ISRA VISION AG / Preliminary Results 17.12.2007 Release of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- ISRA VISION AG: Preliminary Annual Financial Statement for the 2006/2007 Fiscal Year Turnover and profit forecasts from end of August 2007 greatly exceeded profitable growth continued Turnover up 8 percent to more than 50 million Euros EBT-sales margin 12 percent Net return on sales 10 percent 50 percent increase in the EBT to around ten million Euros is expected in the current year (2007/2008) Growth in turnover of significantly more than 40% to a minimum of 75 million Euros is expected by 2008/2009 Darmstadt, Germany, December 17, 2007 ISRA VISION AG (ISIN DE 0005488100), one of the international leaders in the field of industrial image processing (Machine Vision), has continued its dynamic growth trend with the acquisition of its Aachen competitor Parsytec in the elapsed 2006/2007 fiscal year. The groups net sales according to preliminary calculations have grown by eight percent to 51.3 million Euros. The board of directors revised forecast from the end of August has thus been far exceeded. Considerable investments in the companys further expansion have prevented the profits from increasing for the first time in ten years. The net profit for the period reached 5.1 million Euros (previous year: 6.3 million), which corresponds to a net return on sales (net profit for the period to turnover) of ten percent (previous year: 13 percent). Following the complete integration of Parsytec into the ISRA group, the board of directors is expecting a return to their former profit level. In the current fiscal year, the EBT is supposed to increase by 50% to around ten million Euros, with a growth in turnover of about 30% to significantly more than 65 million Euros. The integration of Parsytec is progressing on schedule. The synergy fields have been identified and all measures to exploit this potential have been set in motion and are already showing their first results. With an expanded range of products and an increased sales force, ISRA now wants to tie in with the organic growth of past years. In the fiscal year 2006/2007 (October 1 to September 30) the preliminary net sales of the group have grown, thanks to the acquisition of Parsytec (the Parsytec figures for the period from July 23 to September 30 have been included in the ISRA group), by eight percent to 51.3 million Euros, and the total operating revenue (turnover plus capitalized developments) has grown by 10 percent to 58.6 million Euros. The production costs have increased somewhat more than the total operating revenue, growing by 13 percent to 24.9 million Euros. The gross profit thus increased by seven percent to 33.7 million euros. The gross profit margin (gross profit to total operating revenue) remained almost steady at 58 percent (previous year: 59 percent). The target is to increase the gross profit margin to 60 percent in the next two years. A second half of the year that was weaker at ISRA than planned at the beginning of the fiscal year, extensive investments in future growth and increased expenditures because of the acquisition of Parsytec have all effected the result. The ISRA group thus achieved an EBT (earnings before taxes) of 6.3 million Euros (previous year: 10.0 million). The EBT margin (EBT to total operating revenue) reached 11 percent (previous year: 19 percent). For the current fiscal year, the board of directors is expecting an EBT margin improved by 15%. Next year, the company should once again regain its previous earning potential with a 19 percent EBT margin. In the 2006/2007 business year, ISRA has already benefited from the tax reform that will take effect in Germany next year in 2008. According to the international accounting standard IFRS, the deferred tax liabilities have dropped that had been collected in previous years. This has improved the net result. After third party investments ISRA achieved a 5.1 million Euro net profit for the period (previous year: 6.3 million). This corresponds to a result of 1.18 Euro per share (previous year: 1.51). The operational cash-flow reached 6.7 million euros (previous year: 7.7 million). At the next meeting of the supervisory board a dividend of 0.15 Euros per share will be discussed. In the Surface Vision sector, ISRA has strengthened its leasing global market position. In its largest business division, the total operating revenue has increased to 42.5 million Euros. The EBT reached 3.9 million euros (previous year: 7.3 million euros). The Industrial Automation sector has also continued to grow. The divisions total operating revenue climbed by eleven percent to 16.1 million euros. The EBT reached 2.2 million euros (previous year: 2.4 million euros). With a current order book of more than 29 million Euros, ISRA will be continuing its long-time growth trend at an accelerated rate. In the 2007/2008 business year, which began on October 1, 2007, ISRA is expecting a turnover growth of around 30 percent to significantly more than 65 million Euros. Its profitability will improve effectively in comparison to 2006/2007. The management is expecting an increase in the EBT by around 50 percent to approximately ten million Euros. This corresponds to an EBT margin of a good 15 percent (EBT to total operating revenue). In the coming 2008/2009 business year, they are counting on two-digit percentage organic growth. The profitability of previous years should then be achieved once again with an EBT margin of 19 percent. DGAP 17.12.2007 --------------------------------------------------------------------------- Language: English Issuer: ISRA VISION AG Industriestr. 14 64297 Darmstadt Deutschland Phone: +49 (0)6151 9 48-0 Fax: +49 (0)6151 9 48-140 E-mail: investor@isravision.com Internet: www.isravision.com ISIN: DE0005488100 WKN: 548810 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Hannover, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------
DGAP-Adhoc: ISRA VISION AG: Turnover and profit forecasts from end of August 2007 greatly exceeded - profitable growth continued
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