DGAP-Adhoc: ISRA VISION AG: ISRA continues growth course - First six months financials with solid

ISRA VISION AG / Key word(s): Half Year Results

31.05.2013 07:45

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ISRA VISION AG: 1st Half Year of 2012/2013 - Revenues grow by 8%, EBT by 9%

ISRA continues growth course - First six months financials with solid
increase in revenues and earnings

- Revenue growth in the first six months plus 8% to 40.1 million euros
(Q2 YTD 11/12: 37.3 mill. euros)

- EBT growth in the first six months plus 9% (comp. to Q2 YTD 11/12)

- Gross margin on a stable level of 60% to total output (Q2 YTD 11/12:
60%)

- Continued high margins with respect to total output:

- EBITDA margin at 26% (Q2 YTD 11/12: 26%)

- EBIT margin at 17% (Q2 YTD 11/12: 17%)

- EBT margin at 16% (Q2 YTD 11/12: 16%)

- Revenue growth in Industrial Automation segment plus 19% (comp. to Q2
YTD 11/12)

- Order backlog currently 49 million euros (PY: approx. 55 mill. euros)

- Earnings per share (EPS) increased to 1.12 euros (Q2 YTD 11/12: 1.02
euros)

- Market development non-uniform in the individual industries and regions

- Acquisition of GP SOLAR -Targeted reinforcement of market position in
photovoltaics for future market opportunities

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 successful first quarter with solid growth in the
second quarter. Revenues rose in the first six months of the current
financial year (October 01 to September 30) compared to the same period of
the previous year by 8 percent to 40.1 million euros (Q2 YTD 11/12: 37.3
mill. euros).

The profitability followed the first quarter, whereby all earning margins
are at a constantly high level, as forecasted. With respect to total
output, the EBT margin was at 16 percent (Q2 YTD 11/12: 16%) and in terms
of revenues at 18 percent (Q2 YTD 11/12: 18%). EBT (Earnings Before Taxes)
increased to 7.1 million euros, corresponding to an improvement of 9
percent compared to the first six months of 2011/2012 (Q2 YTD 11/12: 6.5
mill. euros). With respect to total output, the EBIT margin reached 17
percent (Q2 YTD 11/12: 17%), compared to revenues, it was once again at 19
percent (Q2 YTD 11/12: 19%). After depreciation and amortization in the
amount of 4 million euros in the first six months (Q2 YTD 11/12: 3.7 mill.
euros), EBIT (Earnings Before Interest and Taxes) rose to 7.4 million euros
(Q2 YTD 11/12: 6.9 mill. euros). The EBITDA margin stabilized at 26 percent
to total output (Q2 YTD 11/12: 26%), EBITDA (Earnings Before Interest,
Taxes, Depreciation and Amortization) increased to 11.4 million euros (Q2
YTD 11/12: 10.7 mill. euros).

The gross margin (total output minus cost of materials and labor of
production and engineering) with 60 percent (Q2 YTD 11/12: 60%) with
respect to total output is within the medium-term target corridor and
underscores the potential for the future in this key number. The cash flow
from operating activities improved in the second quarter to 5.8 million
euros (Q1 12/13: 0.7 million euros), the net cash flow was at -0.8 million
euros (Q1 12/13: -1.9 million euros) - before dividend payout and
investment for acquisitions at +1.1 million euros. In addition, the company
features solid capital resources for future growth with an equity ratio
that climbed to 58 percent (September 30, 2012: 56%). Earnings per share
after taxes increased by 10 percent to 1.12 euros (Q2 YTD 11/12: 1.02
euros).

With respect to the regional business development, ISRA profits from its
strong worldwide presence. In the first six months, the company achieved
revenue growths in Asia as well as North and South America. In Europe, the
economic situation and the investment delays associated with it lead to a
more restrained business. To generate new growth impulses, the company
reinforces the sales and marketing activities in all regions. For the
further course of the financial year, different developments are to be
expected in the individual business areas, whereas in Asia and America
order entries show further growth.

In the reporting quarter, ISRA expanded in both segments - Surface Vision
and Industrial Automation. In the Industrial Automation segment, revenues
in the first six months of the 2012/2013 financial year grew by 19 percent
to 6.2 million euros (Q2 YTD 11/12: 5.2 mill. euros) as expected. EBIT also
increased by 19 percent and reached 1.2 million euros (Q2 YTD 11/12: 1.0
mill. euros). This corresponds to an EBIT margin to total output of 16
percent (Q2 YTD 11/12: 16%). A high demand was recorded in particular by
the automotive industry in Germany. A strategic million euro order from an
important premium manufacturer will partly already contribute to revenues
in this financial year. The current volume of inquiries in this segment
indicates a strong second half of the year.

In the Surface Vision segment, revenues increased by 6 percent to 33,9
million euros (Q2 YTD 11/12: 32 mill. euros). EBIT improved by 5 percent to
6.2 million euros (Q2 YTD 11/12: 5.9 mill. euros). This corresponds to a
margin to total output of 17 percent (Q2 YTD 11/12: 17%). A good
contribution to revenues was made by the segments Plastic, Paper, Specialty
Paper and Print. The investment delays in the metal industry -
predominantly in the Steel sector - led to order entries that were below
expectations. The thin glass sector developed positively, but could not
completely compensate the delayed order entries in the float glass
business. New revenue impulses are being expected for the second half of
the financial year from targeted worldwide measures in sales and marketing
as well as the introduction of additional product innovations.

Acquisitions of suitable companies continue to remain an important
component of the long-term company strategy. In the past three quarters,
ISRA finalized two projects. With the latest acquisition of GP Solar GmbH,
the company purposefully expands its business base for optical inspection
and measuring systems and positions itself as globally leading provider for
automation and quality control in the photovoltaic sector. ISRA continues
to be convinced that energy will be a lasting growth market in which
photovoltaics will play a decisive role also in the future. In this
context, the markets in Asia are of central importance, where GP will make
an important contribution with its strong client base and experienced Asian
sales team. In the course of the integration of GP, the measures for
optimizing costs have already been largely implemented in the first weeks
after the takeover. A negative impact on annual earnings of ISRA through
the transaction is not scheduled under the premise of realizing the
forecasted revenues. For the remaining integration activities of GP, ISRA
anticipates a time frame of approximately two quarters. In addition, the
company bundles its technology base with the know-how of GP as well as the
expertise of 3D-Shape, which was acquired in 2012, to use the market
opportunities in the semiconductor and display industry as well as to
profit from their potentials. In the future, the management will continue
to examine interesting acquisitions and, in case of a positive result,
intends to finalize projects that will strategically reinforce the company.

The business development for 2012/2013 will decisively depend on the
situation on the global markets. The varying economic development in the
different industries and regions is met by the company with targeted
marketing and sales measures. In view of the slower economic situation in
some regions and industries - compared to the very high level of the last
financial year - an overall more moderate order entry dynamic can be
expected in the second half of the year. With a current order backlog of 49
million euros (PY: approx. 55 million euros) ISRA expects - not least on
the basis of a very high volume of inquiries and successful trade fairs - a
growth in the high single-digit range. The intensive market activities and
the introduction of new products will generate additional revenue impulses
which will help to reach the goals set for the current financial year as
well as to support the growth strategy for 2013/2014. The medium-term
improvement of the margins and the cash flow as well as exceeding the
revenue mark of 100 million euros continue to remain the clear focus of
management, just as the long-term strategy of double-digit growth rates.

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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: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, München, Stuttgart

End of Announcement DGAP News-Service

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