DGAP-Adhoc: ISRA VISION AG: Growth continues as forecasted

ISRA VISION AG / Key word(s): Half Year Results 30.05.2014 08:02 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- ISRA VISION AG: 1st Half Year of 2013/2014 - Double-digit increase in revenues and EBT Growth continues as forecasted also in the 2nd quarter of 2013/2014 - Revenue growth in the first half year plus 12% to 44.8 million euros (Q2 YTD 12/13: 40.1 mill. euros) - EBT growth in the first half year plus 16% to 8.3 million euros (Q2 YTD 12/13: 7.1 mill. euros) - EBT margin increases to 17% to total output (Q2 YTD 12/13: 16%) - Continued high margins compared to total output: - EBITDA margin at 26% (Q2 YTD 12/13: 26%) - EBIT margin at 17% (Q2 YTD 12/13: 17%) - Gross margin at 61% to total output (Q2 YTD 12/13: 60%) - Operative cash flow improved - High order backlog of over 60 million euros (PY: 49 mill. euros) - Earnings per share (EPS) increase to 1.30 euro (Q2 YTD 12/13: 1.12 euro) - Focus on revenues of approx. 100 mill. euros for FY 13/14 ISRA VISION AG (ISIN: DE 0005488100), one of the world's leading companies of industrial image processing (Machine Vision), global market leader for surface inspection systems, and one of the leading 3D machine vision providers, continues the positive development in revenues and earnings of the first quarter of 2013/2014 with double-digit growth rates in the second quarter. The margins are again at a high level and in part slightly improved. As a result, the company is on course to reach the defined goals for the entire year. In the first six months of the current financial year (October 01, 2013 to September 30, 2014), ISRA records revenue growth of 12 percent to 44.8 million euros (Q2 YTD 12/13: 40.1 mill. euros) compared to the same period of the previous year, EBT increase by 16 percent to 8.3 million euros (Q2 YTD 12/13: 7.1 mill. euros). Referenced to total output, the EBT margin rises by one percentage point to 17 percent (Q2 YTD 12/13: 16%). EBIT (Earnings Before Interest and Taxes) grow by 16 percent to 8.6 million euros (Q2 YTD 12/13: 7.4 mill. euros), the EBIT margin amounts to 17 percent to total output (Q2 YTD 12/13: 17%). EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) increase by 14 percent to 13.0 million euros (Q2 YTD 12/13: 11.4 mill. euros), the EBITDA margin is at 26 percent to total output (Q2 YTD 12/13: 26%). The gross margin (total output minus cost of materials and labor of production and engineering) reaches with 61 percent a slightly higher level than in the previous year (Q2 YTD 12/13: 60%). Operative cash flow improves to 7.2 million euros (Q2 YTD 12/13: 5.8 mill. euros). The equity ratio increases to 58 percent (September 30, 2013: 57%). Together with the available credit lines, ISRA has good capital resources and liquidity reserves for future growth. The good business development in the regions also continues in the second quarter of 2013/2014. The revenues in Asia still show strong growth rates. In Europe, the business is increasing significantly. The order entries in North and South America move up with slightly less dynamics. After the successful first six months of 2013/2014, ISRA also anticipates a positive development of order entries in the further course of the financial year, particularly in Asia and Europe. In the reporting quarter, ISRA continues to grow in both segments - Surface Vision and Industrial Automation. In the Industrial Automation division, revenues and earnings are again developing at a clear double-digit rate. The high demand for products in the 3D area comes especially from the German and US automotive industry. Revenues rise in the first six months of 2013/2014 by 25 percent to 7.8 million euros (Q2 YTD 12/13: 6.2 mill. euros). EBIT grow by 27 percent and reach 1.5 million euros (Q2 YTD 12/13: 1.2 mill. euros). Referenced to total output, it corresponds to an increased EBIT margin of 17 percent (Q2 YTD 12/13: 16%). A continuing dynamic development can be seen in the Industrial Automation segment for the second half year. In this sector, management anticipates double-digit growth rates for the entire year. In the Surface Vision segment, revenues increase by 9 percent to 37.0 million euros in the first six months of the current financial year (Q2 YTD 12/13: 33.9 mill. euros). EBIT improve by 14 percent to 7.1 million euros (Q2 YTD 12/13: 6.2 mill. euros), which corresponds to a margin of 17 percent to total output (Q2 YTD 12/13: 17%). In the Metal industry, ISRA registers a recovery of the investment climate and good order entries compared to the restrained previous year. The company also profits from a positive development of revenues in the Paper market in which business was slightly slower in the last financial year. The Specialty Paper sector shows strong growth in the first half year. Order entries from the Glass industry continue to be at a high level. The Plastics business makes a solid contribution to total revenues, with systems for the inspection of new materials in particularly high demand. The activities in the Printing industry are particularly intensified by expanding the sales management. After strong impulses from the Solar sector in Taiwan, Korea and Japan in the first six months of 2013/2014, the company closely monitors the further development. The sales activities in the area of the intelligent Yield Management portfolio "EPROMI" (Enterprise Production Management Intelligence) stimulate new sales impulses also from Asia. The company anticipates strategic order entries from this region shortly. The product range supports users in increasing efficiency in production and is currently being expanded further. In addition, ISRA plans increasing revenues from the Service area. For this reason, the portfolio is expanded further with additional support and services offerings and the marketing activities are strengthened. Additionally, the company also expands the training portfolio provided as part of the ISRA Academy worldwide at different locations. An important component of the long-term strategy is not only organic growth, but also growth through acquisitions. For this reason, ISRA continuously analyzes the market with respect to matching companies to expand the technology portfolio, to enter into new sales markets as well as to increase market shares. Following the successful integration of GP Solar, management focusses intensively on new acquisitions and evaluates new projects. Next to the operational business, ISRA concentrates on activities in 2013/2014 that prepare the company for revenue dimensions in the triple-digit million range. This includes the expansion of management, but also the further development of the company and process structures to be able to flexibly respond to the requirements of the market in the future. An additional area of emphasis is the continuation of measures for increasing productivity and efficiency with the goal of further increasing profitability in the future. Optimizing the cash management, particularly by improving the working capital on the basis of enhanced lean production, remains the focus of corporate management. For the 2013/2014 financial year, ISRA continues to concentrate on achieving a revenue growth in the lower double-digit range to approx. 100 million euros. The strong order entries in the first six months of the year under review and the high order backlog of over 60 million euros (PY: approx. 49 mill. euros) are a good basis. For the current year, the company plans with at least stable margins with the continuing goal of a medium-term increase. 30.05.2014 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- 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: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart End of Announcement DGAP News-Service ---------------------------------------------------------------------------