EXHIBIT
COMPANY PRESS RELEASE
SOURCE: ACS MOTION CONTROL LTD.
ACS MOTION CONTROL LTD. REPORTS SECOND QUARTER RESULTS
MIGDAL HA'EMEK, Israel, July 31, 2006 - ACS Motion Control Ltd., (Nasdaq: ACSEF
- - news), a developer and manufacturer of advanced motion control products,
reports second quarter revenues and earnings.
Revenues for the second quarter of 2006 were $3,822,000, compared to $2,846,000
revenues reported in the second quarter of 2005, and $3,801,000 revenues
reported for the first quarter of 2006. Revenues for the first six months of
2006 were $7,623,000 compared to $5,349,000 revenues reported in the first six
months of 2005.
Operating income for the second quarter of 2006 was $550,000, compared to
$319,000 in the second quarter of 2005, and $589,000 in the first quarter of
2006. Operating income for the first six months of 2006 was $1,139,000, compared
to $347,000 in the first six months of 2005.
Net income for the second quarter of 2006 was $522,000, or $0.16 per share,
compared to $145,000 net income, or $0.05 per share in the second quarter of
2005, and $624,000 net income, or $0.20 per share in the first quarter of 2006.
Net income for the first six months of 2006 was $1,146,000, or $0.36 per share,
compared to $185,000 net income, or $0.06 per share reported in the first six
months of 2005.
The company completed the second quarter of 2006 with cash, cash equivalents,
marketable securities and long-term debt securities of approximately $6.7
million, compared to $4.3 million at the end of the second quarter of 2005.
Investment in Netzer Precision motion Sensors Ltd. - Netzer sold part of its
assets for cash, part of which was received and part of which is due in future
installments subject to some performance based conditions. Part of the first
installment received was distributed to the shareholders as dividends. All
future proceeds from this transaction are expected to be distributed to the
shareholders. The company has received $196,000 in cash and reduced the
"Investment in other company" item in the balance sheet by an equal amount.
Based on current slower market conditions and the loss of a major application
which was reported on June 26, it is expected that revenues in the second half
of 2006 will be between $5.6 million to $6 million.
This press release contains forward-looking statements. Such statements involve
various risks that may cause actual results to differ materially. These risks
and uncertainties include, but are not limited to: market demand for the
Company's product, successful implementation of the Company's product,
competitive factors, the ability to manage the Company's growth and the ability
to recruit additional personnel.
CONTACT: ZE'EV KIRSHENBOIM, CEO, ACS MOTION CONTROL LTD. (011-972-4-654-6440)
2006, Q2 CONSOLIDATED STATEMENTS OF OPERATIONS
SIX MONTHS ENDED THREE MONTHS ENDED YEAR ENDED
JUNE 30, JUNE 30, DECEMBER 31,
------------------ ------------------ -------
2006 2005 2006 2005 2005
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CONSOLIDATED
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U.S. DOLLARS IN THOUSANDS
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REVENUES 7,623 5,349 3,822 2,846 11,428
COST OF REVENUES 3,906 2,629 2,050 1,348 5,657
------- ------- ------- ------- -------
GROSS PROFIT 3,717 2,720 1,772 1,498 5,771
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RESEARCH AND DEVELOPMENT COSTS
COSTS INCURRED 974 818 474 410 1,629
LESS-GRANTS RECEIVED (110) - (110) - (17)
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NET RESEARCH AND DEVELOPMENT COSTS 864 818 364 410 1,612
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES, NET 1,714 1,555 858 769 3,137
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TOTAL OPERATING COSTS 2,578 2,373 1,222 1,179 4,749
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OPERATING INCOME 1,139 347 550 319 1,022
FINANCING INCOME (EXPENSES), NET 59 (23) (5) (57) 12
OTHER INCOME (EXPENSES), NET - (1) - - 4
------- ------- ------- ------- -------
INCOME BEFORE TAXES ON INCOME 1,198 323 545 262 1,038
TAXES ON INCOME (52) (138) (23) (117) (64)
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NET INCOME 1,146 185 522 145 974
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EARNINGS PER SHARE - IN U.S. DOLLARS
BASIC NET EARNINGS PER SHARE 0.36 0.06 0.16 0.05 0.32
======= ======= ======= ======= =======
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
BASIC - IN THOUSANDS 3,156 3,077 3,223 3,077 3,078
======= ======= ======= ======= =======
2006, Q2 CONSOLIDATED BALANCE SHEETS
JUNE 30, DECEMBER 31,
2006 2005 2005
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CONSOLIDATED
-----------------------------
U.S. DOLLARS IN THOUSANDS
-----------------------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents 1,926 1,898 1,641
Short-term marketable securities - 294 511
Marketable debt securities 1,696 - 724
Trade receivables, net 3,339 1,883 2,517
Inventories 3,110 3,049 2,833
Other 637 430 330
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TOTAL CURRENT ASSETS 10,708 7,554 8,556
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LONG-TERM ASSETS
Deferred income taxes 121 133 121
Marketable debt securities 3,100 2,155 2,201
Investment in other company 1,020 1,218 1,218
Long-term assets 89 105 120
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4,330 3,611 3,660
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PROPERTY AND EQUIPMENT
Cost 3,588 3,508 3,465
Less - accumulated depreciation (2,979) (2,680) (2,810)
------- ------- -------
609 828 655
------- ------- -------
TOTAL ASSETS 15,647 11,993 12,871
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Trade payables 1,824 1,004 1,118
Other 1,165 1,082 1,030
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TOTAL CURRENT LIABILITIES 2,989 2,086 2,148
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LONG-TERM LIABILITIES
Accrued severance pay, net 175 137 134
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TOTAL LONG-TERM LIABILITIES 175 137 134
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TOTAL LIABILITIES 3,164 2,223 2,282
======= ======= =======
SHAREHOLDERS' EQUITY
Share capital - Ordinary Shares of NIS 0.01 par value
Authorized - 8,000,000 shares
Issued - June 30, 2006 - 3,290,052, June 30, 2005 - 3,102,147, Dec
31, 2005 - 3,113,577
Outstanding - June 30, 2006 - 3,290,051, June 30, 2005 - 3,077,346,
Dec 31, 2005 - 3,088,776 10 9 10
Treasury stock - June 30, 2006 - 1, June 30, 2005 and Dec 31, 2005 -
24,801 (150) (346) (346)
Additional paid-in capital 7,295 6,714 6,743
Retained earnings 5,328 3,393 4,182
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TOTAL SHAREHOLDERS' EQUITY 12,483 9,770 10,589
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 15,647 11,993 12,871
======= ======= =======
NET TANGIBLE ASSETS 12,483 9,770 10,589
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