DGAP-Adhoc: ISRA VISION AG: ISRA continues profitable growth - successful start into financial year 2014/2015


ISRA VISION AG  / Key word(s): Quarter Results

27.02.2015 07:59

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ISRA VISION AG: 1st Quarter 2014/2015 - revenues rise by 9%, EBT by 10%

ISRA continues profitable growth - successful start into financial year
2014/2015

  - Revenue increase of 9% to 23.8 million euros (Q1 13/14: 21.9 million
    euros)

  - EBT growth plus 10% to 4.4 million euros (Q1 13/14: 4.0 million euros)

  - Strong margin level with respect to total output continues:

      - EBITDA margin at 26% (Q1 13/14: 26%)

      - EBIT margin increases to 18% (Q1 13/14: 17%) 

      - EBT margin at 17% (Q1 13/14: 17%)

  - Gross margin at 61% to total output (Q1 13/14: 61%) 

  - Earnings per share (EPS) increase to 0.69 euro (Q1 13/14: 0.64 euro)

  - Operative cash flow improved  

  - High order backlog of significantly more than 65 million euros (PY:
    approx. 55.5 million euros)

  - Continuation of double-digit profitable growth with at least stable
    margins planned

  - Increased focus on efficiency and external growth 

  - Dividend recommendation for financial year 13/14 raised to 0.39 euro
    (PY: 0.35 euro)

ISRA VISION AG (ISIN: DE 0005488100), one of the world's top companies for
industrial image processing (Machine Vision) as well as globally leading in
surface inspection of web materials and 3D machine vision applications,
continues its growth in the first quarter of 2014/2015 after the successful
2013/2014 financial year and reaching the important revenue mark of 100
million euros. The company starts the new financial year with good order
entries. With a revenue plus of 9 percent to 23.8 million euros (Q1 13/14:
21.9 million euros) compared to the same period of the previous year and an
EBT growth of 10 percent to 4.4 million euros (Q1 13/14: 4.0 million
euros), ISRA further pursues its strategy of double-digit profitable
growth. The strong margin level also continues as forecasted. The EBT
margin compared to revenues increases by one percentage point to 19 percent
(FY Q1 13/14: 18%), compared to total output it reaches again 17 percent as
in the previous year. Earnings Before Interest and Taxes (EBIT) increases
slightly stronger with a plus of 11 percent to 4.6 million euros (Q1 13/14:
4.2 million euros) compared to the same period of the previous year. The
EBIT margin compared to total output increases by one percentage point to
18 percent (Q1 13/14: 17%). With an EBITDA (Earnings Before Interest,
Taxes, Depreciation and Amortization) of 6.9 million euros (Q1 13/14: 6.3
million euros), the EBITDA margin amounts to 26 percent to total output (Q1
13/14: 26%). The gross margin (total output minus cost of materials and
labor of production and engineering) shows with 61 percent to total output
a minor increase compared to the previous financial year (FY 13/14: 60%).
Operative cash flow also rose slightly and amounts to 2.0 million euros as
of the reporting date (December 31, 2013: 1.9 million euros), thereby
continuing the positive trend of the previous quarters. Given the increase
in equity ratio by one percentage point to 59 percent (September 30, 2014:
58%) and the available credit lines, the company is equipped with solid
capital resources for future growth. Earnings per share after taxes (EPS)
increase to 0.69 euro (Q1 13/14: 0.64 euro).

The investments in the global expansion of the company, the increase of
market shares in relevant industries and the extension of the international
team at more than 25 locations - actions that were systematically continued
in the 2013/2014 financial year - positively contributed to the business
development in the first quarter of 2014/2015. The order entry dynamics
from America that started in the second half of the 2013/2014 year also
proceeded in the first quarter of the current financial year. As expected,
Asia records a slightly lower dynamics - but also contributes similarly to
the revenues as in the previous year. The demand from Europe is stable -
essential growth impulses are expected in the second half of the year. The
regional diversification of the company and the expansion of the global
presence are important instruments for a continued positive revenue
development.

