Elron Electronic Industries Announces Second Quarter 2006 Results.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 Israel, in the Bible Israel (ĭz`rēəl, ĭz`rāəl) [as understood by Hebrews,=he strives with God], according to the book of Genesis, name given to Jacob as eponymous ancestor of the Hebrews, the chosen people of God. -- In the Conference Call Details, there is a change to the phone number. In Israel: 03 918 0600 (sted In Israel: 03 918 0610). The corrected release reads: ELRON ELECTRONIC INDUSTRIES ANNOUNCES SECOND QUARTER 2006 RESULTS Elron Electronic Industries 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 :ELRN) today reported a net loss for the second quarter and for the first half of 2006 of $6.4 million, or $0.22 per share, and $9.9 million, or $0.34 per share, respectively. In the first quarter and first half of 2005, Elron reported net income of $47.2 million, or $1.60 per share, and $42.1 million, or $1.43 per share, respectively. Elron's net loss in the second quarter and the first half of 2006 resulted from Elron's share in the net losses of its group companies, amounting to $7.0 million and $12.0 million, respectively, and from the absence of gains from sales of shares of group companies in both periods. The net income Elron reported in the second quarter and first half of 2005 was mainly due to gains resulting from sale of shares of group companies, which were partially offset by losses, net, which Elron recorded with respect to its group companies in the amount of $7.4 million and $12.2 million in the second quarter and first half of 2005, respectively. Liquidity and Shareholders Equity As of June June: see month. 30, 2006, Elron's cash, debentures and deposits amounted to approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $113.8 million compared with $133.8 million at December December: see month. 31, 2005. During the first half of 2006, Elron invested approximately $21.1 million in new and existing group companies. 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. at June 30, 2006, was approximately $291.4 million, representing approximately 87% of the total assets compared with $302.1 million representing approximately 85% of the total assets at December 31, 2005. "During the second quarter, we continued to invest in and build our group companies. NetVision's advanced negotiations to acquire Barak Barak (bā`răk), in the Bible, leader from N Canaan who fought, with Deborah, against Jabin and Sisera. and Globecall, Wavion's product launch and the completion of a $14 million private placement in AMT See vPro. , are examples of recent developments which will result in future value to shareholders" said Doron Doron, or Dorio, as it is said to be written in some manuscripts, is a city mentioned only by Pliny and located in Cilicia Tracheia,[1] Some scholars have equted the city to Darieium or Dorieium in Phrygia mentioned by Stephanus of Byzantium. Birger Birger may refer to
Mr. Birger added, "We and our group companies have operated continuously throughout the recent events which have affected the north of Israel. Currently, the impact on us and our group companies, if any, has not been significant." Investors may access Elron's second quarter financial report and a detailed management report on the company's web site: www.elron.com Conference call details: Monday, August 14, 2006 10:00 a.m. (EST); 17:00 p.m. Israel Dial in numbers: In the US: 1-866 229 7198 In the UK: 0 800 917 5108 In Israel: 03 918 0600 International Participants: +972 3 918 2700 For your convenience, a replay of the call will be available starting two hours after the call ends until Wednesday, August 16, 2006. To access the replay please dial 1-866-276-1485(US), 972-3-925-5942 (Israel) and 0-800-917-4256 (UK). A replay of the call will also be available for ninety days on the company website. Elron Electronic Industries Ltd. is a high technology holding company based in Israel. Through affiliates, Elron is engaged with a group of high technology operating companies operating company A business that engages in transactions with outsiders. in the fields of medical devices, information and communications technology Noun 1. communications technology - the activity of designing and constructing and maintaining communication systems engineering, technology - the practical application of science to commerce or industry , semiconductors and advanced materials Advanced Materials is a leading peer-reviewed materials science journal published every two weeks. Advanced Materials includes Communications, Reviews, and Feature Articles from the cutting edge of materials science, including topics in chemistry, physics, . For further information, visit http://www.elron.com Any statements in this press release that may be considered 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. are subject to risks and uncertainties that could cause actual results to differ materially. Actual results may differ from such forward-looking statements due to the risk factors discussed in periodic reports filed by the Company with the Securities and Exchange Commission, which the Company urges investors to consider. Tables to follow
