ECI Telecom Announces Record Orders And Earnings For The First Quarter 1997.PETAH TIKVA, Israel--(BUSINESS WIRE)--May 15, 1997--
First Quarter Revenues Increase 22%; Net Income up 23%
Gross Margins Widen Significantly
ECI TELECOM ECI Telecom Ltd NASDAQ: ECIL, is a telecommunication equipment manufacturer based in Petah Tikva, Israel. LTD LTD 1 Laron-type dwarfism 2 Leukotriene D 3 Long-term depression, see there 4. Long-term disability . (NASDAQ/NM Symbol: ECILF), today announced consolidated unaudited results of operations for the first quarter ended March 31, 1997.
Revenues for the first quarter increased by 22% to $160,059,000 compared with $131,559,000 for the comparable period in 1996. Gross profits rose 24% from $63,146,000 to $78,094,000. Operating income Operating Income
The profit realized from a business' own operations.
This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increased by 33% from $23,633,000 to $31,404,000. Net income for the first quarter rose 23% to $29,421,000, or $0.39 per share, compared with $24,016,000 or $0.32 per share, in the corresponding period last year.
The Company recorded growth across all Strategic Business Units except ACCESS. Particularly strong were sales of DCME DCME Digital Circuit Multiplication Equipment
DCME Drake Continuum Map Editor (for online game Continuum) and SDH (Synchronous Digital Hierarchy) The European counterpart to SONET. See SONET.
SDH - Synchronous Digital Hierarchy , which rose by 70% and 74%, respectively, compared with the first quarter of 1996. Telematics demonstrated early signs of turn around.
The ACCESS Business Unit had an 11% decrease in revenues compared with the first quarter of 1996 as a result of the late arrival of several substantial orders, some of which were received and announced late in the quarter.
The trend of gross margin erosion was reversed in the quarter. Gross margins of 48.8% increased by 80 basis points compared with the first quarter of 1996 and 320 basis points compared with the last quarter margins of 45.6%. The improvement is attributable mainly to the product mix and to the effect of DCME and Telematics performance on the sales mix sales mix
See product mix. .
The DCME Business Unit continued its strong growth as the new product families of DTX-360 and Quadcoder were deployed globally.
The SDH Strategic Business Unit introduced the SDM-1 micro miniature multipurpose mul·ti·pur·pose
Designed or used for several purposes: a multipurpose room; multipurpose software.
Adjective 155Mbit/s Mbit/s Megabits/sec add and drop multiplexer See multiplexor and multiplexing.
multiplexer - multiplexor family, SDM-16 (2.5Gbit/s). It has been received enthusiastically.
Telematics SBU SBU St. Bonaventure University (St. Bonaventure, New York)
SBU Stony Brook University (State University of New York)
SBU Southwest Baptist University (Bolivar, MO) sales increased 5% over last year and 17% on a sequential quarter basis. Sales included revenue from all three new product lines; NCX NCX Sodium Calcium Exchanger (cell membrane protein)
NCX Network Connections 1E6-ATM, NCX FRS-800 - Frame Relay A high-speed packet switching protocol used in wide area networks (WANs). Providing a granular service of up to DS3 speed (45 Mbps), it has become popular for LAN to LAN connections across remote distances, and services are offered by most major carriers. and the mass dial up Access platform - "Nevada Nevada (nəvăd`ə, –vä–), far western state of the United States. It is bordered by Utah (E), Arizona (SE), California (SW, W), and Oregon and Idaho (N). ".
Geographical distribution the natural arrangements of animals and plants in particular regions or districts.
See under Distribution.
See also: Distribution Geographic of sales indicates overall stronger sales in the U.S. compared with 1996.
Inventories were $165 million, an $11.8 million decrease compared with the last quarter.
Further to a Board of Directors' decision, an interim quarterly cash dividend of $0.05 per share, to be paid out of 1997 profits, will be distributed on or about June June: see month. 12, 1997. The dividend, net of taxes to be withheld at source and in compliance with Israel's foreign currency law, will be paid to shareholders of record as of the close of business on May 3, 1997.
A provider of integrated network A network that supports both data and voice and/or different networking protocols. See converged network and new public network. solutions, ECI TELECOM designs, develops, manufacturers and markets digital telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. and data transmission systems, enabling network operators to deliver cost-effective cost-effective,
n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. services. ECI ECI Employment Cost Index
ECI Election Commission(er) of India
ECI Enterprise Content Integration
ECI Early Childhood Intervention
ECI Environmental Change Institute TELECOM's systems provide capacity expansion, flexibility and management functions to better utilize existing and new telecommunications, data and integrated networks.
This press release and additional information about the Company, is now available on ECI TELELCOM's site on the World Wide Web: http//www.ecitele.com
Certain statements contained in this release, contain forward-looking for·ward-look·ing
Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan.
Adj. 1. information with respect to plans, projections or future performance of the Company, the occurrence of which involves certain risks and uncertainties, including, but not limited to, product and market acceptance risks, the impact of competitive pricing, product development, commercialization and technological difficulties and other risks detailed in the Company's filings with the Securities and Exchange Commission.
ECI TELECOM LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share figures) (unaudited) Three Months Ended March 31 1997 1996 Revenues $160,059 $131,559 Cost of revenues 81,965 68,413 Gross profit 78,094 63,146 Research and development costs 20,143 17,766 Less - royalty-bearing participations (4,466) (4,439) Net 15,677 13,327 Selling, general and administrative expenses 31,013 26,186 Operating income 31,404 23,633 Financial income - net 670 1,363 Other expenses - net (1,102) (246) Income before taxes on income 30,972 24,750 Taxes on income 1,551 734 Net income 29,421 24,016 Earnings per share Net income per ordinary share $0.39 $0.32 Weighted average number of shares used to compute earnings per share 76,074 76,112 -0- ECI TELECOM LTD. AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS (in thousands of U.S.$) March 31 December 31 1997 1996 (Unaudited) (Audited) Assets Current Assets Cash and cash equivalents $124,800 $128,369 Short-term investments 4,638 1,461 Trade receivables 180,651 184,110 Other receivables and prepaid expenses 21,354 24,419 Inventories 165,162 176,826 Total current assets 496,605 515,185 Investments, long-term bank deposits, and receivables, net 71,737 61,072 Property, plant and equipment - net 106,289 104,992 Software development costs - net 22,283 20,670 Other assets 11,230 7,811 708,144 709,730 Liabilities and Shareholders' Equity Current Liabilities Short-term credit and current maturities of long term debt 1,104 6,021 Trade payables 36,893 47,501 Other payables and accrued liabilities 50,566 63,095 Advances from customers 1,530 1,607 Proposed dividend 3,806 3,800 Total current liabilities 93,899 122,024 Long-term liabilities, net of current maturities 101,070 101,112 Liability for employee severance benefits 1,966 2,088 Shareholders' equity Share capital 5,291 5,287 Capital surplus 139,448 137,545 Net unrealized loss on available sale securities (816) - Retained earnings 374,568 348,956 518,491 491,788 Company stock held by subsidiaries (7,282) (7,282) 511,209 484,506 708,144 709,730 -0-
CONTACT: Doron Inbar Jody Burfening/Jennifer Agatston
ECI Telecom Ltd., Lippert/Heilshorn & Associates Inc.
30 Hasivim Street, 212 838 3777 (ext. 106 or ext. 128)
Petah Tikva 49133 email@example.com
Tel: 972-3-9266585 firstname.lastname@example.org