SDP sale to Kodak gives Scitex $47m 2004 profit
For the fourth quarter, Scitex made a loss of $2.9 million.
Globes correspondent 3 Mar 05 10:25
Scitex (Nasdaq: SCIX; TASE: SCIX) made a profit of $47.3 million in 2004, primarily attributable to the capital gain derived from the sale of the operations of Scitex Digital Printing (SDP) to Eastman Kodak Company for $250 million (with an additional $12 million in cash retained by SDP after the sale). In 2003, the company made a net profit of $1.4 million.
Revenue for the year was $128.2 million, representing an increase of 25% from $102.9 million in 2003. The operating loss in 2004 was $3.3 million, compared with $12.3 million in 2003. Operating loss and net profit for 2004 were impacted by a charge for impairment of technology of $5.6 million at Scitex Vision, $2.5 million of which was attributed to the minority shareholders of Scitex Vision under accounting principles; consequently, only $3.1 million of this impairment is reflected in Scitex Corporation's net profit and shareholders' equity.
Geographically, Europe contributed 41% of 2004 revenue for Scitex Vision, followed by the Americas with 36% of revenue, and the Far East and rest of the world with 23% of revenue.
For the fourth quarter of 2004, revenue was $35.5 million, representing an increase of 25% from $28.5 million in the fourth quarter of 2003. The company made an operating loss for the quarter of $4.6 million, compared with an operating loss of $3.5 million for the fourth quarter of 2003. The net loss reported by Scitex for the fourth quarter of 2004 amounted to $2.9 million compared with a net profit of $8 million in the fourth quarter of 2003. Operating loss and net loss for 2004 were impacted by the impairment of technology described above.
On a consolidated basis, cash, cash equivalents and short-term investments at the end of 2004 were $142.6 million.
Scitex Vision, Scitex's main activity, reported revenue of $128.2 million for 2004, compared with $102.9 million in 2003, reflecting a 25% increase. Operating profit was $9 million in 2004, compared with an operating loss of $8.3 million in 2003. Scitex Vision had net profit of $4.7 million in 2004, compared with a net loss of $13.6 million in 2003. Operating profit and net profit for 2004 were impacted by impairment of technology of $2.3 million compared with a $3.0 million technology write-down in 2003.
Scitex Vision's revenue for the fourth quarter of 2004 was $35.5 million, representing an increase of 25% from $28.5 million in the corresponding quarter of 2003 and an increase of 9% from $32.7 million in the third quarter of 2004.
Scitex Vision's operating profit in the fourth quarter of 2004 was $0.8 million, compared with an operating loss of $2.4 million in the fourth quarter of 2003, and operating profit of $3.7 million in the third quarter of 2004. Scitex Vision's net loss was $0.8 million in the fourth quarter of 2004, compared with a net loss of $1.7 million in the fourth quarter of 2003, and net profit of $2.3 million in the third quarter of 2004. Operating profit and net profit for the fourth quarter of 2004 were impacted by impairment of technology described above.
Scitex chairman Ami Erel said "Our principal operating subsidiary, Scitex Vision, achieved an eighth consecutive quarter of revenue growth, with record quarterly revenue, operating profitability and positive cash flow. Scitex Vision took advantage of the renewed capital investment flow and increased ink demand with its wide product portfolio, loyal customers, and strong distribution and customer support infrastructure."
Scitex shares closed at $6.90 in New York yesterday, giving the company a market cap of $263 million. On the Tel Aviv Stock Exchange, the stock is currently down 3.25%, at $28.77.
Published by Globes [online], Israel business news - www.globes.co.il - on March 3, 2005
