Eviation Aircraft Ltd. (fka EVTNF)

[midastouch017]

BVR Systems (1998) Ltd. Reports Second Quarter Results for 2007
Thursday August 30, 4:00 pm ET

ROSH HA'AYIN, Israel, August 30 /PRNewswire-FirstCall/ -- BVR Systems (1998) Ltd. (OTCBB: BVRSF.OB - News), a diversified world leader in advanced military training and simulation systems, today announced a net loss of $1.1 million or $0.01 per share for the second quarter of 2007, compared with a net loss of $1.2 million, or $0.01 per share for the second quarter of 2006. Net loss for the first six months of 2007 was $1.1 million or $0.01 per share, compared with a net loss of $1.5 million or $0.01 per share for the first six months of 2006.

Revenues for the second quarter of 2007 were $2.9 million, compared with revenues of $1.5 million for the second quarter of 2006, which amounts to a 93% growth. For the first six months of 2007, BVR's revenues were $7.0 million compared with revenues in the first six months of 2006 of $3.8 million, which amounts to an 84% growth.

Gross profit for the second quarter of 2007 was $0.3 million, compared with a gross loss of $70 thousand for the second quarter of the previous year. For the first six months of 2007, gross profit was $1.8 million compared with a gross profit of $0.6 million for the first six months of 2006, which amounts to a 200% growth.

Operating loss for the second quarter of 2007 was $1.1 million same as for the same period last year. Operating loss for the first six months of 2007 was $1.0 million compared with an operating loss of $1.4 million for the first six months of 2006.

BVR's order backlog at the end of the second quarter of 2007 was approximately $18.9 million compared to an order backlog of $14.4 million for the same period last year, which amounts to a 31% growth.

On August 28, 2007 the Company announced the award of an Air Defence Simulator contract in an amount of US $ 10.1 million.

BVR Systems (1998) Ltd., (OTCBB: BVRSF.OB - News) is a diversified world leader in advanced defense training and simulation systems. For more information, visit the Company's web site at http://www.bvrsystems.com.

Safe Harbor

This press release contains forward-looking statements within the meaning of the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations or beliefs of BVR Systems' management and are subject to a number of factors and uncertainties that could cause actual results or performance of the Company to differ materially from those contemplated in such forward-looking statements. These factors include but are not limited to the fact that the Company has experienced reductions in backlog; the Company has reported operating and/or net losses in the past and may report operating and/or net loses in the future, conditions in Israel affect the Company's operations and may limit its ability to produce and sell its products, changes in technology and market requirements; decline in demand for the Company's products; inability to timely develop and introduce new technologies, products and applications; loss of market share and pressure on pricing resulting from competition. For other factors that could cause BVR Systems' results to vary from expectations, please see the Company's reports filed from time to time with the SEC.


Consolidated Balance Sheet
June 30 December 31
2007 2006 2006
US$ thousands US$ thousands US$ thousands
Unaudited Unaudited Audited

Assets

Current assets

Cash and cash equivalents 1,663 3,385 3,421
Restricted bank deposits 1,185 1,483 967
Trade receivables 3,295 2,268 4,383
Other receivables and
prepaid expenses 358 341 262
Inventories 2,021 2,021 2,021

Total current assets 8,522 9,498 11,054

Other non-current assets 1,074 323 1,155

Fixed assets

Cost 10,658 10,171 10,379
Less - accumulated depreciation 9,695 9,350 9,514

Fixed assets, net 963 821 865

Other assets, net 170 268 219

Total assets 10,729 10,910 13,293


Consolidated Balance Sheet
June 30 December 31
2007 2006 2006
US$ thousands US$ thousands US$ thousands
Unaudited Unaudited Audited

Liabilities and Shareholders'
Equity

Current liabilities

Credit from bank 233 - -
Current maturities of long-term
loans - 517 516
Short term loan 620 120 120
Trade payables 1,625 968 1,487
Excess of advances from
customers over amounts
recognized as revenue 1,193 624 2,952
Other payables and accrued
expenses 2,512 2,055 2,492

Total current liabilities 6,183 4,284 7,567

Long-term liabilities

Long-term payables - 391 154
Liability for employee severance
benefits, net 195 134 166

Total long-term liabilities 195 525 320

Shareholders' equity

Share capital:
Ordinary shares NIS 1.00 par
value 400,000,000 shares
authorized as of June 30, 2007
and December 31, 2006
and 200,000,000 shares
authorized as of June 30, 2006;
116,863,757 shares issued as of
June 30, 2007,
December 31, 2006 and June 30,
2006; and 116,863,757
shares outstanding as at June
30, 2007 and December 31,
2006 and 116,763,757 shares
outstanding as of June 30, 2006 25,861 25,837 25,861
Additional paid-in capital 17,000 16,978 16,992
Accumulated deficit (38,510) (36,714) (37,447)
Total shareholders' equity 4,351 6,101 5,406

Total liabilities and
shareholders' equity 10,729 10,910 13,293


Consolidated Statements of Operations

Six months ended Three months ended Year
June 30 June 30 ended
2007 2006 2007 2006 December
31, 2006
US$ US$ US$ US$ US$
thousands thousands thousands thousands thousands
Unaudited Unaudited Unaudited Unaudited Audited

Revenues:
Sales 6,603 3,603 2,943 1,462 9,827
Royalties and 423 193 - 73 276
commissions

Total revenues 7,026 3,796 2,943 1,535 10,103

Cost of revenues 5,275 3,162 2,613 1,605 7,866

Gross profit (loss) 1,751 634 330 (70) 2,237

Operating expenses:
Research and 525 272 273 196 615
development
Selling and marketing 1,110 702 571 330 1,430
General and 1,165 1,010 560 486 2,155
administrative

Operating loss (1,049) (1,350) (1,074) (1,082) (1,963)

Financial expenses, (14) (65) (12) (39) (185)
net

Loss before income (1,063) (1,415) (1,086) (1,121) (2,148)
taxes

Income tax expense - (75) - (75) (75)

Net loss for the (1,063) (1,490) (1,086) (1,196) (2,223)
period

Loss per share:

Basic and diluted loss
per share (in US$) (0.01) (0.01) (0.01) (0.01) (0.02)

Weighted average
number of
ordinary shares of
nominal
NIS 1.00 par value
outstanding (in
thousands)
used in calculation of
the basic
and diluted loss per 116,864 107,817 116,864 116,731 112,361
share



Contacts:

Ilan Gillies, CEO
BVR Systems (1998) Ltd.
Tel: [phone]

Source: BVR Systems (1998) Ltd.

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