BVR Technologies Ltd. reports results for the second quarter of 1995.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)--Sept. 21, 1995--BVR 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 its results of operations for the six months ended June 30, 1995. (All dollar amounts are approximate). Total sales for the six months ended June 30, 1995, amounted to $5,255,000, compared to $6,452,000 for the first six months of 1994. Gross profit for the above period amounted to $660,000, representing 13% of sales, compared to $1,014,000 representing 16% of sales, for the first six months of 1994. Gross profit decreased in the first half of 1995 as a result of the increase in the costs of sales and reduced selling prices which were offered in order to penetrate new markets. The company expects these factors to continue to influence the financial results of BVR BVR Beyond Visual Range BVR Business Valuation Review (journal) BVR Biliverdin Reductase BVR Bureau of Vocational Rehabilitation BVR Bulletin de Versement (French) through at least the end of 1995. The company had an 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 period of $2,921,000, compared to an operating loss of $1,015,000 in the corresponding period in 1994. The increase in operating loss resulted from an increase in research and development expenses related to the completion of certain projects and further expenses related to the preparation of the company's production line for its main product (the EHUD System), for which the company hopes to receive orders over the coming 12 months. Increases in marketing expenses (which include the company's participation in the recent Paris Airshow), general and administrative expenses and the consolidation of E.V.R. Entertainment Application of Virtual Reality (1994) Ltd. (see below), also contributed to the quarter's operating loss. The net loss for the first six months of 1995 amounted to $3,829,000, compared to net income of $110,000 for the first six months of 1994. Net income for the first six months of 1994 included other income from the public offering of Nexus during June 1994 of $2,064,000. AFFILIATE In computing computing - computer the loss for the period, the company's share in the losses of Nexus Telecommunication telecommunication Communication between parties at a distance from one another. Modern telecommunication systems—capable of transmitting telephone, fax, data, radio, or television signals—can transmit large volumes of information over long distances. Systems Ltd. ("Nexus") (an affiliated company, in which the company had a 33.59% interest in the second quarter of 1995), totaling $1,102,000, was taken into account (compared to a loss of $905,000 for the six months ended June 30, 1994). In July 1995, Nexus consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. a sale of 21.5 units, each unit consisting of $100,000 principal amount of convertible debentures Convertible Debenture Any type of debenture that can be converted into some other security. Notes: For example, a convertible bond can be converted into stock. due July 2000 and 25,000 Series C Warrants. The aggregate amount raised on this placement was $2,150,000. The conversion price of the debentures is $3.50, and they are convertible at the option of the holder through July 2000. The warrants are exercisable through July 2000 at an exercise price of $3.50 per share. The company purchased 20 units in this placement. The participation of the company in this transaction and the issuance of a company guarantee in an amount of up to $1 million to secure commercial indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. to be undertaken by Nexus was approved by the shareholders of BVR and Nexus in July 1995. BVR's share of the investment was financed by a bank loan. 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 & RT-SET The results for the period also take into consideration the financial results of E.V.R. Entertainment Application of Virtual Reality (1994) Ltd. ("E.V.R."). E.V.R. develops businesses in the entertainment industry, utilizing various new applications of B.V.R.'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. . B.V.R.'s holding in E.V.R. is 87.5%. Since its formation, E.V.R. has invested in two companies, Netgame Ltd., of which EVR holds 60% of the outstanding shares and RT SET, 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"), of which E.V.R. holds 96% of the outstanding shares (see below). Netgame is developing hardware and software which will facilitate various interactive applications over the cable network. Netgame recently received a certificate from the Israeli Ministry of Communication to operate its systems in Israel. During the first quarter of 1995, Netgame commenced site testing for its system under development with Cable Vision, one the largest Multiple Systems Operators (MSO (1) (Multiple System Operator) Typically refers to a cable