B.V.R. Technologies Ltd. reports results for the third quarter of 1996.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)--November 15, 1996--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) today reported the results of its operations for the nine months ended September 30, 1996. (All dollar amounts are approximate). Total consolidated sales for the nine months ended September 30, 1996 amounted to $13,091,000 compared to $7,374,000 for the first nine months of 1995, an increase of 77.53% (total consolidated sales for the three months ended September 30, 1996, amounted to $4,598,000, compared to $2,119,000 for the three months ended September 30, 1995). Backlog of orders, as of September 30, 1996, amounted to $51,953,000 to be supplied through 1999. Gross consolidated profit for the nine months ended September 30 1996, amounted to $4,940,000, representing 38% of sales, compared to $1,321,000, representing 18% of sales, for the first nine months of 1995. Gross profit for the three months ended September 30, 1996, amounted to $1,800,000, representing 39% of sales, compared to $661,000, representing 31% of sales, for the three months ended September 30, 1995. The Company had a consolidated 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. for the nine months ended September 30, 1996 totalling $3,307,000 compared to $3,849,000 for the first nine months of 1995 (a decrease of 14.08%), Operating loss for the three months ended September 30, 1996, amounted to $825,000, compared to $1,038,000 for the three months ended September 30, 1995. The net consolidated loss for the first nine months of 1996 amounted to $1,698,000 compared to a net loss of $5,068,000 for the first nine months of the last year. The net loss for the three months ended September 30, 1996, amounted to $805,000, compared to $1,239,000 for the three months ended September 30, 1995. The net loss for the period includes the Company's share in the results of two affiliated companies Affiliated Companies A situation that occurs when one company owns a minority interest (less than 50%) in another company. Also refers to companies that are related to each other in some way. Notes: An affiliated company is sometimes referred to as a subsidiary. , Nexus Telecommunication Systems Ltd. ("Nexus"), and ITS Technologies (Pte.) Ltd. ("ITS"). BVR's core business results show continued growth in sales and profits. The company's sales for the nine months ended September 30, 1996 are US$ 11,909 thousands, compared to $ 7,323 thousands for the nine months ended September 30, 1995. The sales for the three months ended September 30, 1996 are $ 4,059 thousand compared to $ 2,179 thousand in the related period in 1995. The Company's core operation loss for the nine months ended September 30, 1996 is $ 708 thousands compared to $ 2,365 thousands in the nine months ended September 30, 1995. The Company's core operation income for the three months ended September 30, 1996 is $ 127 thousands compared to operating loss of $ 318 thousands in the relevant period in 1995. In July 1996, the Company issued US$ 1 million convertible debentures to private investors. The Debentures bear interest of 8% per annum Per annum Yearly. , since the beginning of the second year, and are due on July 27, 2001.The Debentures may be converted within two years into the Company's ordinary shares at a price per share of US$ 6.33. Alternatively, the Debentures may be converted into shares held by BVR BVR Beyond Visual Range BVR Business Valuation Review (journal) BVR Biliverdin Reductase BVR Bureau of Vocational Rehabilitation BVR Bulletin de Versement (French) in RT-SET based upon a pre-money valuation Pre-Money Valuation The value of a company before external financing alternatives are added to its balance sheet. Notes: This is the value many investors will use to determine the security and benefits associated with cash injections into companies requiring financing. of RT-SET of $24 million. Affiliate - Nexus Telecommunication Ltd. Nexus has reached the stage where the research and development phase of the Two Way Paging and Location network is moving nearer to completion and the Company's resources are directed towards commercialization of the system. In this quarter, Nexus delivered the first commercial system to its Australian customers. On July 26, 1996 Nexus announced that it signed an agreement to deploy the Nexus Automatic Vehicle Location See mobile positioning. and Tracking System in Yugoslavia with ACADEMY D.O.O. a Yugoslavian company engaged in security services Security services are state institutions for the provision of intelligence, primarily of a strategic nature, but also including protective security intelligence. Examples include the Security Service (MI5) and the Secret Intelligence Service (MI6) in the United Kingdom, and the . The agreement, in the amount of $7.7 million, increased Nexus's backlog to approximately $20 million. On September 3, 1996 Nexus Telecommunication Systems Ltd announced that it has signed an agreement with Systemas Timetrac C.A., a company registered in Venezuela and owned by local and foreign companies engaged in communication services in Venezuela and other Latin American countries List of American countries Nations:
