B.V.R. Technologies Ltd. reports results for the first quarter ended March 31, 1997.TEL AVIV Tel Aviv (tĕl əvēv`), city (1994 pop. 355,200), W central Israel, on the Mediterranean Sea. Oficially named Tel Aviv–Jaffa, it is Israel's commercial, financial, communications, and cultural center and the core of its largest , Israel--(BUSINESS WIRE)--May 26, 1997--B.V.R. Technologies Ltd. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :BVRTF) Monday reported the results of its operations for the first quarter of 1997. (All dollar amounts are approximate.) Total consolidated sales for the three months ended March 31, 1997 amounted to US $7,067 thousands compared to US $4,775 thousands for the first three months of 1996, an increase of 48%. Total consolidated sales for the year ended Dec. 31, 1996, amounted to US $20,277 thousands. Revenues from long-term contracts are charged to income using the percentage-of-completion method percentage-of-completion method A method of recognizing revenues and costs from a long-term project in relation to the percentage completed during the course of the project. . This method creates significant changes in periodic rate of sales. Backlog of orders, as of March 31, 1997, amounted to US $55,103 thousands to be supplied through 2000. Backlog of orders, as of the date of this release, amounted to US $69,603 thousands. (See subsequent events) Gross consolidated profit for the three months ended March 31, 1997 amounted to US $1,272 thousands, representing 18% of sales, compared to US $1,883 thousands, representing 39% of consolidated sales for the first three months of 1996. Gross profit for the whole of 1996 amounted to US $6,807 thousands, representing 34% of consolidated sales. The net consolidated loss for the first three months of 1997 amounted to US $1,075 thousands, compared to a net consolidated income of US $954 thousands for the first three months of 1996. The net consolidated loss for the year ended Dec. 31, 1996 amounted to US $329 thousands. The loss for 1996 includes a capital gain of US $1,761 thousands (US $ 250 thousands of it was recorded in the first quarter (restated) following a change in Israeli GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). . Restated table follows). BVR's results, excluding subsidiaries, show continued growth in sales and profits. Sales, (excluding subsidiaries), for the first three months of 1997 amounted to US $7,052 thousands, compared to US $4,237 thousands for the first three months of the last year (an increase of 66%). Sales, (excluding subsidiaries), for the year ended Dec. 31, 1996, were US $18,652 thousands. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. , excluding subsidiaries, for the first three months of 1997 amounted to US $60 thousands, compared an operation loss of US$ 543 thousands for the first three months of 1996. Operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. , excluding subsidiaries, for the year ended Dec. 31, 1996 amounted to US $646 thousands. During the fourth quarter of 1996 the company implemented an efficiency plan for increasing revenues and cutting expenses. The efficiency plan included restructuring the company (other than its operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. ) into two major divisions: the Simulators Division and the Rangeless ACMI ACMI Aircraft, Crew, Maintenance and Insurance (wet lease) ACMI Art & Creative Materials Institute ACMI Air Combat Maneuvering Instrumentation ACMI American College of Medical Informatics ACMI Australian Center for the Moving Image and Debriefing de·brief·ing n. 1. The act or process of debriefing or of being debriefed. 2. The information imparted during the process of being debriefed. Noun 1. Systems Division. The company believes that this reorganization will positively effect future financial performance. On March 17, 1997, B.V.R. was awarded a contract for the supply of a large scale, leading edge technology standard simulation system for a foreign customer army. This award includes development and supply of a simulation "farm" including multiple networked simulation stations capable of serving interchangeable in·ter·change·a·ble adj. That can be interchanged: interchangeable items of clothing; interchangeable automotive parts. in vehicle type "capsules." The value of the contract is US $40 million, with options for US$ 11 million additional purchases. Deliveries will commence in two years, with system final deliveries scheduled in three years' time (first quarter of year 2000). For more information - see subsequent events. Affiliate - Nexus Telecommunication Ltd. Nexus is engaged in the development, manufacture and marketing of low energy