TV organization that owns more than one cable system, but it may refer to an operator of only one system. ) in 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. . Netgame is also currently negotiating a potential cooperation agreements with several major US MSOs. RT-SET is developing virtual movie technology which will enable the integration of live studio filming with a virtual background. RT-SET is planning to move its activities shortly 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. Development of the main product is still in process. As a result of the above, B.V.R. Technologies included $462,000 in losses for the first six months of 1995 (compared to a loss of $169,000 that was included in the first six months of 1994), primarily due to research and development cost increases and G&A expenses. On June 22, 1995, E.V.R. acquired an additional 48% of the shares of RT-SET held by a third party. As a result of this transaction, E.V.R. currently holds 96% of the outstanding shares of RT-SET. The company included a non-cash loss of $308,000 (after excluding the minority share) in the second quarter reports because of the increase in holdings of E.V.R. in RT-SET. Commencing the third quarter of 1995, the company will participate in 100% of the financing of EVR (using Company loans). This will result in an agreed upon Adj. 1. agreed upon - constituted or contracted by stipulation or agreement; "stipulatory obligations" stipulatory noncontroversial, uncontroversial - not likely to arouse controversy dilution Dilution A reduction in earnings per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities. Notes: Adding to the number of shares outstanding reduces the value of holdings of existing shareholders. of the minority shareholders interest in EVR. WORKING CAPITAL AND BACKLOG At June 30, 1995, BVR had working capital amounting to $5,049,000 compared to $9,436,000 at June 30, 1994. Backlog at June 30, 1995 totaled approximately $35,070,000, to be supplied through 1996. Recently, the company was awarded a contract from a foreign government for the supply, within twelve months, of its main product, the EHUD System for an aggregate purchase price of $8,000,000. The foreign government has an option to purchase enhancements to the EHUD System as well as additional EHUD Systems for an aggregate amount of up to $70,000,000. The company was also awarded a contract for the supply, within eighteen months, of a UAV UAV Unmanned Aerial Vehicle UAV Unmanned Air Vehicle UAV Unmanned Aerospace Vehicle UAV Unmanned Airborne Vehicle UAV Uninhabited Air Vehicle UAV Urban Assault Vehicle UAV Unpiloted Aerial Vehicle (less common) (Unmanned Aerial Vehicle A powered, aerial vehicle that does not carry a human operator, uses aerodynamic forces to provide vehicle lift, can fly autonomously or be piloted remotely, can be expendable or recoverable, and can carry a lethal or nonlethal payload. ) 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. System to a foreign government for an aggregate purchase price of $4,000,000. The aggregate purchase price for these new orders of approximately $12,000,000 increases the company's backlog to approximately $47 million (this includes $8 million for the simulation system and $39 million for the EHUD), to be supplied through the beginning of 1997. BVR Technologies Ltd. is engaged in the development, manufacture, and marketing of advanced training and simulation systems for the aircraft and other industries. Nexus is engaged in the development, manufacture and marketing of low-energy wireless communications wireless communications System using radio-frequency, infrared, microwave, or other types of electromagnetic or acoustic waves in place of wires, cables, or fibre optics to transmit signals or data. and location systems through applications of digital spread spectrum technologies. E.V.R. is engaged in developing businesses in the entertainment industry, which will utilize applications of simulation software. -0-
B.V.R. TECHNOLOGIES LTD.
SELECTED FINANCIAL DATA Statement of Income Data:
Six months ended Three months ended Year ended
June 30, June 30, Dec. 31,
1995 1994 1995 1994 1994
(US$ in thousands) (US$ in thousands) (US$ in thousands)
unaudited unaudited audited
Sales 5,255 6,452 3,118 2,498 16,779 Gross profit 660 1,014 116 154 2,494 Operating loss (2,921) (1,015) (1,891) (970) (2,132) Net income (loss) for the period (3,829) 110 (2,227) 847 (1,948) Earnings (loss) per share (0.73) 0.02 (0.43) 0.14 (0.37) Weighted average number of shares outstanding (in thousands) 5,237 5,854 5,238 5,854 5,278 Balance Sheet Data:
June 30, Dec. 31,
1995 1994 1994
(US$ in thousands) (US$ in thousands)
unaudited audited
Total assets 21,764 26,512 24,189 Working capital 5,049 9,436 7,760 Shareholders' equity 9,001 14,885 12,829 -0- CONTACT: BVR Technologies Ltd. Yaron Sheinman, 011-972-3-571-5671 |
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