|
FOR
IMMEDIATE RELEASE
Scitex
Announces Fourth Quarter and Full Year 2001 Results
Highlights:
Tel
Aviv, Israel – March 7, 2002.
Scitex Corporation Ltd. (NASDAQ
& TASE: SCIX), a world leader in industrial
inkjet digital printing solutions, today announced results for the
fourth quarter and year ended December 31, 2001.
Scitex recorded significant annual revenue growth in its industrial ink
jet businesses during 2001, although the fourth quarter and annual results were significantly affected by the
worldwide economic slowdown. Revenues for the fourth quarter were $59.1 million, a decrease of 9% from $64.5 million in the fourth quarter of 2000. Operating loss before amortization of intangibles (of $18.1 million) and restructuring costs (of $1.7 million) was $0.5 million. Net loss was $35.8 million. Revenues
for 2001 were $256.2 million, representing over 13% growth compared to the combined revenues of Scitex Digital Printing and Scitex Vision in
2000. Operating income
for 2001 was $11.9 million (before restructuring costs and amortization of intangibles).
Net loss was $250.3 million, of which $219 million associated with
Scitex’s holding in Creo and $27 million associated with amortization of
intangibles. Beginning
in the second quarter of 2000, Scitex's involvement in the digital
preprint business changed from full ownership to an equity investment in
Creo Products Inc. Accordingly, a year over year comparison of 2001 to
2000 is not meaningful. Mr.
Yeoshua Agassi, President and CEO of Scitex commented: “Year 2001 is the
first full year in which Scitex was mainly focused
on its industrial
ink jet digital printing business activities, which grew 13% compared to
2000 and yielded operating income of $17.9 million in 2001 (the combined
operating income of Scitex Digital Printing and Scitex Vision before
restructuring costs and amortization of intangibles). Mr.
Agassi
continued: "during the year, we primarily demonstrated
this focus by continuous investments by Scitex
Digital Printing and Scitex Vision
in new products and markets and by the increase in our share in Aprion
Digital to a total of 43%. In addition, during the final quarter of the
year, we sold a major portion of the shares held in Creo Products,
bringing our holding in that company from 27% down to approximately 13%,
and significantly improving our cash position. As for the financial
results and the economic slowdown, especially in the second half of the
year, both Scitex Digital Printing and Scitex Vision
took measures to reduce their expenses by reducing their workforce and
cutting various expenses."
Mr. Agassi concluded: “The considerable revenue growth of our subsidiaries during the first three quarters of 2001 was affected in the last quarter by adverse market conditions. As for 2002, while global economic conditions remain uncertain, we would like to see moderate revenue growth, as well as some improvements in gross margin and profitability." During
2001, Scitex underwent organizational changes, with the resignation of
Yoav Chelouche as President and Chief Executive Officer and the
appointment of Yeoshua Agassi to that post. As part of Scitex’s overall
strategy of strengthening its operating units, Yossy Zylberberg, formerly
Corporate Vice President and Chief Financial Officer, has taken up the
position of Chief Operating Officer at Scitex Digital Printing in Dayton,
Ohio, Scitex’s largest subsidiary. Yahel Shachar, who joined the Company
during the fourth quarter, was appointed Chief Financial Officer and
Corporate Secretary. During
the fourth quarter of 2001, Scitex conducted extensive negotiations with
the Internal Revenue Service with regard to the conclusion of audits of US
subsidiaries for the years 1992-1996 and made an advance payment of $20
million. Scitex is expecting the final IRS position to be received in the
coming few months. Scitex’s Subsidiaries Scitex
Digital
Printing, Inc. (SDP) Notwithstanding
the weakness in the fourth quarter due to global events, SDP experienced
continued revenue growth for the year 2001. Revenues
for the fourth quarter 2001 were $39 million, a decrease of 10% from $43
million in the fourth quarter of 2000. The decreased revenues negatively
affected operating income, which totalled $2.5 million as compared to $4.6
million in the fourth quarter of 2000 (figures are before restructuring
costs and amortization of intangibles). Annual
revenues for 2001 were $165 million, reflecting an 8.1% increase from $152
million in 2000. SDP marked a consistent growth of its recurring revenue
business as a result of recent changes to the company’s service and ink
strategies and “click-based” transactions coming into effect. SDP’s
business in 2001 continued to be geographically balanced with US, Europe
and Asia Pacific (including Japan) each contributing over 30%. The
9” format VersaMark product line continues to gain momentum and
constituted over 47% of 2001 equipment sales as compared to 41% for 2000. Scitex
Vision Ltd. Scitex
Vision revenues for the fourth quarter of 2001 were $20.1 million, a
decrease of 6.4% from $21.5 million in 2000, marking a weak ending to an
otherwise strong year for the company. In the fourth quarter, Scitex
Vision recorded a technology write-down ($15 million, following an
economic analysis of the value of intangibles acquired in 1998) and
restructuring costs
($0.5 million of
reduction in workforce). The operating loss for the fourth quarter before
these non-recurring expenses and amortization of intangibles was $1.8
million compared to a $2.4 million operating income in the fourth quarter
of 2000. The
year 2001 was one of continued strong growth for Scitex Vision. Annual
revenues totalled $91.6 million, compared with $75.5 million in 2000, an
increase of 21%. Operating income (before restructuring costs and goodwill
amortization) amounted to $6.7 million. During
2001, Scitex Vision increased its product line with the
launch of the Scitex
EnJet and XLJet,
as well as introduction of the VeeJet. All products are unique in their
categories. Industrial
Ink Jet Companies
Aprion
Digital Ltd.
