems GmbH
Orad Hi-Tec Systems is a world-leading provider of real-time 3D broadcast graphic, video server, and media asset management solutions including news, channel branding, sports production and enhancement, elections and special events, virtual studios, and virtual advertisement. Orad's compelling solutions streamline production workflow, enhance viewer experience, and improve production value. Founded in 1993, Orad is a public company listed on the Frankfurt Stock Exchange (OHT). More information is available at http://www.orad.tv/