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 financial results of a wholly awned awn n. A slender, bristlelike appendage found on the spikelets of many grasses. [Middle English awne, from Old Norse ögn or from Old English agen; see ak- subsidiary, EVR. EVR, through Real-Time Synthesized 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. . Since its formation, EVR has invested in the two companies, NetGame, of which EVR holds 60% of the outstanding shares, and RT-SET, of which EVR holds, on September 30 1996, 66% of the outstanding shares (58% as of November 15, 1996- see subsequent event). NetGame is 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 telephone networks. NetGame has systems operating over cable networks at Cablevision, one of the largest MSO's (Multiple System Operator) in the Unites States, with Telecom Eirann of Ireland over cable networks and with Planet Internet Planet Internet is one of the largest internet service providers (ISPs) in the Netherlands. Planet Internet is a brand of the Planet Media Group, which is a subsidiary of KPN. Planet Internet opened office in 1995, offering services such as internet access and content. Holdings, a subsidiary of KPN KPN Koninklijke PTT Nederland (Royal Dutch Telecom) KPN Konfederacja Polski Niepodleglej (Polish conservative party) Multimedia of The Netherlands over ISDN ISDN in full Integrated Services Digital Network Digital telecommunications network that operates over standard copper telephone wires or other media. networks. Negotiations are continuing with a strategic partner, described in the financial statements of December 31, 1995. NetGame is also developing software and hardware to deliver high speed access to the Internet over cable television networks. NetGame received a license from the Israeli Ministry of Communications to test its products in Israel and tests have begun with Tevel and Matav. RT-SET is developing virtual movie technology that will enable the integration of live studio filming with a virtual background. During 1995, RT-SET moved its activities to a major Israeli television studio where RT-SET can begin to produce programs based on the technology developed during the last year by RT-SET. The development of RT- SET's main product has been completed. RT-SET contributed $1,167,000 to the consolidated sales for the reported period. As a result of the above, B.V.R's. share in the losses of EVR, for the nine months ended September 30, 1996, was $2,570,000, compared to $1,484,000 for the first nine months of 1995 (an increase of 73%), $1,098,000 for the three months ended September 30, 1996, and $1,022,000 for the three months ended September 30, 1995. The losses are primarily due to the increase of research and development costs and G&A and marketing expenses relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the operations of EVR's subsidiaries. On May 22, 1996, the Company, RT-SET and Chyron Corporation Chyron Corporation is a Melville, NY based company founded in 1966. The company develops and manufactures on screen graphics solutions for the broadcast industry. In the United States the graphics (e.g. ("Chyron Chyron may refer to:
prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. which RT-SET issued to the investors shares which entitle the investors to 11.7% of the ownership and control rights in RT-SET (without diluting Chyron) for consideration of US$ 2,024,000.In addition, the investors received an option to exchange their shares in RT-SET into approximately up to 190,000 ordinary shares of the Company in accordance with the terms and conditions set in the agreement. The option will expire either in the event of on IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. of RT-SET common stock or on May 21, 1999, whichever is earlier. SUBSEQUENT EVENT In October 1996, the company, RT-Set and its other shareholders signed an agreement with Star Management of Investments (1993) Ltd, and additional purchaser ("Star"), pursuant to which RT-Set will issue to Star 179 class C preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. , nominal value Nominal Value The stated value of an issued security that remains fixed, as opposed to its market value, which fluctuates. Notes: When referring to fixed-income securities, the nominal value is also the face value. NIS Niš or Nish (both: nēsh), city (1991 pop. 175,391), SE Serbia, on the Nišava River. An important railway and industrial center, it has industries that manufacture textiles, electronics, spirits, and locomotives. 