ESC Reports $6.4 Million of Net Income For Second Quarter; Significant Increase in Operating Margins; Demand for Products Strong.Business Editors, Health/Medical Writers YOKNEAM, Israel--(BUSINESS WIRE)--July 26, 2000 ESC See escape character and escape key. See also ESC/P. ESC - escape Medical Systems 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 :ESCM ESCM eSourcing Capability Model (Carnegie Mellon University) ESCM Enterprise System Connection (IBM) Manager ESCM Electronic Supply Chain Manifest ESCM Environmental Supply Chain Management ) announced that net income for the second quarter ended June 30, 2000 was $6.4 million on revenues of $42.5 million. 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 Other Operating Income stemming from the sale of assets, was $6.3 million, or 15% of revenues. Commenting on ESC's second quarter performance, Dr. Jacob A. Frenkel Jacob Aharon Frenkel, born in 1943, is an Israeli-American economist and businessman. Frenkel studied economics and political science at the Hebrew University of Jerusalem and gained an M.A. and doctorate in economics at the University of Chicago. , Chairman of ESC said, "The dramatic increase in operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: is evidence of ESC's transition from a turnaround situation to a profitable growth business --- this is directly related to the success we've had in executing the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). effort. We expect to see continued growth in demand for ESC's products. This will accelerate the increase in earnings as the Company capitalizes on its significant operating leverage Operating Leverage A measurement of the degree to which a firm or project relies on fixed rather than variable costs. Notes: The higher the degree of operating leverage, the greater the potential danger from forecasting risk. ." Yacha Sutton, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , commented "Demand for our products during the first half of 2000 was stronger than anticipated by our manufacturing plan, creating a backlog." Mr. Sutton continued, "Our management team is staying sharply focused on the business and in identifying and pursuing new opportunities. We are expanding into new markets with our proven technologies to take advantage of new growth opportunities. Just yesterday, we announced the launch of a major new market expansion initiative to commercialize our proprietary Intense Pulsed Light Intense Pulsed Light (IPL), as most commonly employed by non-specialist medical practitioners and beauticians, is a method of hair removal from the body involving the use of a specially constructed xenon flash lamp and focusing optics. (IPL (Initial Program Load) Same as boot. 1. IPL - Information Processing Language. 2. IPL - Internet Public Library. 3. IPL - Initial Program Load. 4. IPL - Initial Program Loader. ) technology and market it as the AcuLight(TM) Photocosmetic Program to beauty salons, cosmeticians, electrologists and other professionals who provide hair removal services. We are continuing to invest in the future through our ongoing R&D effort and through a variety of investments in start-up ventures, including our dental unit." Revenues for the quarter were $42.5 million, operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. was $7.7 million, net income was $6.4 million and basic earnings per share were $0.25 compared to $40.4 million in sales, $22.7 million in 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. , $24.8 million in net loss, and $0.98 basic loss per share for the second quarter of 1999. Excluding Other Operating Income from the sale of assets, a net gain of $0.3 million stemming from unconsolidated affiliates, and an approximate negative contribution of $0.8 million from ESC's start-up dental unit, net income was $5.4 million and basic earnings per share were $0.22.
ESC MEDICAL SYSTEMS LTD.
