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 May, 2008
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 Rule12g3-2(b): 82-N/A
Attached hereto and incorporated by reference herein is a copy of Scopus’ press release, dated May 5, 2008, announcing first quarter 2008 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. 333-146745).
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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: May 5, 2008
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| SCOPUS ANNOUNCES FIRST QUARTER 2008 RESULTS |
| Revenue of $16.4 million, 34% increase over the first quarter of 2007 |
TEL – AVIV, May 5, 2008 – Scopus Video Networks Ltd. (NASDAQ: SCOP), a provider of digital video networking products, today announced its results for the first quarter of 2008, ending March 31, 2008.
First Quarter Highlights:
| — | Revenue reached a first quarter record of $16.4 million, a 34% increase over the first quarter of 2007 |
| — | Net income of $0.3 million on a non-GAAP basis (excluding the cost of options) |
| — | Net loss of $1 thousand on a GAAP basis |
| — | Positive operating cash flow of $0.9 million in the quarter |
| — | Continued improvement in business fundamentals |
First Quarter 2008 Results Summary
Revenuefor the first quarter totaled $16.4 million, a 34% increase from the $12.3 million reported in the first quarter of 2007. The breakdown of revenue by region was 52% in EMEA, 20% in Asia and Pacific Rim and 28% in North and Latin America.
Gross profit for the first quarter of 2008 was $8.0 million compared with $6.1 million in the first quarter 2007. Gross profit as a percentage of revenues was 48.7%, compared with 49.6% in the first quarter of 2007.
Pro-forma net incomeforthe first quarter of 2008, which excludes expenses related to stock based compensation was $310 thousand, or $0.02 per diluted share, compared to a net loss of $730 thousand, or $0.05 per basic share, in the first quarter of 2007.
Net loss on a GAAPbasis for the first quarter of 2008 was $1 thousand, or $0.00 per share, compared with a net loss of $1.2 million, or $0.09 per share in the first quarter of 2007.
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The Company ended the first quarter of 2008 with net cash, cash equivalents and short-term securities of $35.8 million, compared with $35.5 million as of December 31, 2007. The Company generated a positive operating cash flow of $897 thousand during the quarter.
“We had a fantastic start to 2008. I am excited by our continued progress and financial results, which topped our expectations in all parameters: revenue, margins, positive operating and net income, and strong cash flow,” commented Dr. Yaron Simler, CEO of Scopus. “Our continued focus on our systems’ offering has improved our traction in the market for our newly released products and systems. This, coupled with our solid execution across the board, has been instrumental in enabling us to maintain our positive momentum. At the same time, we believe we are well positioned to benefit from additional opportunities derived from the emerging trends of our industry .”
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.
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Conference Call Details
The Company will also be hosting a conference call later today, May 5th, 2008 at 1:00pm ET (10:00am Pacific Time, 6:00pm UK Time, 8:00pm 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: | 1 866 652 8972 | |
| International Dial-in Number: | +972 3 918 0691 |
For those unable to listen to the live call, a replay of the call will be available from the day after the call in the investor relations section of Scopus’ website, at:www.scopus.net
About Scopus Video Networks
Scopus Video Networks (NASDAQ:SCOP) develops, markets and supports digital video networking solutions that enable network operators to offer advanced video services to their subscribers. Scopus’ solutions support digital television, HDTV, live event coverage and content distribution.
