HAIFA, Israel, Aug. 5 /PRNewswire/ -- Elscint Ltd. (NYSE: ELT), a
subsidiary of Elbit Medical Imaging Ltd. (Nasdaq: EMITF), announced today
results for the Company's second quarter and six months ended June 30, 1998.
Second Quarter Results
Consolidated revenues for the second quarter of 1998 were $81.6 million,
an increase of 5.8% compared to $77.1 million reported in the same quarter
last year. The increase in revenues was primarily attributable to sales of
nuclear medicine sub-assemblies to ELGEMS, the joint venture company of
Elscint and GE Medical Systems.
Operating profit in the three months ended June 30, 1998 was $2.3 million
compared to $3.0 million in the three months ended June 30, 1997. Operating
profit for the three months ended June 30, 1998, was adversely affected by the
higher NM system purchase price from ELGEMS, previously manufactured by
Elscint. This effect was offset by a $0.8 million gain from ELGEMS.
Net income of $2.0 million in the second quarter of 1998 was down slightly
from net income of $2.1 million in the second quarter of 1997. Basic and
diluted earnings per share for the 1998 three month period were $0.13 compared
to $0.13 for the 1997 three month period. Net income in the 1998 second
quarter was impacted by a reduction in research and development costs as a
result of the transfer of a portion of these costs to ELGEMS, as well as a
reduction in SG&A expense, both on an absolute basis and as a percentage of
sales.
Six-Month Results
Consolidated revenue for the six-month period ended June 30, 1998 totaled
$163.2 million, an increase of 10.7% compared to $147.4 million reported in
the six-month period ended June 30, 1997.
Operating profit in the first six months of 1998 was $3.4 million compared
to $4.2 million in the six months ended June 30, 1997. The reduction in
operating profit was primarily the result of the NM higher purchase systems
price from ELGEMS, and was offset by gains from ELGEMS of $1.2 million.
Net income rose to $3.3 million, or $0.21 per basic and diluted share,
from $1.4 million, or $0.08 per basic and diluted share, in the first six
months of 1997.
"Our results this quarter were a continuation of the progress we made in
the first quarter of this year," said Jonathan Adereth, President and Chief
Executive Officer.
"Sales in the U.S. market grew 18% compared to the six month period of
1997, and compared to the second quarter of 1997. Bookings for the second
quarter were $58 million compared to $51 million in the same quarter last
year. These are the results of the attention given by the management to
attain these objectives," added Mr. Adereth.
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
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)
(IN THOUSANDS EXCEPT EARNINGS PER SHARE AMOUNTS)
SIX MONTHS THREE MONTHS
ENDED JUNE 30, ENDED JUNE 30,
1998 1997 1998 1997
NET REVENUES $163,218 $147,429 $81,624 $77,061
COST OF REVENUES 114,286 92,740 56,138 47,417
GROSS PROFIT 48,932 54,689 25,486 29,644
RESEARCH AND
DEVELOPMENT COSTS 8,796 13,698 4,450 6,957
LESS - PARTICIPATION 3,144 4,020 1,523 1,879
5,652 9,678 2,927 5,078
SELLING, GENERAL
AND ADMINISTRATIVE
EXPENSES 39,901 40,786 20,222 21,604
OPERATING PROFIT 3,379 4,225 2,337 2,962
FINANCE INCOME
(EXPENSES) - NET 796 (1,464) (97) 114
OTHER (LOSS) - NET (1,574) (1,175) (776) (714)
INCOME BEFORE INCOME
TAXES AND THE COMPANY'S
SHARE IN EQUITY IN
NET EARNINGS OF
AFFILIATED COMPANIES 2,601 1,586 1,464 2,362
PROVISION FOR TAXES 544 240 281 240
INCOME BEFORE THE
COMPANY'S SHARE IN
EQUITY IN NET EARNINGS
OF AFFILIATED COMPANIES2,057 1,346 1,183 2,122
THE COMPANY'S SHARE IN
EQUITY IN NET
EARNINGS OF AFFILIATED
COMPANIES 1,244 -- 832 --
NET INCOME $3,301 $1,346 $2,015 $2,122
EARNINGS PER SHARE
BASIC AND FULLY
DILUTED EARNINGS
PER ORDINARY SHARE $0.21 $0.08 $0.13 $0.13
WEIGHTED AVERAGE NUMBER
OF ORDINARY SHARES AND
ORDINARY SHARE EQUIVALENTS
OUTSTANDING USED IN COMPUTING
THE BASIC EARNINGS PER
ORDINARY SHARE 15,924 15,922 15,925 15,922
WEIGHTED AVERAGE NUMBER
OF ORDINARY SHARES AND
ORDINARY SHARE EQUIVALENTS
OUTSTANDING USED IN
COMPUTING THE FULLY
DILUTED EARNINGS PER
ORDINARY SHARE 16,007 16,043 15,998 16,039
ELSCINT LIMITED AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
JUNE 30, DECEMBER 31,
1998 1997
(UNAUDITED) (AUDITED)
ASSETS
CURRENT ASSETS
CASH AND CASH EQUIVALENTS $16,654 $20,798
ACCOUNTS AND NOTES
RECEIVABLE - TRADE 147,949 135,484
OTHER CURRENT ASSETS 30,028 28,574
INVENTORIES 76,175 76,688
TOTAL CURRENT ASSETS 270,806 261,544
LONG-TERM ACCOUNTS AND
NOTES RECEIVABLE 56,547 61,268
INVESTMENTS AND LOANS 3,257 3,414
INVESTMENTS IN AFFILIATED
COMPANIES 2,936 1,691
FIXED ASSETS - NET 25,895 26,269
OTHER ASSETS - NET 2,557 3,277
$361,998 $357,463
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
SHORT TERM CREDITS $44,429 $50,145
CURRENT MATURITIES OF
LONG-TERM DEBT 2,238 1,706
ACCOUNTS PAYABLE - TRADE 24,127 27,032
ACCRUED LIABILITIES, DEFERRED
INCOME AND ADVANCES FROM
CUSTOMERS 71,286 66,094
TOTAL CURRENT LIABILITIES 142,080 144,977
LONG-TERM DEBT - NET 15,746 12,845
PROVISION FOR SEVERANCE
PAY - NET 2,324 1,919
SHAREHOLDERS' EQUITY 201,848 197,722
$361,998 $357,463
SOURCE Elscint Ltd.
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Related links:
http://www.elscint.co.il
CONTACT:
Gabi Yankovitz, VP, Finance & CFO of Elscint,
972-4-8310271; or Laurie Berman, General Info., 310-442-0599,
Alicia Nieva-Woodgate, Media Info., 415-986-1591, 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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