1 per share, at an aggregate price of US$ 3,000,000. The shares entitle Star to approximately 11% of the ownership and control rights in RT-Set. The class C preferred shares shall be convertible at the option of the holder at any time into ordinary shares of RT-Set on a one to one basis until an initial public offering of RT-Set's ordinary shares. In addition, Star was granted an option to transfer its investment in RT-Set to the Company for consideration of the Company's shares to be issued to it in accordance with the terms and conditions set in the agreement. The option will expire either in the event of an initial public offering by RT- Set or on October 1999, whichever is earlier. Since the decrease in the Company's shareholding in RT-Set is contingent and due to the possibility that eventually the Company will be the one to invest in RT-Set by way of exchanging shares with Star, the Company will not record any gain as long as the option granted tot he investors, exists. Accordingly, the increase in RT-Set's shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. will be included in the consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge , for the fourth quarter of 1996, as a deferred credit of US$ 2,880 thousand as long as the option exists. If Star will exercise the option, the deferred credit will be recorded as share capital consideration for the Company's shares issued. If Star will not exercise the option, the Company's share in the deferred credit will be recognized as a gain from decrease in shareholding in subsidiary. As a result of the above-mentioned transactions, the Company's shareholding in RT-SET fell to 58%. The Company's statement of Income was not influenced by these transactions. However, an increase in equity in the amount of approximately $ 1,500 thousands and a deferred credit in the amount of approximately $ 2,000 thousands have been recorded. WORKING CAPITAL and BACKLOG On September 30, 1996, the Company had working capital amounting to $870,000 compared to $3,296,000 on September 30, 1995. Backlog on September 30, 1996 totalled approximately $51.953,000 to be supplied through 1999. At present, a material part of the backlog to be supplied is under negotiation with one of the Company's clients, which may result in the production work, currently included in the backlog, being performed on the client's premises. Although this will reduce the backlog, the Company may collect royalties on such production work. B.V.R. Technologies Ltd. is engaged in the development, manufacture, and marketing of advanced training and simulation systems for the aircraft and other industries. Nexus is engaged in the development, manufacture, and marketing of low-energy wireless communications and location systems through applications of digital spread spectrum technologies. EVR is engaged in developing businesses in the entertainment industry, which will utilize civilian applications of the technologies developed by BVR for military use. -0-
B.V.R. TECHNOLOGIES LTD.
SELECTED FINANCIAL DATA
Statement of Income Data:
Nine months ended Three months ended
September 30, September 30,
1996 1995 1996 1995
(US$ in thousands) (US$ in thousands)
Unaudited Unaudited
Consolidated Consolidated
Sales 13,091 100% 7,374 100% 4,598 100% 2,119 100%
Gross profit 4,940 38% 1,321 18% 1,800 39% 661 31%
Operating loss (3,307) (25%) (3,849) (52%) (825) (18%) (1,038) (49%)
Loss for the
period (1,698) (13%) (5,068) (69%) (805) (18%) (1,239) (58%)
Loss per share (0.29) (0.91) (0.14) (0.22)
Weighted average
number of shares
outstanding
(in thousands) 5,901 5,568 5,919 5,568
Figures for the
Company only
(excluding
subsidiaries):
Sales 11,909 100% 7,323 100% 4,059 100% 2,179 100%
Gross profit 4,216 35% 1,270 17% 1,613 40% 704 32%
Operating income
(loss) (708) (6%) (2,365) (32%) 127 3% (318) (15%)
(loss)
Loss for the
period (1,698) (14%) (5,068) (69%) (805) (20%) (1,239) (57%)
Year Ended
December 31,
1995
(US$ in thousands)
Consolidated
Sales 10,469 100%
Gross profit 2,427 23%
Operating loss (5,312) (51%)
Loss for the period (7,082) (68%)
Loss per share (1.21)
Weighted average
number
of shares outstanding
(in thousands) 5,861
Figures for the
Company only
(excluding
subsidiaries):
Sales 10,442 100%
Gross profit 2,400 23%
Operating income
(loss) (3,047) (29%)
Loss for the period (7,082) (68%)
Consolidated Balance
Sheet Data:
September 30 December 31
1996 1995 1995
Unaudited
(US$ in (US$ in
thousands) thousands)
Total assets 26,698 21,647 19,933
Working capital 870 3,296 3,027
Shareholders' equity 6,358 7,762 6,339
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 |
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