Electronics Line 3000 Announces Results for the Third Quarter of 2007
Additional Milestone Achieved During the Company's Transition Phase
with the Completion of its New Product Line Development
Petach Tikva, Israel (November 7, 2007) - Electronics Line 3000 Ltd.
("EL3K" or "the Company") (XETRA: ELN), a leading global provider of
wireless security with remote management solutions announced the
results for the third quarter of 2007 in U.S. dollars.
Revenues for the first nine months of 2007 were $26.0 million,
compared to $33.2 million for the first nine months of 2006. Revenues
for the third quarter of 2007 were $8.1 million, compared to $8.8
million for the comparable quarter in 2006.
Gross margin was 40% for both the first nine months of 2007 and for
the first nine months of 2006. Gross margin for the third quarter of
2007 was 39% compared to 40% for the comparable quarter in 2006.
Operating profit for the first nine months of 2007 was $519,000,
compared to $2.3 million for the first nine months of 2006. Operating
profit for the third quarter of 2007 was $56,000 compared to $
294,000 for the comparable quarter in 2006.
Operating margin for the first nine months of 2007 was 2% compared to
7% for the first nine months of 2006. Operating margin for the third
quarter of 2007 was 1% of revenues, compared to 3% for the comparable
quarter in 2006.
Net income for the first nine months of 2007 was $16,000, compared to
$1.2 million for the first nine months of 2006. The loss for the
third quarter of 2007 was $151,000, compared to a net profit of
$123,000 for the third quarter of 2006.
A substantial part of the net loss, approximately $100,000, is
attributed to the decline in the exchange rate between the dollar and
Basic and diluted earnings per share for the first nine months of
2007 were $0.00, compared to $0.12 for the first nine months of 2006,
and a loss per share of $0.01 in the third quarter of 2007, compared
to $0.01 for the comparable quarter in 2006.
Net cash used in operating activities for the first nine months of
2007 was $1.3 million, compared to $3.2 million net cash provided by
operating activities for the first nine months of 2006. Net cash used
in operating activities for the third quarter was $174,000, compared
to $449,000 used in the comparable quarter of 2006.
During the quarter just ended, Electronics Line 3000 continued to
strengthen its partnerships, while also gaining new customers. In the
quarter, the Company received first orders from four new customers in
Italy, the Netherlands, Estonia and Austria.
The Company has also accomplished a significant milestone by
completing the development of its new product line. The new line
brings true innovation to the market, providing a unique solution
with advanced functionality, within a sophisticated design. It has
been developed to fit the contemporary needs of residential users as
a lifestyle accessory, offering more than standard security and, as
such, includes useful day-to-day information and features.
The new product line utilizes an advanced GPRS communications
platform, enabling enhanced performance for all users and providers,
including: An innovative web user interface for remote operation,
real-time data transfer, a plug-and-play installation, remote
firmware updates, real-time remote monitoring en masse and more.
Amir Hayek, President and CEO, commented: "The Company is in the
midst of its transition phase from a producer of traditional security
products to a total solutions provider with a comprehensive value
proposition. While we are not happy with the temporary decline in
revenues, it was expected during this transition phase. We are
continuing to refine our business focus and are aiming at strong
partnerships with key market players. We have also re-focused our
channel and product development and adapted our internal operations
to support this strategy".
"The coming launch of the new product line is another significant
step in support of our new direction. We are proud to have completed
developing this innovative solution on time according to our product
roadmap. We have now begun pilot tests with several key strategic
partners and are receiving positive feedback and great interest. I am
positive the results of the new line launch will be apparent during
the year ahead", Mr. Hayek concluded.
Summary financial tables are avaiable for download at the end of this
message. Please see the Director's Report posted on the website for
more details and the accompanying notes which are an integral part of
the interim consolidated financial statements.
Electronics Line 3000 Ltd. is pleased to invite you to the Q3 2007
results conference call on
Thursday, November 8, 2007
14:30 h (CET Frankfurt time)
Please use one of the following dial-in-numbers and ask for the
Electronics Line 3000 conference call:
Germany +49 69 2222 2220
USA +1 718 354 1362
A replay of the conference will be available within 30 minutes after
completion until the end of November 9 by calling
Germany +49 69 22222 0418
USA +1 718 354 1112
For more information please contact
Electronics Line 3000 Ltd.
Schwarz Financial Communication
Tel: +49 611 1745 398 11
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Electronics Line 3000 Ltd.
2 Granit St., P.O.B. 3253 Petah Tikva
WKN: A0B5R7; ISIN: IL0010905052; Index: CDAX, Prime All Share, TECH
Listed: Geregelter Markt in Frankfurter Wertpapierbörse, Freiverkehr
in Börse Berlin,
Freiverkehr in Bayerische Börse München, Prime Standard in