SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
The Securities Exchange Act of 1934
For the month of November 7, 2007
Scopus Video Networks Ltd.
(Translation of registrant’s name into English)
10 Ha’amal St., Park Afek, Rosh Ha’ayin 48092
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-Fx Form 40-Fo
Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yeso Nox
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-N/A
Attached hereto and incorporated by reference herein is a copy of Scopus’ press release, dated November 7, 2007, announcing third quarter 2007 results.
The press release contains non-GAAP financial measures. In this regard, GAAP refers to generally accepted accounting principles in the United States. Pursuant to regulations promulgated by the Securities and Exchange Commission, the Company has provided reconciliations within the press release of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
The pro-forma results provided in the press release exclude the cost of options. Due to recent changes in US GAAP regulations, in accordance with FAS123R guidelines, from the first quarter of 2006 and onwards, we have been implementing and recording options expenses as part of our P&L, management believes that the presentation of the pro forma information provides investors with a better understanding of Scopus’ financial results going forward and assists investors in comparing Scopus’ historical, current and future expected results.
This Form 6-K is hereby incorporated by reference into Scopus Video Networks Ltd.‘s, Registration Statement on Form S-8 (Registration No. 333-133995) and into Scopus Video Networks Ltd.‘s registration statement on Form F-3, filed with the Securities and Exchange Commission on October 16, 2007 (File No. ).
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| SCOPUS VIDEO NETWORKS LTD. (Registrant) By: /s/ Yaron Simler —————————————— Yaron Simler Chief Executive Officer |
By: /s/ Moshe Eisenberg —————————————— Moshe Eisenberg Chief Financial Officer |
Date: November 7, 2007
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Scopus Announces Record Third Quarter 2007 Results
TEL – AVIV, November 7, 2007 – Scopus Video Networks Ltd. (NASDAQ: SCOP), a provider of digital video networking products, today announced its results for the third quarter of 2007, ending September 30, 2007.
| Third quarter highlights: |
| — | Total revenues reached a record $15.2 million, a 33% year over year increase |
| — | Company reached profitability on a non-GAAP basis |
| — | Record positive operating cash flow of $2.7 million |
| — | Continued improvement in the business fundamentals |
| — | Strong pipeline of deals leads management to expect continued revenue growth |
Third Quarter 2007 Results Summary
Revenues for the third quarter totaled $15.2 million, a 12.3% sequential increase from the $13.5 million revenues in the prior quarter, and a 33% increase from the third quarter of 2006. The breakdown of revenue by region was 51% in EMEA, 30% in Asia and the Pacific Rim and 19% in the Americas.
Gross profit in the third quarter of 2007 was $7.3 million compared with $6.5 million in the prior quarter, and $5.2 million in the third quarter of 2006. Gross profit as a percentage of revenues was 48%.
Pro-forma net profitforthe third quarter of 2007, which excludes expenses related to stock based compensation as defined under FAS123R was $0.4 million, or $0.02 per diluted share, compared to a net loss of $0.7 million, or $0.05 loss per share, in the prior quarter, and a net loss of $0.9 million, or $0.07 per share, in the third quarter of 2006.
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Net loss on a GAAP basis for the third quarter of 2007 was $0.1 million, or $0.01 per share, compared with $1.2 million, or $0.09 per share, in the prior quarter and a net loss of $1.4 million, or $0.11 per share in the third quarter of 2006.
The Company achieved a record positive operating cash flow of $2.7 million during the quarter, and ended the third quarter with cash and cash equivalents plus short term investments of $33.8 million. This is compared with $31.0 million on June 30th, 2007.
“In the third quarter, we continued the strong progress we have made throughout the year,” commented Dr. Yaron Simler, CEO of Scopus. “Most significantly, we reached our goal of becoming profitable. The quarter also marked our continued improvement in the business fundamentals demonstrated by our lower inventory levels and better DSOs which led to our record operating cash flow in the quarter of $2.7 million. Our strong pipeline of new features and products, together with our penetration of larger customers with bigger deals, gives us confidence in our continued revenue growth.”
Conference Call Details
The Company will also be hosting a conference call later today at 11am EST (8:00am Pacific Time, 4:00pm UK Time, 6:00pm Israel Time). On the call, management will review and discuss the results, and will be available to answer investor questions. To participate, please call one of the following teleconferencing numbers:
US Dial-in Number: 1 888 407 2553
UK Dial-in Number: 0-800-917-5108
ISRAEL Dial-in Number: 03 918 0692
INTERNATIONAL Dial-in Number: +972-3-918-0692
A replay of the call will also be available from the day after the call in the investor relations section of Scopus’ website atwww.scopus.net.
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About Scopus Video Networks
Scopus Video Networks (NASDAQ:SCOP) develops, markets and supports digital video networking products that enable network operators to offer advanced video services to their subscribers. Scopus’ products support digital television, HDTV, live event coverage and content distribution.
Scopus provide a comprehensive digital video networking product offering, including intelligent video gateways, encoders, decoders and network management products. Scopus’ products are designed to allow network operators to increase service revenues, improve customer retention and minimize capital and operating expenses.
Scopus’ customers include satellite, cable and terrestrial operators, broadcasters and telecom service providers. Scopus’ products are used by hundreds of network operators worldwide.
