Scitex's good Q2 due mainly to Scitex Vision
Subsidiary Scitex Vision posted its tenth consecutive quarter of revenue growth with $37.7 million revenue for the second quarter of 2005.
Globes correspondent 9 Aug 05 18:22
Scitex (Nasdaq: SCIX; TASE: SCIX) today announced financial results for the second quarter ended June 30, 2005.
The net income reported by Scitex for the second quarter of 2005 amounted to $2.8 million compared with a net loss of $1.2 million in the second quarter of 2004.
For the second quarter of 2005, revenue was $37.7 million, an increase of 22% from $30.8 million in the second quarter of 2004.
The company had operating income for the quarter of $1.3 million, compared with operating income of $200,000 for the second quarter of 2004.
Cash, cash equivalents and short-term investments at the end of the second quarter of 2005 were $141 million, compared with $141.5 million at the end of the first quarter of 2005. The 2005 figure excluded restricted deposits of $13.0 million at Scitex Vision and $5 million retained in a custodial account in connection with the sale by Scitex of the operations of Scitex Digital Printing.
Cash, cash equivalents and short-term investments at the end of the second quarter of 2005 held only by Scitex Corporation and its wholly-owned subsidiaries amounted to $136 million (excluding the $5 million retained in a custodial account).
Trade receivables increased to $35.3 million at the end of the second quarter from $32.8 million as of the end of the previous quarter due to increased business activities. However, inventory decreased to $39.3 million from $40.4 million as of the end of the previous quarter.
Subsidiary Scitex Vision's net income was $2.9 million in the second quarter of 2005, compared with $1.2 million in the second quarter of 2004 and $3.7 million in the first quarter of 2005.
Scitex Vision's revenue for the second quarter of 2005 was $37.7 million, an increase of 22% from $30.8 million in the corresponding quarter of 2004 and an increase of 3.0% from $36.6 million in the first quarter of 2005.
Scitex president and CEO Raanan Cohen said, "Scitex Vision continued its high growth rate, achieving a tenth consecutive quarter of revenue growth, with record quarterly revenue, as well as profitability and positive cash flow." This was attributed to continued strong demand for the company's products and strong ink revenues exceeding $13 million.
Scitex Vision's operating income in the second quarter of 2005 was $3.6 million, compared with $2 million in the second quarter of 2004 and $4 million in the first quarter of 2005.
Geographically, Scitex Vision's revenues were relatively balanced in the second quarter, with the Americas contributing 35%, Europe representing 34%, and the rest of the world accounting for 31%.
Cash, cash equivalents and short-term investments of Scitex Vision at the end of the second quarter of 2005 amounted to $18 million (including the $13 million of restricted deposits), bringing the net debt of Scitex Vision to third parties, primarily bank borrowings, to approximately $24.5 million.
In June 2005, Scitex sold all of its holdings in Objet Geometries Ltd. to several other shareholders Objet for $3 million in cash, payable in two installments. Additional contingent consideration will be paid to Scitex should Objet undergo specified milestones prior to the end of 2007. Scitex received $1 million at closing, which was recognized as "other income" in the second quarter.
Published by Globes [online], Israel business news - www.globes.co.il - on Tuesday, August 09, 2005
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