wireless communications wireless communications System using radio-frequency, infrared, microwave, or other types of electromagnetic or acoustic waves in place of wires, cables, or fibre optics to transmit signals or data. and location systems through application of digital spread spectrum technologies. As of March 31, 1997, BVR BVR Beyond Visual Range BVR Business Valuation Review (journal) BVR Biliverdin Reductase BVR Bureau of Vocational Rehabilitation BVR Bulletin de Versement (French) holds 31% of the outstanding shares of Nexus. B.V.R's share in the losses of Nexus, for the three months ended March 31, 1997 amounted to US$ 373 thousands compared to US$ 342 thousands for the first three months of 1996. The company's share in the losses of Nexus for the year ended Dec. 31, 1996, was $US 1,369 thousands. During 1996, Nexus signed agreements with foreign companies, with respect to the distribution of its Nexus Two-Way Paging and Location systems. The total value of its current contracts exceeds US $20 million. These contracts will be delivered through 1998. One of these agreements is subject to governmental approval in the foreign country. On March 10, 1997 Nexus signed an agreement to deploy the Nexus Two-Way Paging System for a large telecommunication operator in South East Asia East Asia A region of Asia coextensive with the Far East. East Asian adj. & n. . The initial contract for infrastructure and commissioning is valued at approximately US $2.0 million. On March 24, 1997 Nexus entered into a Letter of Intent to form a strategic alliance with Global Wireless Communications, L.P. ("GWC GWC George Wythe College (Cedar City, Utah) GWC Great Wall of China GWC George Watson's College (Edinburgh, Scotland) GWC George Washington Carver ") of New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. pursuant to which GWC will purchase, for a total purchase price of $4.5 million, Warrants exercisable into three million Ordinary Shares of Nexus at a price of $5.35 per share, with the initial purchase price of the warrant being credited to the exercise price per share. The exercise period is five years. GWC through its affiliates, will initiate commercial ventures for the distribution of Nexus products and services in a number of emerging country markets. In addition GWC will invest US $5.0 million or more, in such ventures. Completion of the agreement is subject to completion of customary due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. , and execution of definitive documentation in 30 days. EVR EVR Enhanced Vapor Recovery EVR Electronic Video Recording EVR Equine Viral Rhinopneumonitis EVR Extravehicular Robotics EVR Expanded Virtual Register EVR Exudative Vitreoretinopathy, Familial, Autosomal Dominant EVR Eläinten Vapautus Rintama , NETGAME and RT-SET The results for the period also take into consideration the results of a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Entertainment Application of Virtual Reality (1994) Ltd. ("EVR"). EVR, through Real-Time Synthesized syn·the·sized adj. 1. Relating to or being an instrument whose sound is modified or augmented by a synthesizer. 2. Relating to or being compositions or a composition performed on synthesizers or synthesized instruments. Entertainment Technology Ltd. ("RT-SET") and NetGame Ltd. ("NetGame"), develops businesses in the entertainment industry, utilizing various new applications of BVR's proprietary simulation software Simulation software is based on the process of imitating a real phenomenon with a set of mathematical formulas. It is, essentially, a program that allows the user to observe an operation through simulation without actually running the program. . As of March 31, 1997, EVR holds 60% of the outstanding shares of NetGame, and 58% of the outstanding shares of RT-SET. NetGame is developing software and hardware to deliver high-speed access to the Internet over cable television networks. NetGame has installed trial systems operating over cable networks at several countries as the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Ireland and the Netherlands. NetGame received a license from the Israeli Ministry of Communications to test its products in Israel and tests have begun with Tevel and Matav. NetGame is also developing a software system for multi-user games over networks that enables thousands of participants to simultaneously play hundreds of multi-user video games See video game console. against each other in real time. The participants may play over their PC's, Macintosh or game console See video game console. over cable television and fast telephony networks. RT-SET is developing virtual movie technology that will enable the