WizCom Announces Results for Nine Months of 2007
Jerusalem, November 23rd, 2007 - WizCom Technologies Ltd. ("WizCom")
(Prime Standard: WZM, IL 0010830706), a leading global provider of
handheld scan and translation tools, announces the financial results
for the nine months of 2007, reporting a dynamic revenue growth.
Highlights for the third quarter of 2007
WizCom achieves record net income.
Continued launch of the new generation products in the U.S. and U.K.
New exclusivity agreement signed with Hexaglot in Germany, Marram
Alpha in Croatia, and 360 Management Group in Canada.
Sales in the Nine Months of 2007 increased by 38% to US$ 8.0 million,
compared to US$ 5.8 million in the Nine Months of 2006.
Gross profit in the Nine Months of 2007 accumulated to US$ 3.2
million and reached 40%, compared to accumulation of US$ 2.5 million
reaching 44% in the Nine Months of 2006.
Operating income in the Nine Months of 2007 accumulated to US$ 320
thousand, compared to accumulation of US$ 95 thousand in the Nine
Months of 2006, representing an increase of 236%.
Net income in the Nine Months of 2007 increased by 114% to US$ 122
thousand compared to US$ 57 thousand in the Nine Months of 2006 and
US$ 157 thousand for the full year of 2006.
Cash and cash equivalents as of September 30, 2007 was US$ 423
thousand, compared to US$ 1.2 million as of December 31, 2006.
Net cash used in operating activities amounted to US$ 846 thousand in
the Nine Months of fiscal year 2007 compared to cash provided by
operating activities of US$ 299 thousand in Nine Months of fiscal
year of 2006 and compared to cash provided by operating activities of
US$ 430 thousand as of December 31, 2006.
Comments and Outlook
Mr. Michael Kenan, CEO of WizCom Technologies, commented: "The Nine
Months of the fiscal year 2007 brought dynamic revenue growth to
During Q3 WizCom has signed several important exclusivity agreements
in Germany, Croatia and Canada. Those alone are equaling for an order
volume of approximately US$ 4 million for the up coming twelve
months. The Q3 results do not reflect almost any of the revenues
expected from those three exclusivity agreements. Beyond this, it is
WizCom's main goal to expand the business in East Europe, in The
Americas and in Asia Pacific. The way to do so is to continue the
momentum of finding large entities and to sign new exclusivity
agreements in other countries all over the world in order to build up
an order backlog to make the business more plan able. WizCom's goal
is to ad at least two more exclusivity agreements until the first
quarter of fiscal year 2008. With the newly announced contracts we
have also taken care for a minimum order size for every month to
reach a more even distribution of revenues and to avoid one time
peaks as we have seen with the sales to Asia in Q1 of 2007.
For 2008 WizCom expects to continue its revenue expansion with double
digit growth rates."
Mr. Roy Cohen, CFO of WizCom Technologies, added: "The strong
decrease in cash and cash equivalents is due to inventory increase,
especially inventory held in WizCom's ware house for the Chinese
client, we estimate that those inventories will be sold until the
first quarter of fiscal year 2008." Mr. Roy Cohen further added that
"the loss for the third quarter of fiscal year 2007 derives
especially from the slow vacation months of August and September, we
estimate that sales will be back on track during the fourth quarter
of fiscal year 2007".
WizCom's financial statements for the Nine Months and the third
quarter of fiscal year 2007 may be viewed via the link at the end of
this mail or at the Company's website: www.wizcomtech.com.
About Wizcom Group:
WizCom Technologies Ltd. is the world's leading producer of personal,
portable scanning pens that help people read and process text. These
pocket-sized, user-friendly devices enable people to understand and
use printed material, anytime and anywhere, without disrupting their
reading process. Our pens help students of English as a first or
second language, as well as people working in multilingual
environments, enhancing their fluency and expediting reading
Ligature Ltd. is a world leader developer of Optical Character
Recognition (OCR) technologies and applications. The company offers
innovative approach to OCR based solutions for specialized markets
partnering with OEMs, VARs and system integrators incorporating
CharacterEyes into software applications and hardware products.
Galil Microwaves Israel (2003) Ltd. is a third party manufacturer and
assembler of electronic modules for microelectronic and microwave
For further information please contact:
WizCom Technologies Ltd.
Roy Cohen, CFO
8B HaMarpe St.
SCHWARZ Financial Communication
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WizCom Technologies Ltd.
8B Hamarpe St. Jerusalem
ISIN: IL0010830706; Index: Prime All Share, TECH All Share;
Listed: Freiverkehr in Börse Berlin, Freiverkehr in Börse Düsseldorf,
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in Niedersächsische Börse zu Hannover,
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Prime Standard in Frankfurter Wertpapierbörse, Geregelter Markt in