Elbit Medical Imaging Ltd. Reports Third Quarter Results for 1998.HAIFA Haifa (hī`fä), city (1994 pop. 246,700), NW Israel, a port on the Mediterranean Sea, at the foot of Mt. Carmel. Haifa is the chief city of N Israel and the country's principal oil refining center. , Israel--(BUSINESS WIRE)--Nov. 9, 1998--ELBIT MEDICAL IMAGING LTD LTD 1 Laron-type dwarfism 2 Leukotriene D 3 Long-term depression, see there 4. Long-term disability . (Nasdaq: EMITF EMITF European Microsoft Information Technology Forum ) today announced results for the third quarter ended September September: see month. 31, 1998. Revenues from continuous operations for the quarter ended September 30, 1998 were $64.6 million, compared with $77.3 million for the third quarter last year. Net income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the third quarter of 1998 was $0.2 million or $0.01 per share, compared to same quarter last year of net income of $0.02 or $0.01 per share. The results from the continuing operations in the third quarter reflect the activities of Elscint Ltd. and Elbit Medical Services Ltd., and the company itself. These reported financial results no longer include the discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: ultrasound ultrasound or sonography, in medicine, technique that uses sound waves to study and treat hard-to-reach body areas. In scanning with ultrasound, high-frequency sound waves are transmitted to the area of interest and the returning echoes recorded operations, which were sold on March 31, 1998 to General Electric Medical Systems (GEMS). Average number of weighted shares outstanding as of September 30, 1998 and September 30, 1997 were 21,540,000 and 21,436,000 respectively. Revenues from continuing operations for the nine months ended September 30, 1998 were $231.3 million compared with $229 million during the same period last year. Net income from continuing operations for the first nine months of 1998 was $3.3 million, or $0.15 per share, compared with $1.0 million, or $0.05 per share, during the same period last year. The reported financial results for the first nine months of 1998, and the comparative figures for the same period in 1997, no longer include the discontinued ultrasound operations which were sold at the end of the first quarter of 1998. Average number of weighted shares outstanding for the six months ended September 30, 1998 and September 30, 1997 were 21,492,000 and 21,407,000 respectively. As announced on September 11, 1998, EMI (ElectroMagnetic Interference) An electrical disturbance in a system due to natural phenomena, low-frequency waves from electromechanical devices or high-frequency waves (RFI) from chips and other electronic devices. Allowable limits are governed by the FCC. informed that its subsidiary Elscint Ltd. had agreed in principle to sell its CT Division to Picker International for the sum of $275 million. Simultaneously si·mul·ta·ne·ous adj. 1. Happening, existing, or done at the same time. See Synonyms at contemporary. 2. Mathematics , EMI announced that Elscint Ltd. had also agreed in principle to sell its nuclear medicine and magnetic resonance magnetic resonance, in physics and chemistry, phenomenon produced by simultaneously applying a steady magnetic field and electromagnetic radiation (usually radio waves) to a sample of atoms and then adjusting the frequency of the radiation and the strength of the medical imaging business for $100 million to General Electric Medical Systems (GEMS) for $100 million. Both of the above deals are subject to certain adjustments and before taxes, 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). and other reorganization The process of carrying out, through agreements and legal proceedings, a business plan for winding up the affairs of, or foreclosing a mortgage upon, the property of a corporation that has become insolvent. costs. As previously announced, Elscint Ltd. is expected to sign the final agreements during the month of November November: see month. 1998, pending various governmental approvals. At the present time the company cannot estimate the net gain resulting from these transactions. During the third quarter the company recorded decreases in sales and 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. from its subsidiary Elscint Ltd. The two transactions' activities and the uncertainty of Elscint's customers regarding future plans of both Picker and GEMS for the acquired divisions, resulted in a decrease in sales and delay in receiving new orders for the next quarter. Forward looking statements with respect to the Company's business, financial condition and results of operations, in this release are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward looking statements, including, but not limited to, product demand, pricing, market acceptance, changing economic conditions, risks in product and technology development, the effect of the Company's accounting policies as well as certain other risk factors which are detailed from time to time in the Company's SEC filings. -0-
Elbit Medical Imaging Ltd.
Summary Statements of Income
(U.S. $ in millions, except per share information)
Three Months Nine Months
Ended Ended
30 September 30 September
1998 1997 1998 1997
(Unaudited) (Unaudited)
Revenues :
Elscint 63.0 75.1 226.2 222.6
Elbit Medical Systems 1.6 2.2 5.1 6.4
Total revenues 64.6 77.3 231.3 229.0
Gross Profit:
Elscint 14.6 23.9 63.6 78.5
Elbit Medical Systems 0.8 1.3 2.1 3.6
Total Gross Profit 15.4 25.2 65.7 82.1
Research and development 3.4 3.6 9.0 13.3
Selling general and 21.4 20.0 64.0 62.4
administrative
Net income from continuing (9.4) 1.6 (7.3) 6.4
Operations
Gain from disposal - - 101.2 -
Income (loss) from
discontinued operations - 0.5 (10.0) 2.3
Net Income 0.2 0.7 94.5 3.3
Net Income per share 0.01 0.03 4.4 0.16
Weighted average number of
shares outstanding 21,540 21,433 21,492 21,407
Elbit Medical Imaging Ltd.
Summary Balance Sheet
(U.S. $ in thousands)
30 September 31 December
1998 1997
(Unaudited) (Audited)
ASSETS
Current Assets 489.6 408.4
Investments & Long Term 64.4 86.1
Receivables
Property, Plant & Equipment, Net 30.3 40.4
Other Assets, net 2.2 5.0
______ _____
Total Current Assets 586.5 540.4
_____ _____
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities 209.7 239.7
Long Term Liabilities 23.3 32.1
Minority Interests 85.8 84.4
Shareholders' Equity 267.7 184.2
_____ _____
Total Liabilities & 586.5 540.4
Shareholders' Equity _____ ______
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