EXHIBIT 99.2
Investor Relations Contacts:
Roni Gavrielov Jeffrey Goldberger/Marybeth Csaby
KM / KCSA Investor Relations KCSA Strategic Communications
+972-3-516-7620 212-896-1249/212-896-1236
roni@km-ir.co.il jgoldberger@kcsa.com / mcsaby@kcsa.com
SHAMIR OPTICAL INDUSTRY LTD.
REPORTS FIRST QUARTER 2010 RESULTS
--REVENUE INCREASED 18.2% YEAR-OVER-YEAR
--NET INCOME INCREASED 78.3% YEAR-OVER-YEAR
KIBBUTZ SHAMIR, ISRAEL, MAY 10, 2010 - Shamir Optical Industry Ltd.
(Nasdaq: SHMR) ("SHAMIR"), a leading provider of innovative products and
technology to the ophthalmic lens market, today announced unaudited financial
results for the first quarter ended March 31, 2010.
For the quarter ended March 31, 2010, revenues increased 18.2% to $40.1
million, compared with revenues of $33.9 million for the same period in 2009.
Gross profit for the quarter was $21.8 million, or 54.5% of revenues, compared
with gross profit of $17.9 million, or 52.6% of revenues for the same period
last year.
For the quarter ended March 31, 2010, operating income increased 41.3% to
$5.5 million, or 13.6% of revenues, compared with operating income of $3.9
million, or 11.4% of revenues for the same period last year.
Net income for the quarter increased 78.3% to $3.9 million, compared with
net income of $2.2 million for the same period in 2009. Net income attributable
to Shamir's shareholders was $3.7 million or $0.22 per diluted share, compared
with $2.1 million or $0.13 per diluted share for the same period in 2009.
As of March 31, 2010, the Company had cash and cash equivalents, including
short-term investments of $30.1 million.
Commenting on first quarter results, Amos Netzer, chief executive officer
of Shamir, said, "Shamir had a strong first quarter 2010 across all of its major
operating regions. Our favorable results reflect the progress we continue to
achieve throughout our operations, which includes the strengthening of our brand
as well as the improvements we have made in our sales and manufacturing
capabilities. The investments we have made in both people and geographic
expansion have allowed us to increase our market share."
For the fiscal year ending December 31, 2010, Shamir confirmed its previous
estimate for 2010 revenue growth in the range of 8%-12%, under the assumption of
December 2009 exchange rates.
SHAMIR / PAGE 2
CONFERENCE CALL:
Shamir has scheduled a conference call for 10:00 a.m. ET today to discuss
first quarter results. To participate in the call, please dial (888) 562-3356
(U.S. and Canada) or (973) 582-2700 (International). The conference ID for this
event is 72108068. For those unable to participate there will be replay
available from 1:00 p.m. ET on May 10, 2010 through 11:59 p.m. EDT, May 17,
2010. Please call: (800) 642-1687 (U.S. and Canada) (706) 645-9291
(International). The ID code for the replay is 72108068.
The call will be available as a live, listen-only webcast at 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 SHAMIR
Shamir is a leading provider of innovative products and technology to the
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 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.
(TABLES TO FOLLOW)
================================================================================
SHAMIR OPTICAL INDUSTRY LTD.
Consolidated Balance Sheets
(US DOLLARS IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
As of December 31, As of March 31,
2009 2010
--------- ---------
(Unaudited) (Unaudited)
CURRENT ASSETS:
Cash and cash equivalents $ 19,929 $ 16,605
Short-term investment 11,679 13,539
Trade receivables (1) 33,648 37,574
Other receivables and prepaid expenses 7,918 8,423
Inventory 26,946 25,587
--------- ---------
TOTAL CURRENT ASSETS 100,120 101,728
LONG-TERM INVESTMENTS:
Severance pay fund 2,909 2,979
Long-term receivables 427 415
Investments in affiliates 1,306 1,298
--------- ---------
TOTAL LONG-TERM INVESTMENTS 4,642 4,692
PROPERTY, PLANT AND EQUIPMENT, NET 38,568 36,736
OTHER ASSETS 7,439 7,022
GOODWILL 12,945 13,366
--------- ---------
TOTAL ASSETS $ 163,714 $ 163,544
========= =========
CURRENT LIABILITIES:
Short-term bank credit and loans $ 11,033 $ 8,874
Current maturities of long-term loans 6,879 5,873
Trade payables 11,680 11,719
Accrued expenses and other liabilities 15,447 15,061
--------- ---------
TOTAL CURRENT LIABILITIES 45,039 41,527
LONG-TERM LIABILITIES:
Long-term loans 12,599 11,631
Capital leases 2,367 2,051
Accrued severance pay 3,270 3,421
Other long-term liabilities 2,763 2,942
Deferred income taxes 2,224 2,174
--------- ---------
TOTAL LONG-TERM LIABILITIES 23,223 22,219
Redeemable non-controlling interest 690 702
--------- ---------
EQUITY:
Share capital
Common shares of NIS 0.01 par value
Authorized: 100,000,000 shares at December 31, 2009 and
March 31, 2010; Issued and outstanding: 16,592,345 and
16,773,596 shares at December 31, 2009 and March 31, 2010,
respectively 37 38
Additional paid-in capital 68,230 69,844
Accumulated other comprehensive income (1,122) (2,577)
Retained earnings 24,795 28,488
--------- ---------
Total Shamir Optical Industry Ltd. Shareholders' equity 91,940 95,793
Non-controlling interests 2,822 3,303
--------- ---------
TOTAL EQUITY 94,762 99,096
--------- ---------
TOTAL LIABILITIES AND EQUITY $ 163,714 $ 163,544
========= =========
(1) Net of allowance for doubtful accounts of $ 3,076 and $ 3,088 as of December
31, 2009 and March 31, 2010, respectively
Three Months Ended March 31,
-----------------------
2009 2010
-------- --------
(Unaudited) (Unaudited)
Revenues, net $ 33,920 $ 40,095
Cost of revenues 16,065 18,257
-------- --------
Gross profit 17,855 21,838
Operating Expenses:
Research and development costs 741 1,089
Selling and marketing expenses 9,865 11,170
General and administrative expenses 3,380 4,114
-------- --------
Total operating expenses 13,986 16,373
-------- --------
Operating income 3,869 5,465
Financial expenses and other, net 833 166
-------- --------
Income before taxes on income 3,036 5,299
Taxes on income 867 1,277
-------- --------
Income after taxes on income 2,169 4,022
Equity in earnings of affiliates, net (27) (1)
Accretion of redeemable non controlling interest - 107
-------- --------
Net income $ 2,196 $ 3,916
Net income attributable to non-controlling
interests 74 223
-------- --------
Net income attributable to Shamir Optical Industry
Ltd. Shareholders $ 2,122 $ 3,693
======== ========
Net earnings per share:
Basic $ 0.13 $ 0.22
======== ========
Diluted $ 0.13 $ 0.22
======== ========
Number of shares:
Basic 16,424 16,679
Dilutive 16,453 16,767