Elron Reports 2000 Third Quarter Earnings of $19.9 Million and Nine Months Earnings of $40.1 Million.Business Editors/High-Tech Writers 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. 8, 2000 Elron Electronic Industries Ltd. (Nasdaq:ELRNF), a leading multinational high technology holding company, announced today year 2000 third quarter net income of approximately $19.9 million, or $0.94 per share. In the third quarter of 1999 the Company's net income amounted to approximately $0.9 million, or $0.04 per share. In the first nine months of 2000 net income amounted to approximately $40.1 million or $1.90 per share. In the first nine months of 1999 net income amounted to approximately $22 million or $1.04 per share. In the third quarter of 2000, 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 $0.9 million. In the same period of 1999 Elron's share amounted to a loss, net, of approximately $0.9 million. A gain of approximately $16.3 in the third quarter of 2000 resulted from Elron's share in the net income of Elbit Ltd. (Nasdaq:ELBTF), which completed, in the third quarter, the sale of its subsidiary HyNEX Ltd. to Cisco Systems “Cisco” redirects here. For other uses, see Cisco (disambiguation). Cisco System,Inc. (NASDAQ: CSCO, HKSE: 4333 ) is an American multinational corporation with 54,000 employees and annual revenue of US $28.48 billion as of 2006. Inc. ("Cisco") (Nasdaq:CSCO CSCO Cisco Systems Incorporated (stock symbol) CSCO Chief Supply Chain Officer ). Elbit recorded in the third quarter of 2000 a gain after tax of approximately $47 million from the completion of this transaction. Elbit's capital gain is based on Cisco's share price as of September September: see month. 30, 2000. As most of the consideration was in Cisco's shares, which have not been registered yet, the shares are subject to stock price fluctuations. Elron's share in Elbit Systems Elbit Systems Ltd. NASDAQ: ESLT is one of Israel's largest defense electronics manufacturers and integrators. Established in 1967, and based in Haifa, Israel, Elbit has over 8,000 employees. Ltd. (Nasdaq:ELSTF) net losses in the third quarter of 2000 amounted to approximately $10.9 million. Elbit Systems Ltd.'s losses in the third quarter are due to the cost allocated as a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charge to purchased-in-process research and development in the amount of approximately $40 million and a one-time expense of approximately $22.1 million in respect of 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). costs. In the third quarter of 2000 Elron had a gain of approximately $26.1 million from change in holdings in affiliated companies as compared to approximately $0.6 million in the same period of 1999. A gain of approximately $19 million was derived from change in holdings in Elbit Systems Ltd. resulting from the completion of the merger with El Op. A gain of approximately $4.5 million was derived from the completion of a private placement made by Elron Software Inc. in the USA. In the third quarter of 2000 the operating losses 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. of Elron Software Inc. and Elron Telesoft Inc. amounted to approximately $6.8 million as compared to a gain of approximately $0.8 million in the third quarter of 1999. In the first nine months of 2000 operating losses of Elron Software and Elron Telesoft amounted to approximately $12.5 million as compared to a gain of approximately $0.8 million in the same period of 1999. The increase in operating losses results mainly from Elron Telesoft and are primarily due to the reorganization of Elron Telesoft and the new focus on becoming a product oriented o·ri·ent n. 1. Orient The countries of Asia, especially of eastern Asia. 2. a. The luster characteristic of a pearl of high quality. b. A pearl having exceptional luster. 3. company. In addition, both companies had higher sales and marketing and product development expenses. On October October: see month. 30, 2000 Elron's shareholders meeting authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: Elron to adopt the US GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). as its accounting principles. As a result, the financial statements for the three and nine months periods ended September 30, 2000 are presented in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with US GAAP. The financial statements of the Company for previous periods were presented in accordance with Israeli GAAP. The comparative figures have been presented using US GAAP in order to allow for a meaningful comparison of the results of the Company for different periods. The Company's Board of Directors declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a third quarter dividend of $0.06 per share. The dividend will be paid on November November: see month. 27, 2000 to shareholders of record at the close of business on November 13, 2000. 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 currently estimated to be 21%. Ami Ami (ā`mī), in the Bible, servant of Solomon whose descendants came out of exile. An alternative spelling is Amon. (Alternate Mark I Erel, Chairman and Chief Executive Officer of the Company said, "Our third quarter results reflect the conclusion of two major events in the Elron Group, the completion of the merger between Elbit Systems Ltd. and El Op and the sale of HyNEX by Elbit Ltd. to Cisco. In addition, the completion of the private placement by Elron Software represents a significant phase in its prospective growth." 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 advanced defense electronics, communication, semiconductors, networking, software and information technology. 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.
Elron Electronic Industries Ltd.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(U.S. Dollars in Thousands except per share amounts)
Nine Months Ended Three Months Ended
Sep 30, Sep 30,
2000 1999 2000 1999
------- ------- ------- -------
(Unaudited) (Unaudited)
Income
Sales, net 29,345 29,692 9,875 10,821
Equity in net
earnings (losses)
of affiliated
companies 2,840 (834) 907 (926)
Gain from disposal
of and changes in
holdings in related
companies, net 26,937 31,721 26,133 552
Other income, net 32,108 9,794 360 4,166
Finance income 5,778 4,105 2,227 2,422
------- ------- ------- -------
97,008 74,478 39,502 17,035
Costs and Expenses 51,064 36,875 19,920 17,617
Retirement compensation -- 5,000 -- 5,000
------- ------- ------- -------
51,064 41,875 19,920 17,617
------- ------- ------- -------
Income (loss)
before income taxes 45,944 32,603 19,582 (582)
Income taxes
(tax benefit) 5,812 10,587 (290) (1,526)
------- ------- ------- -------
Income after
income taxes 40,132 22,016 19,872 944
Minority interest 16 -- 16 --
------- ------- ------- -------
Net income 40,148 22,016 19,888 944
======= ======= ======= =======
Earnings per share:
Basic per share data
Basic net income per share 1.90 1.04 0.94 0.04
======= ======= ======= =======
Number of shares
used in computation
(thousands) 21,167 21,103 21,180 21,138
======= ======= ======= =======
Elron Electronic Industries Ltd.
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. Dollars in thousands)
September 30, December 31,
------------ -----------
(Unaudited) (Audited)
2000 1999 1999
------- ------- -------
Current Assets 130,906 168,879 157,273
Investments
-Investments in
affiliated companies 190,281 104,404 259,773
-Other investments 29,169 48,394 63,479
-Long term Deposits
and debentures 14,948 6,800 12,757
------- ------- -------
234,398 159,598 336,009
Fixed Assets, net 7,436 4,645 5,134
Other assets, net 27,007 30,160 29,384
------- ------- -------
399,747 363,282 527,800
======= ======= =======
Current liabilities 56,490 32,779 18,305
Long term liabilities 34,188 48,047 56,187
Minority interest 1,061 -- --
Shareholders' equity 308,008 282,456 453,308
------- ------- -------
399,747 363,282 527,800
======= ======= =======
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion