Scitex Announces Second Quarter 2004 Results Scitex Vision achieves
record quarterly revenues in excess of $30 million TEL AVIV,
Israel, August 3 /PRNewswire-FirstCall/ -- Scitex Corporation Ltd.
(NASDAQ:SCIX)(TASE:SCIX) today announced its unaudited financial
results for the second quarter ended June 30, 2004. Results of
Operations For the second quarter of 2004, Scitex's revenues were
$30.8 million, an increase of 25.2% from $24.6 million in the
second quarter of 2003. Operating income was $0.2 million compared
to an operating loss of $2.2 million in the second quarter of 2003.
Net loss for the second quarter of 2004 was $1.2 million compared
to a net loss of $4.8 million in the second quarter of 2003. Raanan
Cohen, Interim President and CEO of Scitex, commented: "I am
pleased with the performance of our principal operating subsidiary,
Scitex Vision, achieving a sixth consecutive quarter of revenue
growth, with record revenue of over $30 million, net income of $1.2
million and positive cash flow. During the quarter, Scitex Vision
strengthened its leadership in the wide and super-wide format
graphic arts markets, and its diversified product offering and
advanced technologies attracted substantial attention and business
at the May 2004 DRUPA trade fair in Germany. I congratulate
management and employees of Scitex Vision for the impressive
results." Balance Sheet Scitex's cash, cash equivalents and
short-term investments at the end of the second quarter of 2004, on
a consolidated basis, were $234.0 million (excluding a restricted
deposit of $18.1 million). This amount gives effect to the
approximately $28 million repurchase of shares by Scitex in the
self tender offer that was completed in June 2004; however the
approximately $90.0 million cash distribution being effected in the
third quarter of 2004 is not reflected in said item. Scitex's cash,
cash equivalents and short-term investments balance is expected to
be approximately $135 million, excluding $10 million retained in
custodial accounts in connection with the transaction to sell the
business of SDP to Eastman Kodak Company that was completed in
January 2004, and after giving effect mainly to the approximately
$90 million cash distribution and to the estimated remaining tax
payments relating to U.S. federal income tax audit of Scitex's U.S.
subsidiaries for the years 1992 through 1996. Trade receivables at
the end of the second quarter of 2004 increased to $36.8 million
from $36.0 million at the end of 2003, and inventory increased to
$27.1 million from $22.6 million, both primarily as a result of the
increase in revenues and business activities. Scitex Vision The
second quarter of 2004 continues the solid quarter-to-quarter
revenue growth demonstrated by Scitex Vision since the beginning of
2003. During the quarter, Scitex Vision's sales of its various
product lines were characterized by continuing demand for the XLjet
and Grandjet super wide-format digital presses and sales of several
wide-format Turbojet presses that were introduced in late 2003.
Solid growth in ink sales reflecting stable Scitex Vision market
share and increasing consumption by its customers also contributed
to the increase in revenues compared to the previous quarters.
Scitex Vision's revenues for the second quarter of 2004 were $30.8
million, an increase of 25.2% from $24.6 million in the
corresponding quarter of 2003 and an increase of 5.5% from $29.2
million in the first quarter of 2004. Scitex Vision had operating
income of $2.0 million in the second quarter of 2004, compared to
an operating loss of $1.2 million in the second quarter of 2003,
and operating income of $2.6 million in the first quarter of 2004.
Scitex Vision had net income of $1.2 million in the second quarter
of 2004, compared to a net loss of $2.9 million in the second
quarter of 2003, and net income of $2.1 million in the first
quarter of 2004. The decrease in operating and net income compared
to the prior quarter is mainly attributable to the expenses
relating to three major international trade shows in which Scitex
Vision participated during the second quarter. Scitex Vision's
geographic distribution of business this quarter was led by Europe,
contributing 46% of revenues, followed by the Americas with 32% of
revenues, and the rest of the world (primarily the Far East) with
22% of revenues. Conference Call Scitex will be holding a
conference call to discuss its second quarter 2004 results on
Wednesday, August 4, 2004 at 10:00 a.m. EST (7:00 a.m. Pacific
time, 3:00 p.m. London, 5:00 p.m. Israel). All interested parties
will have the opportunity to listen to a live simultaneous Webcast
of the conference call by connecting online through
http://www.scitex.com/. A replay of the conference call will be
available shortly after the call during the seven days following
the conference call (until midnight August 11, 2004) at the
following numbers: US: 1 800 475-6701 Intl: 1 320 365-3844 Access
code: 739941 Scitex Corporation Ltd. Scitex Corporation Ltd's
shares trade on Nasdaq and The Tel Aviv Stock Exchange under the
symbol "SCIX". For more information, please visit our Web site at
http://www.scitex.com/. Forward Looking Statements Except for the
historical information herein, the matters discussed in this news
release include forward-looking statements within the meaning of
the "safe harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995. Forward-looking statements that are
