Scitex Q1 revenue up 25%
First quarter 2005 revenue was $36.6 million. CEO Raanan Cohen: Scitex Vision achieved its ninth consecutive quarter of revenue growth.
Globes correspondent 10 May 05 09:32
Scitex (Nasdaq: SCIX; TASE: SCIX) today announced financial results for the first quarter ended March 31, 2005.
Net income for the first quarter of 2005 was $1.8 million compared to net income of $50.3 million in the first quarter of 2004 (composed of a loss from continuing operations of $1.4 million and net income from discontinued operation of $51.7 million, derived from the sale of the operations of Scitex Digital Printing (SDP) to Eastman Kodak.
For the first quarter of 2005, revenue was $36.6 million, an increase of 25% from $29.2 million in the first quarter of 2004.
The company had operating income for the first quarter of $2.4 million, compared to an operating loss of $500,000 for the first quarter of 2004.
Scitex president and CEO Raanan Cohen said, "I am pleased with the performance of our principal operating subsidiary, Scitex Vision, a proven leader in the wide and super-wide format graphic arts markets, achieving a ninth consecutive quarter of revenue growth, with record revenue of $36.6 million and net income of 10% of revenues. As for the sale of assets by RTI, our minority-owned affiliate, it is consistent with our previously announced plan of exploring and implementing strategic alternatives relating to our holdings, when and to the extent feasible, including dispositions, acquisitions and the like."
On a consolidated basis, cash, cash equivalents and short-term investments at the end of the first quarter of 2005 were $141.5 million. This excluded restricted deposits of $13 million at Scitex Vision, and $5 million retained in a custodial account in connection with the sale of SDP's operations by Scitex Corporation, compared to $142.6 million at the end of 2004.
Cash, cash equivalents and short-term investments at the end of the first quarter of 2005 at Scitex Corporation and its wholly-owned subsidiaries amounted to $135.6 million (excluding the $5 million retained in a custodial account).
During the first quarter, receivables remain stable with $32.8 million at the end of the quarter. However, inventory increased to $40.4 million from $36.7 million as of the end of the previous quarter, due to increased business activities.
Scitex Vision's net profit was $3.7 million in the first quarter of 2005, compared to net profit of $2.1 million in the first quarter of 2004, and a loss of $0.8 million in the fourth quarter of 2004.
Scitex Vision's revenue for the first quarter of 2005 was $36.6 million, an increase of 25% from $29.2 million in the corresponding quarter of 2004 and an increase of 3% from $35.5 million in the fourth quarter of 2004.
Scitex Vision's operating income in the first quarter of 2005 was $4.0 million, compared to operating income of $2.6 million in the first quarter of 2004, and operating income of $0.8 million in the fourth quarter of 2004.
Geographically this quarter, Europe and the Americas each contributed 35% of revenues and the rest of the world accounted for 30% of Scitex Vision's revenues.
Cash, cash equivalents and short-term investments at Scitex Vision at the end of the first quarter of 2005 amounted to $18.6 million (including the $13.0 million of restricted deposits), bringing the net debt of Scitex Vision to third parties, primarily bank borrowings, to approximately $24.5 million.
In late April, IDX Systems Corporation (IDXC) signed a purchase agreement with RealTimeImage Ltd. (RTI), a 14.9% minority-owned affiliate of Scitex Corporation, to acquire the assets of RTI for an estimated purchase price of $15.5 million. RTI was recorded on Scitex's balance sheet at $1.2 million as of March 31, 2005.
Published by Globes [online], Israel business news - www.globes.co.il - on Tuesday, May 10, 2005
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