DGAP-Adhoc: ISRA VISION AG: Turnover and profit forecasts from end of August 2007 greatly exceeded - profitable growth continued


ISRA VISION AG / Preliminary Results


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 group’s 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 company’s 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
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 division’s 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
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