Elbit Vision Systems Announces Q2 2011 Results

CAESAREA, Israel, August 15, 2011 /PRNewswire/ --

• Second quarter revenues of $1.42 million
• Operating profits of $0.35 million and net profits of $0.3 million constituting 24% and 21% of net revenues, respectively

Elbit Vision Systems Ltd.  (OTCBB: EVSNF.OB), a global provider of vision technology for automatic surface inspection and in-line quality monitoring systems, today announced its consolidated financial results for the three month period ending June 30, 2011.

Second Quarter 2011 Results:

Revenues for the Second quarter of 2011 were $1.42 million, representing an increase of 122% compared to $0.64 million for the Second quarter of 2010.

Gross profit on a US GAAP basis was $0.92 million, representing 65% of revenues, compared with a gross profit of $0.2 million for the second quarter of 2010.

Operating profit on a US GAAP basis was $347 thousand compared with an operating loss of $259 thousand in the second quarter of 2010 from continued operation.

Net profit on a US GAAP basis for the second quarter of 2011 was $302 thousand, compared to a net loss of $479 thousand in the second quarter of 2010 from continued operation.

Sam Cohen, CEO of EVS, commented, "As we expected, these historic second quarter results show the fourth consecutive profitable quarter for EVS. These results, more than the previous three, are truly significant because it ended the one year anniversary of the new EVS management team with an accumulated EBITDA of $1.35 million after years of devastating losses.  Furthermore, we are very encouraged by the early interest in the launch of our new products in the coming months, which we believe, together with our marketing efforts, will enable us to expand into previously unreachable markets.  This is further evidence that EVS's best years are ahead of us!" concluded Mr. Cohen.

About Elbit Vision Systems Ltd. (EVS): http://www.evs.co.il

EVS offers a broad portfolio of automatic State-of-the-Art Visual Inspection Systems for both in-line and off-line applications, and process monitoring systems used to improve product quality, safety, and increase production efficiency.  EVS' systems are used by over 650 customers, many of which are leading global companies.

This press release and other releases are available on http://www.evs.co.il

Safe Harbor Statement

This press release contains forward-looking statements. Such statements are subject to certain risks and uncertainties, such as market acceptance of new products and our ability to execute production on orders, which could cause actual results to differ materially from those in the statements included in this press release. Although EVS believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved. EVS disclaims any intention or obligation to update or revise any forward-looking statements, which speak only as of the date hereof, whether as a result of new information, future events or otherwise.  EVS undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances.

Use of Non-GAAP financial measures

EVS uses EBITDA as a non-GAAP financial performance measurement. EBITDA is calculated by adding back to net income interest, taxes, depreciation, amortization. EBITDA is provided to investors to complement results provided in accordance with GAAP, as management believes the measure helps illustrate underlying operating trends in the Company's business and uses the measure to establish internal budgets and goals, manage the business and evaluate performance. EBITDA should not be considered in isolation or as a substitute for comparable measures calculated and presented in accordance with GAAP.

                          ELBIT VISION SYSTEMS LTD.
                     CONDENSED CONSOLIDATED BALANCE SHEET
                               AT JUNE 30, 2011
                               IN U.S. DOLLARS

                                       Jun-30          Dec-31
                                 2011          2010     2010

                                  U.S. dollars in thousands
                                   (except per share data)
    Assets

    CURRENT ASSETS:
    Cash and cash equivalents    677           174       547
    Restricted deposit            32            27        32
    Accounts receivable:
    Trade                        634           334       237
    Other                         86            95        70
    Inventories                  420           452       475
    Total current assets       1,849         1,082     1,361

    LONG-TERM RECEIVABLES:
    Severance pay fund           173           170       144
    Other long-term
    receivables                  219            47       271
    Total long-term receivables  392           217       415

