Elron Reports 1998 First Quarter Results.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)--May 11, 1998--Elron Electronic Industries Ltd. (NASDAQ/ELRNF), a leading multinational high technology holding company, today announced 1998 first quarter net income of approximately $40.7 million, or $2.0 per share. Net income in the first quarter of 1997 amounted to approximately $2.7 million, or $0.13 per share. The results of the first quarter were mainly affected by the completion of the sale of EMI's 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 division to GE Medical Systems. As a result, 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. recorded a net gain of approximately $91.2 million (after 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 the discontinued operation discontinued operation A segment of a business that has been abandoned or sold or for which plans for one or another of these actions have been approved. See also continuing operations. ). Elron's share from the completion of this deal amounted to approximately $36.5 million. Elron's share in the income, net, of affiliated companies Affiliated Companies A situation that occurs when one company owns a minority interest (less than 50%) in another company. Also refers to companies that are related to each other in some way. Notes: An affiliated company is sometimes referred to as a subsidiary. , amounted to approximately $35.8 million. In the first quarter of 1997 Elron had a loss, net, of approximately $0.4 million from its share in affiliated companies. In the first quarter of 1998 the Company had a gain of approximately $1.4 million from change in its holding in affiliated companies, mainly as a result of a private placement completed by Chip Express to Lucent Technologies. In the same period last year the Company had a gain of $29,000. In the first quarter of 1998 the Company's other income amounted to approximately $5.1 million as compared with other income of approximately $3.8 million in the same quarter last year. The major contribution to other income in the first quarters of 1998 and 1997 was the sale of Orbotech shares. Elron's Board of Directors declared a first quarter dividend of $0.20 per share which includes a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. dividend of $0.14 resulting from the one-time dividend that will be received from EMI. The dividend will be paid on July July: see month. 6, 1998 to shareholders of record at the close of business on June June: see month. 22, 1998. The Company will deduct de·duct v. de·duct·ed, de·duct·ing, de·ducts v.tr. 1. To take away (a quantity) from another; subtract. 2. To derive by deduction; deduce. v.intr. income tax at source at a rate currently estimated to be 25%. Uzia Galil, Chairman and Chief Executive Officer of the Company, said: "In the first quarter of the year we completed the acquisition of Elron Software in addition to the progress we made in our strategy to develop the information technology business. During this quarter we were a party to two major important events in our group: the sale of Diasonics Vingmed Ultrasound, which brought us immediate meaningful gain and the Elbit's success through Partner to win the GSM (Global System for Mobile Communications) A digital cellular phone technology based on TDMA that is the predominant system in Europe, but also used worldwide. Developed in the 1980s, GSM was first deployed in seven European countries in 1992. cellular service, opening new opportunities." Elron Electronic Industries Ltd. is a multinational high technology holding company based in 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. . 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 diagnostic imaging, advanced defense electronics, communication, semiconductors, networking, software and information technology. For further information, visit Elron at http://www.elron.com -0- 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.
ELRON ELECTRONIC INDUSTRIES LTD.
CONDENSED STATEMENTS OF INCOME
(US Dollars in Thousands except per share amounts)
Three Months Ended March 31,
Consolidated Company
1998 1997
---- ----
(Unaudited)
Income
Company's share in net income (loss) of affiliated
companies, net $35,833 $(377)
Gain from changes in
holdings in affiliated
companies 1,364 29
Sales, net 4,160 -
Other income, net 5,062 3,824
Interest income, net 319 204
--- ---
46,738 3,680
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Costs and Expenses, net 6,059 1,003
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Net income $40,679 $2,677
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Basic per share data
Basic net income per share $2.00 $0.13
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Weighted average number
of shares outstanding
(thousands) 20,302 20,288
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Diluted per share data
Diluted net income per share $1.95 $0.13
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Weighted average
number of shares (thousands)
20,581 20,473
ELRON ELECTRONIC INDUSTRIES LTD.
CONDENSED BALANCE SHEETS
(US Dollars in Thousands)
March 31,
Consolidated Company
1998 1997
(Unaudited)
Current Assets $31,178 $16,533
--------- ---------
Investments
Related companies 220,554 172,459
Other investments 16,328 14,595
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236,882 187,054
--------- ---------
Fixed Assets, net 1,142 538
--------- ---------
Other assets, net 7,903 -
--------- ---------
$277,105 $204,125
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Current Liabilities $9,072 $3,181
--------- ---------
Long Term Debt 9,000 -
--------- ---------
Shareholders' equity 259,033 200,944
--------- ---------
$277,105 $204,125
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CONTACT: Yung Jin Jin also Chin The name of four Chinese dynasties, including Western Jin (a.d. 265-316), Eastern Jin (317-420), Later Jin (936-946), and Jin (1115-1234). Kim Kim orphan wanders streets of India with lama. [Br. Lit.: Kim] See : Adventurousness - Elron Technologies, Inc. Tel. 212-935-3110 yjk@elron.net or 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 - Elron Electronic Industries Ltd. Tel. 972-4-8545000 doron@elron.net |
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