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Rosh Ha'ayin, July 6th, 2009 - WizCom Technologies Ltd. ("WizCom")
(Prime Standard: WZM, IL 0010830706), a leading global provider of
handheld scanning and translation tools, announces its delayed
results for the first quarter of 2009. Figures in this press release
are according to US-GAAP and in US$ thousands.
Revenues for Q1 of 2009 dropped by 23% compared to Q1 2008, from
US$2,226 to US$1,705. However, compared to Q4 of 2008, revenues
increased by 26%.
Gross profit margin for the first quarter came in at 38%, compared to
41% for the previous year.
An operating loss of US$146 was posted as compared to a US$256
operating loss for Q1 2008.
A net loss was posted of US$112, compared with last year's Q1 net
loss of US$264.
Basic and diluted net loss per common share was US$0.01, compared to
US$0.02 for Q1 2008.
As of 31 March 2009, the Company had cash and cash equivalents of
US$240, as compared to US$194 thousand for 31 December 2008,
representing a positive total cash-flow of US$46, while net cash used
in operating activities was still negative with US$10.
Mr Shimon Amouyal, CEO for WizCom, stated, "First of all, we would
like to apologize for the delay in posting our results, for which
there were two main reasons. To begin with, in May there was a major
change in Management with the appointment of both a new CEO and CFO.
Secondly, new auditors were appointed. The people involved in
producing the accounts obviously required time to get to grips with
the ins and outs of the Company, which led to a delay in producing
"As to our results, I can state that we are confident we will be able
to build upon what the Company has achieved so far. The cost cutting
plan, engaged upon under the reign of Mr Elad as CEO, has shown very
clear results, with our bottom line improving significantly. We also
posted a substantial revenue increase over the fourth quarter of
2008, which we believe is a sign of the validity of our strategy to
develop new online distribution channels. We think that with these
results, especially in these troubled times, we have shown our
ability to implement a turn around. We are not there yet, but the
first positive results are in."
During Q1 2009 the Company managed to reduce operating costs by 42%
compared to the previous year's period. The main reason for this
development was the reduction in wages from US$1,344 in Q1 2008 to
US$ 971 for the first three months of 2009. WizCom has continued its
cost cutting plan into Q2 2009, with further decreases in expenses
coming from items such as the change of the company's headquarters,
with reduced space and lease costs. In addition, WizCom benefited
from a stronger US-Dollar vs. NIS, which resulted in a positive
effect on the net income by US$109.
Although it is too early to come with quantitative statements as to
the outlook for the coming financial year, Management believes that
the results achieved in today's market place allow the Company to
feel confident about its ability to further improve the bottom line.
Ms Kochava Shmaryahu, CFO for WizCom, stated: "We have high hopes of
becoming cash flow positive this coming year and approach breakeven
or even achieve profitability. The organization is now in a much
better place than it was 18 months ago and we look forward to
capitalize on the opportunities that WizCom's technology and its
position in the market for translation tools are offering. However,
Management is continuously evaluating further options to improve the
Company's costs structures."
In Q1 2009 the Company has taken measures to develop new channels for
the sales of its products, such as selling products via the Company's
own website. The initial success has encouraged Management further to
develop the e-commerce strategy and tools. Moreover, WizCom is
undertaking efforts to build up a world wide sales team. So far, new
sales managers for Turkey, Latin America and Israel have been
recruited. Last but not least, a loyalty program will be launched
aimed at resellers in order to incentivize distribution partners. On
the cost side, a further efficiency improvement in the production
process is on top of the agenda.
The above mentioned activities have started to sort effect, which has
resulted in an increase in liquidity.
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
WizCom Technologies Inc, Boston, US-based entity, responsible for
WizCom Group operations in the Americas.
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.
Shimon Amouyal, CEO
13 Hamelacha St.
Rosh Ha'ayin, 48091, Israel
SCHWARZ Financial Communication
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WizCom Technologies Ltd.
8B Hamarpe St. Jerusalem Israel
915856; ISIN: IL0010830706; Index: Prime All Share, TECH All Share;
Listed: Freiverkehr in BÃ¶rse Berlin, Freiverkehr in BÃ¶rse DÃ¼sseldorf,
Freiverkehr in Hanseatische WertpapierbÃ¶rse zu Hamburg, Freiverkehr
in NiedersÃ¤chsische BÃ¶rse zu Hannover,
Freiverkehr in Bayerische BÃ¶rse MÃ¼nchen, Freiverkehr in BÃ¶rse
Prime Standard in Frankfurter WertpapierbÃ¶rse, Regulierter Markt in