The net profit in the first quarter of 2006 was $747 Thousand, 18% higher than the parallel quarter of the previous year, and nearly three times more than the net profit in the fourth quarter of 2005. The company generated a positive cash flow from operating activities of $3.9 Million in Q1-06.
Revenues in Q1-06 accumulated to $8.4 Million, a decrease of 4% compared to $8.7 Million in Q1-05 resulting from generation of lower revenues in Asia during the quarter.
EBIT was $571 Thousand in the first quarter of 2006 � 10% more than in the first quarter of 2005, and twice as much as in the previous quarter.
The company attained a cash position of $32 Million, as compared to $28 Million in the parallel quarter of the previous year and $29 Million in the fourth quarter of 2005.
Earnings per Share (diluted) in the first quarter of 2006 were $0.04, as compared to $0.03 in the first quarter of 2005 and in Q4-05.
As announced before, Valor concluded the purchase of the Danish TraceXpert. The company reaffirms its profit outlook of $3 million for 2006.
Summary of Financial Data:
Q106 Q105 % Chnge Q405 % Chge
Product Sales 5,152 5,840 (11.8)% 6,328 (18.6)%
Maintenance 3,230 2,865 12.7% 3,139 2.9%
Total Revenues 8,382 8,705 (3.7)% 9,467 (11.5)%
Gross Profit 7,266 7,557 (3.9)% 8,244 (11.9)%
EBITDA 725 670 8.2% 303 39.6%
EBIT 571 518 10.3% 275 08.0%
Net Profit(Loss) 747 631 18.4% 254 94.1%
EPS in US$ 0.04 0.03 33.3% 0.03 33.3%
Shareholder�s 35,617 34,125 4.4% 35,195 1.2%
Total Assets 48,129 43,811 9.9% 45,597 5.6%
R&D 2,305 2,810 (18.0)% 2,588 (10.9)%
Employees 208 217 (4.4)% 210 (1.0)%
(all figures are in US$ 1000, unless otherwise noted)
Some of the following statements are forward-looking in nature, and actual results may differ materially:
Ofer Shofman, Valor�s President and CEO, commented on the quarterly results: �As you can see, we were able to increase our profits this quarter despite the fact that our revenues were lower than in Q4 of 2005. An internal restructuring process which we have been engaged in during the previous two quarters has had a significant effect on our revenues in Asia this quarter. At the same time, the restructuring process also allowed us to increase our operating efficiencies worldwide and improve our bottom line profits.�
�During Q1 we started to implement a consultative selling approaching in Valor�, Shofman revealed. �In this approach, we tailor custom solutions for our clients based on our products, and incorporate third party solutions as well, if needed. Companies such as IBM, Oracle, SAP and others are pursuing this trend to meet the broader needs of their customers, and Valor is implementing this approach in the electronics industry. In the long term, this will enable us to engage in larger IT projects, and will have an effect on our revenues and profits.�
Valor Concludes Purchase of TraceXpert
Valor had recently completed the purchase of the Danish TraceXpert, now a wholly owned Valor subsidiary under the name �Valor Denmark�. The purchase will enable Valor to achieve full business and operational integration with the Danish company and its products, resulting in reduced costs and increased profitability. �We see an increasing demand for Manufacturing Execution Systems (MES) in the Assembly market. Due to the fact that TraceXpert plays a key role in our solution for that market and due to the great potential that we see in TraceXpert as a company, we decided to complete the purchase ahead of time�, explained Shofman.
�Overall, I am optimistic about the future�, said Shofman. �We expect to see an increase in revenues and net profit in Q2, and to meet or even exceed our original profit outlook of $3 Million for 2006�, he concluded.
The complete financial report can be downloaded from the Investor Relations Section on the Valor corporate website: http://www.valor.com
Valor Computerized Systems develops compelling technologies for simulating and optimizing the manufacture of printed circuit boards. Valor's breakthrough technologies for product design analysis, simulation and optimization of PCB assembly, and Manufacturing Operations Management increase productivity, yield and quality, and help streamline and accelerate product innovation in a fast-paced global market. Valor is listed on the Prime Standard of the Frankfurt Stock Exchange [WKN 928731, ISIN IL0010845324]. Its customer base includes the majority of Tier I and Tier II companies in the electronics industry, most of which are fortune 500 companies. More information on Valor can be found on http://www.valor.com.
Alon Erlich, Valor Computerized Systems, Ltd.; IR@Valor.com; Tel: +972-(0)8-943-2430
IR Contact Germany:
S�nke Knop and Axel M�hlhaus, edicto GmbH; firstname.lastname@example.org; Tel: +49-(0)-6084-94859-1
Cathryn Hage, Anderson Burnbreck PR;
email@example.com; Tel: +44-1242-518399
Risks Regarding Forward Looking Statements
Certain statements included herein, containing forward looking terminology or the negative thereof or other variations thereof or comparable terminology, constitute ``forward-looking statements''. In addition, all information included herein with respect to projected or future results of operations, financial condition, financial performance or other financial or statistical matters constitute such forward-looking statements. The Company wishes to caution prospective investors not to rely on any such forward-looking statements as predictions of future events. The Company 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: http://www.valor.com/Forward_Looking_Statements.jsp