ELRON ELECTRONIC INDUSTRIES LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
In thousands of U.S. Dollars
June 30, December 31,
2006 2005
------------ ------------
Unaudited
------------
ASSETS
Total current assets $133,857 $155,201
------------ ------------
INVESTMENTS AND LONG-TERM RECEIVABLES
Investments in affiliated companies 97,633 102,780
Investments in other companies and long-
term receivables 82,063 73,931
Deferred taxes 6,374 6,521
Severance pay deposits 2,290 1,971
------------ ------------
Total Investments and long-term Receivables 188,360 185,203
------------ ------------
PROPERTY AND EQUIPMENT, NET 8,043 7,809
------------ ------------
INTANGIBLE ASSETS 5,551 5,560
------------ ------------
Total assets $335,811 $353,773
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Total current liabilities $16,651 $19,044
------------ ------------
LONG-TERM LIABILITIES
Long-term loans from banks and others 3,439 1,477
Accrued severance pay and retirement
obligations 3,179 2,635
Deferred taxes 8,343 9,494
------------ ------------
Total long-term liabilities 14,961 13,606
------------ ------------
MINORITY INTEREST 12,777 19,007
------------ ------------
Total Shareholders' Equity 291,422 302,116
------------ ------------
Total liabilities and shareholders'
equity $335,811 $353,773
============ ============
ELRON ELECTRONIC INDUSTRIES LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
In thousands of U.S. Dollars, except share and per share data
Six months ended Three months ended Year ended
June 30, June 30, December 31,
------------------ ------------------
2006 2005 2006 2005 2005
-------- -------- -------- -------- ------------
Unaudited
--------------------------------------
INCOME
Net revenues $7,138 $6,246 $3,816 $3,261 $12,646
Equity in losses
of affiliated
companies (11,866) (7,827) (8,371) (4,244) (17,522)
Gain (loss)
from disposal
of businesses
and affiliated
companies and
changes in
holdings in
affiliated
companies, net (7) 22,389 (23) 22,399 23,328
Other income, net 3,367 56,533 738 56,255 58,648
Financial income,
net 2,280 4,267 1,196 3,370 5,483
-------- -------- -------- -------- ------------
912 81,608 (2,644) 81,041 82,583
-------- -------- -------- -------- ------------
COSTS AND
EXPENSES 17,788 12,085 9,274 6,520 26,097
-------- -------- -------- -------- ------------
Income (loss)
before taxes on
income (16,876) 69,523 (11,918) 74,521 56,486
Tax benefit
(Taxes on
income) (99) (25,867) 183 (26,034) (10,461)
-------- -------- -------- -------- ------------
Income from
continuing
operations after
taxes on income (16,975) 43,656 (11,735) 48,487 46,025
Minority interest
in losses of
subsidiaries 7,037 645 5,310 451 5,160
-------- -------- -------- -------- ------------
Income from
continuing
operations (9,938) 44,301 (6,425) 48,938 51,185
Loss from
discontinued
operations - (2,214) - (1,738) (3,850)
-------- -------- -------- -------- ------------
Net income (loss) (9,938) 42,087 (6,425) 47,200 47,335
======== ======== ======== ======== ============
Income (loss)
per share:
Basic:
Income (loss)
from continuing
operations (0.34) 1.51 (0.22) 1.66 1.74
Loss from
discontinued
operations - (0.08) - (0.06) (0.13)
-------- -------- -------- -------- ------------
Net income
(loss) (0.34) 1.43 (0.22) 1.60 1.61
======== ======== ======== ======== ============
Diluted:
Income (loss)
from continuing
operations (0.35) 1.49 (0.22) 1.66 1.73
Loss from
discontinued
operations - (0.07) - (0.06) (0.13)
-------- -------- -------- -------- ------------
Net income
(loss) (0.35) 1.42 (0.22) 1.60 1.60
======== ======== ======== ======== ============
Weighted average
number of
ordinary shares
used in
computing basic
net income per
share
(thousands) 29,523 29,415 29,532 29,416 29,437
======== ======== ======== ======== ============
Weighted average
number of
ordinary shares
used in
computing
diluted net
income per share
(thousands) 29,523 29,543 29,532 29,538 29,550
======== ======== ======== ======== ============
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