Business in the global electronics industry is picking up, which is positively impacting the company�s overall business. Revenues increased in the first quarter of 2004 by 16.4% and reached US$ 7.15 million compared to US$ 6.14 achieved in the first quarter of 2003.
Q1-04 revenues increased by 5% compared to Q4-03 revenues of US$ 6.8 million.
Summary Financial Data:
Q1 2004 Q1 2003 % Change
Product Sales 4,612 3,852 19.73
Maintenance 2,541 2,291 10.91
Total Revenues 7,153 6,143 16.44
Gross Profit 6,674 5,700 17.09
EBIT 112 553
EBITDA 349 910
Net Profit 295 623 -52.65
EpS in US$
(basic) 0.02 0.03
Equity 33,230 39,334 -15.52
Total Assets 41,419 45,363 -8.69
R&D 2,658 1,665 59.64
Employees(End Q1) 199 171 16.37
(all figures are in US$ 1000, unless otherwise noted)
During Q1-04 Valor experienced a steep increase in R&D investments, due to the purchase of 50% of Danish company TraceXpert and the development of new products. Q1-04 shows a raise of 60% in R&D expenses to US$ 2.66 million in comparison to US$ 1.67 for Q1-03. Headcount increased to 199, a raise of 16% compared to 171 employees in Q1-03, which is mainly attributed to the increase in the R&D force. These aggressive investments will enable to grow the company over the next five years and will start to bear fruits in 2005.
Selling and marketing expenses increased slightly to US$ 3.34 million, up 9.6% compared to Q1 in 2003, but remained unchanged compared to previous quarter. This indicates the ability to increase sales without further expanding selling and marketing expenses,
Product sales generated US$ 4.6 million in Q1-04, a swell of 20% compared to US$ 3.85 million for the same quarter of last year. Revenues resulting from maintenance and subscriptions increased by 11% to reach US$ 2.54 million compared to US$ 2.29 million in Q1-03.
Due to the investments in new products, the net profit for Q1-04 was US$ 295 thousand, down from US$ 623 thousand in Q1-03. However, positive cash flow from operating activities was significantly higher and reached US$ 1.25 million.
Ofer Shofman, President and CEO at Valor commented: �I am very pleased with these results. We are in line with our business goals to grow our revenues quarter over quarter by double digit figures while maintaining profitability.�
Dan Hoz, Valor�s CFO added: �Our emphasis in 2004 is to increase revenues and heavily invest in R&D for significant growth over the next 5 years. With about US$ 30 million in cash, we are well positioned to strengthen our presence through M&A activities, as well as through organic growth.