integration of live studio filming with a virtual background. Initial sales commenced in 1996. B.V.R's. share in the losses of EVR, for the three months ended March 31, 1997 amounted to US $854 thousands compared to US $448 thousands for the first three months of 1996. The company's share in the losses of EVR for the year ended Dec. 31, 1996 was US $1,142 thousands. SUBSEQUENT EVENTS On May 18, 1997, B.V.R. entered into a contract with a country which is a member of the NATO NATO: see North Atlantic Treaty Organization. NATO in full North Atlantic Treaty Organization International military alliance created to defend western Europe against a possible Soviet invasion. community, for the supply of a full scale simulator (1) Software that enables the execution of an application written for a different computer environment. Same as emulator. (2) Software that models the interactions of hypothetical or real-world objects or business processes. for F-16 aircraft. The contract price is US $14.5 million and delivery of the system is expected in 1998. The F-16 Aircraft constitutes a major part of today's Air Forces, creating a big potential market for such a product. The simulator to be delivered combines advanced technologies and will train pilots in diversified diversified (di·verˑ·s missions including emergency situations. The system has 360 degree field of view displays and is based on innovative and proprietary software developed by B.V.R. For this Contract, the company competed in an open tender against leading companies from the United States and France. WORKING CAPITAL and BACKLOG On March 31, 1997, the Company had working capital amounting to US $3,022 thousands compared to US $2,456 thousands on March 31, 1996. On Dec. 31, 1996, the company had working capital amounting to US $4,530 thousands. Backlog of orders as of March 31, 1997, amounted to US $55,103 thousands to be supplied through 2000. Backlog of orders, as of the date of this release, amounted to US $69,603 thousands (see subsequent events). The revised backlog excludes US $25,166 thousands which is still under negotiations with the customer. The negotiations may result in the production work being performed on the customer's premises. Thus, due to the company's conservative approach, this amount has been excluded from the current backlog. B.V.R. Technologies Ltd. is engaged in the development, manufacture, and marketing of advanced training and simulation systems for land, sea and air military applications. Nexus is engaged in the development, manufacture, and marketing of low-energy wireless communications and location systems through applications of digital spread spectrum technologies. EVR is engaged in developing businesses in the entertainment industry, which will utilize civilian applications of the technologies developed by BVR for military use.
B.V.R. TECHNOLOGIES LTD.
SELECTED FINANCIAL DATA
Statement of Income Data:
Three months ended Year ended
March 31 December 31,
1997 1996 1996
(US$ in thousands) (US$ in thousands)
Consolidated Consolidated
Unaudited
Sales 7,067 100% 4,775 100% 20,277 100%
Gross profit 1,272 18% 1,883 39% 6,807 34%
Operating loss (797) (11%) (991) (21%) (4,001) (20%)
Income (loss)
for the period (1,075) (15%) 954(a) 20% (329) (2%)
Income (loss)
per share (in
US$) (0.18) 0.16 (0.06)
Weighted average
number of shares
outstanding
(in thousands) 5,926 6,080 5,908
(a) First quarter of 1996 was restated to include capital gains of
US $250 thousands which have been recorded following a change in
Israeli GAAP.
(b) First quarter of 1996 includes a capital gain of US$ 1,761
thousands from a decrease in shareholdings in Nexus.
Statement of Income Data:
Figures for the company only (excluding subidiaries):
Three months ended March 31 Year ended December 31,
1997 1996 1996
(US$ in thousands) (US$ in thousands)
Unaudited
Sales 7,052 100% 4,237 100% 18,652 100%
Gross Profit 1,316 19% 1,375 32% 5,957 32%
Operating income
(loss) 60 1% (543) (13%) (646) (3%)
CONSOLIDATED BALANCE SHEET DATA:
March 31 December 31
1997 1996 1996
(US$ in thousands) (US$ in thousands)
Unaudited
Total assets 24,166 21,051 28,304
Working capital 3,022 2,456 4,530
Shareholders' equity 4,920 7,208 5,999
(a) First quarter of 1996 was restated to include capital gains of
US$ 250 thousands which have been recorded following a change in
Israeli GAAP.
CONTACT: Yaron Sheinman, Chairman of the Board, B.V.R. Technologies Ltd., Tel TEL Telephone TEL Telegram TEL Telugu (langauge) TEL Terrorist Exclusion List TEL Technology-Enhanced Learning TEL Transporter-Erector-Launcher TEL Tetra-Ethyl Lead TEL Team Deutsche Telekom : 972-3-571-5671 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion