KIBBUTZ SHAMIR, Israel, Aug. 21 /PRNewswire-FirstCall/ -- Shamir
Optical Industry Ltd. (Nasdaq: SHMR) ("Shamir"), a leading provider of
innovative products and technology to the ophthalmic lens market, today
announced unaudited financial results for the second quarter ended June 30,
2008.
For the quarter ended June 30, 2008, revenues increased by 25.4% to
$37.1 million, compared to $29.6 million for the second quarter of 2007.
Gross profit for the quarter increased by 28.9% to $20.1 million, or 54.3%
of revenues, compared to gross profit of $15.6 million, or 52.8% of
revenues for the same period last year.
For the quarter ended June 30, 2008, operating income increased by
21.1% to $3.3 million, or 8.8% of revenues, compared to operating income of
$2.7 million, or 9.1% of revenues for the same period last year. Net income
for the quarter increased by 29.8% to $2.6 million, or $0.16 per diluted
share, compared to net income of $2.0 million for the comparable period in
2007.
Excluding the effects of non-cash stock-based compensation expenses,
operating income was $3.5 million, or 9.5% of revenues, compared to
operating income of $2.9 million, or 9.6% of revenues, for the same period
of 2007.
Excluding the effects of non-cash stock-based compensation expenses,
net income for the quarter increased 33% to $2.9 million, or $0.18 per
diluted share, from $2.2 million for the comparable period in 2007.
The reconciliation of GAAP operating income and GAAP net income to
non-GAAP operating income and non-GAAP net income is set forth below.
As of June 30, 2008, the Company had cash and cash equivalents,
including short-term investments of $28.1 million.
Commenting on the results, Eyal Hayardeny, Chief Executive Officer of
Shamir, said, "The second quarter delivered many positives; Europe
generated improved operating results and the United States made significant
inroads. We maintained financial discipline in our operating units and we
continued to develop our global opportunities."
Mr. Hayardeny continued, "Progress continued toward advancing our
European distribution network as we purchased the remaining 49% of Altra
Trading GmbH, through which we hold our European operations. We are
confident this purchase will enable us to efficiently manage our European
operations. Europe is an important market for Shamir and we are committed
to increasing our footprint in this geography and will continue to make
appropriate investments in leadership, marketing and sales."
Mr. Hayardeny concluded, "In terms of our overall strategy, we continue
to invest for long-term growth, while closely monitoring operational
expenses. Our positive performance thus far this year, combined with our
commitment to growth and operations position us to achieve the goals we
have set forth for Shamir. Based on our results through the first six month
of 2008, we reconfirm our previously announced forecasts of estimate for
growth in the range of 10%-16%, based on the December 2007 exchange rates
and excluding the results of our Mexican operation."
Conference Call:
Shamir has scheduled a conference call for 9:00 a.m. today to discuss
second quarter results. To participate in the call, please dial
888-562-3356 (U.S. and Canada) or 973-582-2700 (International). The
conference ID for this event is 58931251. For those unable to participate
there will be replay available from 12:00 p.m. EDT on August 21, 2008
through 11:59 p.m. EDT, August 28, 2008. Please call: 800-642-1687 (U.S.
and Canada) 706-645-9291 (International). The ID code for the replay is
58931251.
The call will be available as a live, listen-only webcast at
http://www.kcsa.com. Please go to the KCSA website at least 15 minutes prior to
the scheduled start time to register, download and install any necessary
audio software. A 30-day archive of the webcast will be available
approximately 2 hours after the conclusion of the live call.
About non-GAAP financial measures
This press release includes non-GAAP financial measures -- non-GAAP
operating income and non-GAAP net income -- that exclude certain charges.
The presentation of this financial information is not intended to be
considered in isolation or as a substitute for the financial information
prepared and presented in accordance with GAAP. Management of Shamir
believes that non-GAAP operating income and non-GAAP net income provides
meaningful supplemental information because these numbers, which exclude
the effect of non-cash stock-based compensation expenses, reflect our core
operational results and are used by management internally to review
Shamir's financial results.