In the reporting quarter, ISRA grew in both segments - Surface Vision and
Industrial Automation. The Industrial Automation segment is characterized
by a broad customer base mainly from the automotive industry. In addition,
several larger orders are expected in the medium term - the international
sales team will be reinforced for this purpose. In the first three months
of the financial year, revenues climbed by 12 percent to 4.1 million euros
(Q1 13/14: 3.6 million euros). EBIT also increase by 12 percent to 0.8
million euros (Q1 13/14: 0.8 million euros), whereby the EBIT margin rose
by one percentage point to 19 percent referenced to total output compared
to the previous year (Q1 13/14: 18%). For the current year, management also
expects a revenue contribution from the "Plug & Automate" product series
which, after the launch in the German market, have successfully been
installed at some strategic customers.

In the Surface Vision segment, revenues increase to 19.7 million euros in
the first three months of the financial year (Q1 13/14: 18.3 million
euros). The strong annual result of 2013/2014 of 77.4 million euros - an
improvement of 19 percent compared to previous year - continues with an
increase of 8 percent in the first quarter. EBIT rose by 13 percent to 3.8
million euros (Q1 13/14: 3.4 million euros), which corresponds to a margin
of 17 percent to total output (Q1 13/14: 17%). High order entries are
recorded particularly from the Plastics segment. Metal profits from the
innovations recently introduced to the market. The good order situation in
glass industry continued in the new financial year. The business
performance tendency in the solar industry is positive and on a similar
level as in the previous year. In this context, ISRA profits specifically
from the sustained demand for inspection systems from Asia and the
strategically strong market position following the successful integration
of GP Solar. The revenues in the Paper unit are intensively supported by
innovations and investments in the expansion of the global sales team. The
recently introduced product innovations for customers in the printing
industry are accompanied by marketing activities and forced by sales. In
the area of inspection systems for security paper, like banknote paper,
intensive marketing campaigns are being prepared, especially to present the
innovations at upcoming trade fairs.

In the course of the 2014/2015 financial year, the further expansion of the
CSSC (Customer Support and Service Center) will be one of the strategic key
issues with the goal to further expand the share of the service revenues.
The new release of the intelligent yield management software "EPROMI" for
efficiency and productivity increase in production will be launched with
extensive coverage in the second quarter of 2014/2015. At the same time,
the first orders are delivered to Asia. Management expects not only
additional revenue impulses from "EPROMI", but also the extension of unique
selling points in the core business.

Besides the organic, the external growth through acquisitions of suitable
companies is an important part of the long-term strategy to grow
sustainably, diversified across technologies, regions and markets. As
acquisition targets, ISRA defined the access to new markets that can be
assigned directly or indirectly to long-term large future markets, the
expansion of the technological base, as well as the increase of market
shares in existing customer markets. The management again intensified the
acquisition activities following the successful integration of GP Solar.
With the support of external M&A partner, numerous targets are being
approached in parallel. Currently, several possible target companies are at
a partially advanced stage. It is planned to conclude at least one
acquisition project, following a positive evaluation result, in the current
financial year.

In the 2014/2015 financial year, the company will concentrate strategically
as well as operationally on the realization of the next revenue dimensions.
Therefore, ISRA strengthened the focus on efficiency with the appointment
of the internationally experienced manager Andreas Gerecke to the Executive
Board. In his function as Executive Director Group Operations, Gerecke is
also responsible for the further optimization of the production processes -
lean production - as well as the targeted expansion of the infrastructure
for future growth. The further improvement of the production processes will
also contribute significantly to optimizing the working capital and the
cash flow.

Based on the strong order backlog of significantly more than 65 million
euros (PY: approx. 55.5 million euros) in the first quarter, management
plans a profitable revenue increase for the entire 2014/2015 financial year
in the double-digit growth rate - similar to the previous years. In terms
of profit, it is planned to further optimize the margins, at least to hold
the current high levels. The business expectations in the individual
industries and regions show an inconsistent picture.  Despite the political
uncertainties and the economic challenges in some regions, the company
assumes in its forecast that the worldwide economic conditions will not
change significantly. ISRA's goal for the next years remains firmly in
view; with the intensive focus on efficiency and innovations as well as
targeted reinforcement of individual regions, the company continuously and
actively prepares for the medium-term targeted revenue dimension of 150
million euros.


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Financial/Corporate News and Press Releases.
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Language:     English
Company:      ISRA VISION AG
              Industriestr. 14
              64297 Darmstadt
              Germany
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:       Regulated Market in Frankfurt (Prime Standard); Regulated
              Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich,
              Stuttgart
 
End of Announcement                             DGAP News-Service
 
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