HAIFA, Israel, Nov. 5 /PRNewswire/ -- Elscint Ltd. (NYSE: ELT), a
subsidiary of Elbit Medical Imaging (Nasdaq: EMITF), announced today results
for the Company's third quarter and nine months ended September 30, 1998.
Revenues for the 1998 third quarter were $63.0 million, as compared to
$75.1 million reported in the same quarter last year.
Net loss for the third quarter of 1998 was $5.1 million, or $(0.32) per
share, compared to net income of $0.3 million, or $0.02 per share, in the
corresponding quarter of 1997.
Revenues for the nine-month period ended September 30, 1998, totaled
$226.2 million, compared to $222.6 million reported in the same period last
year.
Net loss for the first nine months of 1998 totaled $1.8 million, or
$(0.11) per share, compared to profit of $1.7 million, or $0.10 per share, for
the same period last year.
On September 11, 1998, Elscint Ltd. agreed in principle to sell its CT
Division to Picker International for the sum of $275 million. Simultaneously
the Company also agreed in principle to sell its nuclear medicine and magnetic
resonance medical imaging business for $100 million to General Electric
Medical Systems (GEMS). Both of the above deals are subject to certain
adjustments and before taxes, restructuring and other reorganization costs.
During the third quarter, the Company recorded substantial decreases in
sales and an operating loss. The effect of the intent to sell the Company's
main businesses, and the uncertainty of Elscint's customers regarding future
plans of both Picker and GEMS for the acquired divisions, resulted in
annulment of certain deals, deferrals of others, and delays in receipt of new
orders.
As stated in the September 11, 1998, press release, the Company expects
that the transactions with GEMS and Picker will close in November 1998. An
Extraordinary Meeting of the Company's Shareholders has been scheduled for
November 20, 1998, to vote on the two transactions. The effect of the closing
of the above transactions, once they occur, will be seen in the Company's
financial results for the fourth quarter of 1998.
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 and services 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)
Nine months Three months
Ended Sept. 30, Ended Sept. 30,
1998 1997 1998 1997
Net revenues $226,220 $222,569 $63,002 $75,140
Cost of revenues 162,649 144,030 48,363 51,290
Gross profit 63,571 78,539 14,639 23,850
Research and development
costs 13,418 18,761 4,622 5,063
Less--participation 4,394 5,449 1,250 1,429
9,024 13,312 3,372 3,634
Selling, general and
administrative
expenses 60,918 59,127 21,017 18,341
Operating (loss) profit (6,371) 6,100 (9,750) 1,875
Finance income
(expenses) -- net 842 (1,631) 46 (167)
Other income (loss)
-- net 1,844 (1,930) 3,418 (755)
(Loss) income before
income taxes and the
company's share in
equity in net earnings
(loss) of affiliated
companies (3,685) 2,539 (6,286) 953
Provision for income
taxes -- 34 (544) (206)
(Loss) income before the
company's share in equity
in net earnings (loss)
of affiliated
companies (3,685) 2,505 (5,742) 1,159
The company's share in
equity in net earnings
(loss) of affiliated
companies 1,896 (840) 652 (840)
Net (loss) income $(1,789) $1,665 $(5,090) $319
(Loss) earnings per
share
Basic and diluted
(loss) earnings per
ordinary share $(0.11) $0.10 $(0.32) $0.02
Weighted average number
of ordinary shares and
ordinary share equivalents
outstanding used in computing:
Basic earnings per
ordinary share 15,924 15,922 15,925 15,922
Diluted earnings per
ordinary share 16,033 16,056 16,071 16,086
Elscint Limited and Subsidiary Companies
Condensed Consolidated Balance Sheets
(In Thousands)
September 30, December 31,
1998 1997
(Unaudited) (Audited)
Assets
Current assets
Cash and cash equivalents $26,267 $20,798
Accounts and notes receivable - trade 134,980 135,484
Other current assets 30,764 28,574
Inventories 86,456 76,688
Total current assets 278,467 261,544
Long-term accounts and notes
receivable 54,806 61,268
Investments and loans 3,304 3,414
Investments in affiliated companies 4,345 1,691
Fixed assets - net 25,879 26,269
Other assets - net 2,228 3,277
$369,029 $357,463
Liabilities and shareholders' equity
Current liabilities
Short term credits $53,726 $50,145
Current maturities of long-term debt 2,530 1,706
Accounts payable - trade 29,027 27,032
Accrued liabilities, deferred income
and advances from customers 67,313 66,094
Total current liabilities 152,596 144,977
Long-term debt - net 15,677 12,845
Provision for severance pay - net 2,700 1,919
Shareholders' equity 198,056 197,722
$369,029 $357,463
SOURCE Elscint Ltd.
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Related links:
http://www.elscint.co.il
CONTACT:
Emmanuel Gill, President & CEO of Elbit,
972-4-855-0219; 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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