About Shamir
Shamir is a leading provider of innovative products and technology to
the spectacle lens market. Utilizing its proprietary technology, the
company develops, designs, manufactures, and markets progressive lenses to
sell to the ophthalmic market. In addition, Shamir utilizes its technology
to provide design services to optical lens manufacturers under service and
royalty agreements. Progressive lenses are used to treat presbyopia, a
vision condition where the eye loses its ability to focus on close objects.
Progressive lenses combine several optical strengths into a single lens to
provide a gradual and seamless transition from near to intermediate, to
distant vision. Shamir differentiates its products from its competitors'
primarily through lens design. Shamir's leading lenses are marketed under a
variety of trade names, including Shamir Genesis(TM), Shamir Piccolo(TM),
Shamir Office(TM), Shamir Nano(TM), Shamir Autograph(TM) and Shamir
Smart(TM). Shamir believes that it has one of the world's preeminent
research and development teams for progressive lenses, molds, and
complementary technologies and tools. Shamir developed software dedicated
to the design of progressive lenses. This software is based on Shamir's
proprietary mathematical algorithms that optimize designs of progressive
lenses for a variety of activities and environments. Shamir also has
created software tools specifically designed for research and development
and production requirements, including Eye Point Technology software, which
simulates human vision.
Safe Harbor Statement
Statements concerning Shamir's business outlook or future economic
performance; product introductions and plans and objectives related
thereto; and assumptions made or expectations as to any future events,
conditions, performance or other matters, are "forward-looking statements"
as that term is defined under U.S. federal securities laws. Forward-looking
statements are subject to various risks, uncertainties and other factors
that could cause actual results to differ materially from those stated in
such statements. These risks, uncertainties and factors include, but are
not limited to: The conflicts in the region; the effects of competition in
our industry, and changes in our relationships with optical laboratories,
distributors, research and development partners and other third parties;
the effects of the international expansion of our operations and our
ability to manage our growth, including our ability to manage potential
future acquisitions; the effect of global economic conditions in general
and conditions in Shamir's industry and target markets in particular;
shifts in supply and demand; market acceptance of new products and
continuing products' demand; the impact of competitive products and pricing
on Shamir's and its customers' products and markets; timely product and
technology development/upgrades and the ability to manage changes in market
conditions as needed; interest rate fluctuations; and other factors
detailed in Shamir's filings with the Securities and Exchange Commission.
Shamir assumes no obligation to update the information in this release.
SHAMIR OPTICAL INDUSTRY LTD.
Consolidated Balance Sheets
(US dollars in thousands, except share As of Dec. 31, As of June 30,
and per share data) -------------- --------------
2007 2008
-------------- --------------
(Unaudited)
CURRENT ASSETS:
Cash and cash equivalents $18,953 $21,614
Short-term investment 14,375 6,437
Trade receivables (1) 30,719 35,485
Other receivables and prepaid expenses 7,523 10,209
Inventory 27,972 32,718
-------------- --------------
TOTAL CURRENT ASSETS 99,542 106,463
LONG-TERM INVESTMENTS:
Severance pay fund 3,089 3,715
Long-term receivables 1,299 1,085
Investments in affiliates 4,437 1,503
-------------- --------------
TOTAL LONG-TERM INVESTMENTS 8,825 6,303
PROPERTY, PLANT AND EQUIPMENT, NET 39,170 43,044
OTHER ASSETS 5,412 7,237
GOODWILL 7,542 10,630
-------------- --------------
TOTAL ASSETS $160,491 $173,677
============== ==============
CURRENT LIABILITIES:
Short-term bank credit and loans $15,950 $18,204
Current maturities of long-term loans 7,689 13,350
Trade payables 10,852 14,891
Accrued expenses and other liabilities 12,735 12,908
-------------- --------------
TOTAL CURRENT LIABILITIES 47,226 59,353
LONG-TERM LIABILITIES:
Long-term loans 17,491 14,279
Capital leases 4,303 4,264
Accrued severance pay 3,337 4,322
Other long-term liabilities 753 625
Deferred income taxes 1,358 2,088
-------------- --------------
TOTAL LONG-TERM LIABILITIES 27,242 25,578
MINORITY INTERESTS 800 1,114
-------------- --------------
SHAREHOLDERS' EQUITY:
Share capital
Common shares of NIS 0.01 par value
Authorized: 100,000,000 shares at
December 31, 2007 and June 30, 2008;
Issued and outstanding: 16,423,740
shares at December 31, 2007 and
June 30, 2008 37 37
Additional paid-in capital 66,629 67,177
Accumulated other comprehensive income 1,628 1,976
Retained earnings 16,929 18,442
-------------- --------------
TOTAL SHAREHOLDERS' EQUITY 85,223 87,632
-------------- --------------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $160,491 $173,677
============== ==============
(1) Net of allowance for doubtful accounts of $ 2,140 and $ 2,184 as of
December 31, 2007 and June 30, 2008, respectively.
