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 July, 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 July 28, 2008, announcing second 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. ).
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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: July 28, 2008
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| SCOPUS ANNOUNCES SECOND QUARTER 2008 RESULTS |
| Record Revenue of $19.1 million, 41% increase over the second quarter of 2007 |
TEL – AVIV, July 28, 2008 – Scopus Video Networks Ltd. (NASDAQ: SCOP), a provider of digital video networking products, today announced its results for the second quarter of 2008, ending June 30, 2008.
Second Quarter Highlights:
| — | Strong revenue growth reaching a record of $19.1 million, a 41% year-over-year increase |
| — | Net income of $0.1 million on a GAAP basis and $0.5 million on a non-GAAP basis (excluding stock based compensation) |
| — | Positive operating cash flow of $0.8 million |
| — | Strong booking and continued improvement in business fundamentals |
Second Quarter 2008 Results Summary
Revenuefor the second quarter totaled $19.1 million, a 41% increase from the $13.5 million reported in the second quarter of 2007. The breakdown of revenue by region was 51% in EMEA, 32% in Asia and Pacific Rim and 17% in the Americas.
Gross profit for the second quarter of 2008 was $9.3 million compared with $6.5 million in the second quarter 2007. Gross profit as a percentage of revenues was 49%, compared with 48% in the second quarter of 2007.
Net income on a GAAPbasis for the second quarter of 2008 was $0.1 million, or $0.00 per diluted share, compared with a net loss of ($1.2) million, or ($0.09) per basic share in the second quarter of 2007.
Net income on a non-GAAP basisforthe second quarter of 2008, which excludes expenses related to stock based compensation, was $0.5 million, or $0.03 per diluted share, compared to a non-GAAP net loss of ($0.7) million, or ($0.05) per basic share, in the second quarter of 2007.
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The Company ended the second quarter of 2008 with net cash, cash equivalents and short-term securities of $36.0 million, compared with $35.8 million as of March 31, 2008. The Company generated a positive operating cash flow of $0.8 million during the quarter
“In the quarter we continued to execute on our business plan, achieving strong sales growth and reaching a new revenue record,” commented Dr. Yaron Simler, CEO of Scopus. “It is clear that the investments we have made in the past year and our focus on enhancing our competitive position are now bearing fruit. The second half of 2008 looks even brighter. We recently announced a number of new products and system capabilities that position us very well to increase our market share. These include the IRP-3910, designed to enable cable operators to manage the February 2009 transition from analog to digital broadcast. The IRP has been very well received by the market and we expect to generate revenue from this in the second half of 2008. We believe that we are well positioned to capitalize on the emerging trends in 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 non-GAAP 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 non-GAAP 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, July 28, 2008 at 9:00am ET (6:00am Pacific Time, 2:00pm UK Time, 4:00pm 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: | 1 888 668 9141 | |
| UK Dial-in Number: | 0 800 917 5108 | |
| Israel Dial-In Number: | 03 918 0609 | |
| International Dial-in Number: | +972 3 918 0609 |
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 solution offer intelligent video gateways, encoders, decoders and network management products. 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 BALANCE SHEET (Dollars in thousands) | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30, | December 31, | ||||||||||
| 2008 | 2007 | 2007 | |||||||||
| (Unaudited) | |||||||||||
| ASSETS | |||||||||||
| CURRENT ASSETS: | |||||||||||
| Cash and cash equivalents | $ | 30,016 | $ | 2,514 | $ | 23,090 | |||||
| Short-term deposits | - | 28,463 | 7,227 | ||||||||
| Trading securities | 5,968 | - | 5,230 | ||||||||
| Trade accounts receivable (net of allowance for | |||||||||||
| doubtful accounts of $137 and $455 and $152 respectively) | 14,637 | 9,215 | 12,409 | ||||||||
| Inventories | 9,106 | 9,534 | 7,774 | ||||||||
| Other receivables and current assets | 2,756 | 1,408 | 2,151 | ||||||||
| Total current assets | 62,483 | 51,134 | 57,881 | ||||||||
| Fixed assets, net | 4,196 | 3,056 | 3,453 | ||||||||
| Deposits in general severance fund | 257 | 215 | 230 | ||||||||
| Other assets | 120 | 74 | 105 | ||||||||
| TOTAL ASSETS | $ | 67,056 | $ | 54,479 | $ | 61,669 | |||||
| LIABILITIES AND SHAREHOLDERS EQUITY | |||||||||||
| CURRENT LIABILITIES: | |||||||||||
| Trade accounts payable | $ | 10,007 | $ | 3,237 | $ | 6,221 | |||||
| Other payables and current liabilities | 11,819 | 8,814 | 11,184 | ||||||||
| Total current liabilities | 21,826 | 12,051 | 17,405 | ||||||||
| Liabilities for vacation and severance pay | 1,901 | 1,669 | 1,945 | ||||||||
| SHAREHOLDERS' EQUITY: | |||||||||||
| Ordinary shares | 4,542 | 4,405 | 4,517 | ||||||||
| Additional paid-in capital | 78,332 | 75,648 | 77,428 | ||||||||
| Other comprehensive income | 100 | - | 72 | ||||||||
| Accumulated deficit | (39,645 | ) | (39,294 | ) | (39,698 | ) | |||||
| TOTAL SHAREHOLDERS' EQUITY | 43,329 | 40,759 | 42,319 | ||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS EQUITY | $ | 67,056 | $ | 54,479 | $ | 61,669 | |||||
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| SCOPUS VIDEO NETWORKS CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Dollars in thousands, except share and per share data) | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Six month ended June 30, | Three month ended June 30, | Year ended December 31, | |||||||||||||||
| 2 0 0 8 | 2 0 0 7 | 2 0 0 8 | 2 0 0 7 | 2 0 0 7 | |||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||||
| Revenues | $ | 35,504 | $ | 25,769 | $ | 19,078 | $ | 13,514 | $ | 57,477 | |||||||
| Cost of revenues | 18,220 | 13,216 | 9,795 | 7,044 | 29,901 | ||||||||||||
| Gross profit | 17,284 | 12,553 | 9,283 | 6,470 | 27,576 | ||||||||||||
| Research and development expenses, net of grants from | |||||||||||||||||
| the OCS | 6,718 | 5,066 | 3,427 | 2,581 | 10,675 | ||||||||||||
| Sales and marketing expenses | 8,383 | 7,871 | 4,601 | 3,918 | 15,601 | ||||||||||||
| General and administrative expenses | 2,458 | 2,550 | 1,316 | 1,358 | 5,692 | ||||||||||||
| Operating loss | (275 | ) | (2,934 | ) | (61 | ) | (1,387 | ) | (4,392 | ) | |||||||
| Financing income, net | 348 | 587 | 134 | 228 | 1,673 | ||||||||||||
| Profit (loss) before income taxes | 73 | (2,347 | ) | 73 | (1,159 | ) | (2,719 | ) | |||||||||
| Income tax expense | (19 | ) | (26 | ) | (19 | ) | (13 | ) | (58 | ) | |||||||
| Net profit (loss) | 54 | (2,373 | ) | 54 | (1,172 | ) | (2,777 | ) | |||||||||
| Basic and diluted net loss per ordinary share | 0.00 | (0.18 | ) | 0.00 | (0.09 | ) | (0.20 | ) | |||||||||
| Weighted average number of ordinary shares outs | |||||||||||||||||
| used in basic and diluted loss per ordinary share | |||||||||||||||||
| calculation | 13,953,537 | 13,438,118 | 3,963,541 | 13,480,995 | 13,595,346 | ||||||||||||
| 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_us@scopus.net www.scopus.net |
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