Valor Computerized Systems Ltd. / Quarter Results 12.11.2008 Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- YAVNE, Israel November 12, 2008 - Valor Computerized Systems Ltd. [Prime Standard: VCR], a global provider of productivity improvement software solutions for the printed circuit board industry, announced today its financial results for the period ending September 30, 2008. Revenues in the first nine months of 2008 were $31.4 Million, similar to the revenues in the first nine months of 2007. Operating income for the first nine months of 2008, not including issuance costs in amount of $1.4 Million and a one-time expense of $0.7 Million related mainly to the retirement of the previous CEO, was $2.8 Million, or 9% of revenues, representing a growth of 46% in operating margin as compared with the first nine months of 2007. Net income for the first nine months of 2008 not including the issuance costs and one-time expense, net of tax, was $2.7 Million, or 8.6% of revenues, representing a growth of 23% in net profit as compared with the first nine months of 2007. Earnings per Share (diluted) in the first nine months of 2008 was $0.06, as compared with $0.10 in the parallel period of the previous year. Revenues in the third quarter of 2008 were $10 Million, a decrease of 5% as compared with $10.6 Million in the third quarter of 2007. In the third quarter of 2008, EBITDA before issuance costs was $1.3 Million, as compared with $1.4M in the third quarter of 2007. Net loss including issuance costs was $0.7 Million in the third quarter of 2008, as compared with a net profit of $0.7 Million in the third quarter of 2007. Summary of Financial Data (in $US thousands, unless otherwise noted):<pre> 1-9/08 1-9/07 % Q3/08 Q3/07 % (Unaudited) (Unaudited) Change (Unaudited) (Unaudited) Change Product Sales 17,637 18,826 (6.3)% 5,242 6,200 (15.5)% Maintenance Income 13,725 12,582 9.1% 4,759 4,356 9.3% Total Revenues 31,363 31,408 (0.1)% 10,001 10,556 (5.3)% Gross Profit 26,735 27,082 (1.3)% 8,510 8,956 (5.0)% Issuance Costs 1,422 - 100% 1,422 - 100% One Time Expense 731 - 100% - - - EBITDA* 2,273 3,457 (34.3)% (158) 1,356 (111.7)% EBIT* 671 1,936 (65.4)% (674) 786 (185.7)% Net Profit* 1,333 2,199 (39.4)% (748) 743 (200.7)% EPS in US$ (diluted) 0.06 0.10 (40.0)% (0.04) 0.03 (233.0)% Shareholders Equity 45,908 43,554 5.4% 45,908 43,554 5.4% Total Assets 57,740 56,537 2.1% 57,740 56,537 2.1% Research & Development 8,572 10,047 (14.7)% 2,750 3,152 (12.8)% Employees (Period End) 256 264 (3.0)% 256 264 (3.0)%</pre> * Including issuance costs, and a one-time expense related mainly to the retirement of the former CEO, totalling $2.2 Million --------------------------------------------------------------------------- Information and Explaination of the Issuer to this News: Some of the following statements are forward-looking in nature, and actual results may differ materially: 'The industry is rapidly catching up with the global economic conditions,' said Dan Hoz, Valors CEO. 'and we are beginning to witness a slowdown in the assembly market in the form of delays in orders from electronics manufacturers, although we have not seen any cancellations. Overall, despite market conditions and negative exchange rate differences, the company still continues to show stability. Our revenues in the design market remain stable, and our operating and net profit margins in the first nine months, not including issuance costs and a one-time expense, represent an increase over 2007 figures.' 'Like many other companies, we are using this time to prepare ourselves for breaking forward once the crisis is behind us - on one hand, strengthening our infrastructure and focusing our portfolio on products that are more mandatory for the industry and are more cost-savings-oriented, and on the other hand, exploring various cost saving measures, whose effect should prove to be even greater once the crisis is over than it would now. In parallel, we continue to seek expansion of our product distribution via profitable channels such as OEM agreements, as well as pursue our M&A-based growth strategy, relying on our strong cash position and financial firmness.' 'Despite market conditions, we have confidence in our long-term growth and profitability and in our ability to come out of this downturn stronger, and we manage our strategic plans accordingly,' Hoz concluded. The complete financial report can be downloaded from the Investor Relations section on the Valor corporate website: www.valor.com About Valor Valor is a global provider of productivity improvement software solutions for the printed circuit board, or PCB, manufacturing supply chain. PCBs are the principal electronic interconnect technology used in the vast majority of electronic products sold today. Valors solutions target three key segments in the PCB manufacturing market: design of the physical layout of the PCB, fabrication of the bare PCB, and assembly of PCB components. Valor is listed on the Prime Standard of the Frankfurt Stock Exchange [WKN 928731]. More information about Valor can be found on www.valor.com. Contact Information Valor Corporate: Alon Erlich, Valor Computerized Systems, Ltd.; IR@Valor.com; Tel: +972-(0)8-943-2430 Risks Regarding Forward Looking Statements Certain statements included herein are forward-looking in nature and, accordingly, are subject to risks and uncertainties. Such forward-looking statements include statements regarding the size and timing of the proposed offering. These forward-looking statements are only predictions based on our current expectations and projections about future events. Many factors, including those indicated in the press release, as well as general market conditions, could impact the realization of these forward-looking statements. Valor wishes to caution prospective investors not to rely on any such forward-looking statements as predictions of future events. Valor does not undertake, and specifically disclaims any obligation, to update any forward-looking statements, which speak only as of the date made. For additional information, see our website at: www.valor.com/fls DGAP 12.11.2008 --------------------------------------------------------------------------- Language: English Issuer: Valor Computerized Systems Ltd. 4 Faran Street 70600 Yavne Israel Phone: +972-(0)3 - 9432430 Fax: +972-(0)3 - 9432429 E-mail: IR@valor.com Internet: www.valor.com ISIN: IL0010845324 WKN: 928731 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Stuttgart, München, Düsseldorf End of News DGAP News-Service ---------------------------------------------------------------------------
DGAP-Adhoc: Valor Announces Q3/2008 and Nine Months Results
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