Navigation Links
Shamir Optical Industry Ltd. Reports Third Quarter 2007 Results
Date:11/27/2007

KIBBUTZ SHAMIR, Israel, Nov. 27 /PRNewswire-FirstCall/ -- Shamir Optical Industry Ltd. (Nasdaq: SHMR) ("Shamir"), a leading provider of innovative products and technology to the progressive ophthalmic lens market, today announced unaudited financial results for the third quarter ended September 30, 2007.

For the quarter ended September 30, 2007, revenues increased by 28.5% to $30.9 million, compared to $24.1 million for the third quarter of 2006. Gross profit for the quarter increased by 25.3% to $16.2 million, or 52.3% of revenues, compared to gross profits of $12.9 million, or 53.7% of revenues for the same period last year.

For the quarter ended September 30, 2007, operating income increased by 125.1% to $3.2 million, or 10.2% of revenues, compared to operating income of $1.4 million, or 5.8% of revenues for the same period last year. Net income for the quarter increased by 75.4% to $2.3 million, or $0.14 per diluted share, compared to net income of $1.3 million for the comparable period in 2006.

Excluding the effects of non-cash stock-based compensation expenses, operating income was $3.4 million, or 11.0% of revenues, compared to operating income of $1.8 million, or 7.5% of revenues, for the same period of 2006.

Excluding the effects of non-cash stock-based compensation expenses, net income for the quarter was $2.6 million, or $0.15 per diluted share, an increase of 49.5% from net income of $1.7 million for the comparable period in 2006.

The reconciliation of GAAP operating income and net income to non-GAAP operating income and non-GAAP net income is set forth below.

As of September 30, 2007, the Company had cash and cash equivalents, including short-term investments of $ $ 0.16 $ 0.38 $ 0.45

=========== =========== =========== ===========

Diluted $0.10 $ 0.15 $ 0.37 $ 0.45

=========== =========== =========== ===========

Number of shares:

Basic 16,257 16,418 16,257 16,311

Dilutive 16,543 16,568 16,549 16,553

34.7 million.

Commenting on the results, Giora Ben-Ze'ev, President and Chief Executive Officer of Shamir, said, "Our results for the third quarter reflect the growing demand for Shamir's products and services. Our revenue growth was well spread over most of our operations, especially in our European subsidiaries. We continued to see the expansion of our customer base particularly in the United Kingdom and France, where both operations executed according to plan."

Mr. Ben-Ze'ev continued, "In Portugal, we have significantly improved efficiency. We have extended our operation and occupied our new facility, while maintaining our high level of manufacturing quality. "

Mr. Ben-Ze'ev concluded, "In short, we had a good quarter and showed steady progress in our businesses worldwide. Our results demonstrate the positive momentum of our technology and lenses and reflect our strategy of growing worldwide on one hand and controlling our operational expenses on the other hand. Based on our results we are updating our top-line growth forecast for the fiscal year ending on December 31, 2007, from the previously provided range of 12%-20% revenue growth, to 16%-20%."

Conference Call:

Shamir has scheduled a conference call for 9:00 a.m. today to discuss third quarter results. To participate in the call, please dial 888-694-4676 (U.S. and Canada) or 973-582-2737 (International). The conference ID for this event is 9462512. For those unable to participate there will be replay available from 12:00 p.m. EST on November 27, 2007 through 11:59 p.m. EST, December 4, 2007. Please call: 1-877-519-4471 (U.S. and Canada) 1-973-341- 3080 (International). The ID code for the replay is 9462512.

The call will be available as a live, listen-only webcast at http://www.kcsa.com. Please go to the KCSA website at least 15 minutes prior to the scheduled start time to register, download and install any necessary audio software. A 30-day archive of the webcast will be available approximately 2 hours after the conclusion of the live call.