Scopus comprehensive digital video networking solutions offer intelligent video gateways, encoders, decoders and network management platforms. Scopus’ solutions 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
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| 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 STATEMENT OF OPERATIONS
(Dollars in thousands, except share and per share data)
| Three months ended March 31, | Year ended December 31, | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2 0 0 8 | 2 0 0 7 | 2 0 0 7 | |||||||||
| (Unaudited) | |||||||||||
| Revenues | $ | 16,426 | $ | 12,255 | $ | 57,477 | |||||
| Cost of revenues | 8,425 | 6,172 | 29,901 | ||||||||
| Gross profit | 8,001 | 6,083 | 27,576 | ||||||||
| Research and development expenses, net of grants from the OCS | 3,291 | 2,485 | 10,675 | ||||||||
| Sales and marketing expenses | 3,782 | 3,953 | 15,601 | ||||||||
| General and administrative expenses | 1,142 | 1,192 | 5,692 | ||||||||
| Operating loss | (214 | ) | (1,547 | ) | (4,392 | ) | |||||
| Financing income, net | 214 | 359 | 1,673 | ||||||||
| Loss before income taxes | 0 | (1,188 | ) | (2,719 | ) | ||||||
| Income tax expense | (1 | ) | (13 | ) | (58 | ) | |||||
| Net loss | (1 | ) | (1,201 | ) | (2,777 | ) | |||||
| Basic and diluted net loss per ordinary share | (0.00 | ) | (0.09 | ) | (0.20 | ) | |||||
| Weighted average number of ordinary shares outstanding | |||||||||||
| used in basic and diluted loss per ordinary share calculation | 13,939,415 | 13,394,766 | 13,595,346 | ||||||||
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SCOPUS VIDEO NETWORKS
CONDENSED CONSOLIDATED BALANCE SHEET
(Dollars in thousands)
| March 31, | December 31, | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2008 | 2007 | 2007 | ||||||||||||
| (Unaudited) | ||||||||||||||
| ASSETS | ||||||||||||||
| CURRENT ASSETS: | ||||||||||||||
| Cash and cash equivalents | $ | 30,064 | $ | 23,467 | $ | 23,090 | ||||||||
| Short-term deposits | - | 6,509 | 7,227 | |||||||||||
| Trading securities | 5,717 | - | 5,230 | |||||||||||
| Trade accounts receivable (net of allowance for doubtful | ||||||||||||||
| accounts of $139 and $442 and $152 respectively) | 13,386 | 10,247 | 12,409 | |||||||||||
| Inventories | 7,545 | 11,427 | 7,774 | |||||||||||
| Other receivables and current assets | 2,062 | 1,699 | 2,151 | |||||||||||
| Total current assets | 58,774 | 53,349 | 57,881 | |||||||||||
| Fixed assets, net | 3,913 | 2,998 | 3,453 | |||||||||||
| Deposits in general severance fund | 237 | 215 | 230 | |||||||||||
| Other assets | 114 | 71 | 105 | |||||||||||
| TOTAL ASSETS | $ | 63,038 | $ | 56,633 | $ | 61,669 | ||||||||
| LIABILITIES AND | ||||||||||||||
| SHAREHOLDERS EQUITY | ||||||||||||||
| CURRENT LIABILITIES: | ||||||||||||||
| Trade accounts payable | $ | 7,062 | $ | 5,448 | $ | 6,221 | ||||||||
| Other payables and current liabilities | 11,095 | 8,386 | 11,184 | |||||||||||
| Total current liabilities | 18,157 | 13,834 | 17,405 | |||||||||||
| Liabilities for vacation and severance pay | 2,095 | 1,762 | 1,945 | |||||||||||
| SHAREHOLDERS' EQUITY: | ||||||||||||||
| Ordinary shares | 4,523 | 4,352 | 4,517 | |||||||||||
| Additional paid-in capital | 77,790 | 74,807 | 77,428 | |||||||||||
| Other comprehensive income | 172 | - | 72 | |||||||||||
| Accumulated deficit | (39,699 | ) | (38,122 | ) | (39,698 | ) | ||||||||
| TOTAL SHAREHOLDERS' EQUITY | 42,786 | 41,037 | 42,319 | |||||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS EQUITY | $ | 63,038 | $ | 56,633 | $ | 61,669 | ||||||||
| 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.netwww.scopus.net | E-mail:info@scopususa.comwww.scopususa.com |
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