based on various assumptions (some of which are beyond the
Company's control) may be identified by the use of forward-looking
terminology, such as "may", "can be", "will", "expects",
"anticipates", "intends", "believes", "projects", "potential", "are
optimistic", "view" and similar words and phrases. Actual results
could differ materially from those set forth in forward-looking
statements due to a variety of factors, including, but not limited
to, (1) risks in product and technology development, (2) market
acceptance of new products and continuing product demand, (3) the
impact of competitive products and pricing, (4) changes in domestic
and foreign economic and market conditions, (5) timely development
and release of new products by strategic suppliers, (6) the impact
of the Company's accounting policies, (7) risks relating to the
integration of new businesses, (8) uncertainty of outcome of
shareholder litigation, and (9) the other risk factors detailed in
the Company's most recent annual report and other filings with the
US Securities and Exchange Commission. Except as may be required by
law, the Company does not undertake, and specifically disclaims,
any obligation to publicly release the results of any revisions
which may be made to any forward-looking statements to reflect the
occurrence of anticipated or unanticipated events or circumstances
after the date of such forward-looking statements. Scitex and the
Scitex logo are registered trademarks and registered service marks
of Scitex Corporation Ltd. Contacts Scitex Corporation Ltd. Yahel
Shachar Chief Financial Officer Tel: +972-3-607-5855 Fax:
+972-3-607-5884 E-mail: SCITEX CORPORATION LTD. (AN ISRAELI
CORPORATION) AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF
INCOME (U.S. Dollars in thousands, except per share data) Quarter
ended June, 30 2004 2003 (Unaudited) (Unaudited) Revenues Sales $
18,886 $ 13,583 Service and supplies 11,910 11,042 Total revenues
30,796 24,625 Cost of revenues Cost of sales 11,029 8,032 Cost of
service and supplies 6,260 7,127 Total cost of revenues 17,289
15,159 * Gross profit 13,507 9,466 Expenses Sales and marketing
5,431 4,549 * General & administrative 4,065 3,312 Research and
development, net 2,326 2,396 Amortization of intangible assets
1,523 1,370 Operating income (loss) 162 (2,161) Financial expense -
net (233) (1,389) Other expenses - net (489) (3,293) Loss before
taxes on income (560) (6,843) Taxes on income (124) (380) (684)
(7,223) Share in losses of associated companies (250) (1,056)
Minority interest in losses (income) of a subsidiary (224) 735 Net
loss from continuing operations (1,158) (7,544) Net income (loss)
from discontinued operation (78) 2,704 Net loss ($ 1,236) ($ 4,840)
Loss per share - basic and diluted: continuing operations ($ 0.03)
($ 0.17) discontinued operation ($ 0.002) $ 0.06 Weighted average
number of shares outstanding (in thousands) basic and diluted:
42,193 43,018 * Reclassified CONSOLIDATED BALANCE SHEETS (U.S.
Dollars in thousands) June 30 December 31 2004 2003 (Unaudited)
(Audited) Assets Current assets: Cash and cash equivalents $
178,550 $ 52,861 Short-term investments 55,437 8,235 Restricted
deposits 18,050 18,262 Total cash and short-term investments
252,037 79,358 Trade receivables - net 36,843 36,002 Other
receivables 10,832 6,990 * Inventories 27,087 22,575 Current assets
of discontinued operation 0 161,602 326,799 306,527 Investments and
other non-current assets 14,174 6,781 Property plant and equipment
- net 9,231 9,204 Goodwill and other intangible assets - net 23,615
23,499 Non-Current assets of discontinued operation 0 48,897 $
373,819 $ 394,908 *Reclassified Liabilities and Shareholders'
Equity Current liabilities: Short term debt and current maturities
$ 36,199 $ 47,953 Trade payables 18,461 14,505 Taxes on income, net
of advances 18,660 29,517 Accrued and other liabilities 27,008
22,672 * Cash distribution payable to shareholders 89,837 Current
liabilities related to discontinued operation 6,968 31,935 197,133
146,582 Long-term liabilities: Loans from banks 5,926 6,623 Loans
from other 4,256 3,623 Liability for employee rights upon
retirement 3,550 3,022 Long-term liabilities related to
discontinued operation 0 5,431 13,732 18,699 Loans from related
parties, convertible into subsidiary's shares 1,472 756 Minority
interest 4,955 4,173 217,292 170,210 Shareholders' equity: Share
capital 6,205 6,205 Capital surplus 278,267 368,104 Accumulated
other comprehensive income (loss) 154 (552) Accumulated deficit
(95,799) (144,852) Treasury shares, at cost (32,300) (4,207)
156,527 224,698 $ 373,819 $ 394,908 *Reclassified Scitex Vision
Ltd. US Dollar in Thousands Three months ended June, 30 2004 2003
Unaudited Unaudited Revenues Equipment 18,886 13,583 Service and
Consumables 11,910 11,042 Total Revenues 30,796 24,625 Gross Profit
13,507 9,466 * Expenses: S,G&A 8,700 7,196 * Research and
Development 1,891 2,396 Amortization of Intangibles 932 1,083
11,523 10,675 Operating (Loss) Income 1,984 (1,209) Financial
expenses (651) (1,385) Other Income (expenses) (39) 41 Tax on
Income (102) (380) Net Income (Loss) 1,192 (2,933) * Reclassified
DATASOURCE: Scitex Corporation Ltd CONTACT: Contacts: Scitex
Corporation Ltd. Yahel Shachar, Chief Financial Officer, Tel:
+972-3-607-5855 Fax: +972-3-607-5884 E-mail:
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