About non - GAAP financial measures

This press release includes non-GAAP financial measures - non-GAAP operating income and non-GAAP net income - that exclude certain charges. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management of Shamir believes that non-GAAP operating income and non-GAAP net income provides meaningful supplemental information because these numbers, which exclude the effect of non-cash stock- based compensation expenses, reflect our core operational results and are used by management internally to review Shamir's financial results.

About Shamir

Shamir is a leading provider of innovative products and technology to the progressive spectacle lens market. Utilizing its proprietary technology, the company develops, designs, manufactures, and markets progressive lenses to sell to the ophthalmic market. In addition, Shamir utilizes its technology to provide design services to optical lens manufacturers under service and royalty agreements. Progressive lenses are used to treat presbyopia, a vision condition where the eye loses its ability to focus on close objects. Progressive lenses combine several optical strengths into a single lens to provide a gradual and seamless transition from near to intermediate, to distant vision. Shamir differentiates its products from its competitors' primarily through lens design. Shamir's leading lenses are marketed under a variety of trade names, including Shamir Genesis(TM), Shamir Piccolo(TM), Shamir Office(TM), Shamir Nano(TM), Shamir Autograph(TM) and Shamir Smart(TM). Shamir believes that it has one of the world's preeminent research and development teams for progressive lenses, molds, and complementary technologies and tools. Shamir developed software dedicated to the design of progressive lenses. This software is based on Shamir's proprietary mathematical algorithms that optimize designs of progressive lenses for a variety of activities and environments. Shamir also has created software tools specifically designed for research and development and production requirements, including Eye Point Technology software, which simulates human vision.

Safe Harbor Statement

Statements concerning Shamir's business outlook or future economic performance; product introductions and plans and objectives related thereto; and assumptions made or expectations as to any future events, conditions, performance or other matters, are "forward-looking statements" as that term is defined under U.S. federal securities laws. Forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results to differ materially from those stated in such statements. These risks, uncertainties and factors include, but are not limited to: The conflicts in the region; the effects of competition in our industry, and changes in our relationships with optical laboratories, distributors, research and development partners and other third parties; the effects of the international expansion of our operations and our ability to manage our growth, including our ability to manage potential future acquisitions; the effect of global economic conditions in general and conditions in Shamir's industry and target markets in particular; shifts in supply and demand; market acceptance of new products and continuing products' demand; the impact of competitive products and pricing on Shamir's and its customers' products and markets; timely product and technology development/upgrades and the ability to manage changes in market conditions as needed; interest rate fluctuations; and other factors detailed in Shamir's filings with the Securities and Exchange Commission. Shamir assumes no obligation to update the information in this release.

Investor Relations Contacts:

Roni Gavrielov Jeffrey Goldberger/Marybeth Csaby

KM / KCSA Investor Relations KCSA Worldwide

+972-3-516-7620 212-896-1249/212-896-1236

roni@km-ir.co.il jgoldberger@kcsa.com / mcsaby@kcsa.com

(Tables to follow)

SHAMIR OPTICAL INDUSTRY LTD.

Consolidated Balance Sheets

(US dollars in thousands, except share and per share data)

As of As of

December 31, September 30,

------------- -------------

2006 2007

------------- -------------

(Unaudited)

CURRENT ASSETS:

Cash and cash equivalents $ 23,205 $19,019

Short-term investment 16,911 15,659

Trade receivables (1) 23,903 31,209

Other receivables and prepaid expenses 6,579 7,165

Inventory 27,898 26,119

------------- -------------

TOTAL CURRENT ASSETS 98,496 99,171

LONG-TERM INVESTMENTS:

Severance pay fund 2,542 3,040

Loan to a related party 1,297 20

Loan to others 240 -

Long-term receivables - 1,485

Investments in affiliates 3,513 4,365

------------- -------------

TOTAL LONG-TERM INVESTMENTS 7,592 8,910

PROPERTY, PLANT AND EQUIPMENT, NET 28,368 37,883

OTHER ASSETS 5,362 6,610

GOODWILL 7,178 7,426

------------- -------------

TOTAL ASSETS $146,996 $160,000

============= =============

CURRENT LIABILITIES:

