DGAP-Adhoc: ISRA VISION AG: Moderate decline in revenues in the first half year (-5 percent) - recent increase in order bookings; forecast for 08/09 still in focus

ISRA VISION AG / Half Year Results

29.05.2009 

Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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ISRA VISION AG: 1st Half Year of 2008/2009


Moderate decline in revenues in the first half year (-5 percent) - recent
increase in order bookings; forecast for 08/09 still in focus

* Revenue falls by 5 percent in the first half of the year to 28.4  million
Euros
* Operating cash flow rises by 6.6 million Euros to 7.5 million Euros
* EBT margin 13 percent; EBITDA margin at 24 percent of total output
* Gross margin stable at 58 percent
* Healthy order bookings in May 2009

ISRA VISION AG (ISIN: DE0005488100), one of the world's top five suppliers
of industrial image processing (Machine Vision) and the global market
leader in surface-inspection systems, was able to noticeable outperform the
industry as a whole. While revenues declined precipitously in many sectors
of the German plant construction, mechanical engineering and software
industries during the 1st half of 2009, ISRA's revenues dropped off only
slightly in the 1st six months of financial year 2008/2009 (October 1 to
September 30). Specifically, the ISRA Group's net sales amounted to 28.4
million Euros, a decline of only 5 percent. Despite significant economic
drag factors, the gross margin (total output minus production costs)
remained stable. A number of measures were taken to keep costs down, such
as capacity adjustments, personnel costs and production optimizations.
These resulted in extraordinary charges in the 1st half of the year. EBT
amounted to 4.2 million Euros (PY: 5.3 million Euros). The EBT margin
temporarily narrowed to 13 percent. This is still within the expected
profitability range, however, since Management expects profits to improve
again in the second half of the year thanks to lower interest expense and
efficiency enhancements already made. ISRA's per-share result for the 1st
six months amounted to 0.67 Euros/share (PY: 0.83 Euros/share). During the
same period, cash flow from operating activities rose by 6.6 million Euros
to 7.5 million Euros. The equity capital ratio also improved, from 51
percent at the end of the prior financial year to 56 percent. Given its
current cash assets and available lines of credit adding up to double-digit
millions of Euros, ISRA is solidly financed.

In future, the strongest growth for this BU is expected to come from Asia
and South America. In addition, ISRA plans to secure new local markets,
mainly in Asia and Eastern Europe. A new branch operation has already been
established in India. The Glass business unit's order backlog suggests that
its business continues to improve. Management also expects a sustained
growth impetus from the solar industry. A recently concluded frame
agreement with a leading manufacturer in photovoltaic production lines is
sure to be a source of growth. The Specialty Paper BU, meanwhile, is
experiencing a steady increase in demand. In the Print BU, ISRA is seeing
good results from the newly instituted sales-management system. The General
Industries BU, by contrast, is seeing a marked improvement in order
situation.

The volume of orders received showed signs of renewed vigor in May 2009,
with a value totaling in the high single-digit millions of Euros. This is
expected to show up in the third quarter of the current financial year.
Recent trade fairs in Asia tend to confirm this trend. The company is
presently tendering bids worth several hundred millions of Euros. Given an
order backlog of more than 31 million Euros (PY: 35 million Euros), and
assuming the clear uptrend proves sustainable, Managements expects revenues
of roughly 60 million Euros for financial year 2008/2009 as a whole. In the
process, external expansion will remain a key component of the overall
growth strategy. A number of relevant projects are currently in
development.

Following the successful integration of the Group's various acquisitions in
recent years, efforts to improve profitability are now focused on the
optimization of production. In this context, ISRA has implemented a number
of personnel adjustments and location optimizations that resulted in
extraordinary charges during the 1st half of the year. These measures are
sure to have a favorable impact on future profitability, however. Decreased
interest expense will also help improve the current financial result over
the previous year. Provided the apparent recovery continues, the company
intends to stick to its original profitability target for the ISRA Group:
an EBT margin stabilized at or close to 15 percent (PY: 15 percent) over
the short term, and increasing from there over the medium term.

In the coming years, ISRA intends to continue its strategy of long-term,
profitable growth. In the wake of the current crisis, key investment
projects have been postponed in practically all industries. If past
experience is any guide, however, most of these projects will be revived in
the next few years.
DGAP 29.05.2009 
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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, Stuttgart, München, Hamburg, Düsseldorf
 
End of News                                     DGAP News-Service
 
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