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(In thousands, except per share data)
For the six months ended For the three months ended
June 30, June 30,
------------------------ --------------------------
2000 1999 2000 1999
------------------------ --------------------------
REVENUES $ 78,543 $ 71,719 $ 42,515 $ 40,427
COST OF SALES 34,154 52,562 17,673 22,472
----------- ----------- ------------ ------------
Gross profit 44,389 19,157 24,842 17,955
----------- ----------- ------------ ------------
OPERATING EXPENSES
Research and
development,
net 5,779 8,886 2,973 4,231
Marketing and
selling 25,786 44,134 13,505 19,721
General and
administrative 4,403 10,117 2,135 6,103
Restructuring
costs - 6,446 - -
Settlement of
litigation - 4,500 - 1,500
Impairment of
intangible and
tangible assets - 6,250 - 6,250
Other - 2,848 - 2,848
----------- ----------- ------------ ------------
Total
operating
expenses 35,968 83,181 18,613 40,653
----------- ----------- ------------ ------------
OTHER OPERATING
INCOME 1,450 - 1,450 -
----------- ----------- ------------ ------------
Operating income
(loss) 9,871 (64,024) 7,679 (22,698)
OTHER INCOME 599 - 599 -
FINANCING EXPENSES,
NET (2,648) (2,860) (1,608) (1,448)
----------- ----------- ------------ ------------
Income (loss)
before income
taxes 7,822 (66,884) 6,670 (24,146)
INCOME TAXES 98 698 - 575
----------- ----------- ------------ ------------
Income (loss)
after income
taxes 7,724 (67,582) 6,670 (24,721)
COMPANY'S SHARE ON
LOSSES OF
AFFILIATES 420 366 318 52
----------- ----------- ------------ ------------
Income (loss)
after income
taxes 7,304 (67,948) 6,352 (24,773)
EXTRAORDINARY GAIN
ON PURCHASE OF
COMPANY'S
CONVERTIBLE NOTES 292 2,483 - -
----------- ----------- ------------ ------------
Net income (loss)
for the
period $ 7,596 $ (65,465) $ 6,352 $ (24,773)
=========== =========== ============ ============
EARNINGS (LOSS)
PER SHARE
Basic:
Income (loss)
before
extraordinary
items $ 0.29 $ (2.66) $ 0.25 $ (0.98)
Extraordinary
gain 0.01 0.10 - -
----------- ----------- ------------ ------------
Net earnings
(loss) per
share $ 0.30 $ (2.56) $ 0.25 $ (0.98)
=========== =========== ============ ============
Diluted:
Income (loss)
before
extraordinary
items $ 0.27 $ (2.66) $ 0.23 $ (0.98)
Extraordinary
gain 0.01 0.10 - -
----------- ----------- ------------ ------------
Net earnings
(loss) per
share $ 0.28 $ (2.56) $ 0.23 $ (0.98)
=========== =========== ============ ============
WEIGHTED AVERAGE
NUMBER OF SHARES
Basic 25,128 25,537 25,183 25,358
=========== =========== ============ ============
Diluted 27,595 25,537 27,802 25,358
=========== =========== ============ ============
Condensed Consolidated Balance Sheets
(in thousands, except share data)
June 30, 2000 December 31,
(Unaudited)
Current Assets 147,963 157,093
Long-Term Investments 7,830 6,445
Fixed Assets 6,838 6,549
Other Assets 5,178 4,820
Total assets $ 167,809 $ 174,907
Current Liabilities 57,849 72,273
Long Term Liabilities 94,189 96,691
Shareholders' Equity 15,771 5,943
Total liabilities and shareholders'
equity $ 167,809 $ 174,907
ESC Medical Systems develops, manufactures and markets medical devices utilizing state-of-the-art proprietary intense pulsed light source and laser technology. Its systems are used in a variety of aesthetic, surgical and medical applications, including the non-invasive treatment of veins and other benign vascular lesions, pigmented pigmented /pig·ment·ed/ (pig-ment´id) colored by deposit of pigment. pig·ment·ed adj. Colored as the result of a deposit of pigment. lesions, hair removal and skin rejuvenation Rejuvenation Aeson in extreme old age, restored to youth by Medea. [Rom. Myth.: LLEI, I: 322] apples of perpetual youth by tasting the golden apples kept by Idhunn, the gods preserved their youth. [Scand. Myth. , as well as ENT ENT ears, nose, and throat (otorhinolaryngology). ENT abbr. ear, nose, and throat ENT ear, nose and throat. ENT Ears, nose & throat; formally, otorhinolaryngology , OB/GYN and neurosurgery neurosurgery /neu·ro·sur·gery/ (noor´o-sur?jer-e) surgery of the nervous system. neu·ro·sur·ger·y n. Surgery on any part of the nervous system. . For more information about the Company, and its products log on to www.escmed.com. The statements in this press release that are not historical facts are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties as well as other risks detailed from time to time in the reports filed by ESC Medical with the SEC, including annual reports on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 1999 and reports on Form 10-Q Form 10-Q See 10-Q. . |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion