HAIFA, Israel, May 7 /PRNewswire/ -- Elscint Ltd. (NYSE: ELT), a
subsidiary of Elbit Medical Imaging Ltd. (Nasdaq: EMITF), announced today an
improvement in its unaudited results for the first quarter ended March 31,
1998.
Consolidated revenues for the quarter increased 16% to $81.6 million from
the $70.4 million reported in the corresponding quarter of 1997. The increase
in net revenues is primarily attributable to sales of nuclear medicine sub-
assemblies to ELGEMS, the joint venture company of Elscint and GE Medical
Systems.
Operating profit for the first quarter of 1998 was $1.0 million, compared
to $1.3 million in the first quarter of 1997.
Net income for the first quarter of 1998 totaled $1.3 million, or $0.08
per basic and fully diluted share, compared with a net loss of $0.8 million,
or a loss of $0.05 per basic and fully diluted share, in the same quarter of
last year. In the first quarter of 1997, net loss was affected by an exchange
loss that occurred from the translation of the Company's balance sheet from
various currencies into U.S. Dollars.
Jonathan Adereth, President and Chief Executive Officer of Elscint,
commented, "CT sales were strong this quarter, up 14% from the previous
quarter, and 13% as compared to the first quarter of 1997, led by increased
sales in the United States and Brazil.
"We saw an increase in bookings this quarter as well, led by our CT and NM
product lines. This reverses the trend of backlog erosion over the last five
quarters. The Company continues to focus its efforts on increasing backlog by
allocating additional sales and marketing resources."
Regarding ELGEMS, Mr. Adereth commented, "This marks the first quarter
since its establishment that ELGEMS has generated a profit, which coincides
with our original plans."
Mr. Adereth concluded, "We feel that the steps we took throughout 1997,
including strengthening our partnerships with other vendors and research
institutions, are starting to bear results."
Elscint is an advanced medical imaging company serving healthcare
professionals worldwide. Guided by the philosophy of applying unique
technologies for the advancement of cost-effective healthcare, Elscint
designs, manufactures, sells, services and networks a wide range of
sophisticated computer-based medical imaging products including Computerized
Tomography (CT), Magnetic Resonance Imaging (MRI), Nuclear Medicine (NM) and
Mammography systems.
This release contains certain forward-looking statements which involve
known and unknown risks, uncertainties or other factors not under the
Company's control which may cause actual results, performance or achievements
of the Company to be materially different from the results, performance or
other expectations implied by these forward-looking statements. These factors
include, but are not limited to, those detailed in the Company's periodic
filings with the Securities and Exchange Commission.
ELSCINT LIMITED AND SUBSIDIARY COMPANIES
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(IN THOUSANDS EXCEPT EARNINGS PER SHARE AMOUNTS)
THREE MONTHS
ENDED March 31,
1998 1997
NET REVENUES $81,594 $70,368
COST OF REVENUES 58,148 45,323
23,446 25,045
RESEARCH AND DEVELOPMENT COSTS 4,346 6,741
LESS - PARTICIPATION 1,621 2,141
2,725 4,600
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 19,679 19,182
OPERATING PROFIT 1,042 1,263
FINANCE INCOME (EXPENSES) - NET 893 (1,578)
OTHER LOSS - NET (798) (461)
INCOME (LOSS) BEFORE INCOME TAXES AND
THE COMPANY'S SHARE IN EQUITY IN NET
EARNINGS OF AFFILIATED COMPANIES 1,137 (776)
PROVISION FOR TAXES 263 --
INCOME (LOSS) BEFORE THE COMPANY'S SHARE
IN EQUITY IN NET EARNINGS OF
AFFILIATED COMPANIES 874 (776)
THE COMPANY'S SHARE IN EQUITY IN NET
EARNINGS OF AFFILIATED COMPANIES 412 --
NET INCOME $1,286 $(776)
EARNINGS (LOSS) PER SHARE (*)
BASIC AND FULLY DILUTED EARNINGS (LOSS)
PER ORDINARY SHARE $0.08 $(0.05)
WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES
AND ORDINARY SHARE EQUIVALENTS OUTSTANDING
USED IN COMPUTING THE BASIC EARNINGS
(LOSS) PER ORDINARY SHARE 15,922 15,922
WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES
AND ORDINARY SHARE EQUIVALENTS
OUTSTANDING USED IN COMPUTING THE
FULLY DILUTED EARNINGS (LOSS) PER
ORDINARY SHARE 16,015 16,040
ELSCINT LIMITED AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
March 31, December 31,
1998 1997
(unaudited) (audited)
ASSETS
CURRENT ASSETS
CASH AND CASH EQUIVALENT $15,432 $20,798
ACCOUNTS AND NOTES RECEIVABLE -
TRADE 142,547 135,484
OTHER CURRENT ASSETS 27,769 28,574
INVENTORIES 74,146 76,688
TOTAL CURRENT ASSETS 259,894 261,544
LONG-TERM ACCOUNTS AND
NOTES RECEIVABLE 62,436 61,268
INVESTMENTS AND LOANS 3,430 3,414
INVESTMENTS IN AFFILIATED COMPANIES 2,103 1,691
FIXED ASSETS - NET 26,158 26,269
OTHER ASSETS - NET 2,874 3,277
$356,895 $357,463
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
SHORT TERM CREDITS $48,810 $50,145
CURRENT MATURITIES OF LONG-TERM DEBT 1,680 1,706
ACCOUNTS PAYABLE - TRADE 23,831 27,032
ACCRUED LIABILITIES, DEFERRED INCOME
AND ADVANCES FROM CUSTOMERS 67,471 66,094
TOTAL CURRENT LIABILITIES 141,792 144,977
LONG-TERM DEBT - NET 13,326 12,845
PROVISION FOR SEVERANCE PAY - NET 2,074 1,919
SHAREHOLDERS' EQUITY 199,703 197,722
$356,895 $357,463
SOURCE Elscint Ltd.
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Related links:
http://www.elscint.co.il
CONTACT:
Gabi Yankovitz, VP, Finance & CFO of Elscint,
972-4-831-0271; or Laurie Berman, General Info., 310-442-0599, or
Alicia Nieva-Woodgate, Media Info, or Brian Gill, Investor Info.,
212-661-8030, all of The Financial Relations Board
NOTE TO EDITORS: For further information on Elscint, via
facsimile at no cost, please call 1-800-PRO-INFO and enter
company code 206 or ticker symbol ELT.
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