SHAMIR OPTICAL INDUSTRY LTD.
Consolidated Statements of Income
(US dollars in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
------------------------ ------------------------
2007 2008 2007 2008
----------- ----------- ----------- -----------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues, net $29,551 $37,055 $58,889 $75,053
Cost of revenues 13,948 16,949 27,875 34,174
----------- ----------- ----------- -----------
Gross profit 15,603 20,106 31,014 40,879
Operating Expenses:
Research and
development costs 632 865 1,262 1,739
Selling and marketing
expenses 9,200 11,388 17,508 23,055
General and
administrative
expenses 3,078 4,593 6,210 8,575
----------- ----------- ----------- ----------
Total operating expenses 12,910 16,846 24,980 33,369
----------- ----------- ----------- ----------
Operating income 2,693 3,260 6,034 7,510
Financial expenses and
other, net 100 426 158 500
----------- ----------- ----------- ----------
Income before taxes on
income 2,593 2,834 5,876 7,010
Taxes on income 1,043 127 2,075 1,684
----------- ----------- ----------- ----------
Income after taxes on
income 1,550 2,707 3,801 5,326
Equity in losses
(earnings) of
affiliates, net (26) (15) 3 (25)
Minority interest in
earnings (losses) of
subsidiaries (444) 101 (532) (162)
----------- ----------- ----------- ----------
Net income $2,020 $2,621 $4,330 $5,513
=========== =========== =========== ==========
Net earnings per share:
Basic $0.12 $0.16 $0.27 $0.34
=========== =========== =========== ==========
Diluted $0.12 $0.16 $0.26 $0.33
=========== =========== =========== ==========
Number of shares:
Basic 16,257 16,424 16,257 16,424
Dilutive 16,548 16,532 16,545 16,535
SHAMIR OPTICAL INDUSTRY LTD.
Reconciliation of Non-GAAP Operating Income and Net Income
(US dollars in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
------------------------ ------------------------
2007 2008 2007 2008
----------- ----------- ----------- -----------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Operating income $2,693 $3,260 $6,034 $7,510
Non-GAAP adjustment:
Stock based
compensation (157) (274) (493) (548)
----------- ----------- ----------- -----------
Non-GAAP operating
income $2,850 $3,534 $6,527 $8,058
=========== =========== =========== ===========
Net income $2,020 $2,621 $4,330 $5,513
Non-GAAP adjustment:
Stock based
compensation, net (157) (274) (493) (548)
----------- ----------- ----------- -----------
Non-GAAP net income $2,177 $2,895 $4,823 $6,061
=========== =========== =========== ===========
Net earnings per share:
Basic $0.13 $0.18 $0.30 $0.37
=========== =========== =========== ===========
Diluted $0.13 $0.18 $0.29 $0.37
=========== =========== =========== ===========
Number of shares:
Basic 16,257 16,424 16,257 16,424
Dilutive 16,548 16,532 16,545 16,535
SOURCE Shamir Optical Industry Ltd.
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Related links:
http://www.shamir.co.il
http://www.kcsa.com
CONTACT:
Investor Relations, Roni Gavrielov, of
KM-KCSA Investor Relations, +972-3-516-7620, roni@km-ir.co.il, or
Jeffrey Goldberger, +1-212-896-1249, jgoldberger@kcsa.com, or
Marybeth Csaby, +1-212-896-1236, mcsaby@kcsa.com, both of KCSA
Strategic Communications for Shamir Optical Industry Ltd.
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