Exhibit 99.1
ELBIT VISION SYSTEMS LTD.
Company Contact Information: Yaron Menashe, CFO Tel: +972 4 6107609 yaron@evs.co.il | Investor Relations Contact: Ehud Helft, Gavriel Frohwein Tel: +1 646 688 3559 evs@gkir.com |
ELBIT VISION SYSTEMS ANNOUNCES FOURTH QUARTER
AND FULL YEAR 2017 RESULTS
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Fourth quarter revenues at approximately $2.28 million, down approximately 18% year-over-year
Fourth quarter net income of $79 thousand, down approximately 82% year-over-year
Fourth Quarter 2017 highlights
| · | Revenue at approximately $2.28 million, down approximately 17.9% year-over-year |
| · | Gross and operating margins at approximately 45% and 2.4%, respectively |
| · | Net income of $79 thousand, representing approximately 3.4% of revenues |
Full year 2017 highlights
| · | Revenue at approximately $9.6 million, down approximately 5.4% year-over-year |
| · | Gross and operating margins at approximately 51.2% and 13.8%, respectively |
| · | Net income of approximately $1.3 million, representing approximately 13.6% of revenues |
Caesarea, Israel, March 15 2018 — Elbit Vision Systems Ltd. (OTCQB: EVSNF), a pioneer in the science of camera-based automatic vision inspection for textile fabrics and technical webs, announced today its consolidated financial results for the fourth quarter and full year ending December 31, 2017.
Sam Cohen, CEO of EVS commented, “These results reflect the current challenging conditions of the industry in which we operate. As we have previously stated, the opportunities for the Company to meaningfully grow its business as a stand-alone entity have become very limited. We believe that these results, while disappointing, indicate that our decision to seek a purchaser with proven global reach, with synergies which will help us to achieve an improved and sustainable performance, has been further justified.”
Fourth Quarter 2017 Results
Revenues for the quarter were approximately $2.3 million, representing a decrease of approximately 17.9% compared to $2.7 million in the fourth quarter of 2016.
Gross profit for the quarter was approximately $1 million, representing approximately 45% of revenues, a decrease of approximately 33% compared to approximately $1.5 million for the fourth quarter of 2016, which represented approximately 54.6% of revenues.
Operating income for the quarter was approximately $57 thousand (approximately 2.4% of revenue), a decrease of approximately 88% compared to approximately $478 thousand (approximately 17.1% of revenues) in the fourth quarter of 2016. During the quarter R&D expenses decreased to approximately $324 thousand versus approximately $614 thousand in the fourth quarter of 2016.
Net income was approximately $79 thousand (approximately 3.4% of revenue), a decrease of approximately 82.4% compared to approximately $449 thousand (approximately 16.1% of revenues) in the fourth quarter of 2016.
Full Year 2017 Results
Revenues for the year were approximately $9.6 million, representing a decrease of approximately 5.4% compared to approximately $10.1 million in 2016.
Gross profit for the year was approximately $4.9 million, representing approximately 51.2% of revenues, a decrease of approximately 12.3% compared to approximately $5.6 million for 2016, which represented approximately 55.3% of revenues.
Operating income for the year was approximately $1.3 million (approximately 13.8% of revenue), a decrease of approximately 38% compared to approximately $2.1 million (approximately 21.2% of revenues) in 2016.
Net income was approximately $1.3 million (approximately 13.6% of revenue), a decrease of approximately 35.4% compared to approximately $2 million (approximately 19.9% of revenues) in 2016.
About Elbit Vision Systems Ltd. (EVS): www.evs.co.il
EVS offers a broad portfolio of automatic State-of-the-Art Visual Inspection Systems for both in-line and off-line applications, and process monitoring systems used to improve product quality, safety, and increase production efficiency. EVS' systems are used by over 800 customers, many of which are leading global companies.
This press release and other releases are available on www.evs.co.il
Safe Harbor Statement
This press release contains forward-looking statements. Such statements are subject to certain risks and uncertainties, such as market acceptance of new products and our ability to execute production on orders, which could cause actual results to differ materially from those in the statements included in this press release. Although EVS believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved. EVS disclaims any intention or obligation to update or revise any forward-looking statements, which speak only as of the date hereof, whether as a result of new information, future events or otherwise. EVS undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances.