    PROPERTY, PLANT
    AND EQUIPMENT - net of
    accumulated depreciation
    and amortization              52            50        50
    OTHER ASSETS -
    net of accumulated
    amortization:
    Goodwill                     242           242       242
    Other intangible assets        -           383         -
                                 242           625       242
    Total assets               2,535         1,974     2,068

                                                     Jun-30          Dec-31
                                                 2011       2010       2010

                                                 U.S. dollars in thousands
                                                  (except per share data)
    Liabilities and shareholders' equity

    CURRENT LIABILITIES:
    Credit from banks & current maturities       190        160        170
    Current Maturities of Loan from
    Shareholder and Other                        296         85        270
    Accounts payable:
    Trade                                        526        641        564
    Deferred revenues                            277        380        201
    Other                                        464      1,467        383
    Total current liabilities                  1,753      2,733      1,588

    LONG-TERM LIABILITIES:
    Long Terms Loans From Banks
    (Net of current maturities)                1,116      1,294      1,227
    Loans and other liabilities
    (net of current maturities)                  556        766        681
    Loan from shareholder
    (net of current maturities)                  123        127        139
    Other Long Terms liabilities               1,017          -      1,043
    Accrued severance pay                        230        218        199
    Total long-term liabilities                3,042      2,405      3,289
    Total liabilities                          4,795      5,138      4,877

    SHAREHOLDERS' EQUITY                      (2,260)    (3,164)    (2,809)

    Total liabilities and shareholders'
    equity                                     2,535      1,974      2,068

                                  ELBIT VISION SYSTEMS LTD.
                       CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                   FOR THE SIX AND THREE-MONTHS PERIOD ENDED JUNE 30, 2011
                                       IN U.S. DOLLARS

                                                                  year
                              6 months ended    3 months ended   ended
                                                                December
                                   Jun-30           Jun-30         31,
                                2011    2010     2011     2010    2010

                                      U.S. dollars in thousands
                                       (except per share data)

    REVENUES                   2,677   1,120    1,423      641   3,912

    COST OF REVENUES             899     860      498      438   1,960
    GROSS PROFIT               1,778     260      925      203   1,952

    RESEARCH AND DEVELOPMENT
    EXPENSES - net               314     247      160       87     494
    SELLING, GENERAL AND
    ADMINISTRATIVE EXPENSES:
    Marketing and selling        524     381      248      188     921
    General and administrative   332     479      170      187     802

    OPERATING PROFIT (LOSS)      608    (847)     347     (259)   (265)

    FINANCIAL EXPENSES - net     (74)    (93)     (45)     (19)   (291)
    OTHER (EXPENSES) INCOME -
    net                           (2)    (76)       -     (201)   (307)
    LOSS BEFORE TAXES ON
    INCOME                       532  (1,016)     302     (479)   (863)

    TAXES ON INCOME                -       -        -        -       -
    PROFIT (LOSS) FOR THE
    PERIOD                       532  (1,016)     302     (479)   (863)

    LOSS FROM OPERATION OF
    DISCONTINUED COMPONENTS        -  (1,946)       -     (360) (1,946)

    NET PROFIT FROM DISPOSAL
    OF DISCONTINUED OPERATION      -   5,354        -    5,354   5,436

    NET INCOME                   532   2,392      302    4,515   2,627

    PROFIT PER SHARE BASIC     0.008   0.034    0.004    0.065   0.038
    PROFIT PER SHARE DILUTED   0.008   0.034    0.004    0.065   0.038
    WEIGHTED AVERAGE NUMBER
    OF SHARES USED IN
    COMPUTATION OF PROFIT PER
    SHARE:
    BASIC (IN THOUSANDS)      69,653  69,653   69,653   69,653  69,653
    DILUTED (IN THOUSANDS)    70,561  69,653   70,737   69,653  69,741

Company Contact Information:
Yaron Menashe, CFO
Tel: +972-4-6107609  
[email protected]   

SOURCE Elbit Vision Systems Ltd