For more information visit:www.scopus.net
| Company Contact: | Investor Relations Contact |
| Moshe Eisenberg | Ehud Helft / Kenny Green |
| Chief Financial Officer | GK Investor Relations |
| Tel: +972-3-900 7100 | Tel: (US) 1 646 201 9246 |
| Moshee@scopus.net | info@gkir.com |
This press release contains forward-looking statements concerning our marketing and operations plans. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. All forward-looking statements in this press release are made based on management’s current expectations and estimates, which involve risks, uncertainties and other factors that could cause results to differ materially from those expressed in forward-looking statements. These statements involve a number of risks and uncertainties including, but not limited to, risks related to the evolving market for digital video in general and the infancy of the video-over-IP in particular and the ability to successfully demonstrate to service providers integrated solutions, general economic conditions and other risk factors. Scopus does not undertake any obligation to update forward-looking statements made herein.
** Tables to follow **
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SCOPUS VIDEO NETWORKS
CONDENSED CONSOLIDATED BALANCE SHEET
(Dollars in thousands)
| September 30, | December 31, 2006 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2007 | 2006 | ||||||||||
| (Unaudited) | |||||||||||
| ASSETS | |||||||||||
| CURRENT ASSETS: | |||||||||||
| Cash and cash equivalents | $ | 10,464 | $ | 30,672 | $ | 29,950 | |||||
| Short-term investments | 23,361 | - | - | ||||||||
| Trade accounts receivable (net of allowance for doubtful | |||||||||||
| accounts of $455, $886 and $428 respectively) | 8,934 | 11,052 | 10,268 | ||||||||
| Inventories | 8,888 | 11,360 | 11,727 | ||||||||
| Other receivables and current assets | 2,061 | 1,105 | 1,015 | ||||||||
| Total current assets | 53,708 | 54,189 | 52,960 | ||||||||
| Fixed assets, net | 3,050 | 2,856 | 2,928 | ||||||||
| Deposits in general severance fund | 218 | 192 | 204 | ||||||||
| Other assets | 92 | 110 | 72 | ||||||||
| TOTAL ASSETS | $ | 57,068 | $ | 57,347 | $ | 56,164 | |||||
| LIABILITIES AND | |||||||||||
| SHAREHOLDERS EQUITY | |||||||||||
| CURRENT LIABILITIES: | |||||||||||
| Trade accounts payable | $ | 4,435 | $ | 7,158 | $ | 5,738 | |||||
| Other payables and current liabilities | 9,350 | 6,841 | 7,246 | ||||||||
| Total current liabilities | 13,785 | 13,999 | 12,984 | ||||||||
| Liabilities for vacation and severance pay | 1,740 | 1,661 | 1,661 | ||||||||
| SHAREHOLDERS' EQUITY: | |||||||||||
| Ordinary shares | 4,454 | 4,293 | 4,322 | ||||||||
| Additional paid-in capital | 76,528 | 73,535 | 74,118 | ||||||||
| Accumulated deficit | (39,439 | ) | (36,141 | ) | (36,921 | ) | |||||
| TOTAL SHAREHOLDERS' EQUITY | 41,543 | 41,687 | 41,519 | ||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS EQUITY | $ | 57,068 | $ | 57,347 | $ | 56,164 | |||||
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SCOPUS VIDEO NETWORKS
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars in thousands, except share and per share data)
| Nine month ended September 30, | Three month ended September 30, | Year ended December 31, | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2 0 0 7 | 2 0 0 6 | 2 0 0 7 | 2 0 0 6 | 2 0 0 6 | |||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||||
| Revenues | $ | 40,944 | $ | 35,166 | $ | 15,175 | $ | 11,394 | $ | 47,272 | |||||||
| Cost of revenues | 21,064 | 18,172 | 7,848 | 6,180 | 24,274 | ||||||||||||
| Gross profit | 19,880 | 16,994 | 7,327 | 5,214 | 22,998 | ||||||||||||
| Research and development expenses, net of grants from the OCS | 7,808 | 7,366 | 2,742 | 2,343 | 10,240 | ||||||||||||
| Sales and marketing expenses | 11,618 | 9,506 | 3,747 | 3,255 | 12,602 | ||||||||||||
| General and administrative expenses | 4,113 | 3,796 | 1,563 | 1,229 | 4,876 | ||||||||||||
| Operating loss | (3,659 | ) | (3,674 | ) | (725 | ) | (1,613 | ) | (4,720 | ) | |||||||
| Financing income, net | 1,206 | 684 | 619 | 193 | 963 | ||||||||||||
| Loss before income taxes | (2,453 | ) | (2,990 | ) | (106 | ) | (1,420 | ) | (3,757 | ) | |||||||
| Income tax expense | (65 | ) | (22 | ) | (39 | ) | (3 | ) | (35 | ) | |||||||
| Net loss | (2,518 | ) | (3,012 | ) | (145 | ) | (1,423 | ) | (3,792 | ) | |||||||
| Basic and diluted net loss per ordinary share | (0.19 | ) | (0.23 | ) | (0.01 | ) | (0.11 | ) | (0.29 | ) | |||||||
| Weighted average number of ordinary shares outstanding | |||||||||||||||||
| used in basic and diluted loss per ordinary share | |||||||||||||||||
| calculation | 13,509,988 | 13,166,641 | 13,651,381 | 13,261,853 | 13,204,500 | ||||||||||||
| Corporate Office | Americas |
| Scopus Video Networks Ltd. | Scopus Video Networks Inc. |
| 10 Ha'amal St, Park-Afek, Rosh-Ha'ayin 48092, Israel | 3 Independence Way, Princeton, New-Jersey 08540 |
| Tel: + 972-3-9007777, Fax: + 972-3-9007888 | Tel: (609) 987-8090, Fax: (609) 987-8095 |
| E-mail:info@scopus.net www.scopus.net | E-mail:info@scopususa.com www.scopususa.com |
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