Short-term bank credit and loans $ 13,654 $ 15,293

Current maturities of long-term loans 4,428 6,116

Trade payables 8,930 13,588

Accrued expenses and other liabilities 11,544 11,433

------------- -------------

TOTAL CURRENT LIABILITIES 38,556 46,430

LONG-TERM LIABILITIES:

Long-term loans 17,995 18,776

Capital leases 4,304 4,554

Accrued severance pay 2,828 3,312

Other long-term liabilities - 756

Deferred income taxes 1,287 1,540

------------- -------------

TOTAL LONG-TERM LIABILITIES 26,414 28,938

MINORITY INTERESTS 2,223 1,319

------------- -------------

SHAREHOLDERS' EQUITY:

Share capital

Common shares of NIS 0.01 par value

Authorized: 100,000,000 shares at December 31,

2006 and September 30, 2007; Issued and

outstanding: 16,256,514 and 16,423,740

shares at December 31, 2006 and September 30,

2007, respectively 37 37

Additional paid-in capital 65,599 66,340

Accumulated other comprehensive income 958 1,423

Retained earnings 13,209 15,513

------------- -------------

TOTAL SHAREHOLDERS' EQUITY 79,803 83,313

------------- -------------

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $146,996 $160,000

============= =============

(1) Net of allowance for doubtful accounts of $ 1,053 and $ 1,673 as of

December 31, 2006 and September 30, 2007, respectively.

SHAMIR OPTICAL INDUSTRY LTD.

Consolidated Statements of Income

(US dollars in thousands, except per share data)

Three Months Ended Nine Months Ended

September 30, September 30,

------------------------ ------------------------

2006 2007 2006 2007

----------- ----------- ----------- -----------

(Unaudited) (Unaudited) (Unaudited) (Unaudited)

Revenues, net $24,070 $30,934 $71,843 $89,823

Cost of revenues 11,153 14,747 31,933 42,622

----------- ----------- ----------- -----------

Gross profit 12,917 16,187 39,910 47,201

Operating Expenses:

Research and

development costs 599 639 1,740 1,901

Selling and

marketing expenses 8,043 8,961 24,336 26,469

General and

administrative

expenses 2,867 3,418 8,014 9,628

----------- ----------- ----------- -----------

Total operating

expenses 11,509 13,018 34,090 37,998

----------- ----------- ----------- -----------

Operating income 1,408 3,169 5,820 9,203

Financial expenses

(income) and other,

net (7) (25) 270 133

----------- ----------- ----------- -----------

Income before taxes

on income 1,415 3,194 5,550 9,070

Taxes on income 610 1,277 2,263 3,352

----------- ----------- ----------- -----------

Income after taxes on

income 805 1,917 3,287 5,718

Equity in losses of

affiliates, net 16 16 95 19

Minority interest in

losses of subsidiaries (524) (402) (1,867) (934)

----------- ----------- ----------- -----------

Net income $1,313 $2,303 $5,059 $6,633

=========== =========== =========== ===========

Net earnings per share:

Basic $0.08 $ 0.14 $ 0.31 $ 0.41

=========== =========== =========== ===========

Diluted $0.08 $ 0.14 $ 0.31 $ 0.40

=========== =========== =========== ===========

Number of shares:

Basic 16,257 16,418 16,257 16,311

Dilutive 16,543 16,568 16,549 16,553

SHAMIR OPTICAL INDUSTRY LTD.