FINANCIAL TABLES FOLLOW
| ELBIT VISION SYSTEMS LTD. |
| CONDENSED CONSOLIDATED BALANCE SHEET |
| AT DECEMBER 31, 2017 |
| IN U.S. DOLLARS |
| Dec-31 | ||||||||
| 2017 | 2016 | |||||||
U.S. dollars in thousands (except per share data) | ||||||||
| Assets | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | 4,012 | 4,528 | ||||||
| Restricted deposits (short term) | 78 | 111 | ||||||
| Trade accounts receivable | 2,201 | 1,136 | ||||||
| Other receivables | 166 | 286 | ||||||
| Inventories | 2,091 | 1,651 | ||||||
| Total current assets | 8,548 | 7,712 | ||||||
| LONG-TERM RECEIVABLES: | ||||||||
| Severance pay fund | 54 | 140 | ||||||
| Long Term Investment | 126 | - | ||||||
| Other long-term receivables | 42 | 35 | ||||||
| Total long-term receivables | 222 | 175 | ||||||
PROPERTY, PLANT AND EQUIPMENT – net of accumulated depreciation and amortization | 105 | 29 | ||||||
| OTHER ASSETS | ||||||||
| Goodwill | 242 | 242 | ||||||
| Total assets | 9,117 | 8,158 | ||||||
| ELBIT VISION SYSTEMS LTD. |
| CONDENSED CONSOLIDATED BALANCE SHEET (Cont.) |
| AT DECEMBER 31, 2017 |
| IN U.S. DOLLARS |
| Dec-31 | ||||||||
| 2017 | 2016 | |||||||
U.S. dollars in thousands (except per share data) | ||||||||
| Liabilities and shareholders’ equity | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Trade account payable | 887 | 776 | ||||||
| Deferred revenues | 248 | 231 | ||||||
| Other payables | 675 | 1,031 | ||||||
| Total current liabilities | 1,810 | 2,038 | ||||||
| LONG-TERM LIABILITIES: | ||||||||
| Other Long Terms liabilities | 89 | 165 | ||||||
| Accrued severance pay | 70 | 155 | ||||||
| Total long-term liabilities | 159 | 320 | ||||||
| Total liabilities | 1,969 | 2,358 | ||||||
| SHAREHOLDERS’ EQUITY | 7,148 | 5,800 | ||||||
| Total liabilities and shareholders’ Equity | 9,117 | 8,158 | ||||||
| ELBIT VISION SYSTEMS LTD. |
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
| FOR THE TWELVE AND THREE-MONTHS PERIOD ENDED DECEMBER 31, 2017 |
| IN U.S. DOLLARS |
| 12 months ended | 3 months ended | |||||||||||||||
| Dec-31 | Dec-31 | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| U.S. dollars in thousands (except per share data) | ||||||||||||||||
| Revenues | 9,591 | 10,146 | 2,284 | 2,783 | ||||||||||||
| Cost of Revenues | 4,671 | 4,520 | 1,255 | 1,261 | ||||||||||||
| Gross Profit | 4,920 | 5,616 | 1,029 | 1,522 | ||||||||||||
| Research and development | 1,246 | 1,378 | 324 | 614 | ||||||||||||
| Marketing and selling | 1,338 | 1,254 | 331 | 227 | ||||||||||||
| General and administrative | 1,004 | 826 | 317 | 203 | ||||||||||||
| Operating Profit | 1,332 | 2,158 | 57 | 478 | ||||||||||||
| Financial Expenses - net | (25 | ) | (134 | ) | 22 | (29 | ) | |||||||||
| Profit before taxes on income | 1,307 | 2,024 | 79 | 449 | ||||||||||||
| Taxes on Income | - | - | - | - | ||||||||||||
| Net profit for the period | 1,307 | 2,024 | 79 | 449 | ||||||||||||
| Profit per share basic | 0.14 | 0.22 | 0.01 | 0.05 | ||||||||||||
| Profit per share diluted | 0.14 | 0.21 | 0.01 | 0.05 | ||||||||||||
| Weighted average number of shares used in Computation of profit per share: | ||||||||||||||||
| Basic (in thousands) | 9,387 | 9,338 | 9,397 | 9,342 | ||||||||||||
| Diluted (in thousands) | 9,403 | 9,593 | 9,412 | 9,367 | ||||||||||||