Reconciliation of Non-GAAP Operating Income and Net Income

(US dollars in thousands, except per share data)

Three Months Ended Nine Months Ended

September 30, September 30,

------------------------ ------------------------

2006 2007 2006 2007

----------- ----------- ----------- -----------

(Unaudited) (Unaudited) (Unaudited) (Unaudited)

Operating income $1,408 $3,169 $5,820 $9,203

Non-GAAP adjustment:

Stock based

compensation (393) (248) (1,105) (741)

----------- ----------- ----------- -----------

Non-GAAP operating

income $1,801 $3,417 $6,925 $9,944

=========== =========== =========== ===========

Net income $1,313 $2,303 $5,059 $6,633

Non-GAAP adjustment:

Stock based

compensation, net (393) (248) (1,105) (741)

----------- ----------- ----------- -----------

Non-GAAP net income $1,706 $2,551 $6,164 $7,374

=========== =========== =========== ===========

Non-GAAP net earnings

per share :

Basic $0.10
'/>"/>

SOURCE Shamir Optical Industry Ltd.
Copyright©2007 PR Newswire.
All rights reserved

Related biology technology :

1. Nanofabrication method paves way for new optical devices
2. New Optical Breast Cancer Imaging Technology Garners Cover Story in National Radiology Magazine
3. CRi Announces Maestro 2, the Next Generation in Vivo Optical Imaging Systems
4. Ohio Ranks Best in the Midwest for Venture Capital Investment in Health Care Bioscience Industry
5. Advanced Cell Technologys Dr. Robert Lanza Makes List of 100 Most Inspiring People in the Life-Sciences Industry
6. Nabi Biopharmaceuticals to Present at Upcoming Industry Conferences
7. Favrille CEO to Present at NewsMakers in the Biotech Industry Investment Conference
8. NeurogesX to Present at BioCenturys NewsMakers in the Biotech Industry Conference
9. DURECT Corporation to Present at the NewsMakers in the Biotech Industry Investment Conference
10. TorreyPines Therapeutics to Present at the NewsMakers in the Biotech Industry Conference
11. Neurocrine Biosciences to Present at the BioCentury: Newsmakers in the Biotech Industry Conference
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:4/27/2016)... ... 27, 2016 , ... The Board of Directors of Biohaven ... Tilton as Chief Commercial Officer.  Mr. Tilton joined Biohaven from Alexion Pharmaceuticals, Inc. ... responsible for the commercialization of multiple orphan drug indications. Mr. Tilton has ...
(Date:4/27/2016)... MD (PRWEB) , ... April 27, 2016 , ... ... Greg Lamka, PhD to its Scientific Advisory Board. Dr. Lamka will assist PathSensors ... plant pathogen detection. , PathSensors deploys the CANARY® test platform for the ...
(Date:4/27/2016)... ... April 27, 2016 , ... Global Stem Cells Group CEO Benito ... the founder of GSCG affiliate Kimera Labs in Miami. , In 2004, Ross received ... cell transplantation for hematologic disorders and the suppression of graft vs. host disease (GVHD) ...
(Date:4/27/2016)... April 27, 2016 MedDay, a biotechnology ... announces the appointment of Catherine Moukheibir as Chairman of its ... Chairman, Jean Jacques Garaud , who contributed to the ... effective immediately. Catherine started her career in strategy ... and London .  She held C-Suite level ...
Breaking Biology Technology:
(Date:3/31/2016)... March 31, 2016  Genomics firm Nabsys has completed ... Barrett Bready , M.D., who returned to the ... original technical leadership team, including Chief Technology Officer, ... Development, Steve Nurnberg and Vice President of Software and ... company. Dr. Bready served as CEO of ...
(Date:3/21/2016)... 2016 Unique technology combines ... superior security   Xura, Inc. ... secure digital communications services, today announced it is working ... enterprise customers, particularly those in the Financial Services Sector, ... authentication within a mobile app, alongside, and in combination ...
(Date:3/14/2016)... , March 14, 2016 NXTD ) ... mobile commerce market, announces the airing of a new series ... the week of March 21 st .  The commercials will ... its popular Squawk on the Street show. --> ... the growing mobile commerce market, announces the airing of a ...
Breaking Biology News(10 mins):