Aprion
develops Drop-On-Demand ink jet technologies and systems for a variety of
end user digital printing applications. During the year, Aprion signed
agreements with two strategic partners to develop future systems for the
printing industry. As part of these agreements, the partners invested
$11.5 million in Aprion. The company is progressing to conclusion of its
beta testing program and expects to start recording revenue in the coming
months. During
the fourth quarter, Scitex converted a note it held in Aprion into
Aprion’s shares, and increased its ownership in Aprion to 43%. Jemtex
Ink Jet Printing Ltd.
Jemtex
develops heavy-duty digital printing systems, based on its novel
Continuous Ink Jet technology. During 2001, Jemtex moved from the
technology development stage to initial commercialization through two
programs with strategic partners. Scitex holds 36.6% in Jemtex. Objet
Geometries Ltd.
Objet
develops and manufactures ink
jet printers for the
creation of three-dimensional models. In
2001, the company moved from the R&D phase to commercial activity with
several units installed at leading customer sites. During the year, Objet
established a platform of marketing, sales and customer support in Europe
and the USA. The company will start recording revenues in the next few
months. During 2001, Scitex invested an additional $1.7 million in Objet
(of which $0.7 million was invested in the fourth quarter) and now holds
18.7%. Other
Investments Creo
Products Inc. (Reported
with a three month lag) For
the fourth fiscal quarter of 2001 (ended September 30, 2001), Creo
reported revenues of $143 million compared to revenues of $173.3 million
in the fourth fiscal quarter of 2000. Creo’s adjusted loss for the
quarter was $5.7 million or $0.12 per share (diluted). The adjusted loss
did not include one-time charges related to intangible assets,
investments, future tax assets, account receivables, obsolete inventory
and other assets. It also did not include restructuring charges related to
reduction in work force. Creo’s net loss for the fourth fiscal quarter
under US GAAP was $351.4 million. Scitex’s
share in Creo’s one-time charges was included in Scitex’s third
quarter financial statements. Therefore, in the fourth quarter results,
Scitex included only its share in Creo’s ongoing losses. During the
quarter, Scitex sold seven million Creo shares and reduced its holding in
Creo to 12.7%. The loss recorded from the sale totalled $6 million. Under
US GAAP, beginning December 1, 2001, Scitex accounts
for the Creo investment as “available for sale” and the changes in its
value are accrued
into capital
surplus.
Profit
or loss from this investment will
be recognized in the
event of an additional sale of shares or permanent impairment. Scidel
Technologies Ltd.
Scidel
develops a technology for electronic insertion of virtual advertisements
into live and taped televised sporting events. On February 28, 2002
(subsequent to the date of the 2001 financial statements), Princeton Video
Image, Inc. (NASDAQ: PVII),
a leader in virtual advertising and imaging solutions, signed a definitive
agreement to acquire the assets of SciDel. Scitex holds 29.4% in Scidel. Conference
Call Investors
will have the opportunity to listen to a live simultaneous webcast of the
analyst conference call in connection with Scitex’s fourth quarter 2001 and
full year earnings. The call is scheduled for 11:30 a.m. EST (8:30 a.m.
Pacific, 4:30 p.m. GMT, 6:30 p.m. Israel time) on March 7, 2002.
You can connect online through www.scitex.com.
A
replay of the conference call will be available during the following seven
days at the following numbers: US
1 800 475 6701 Intl
1 320 365 3844 Access
code: 629930 The
replay will be available until midnight on March 14, 2002. -ends-
About
Scitex Corporation Ltd. Scitex
Corporation Ltd., is a world leader in digital
industrial inkjet printing solutions.
Through its wholly owned subsidiaries and strategic investments,
Scitex
strengthens its market position in this specialized sector. Scitex
shares trade on NASDAQ and The Tel Aviv Stock Exchange under the symbol
SCIX. For more information, please visit our Web site at www.scitex.com. Except for the historical
information herein, the matters discussed in this news release include
forward-looking statements within the meaning of the “safe harbor”
provisions of the U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking statements that are based on various assumptions (some of
which are beyond the Company’s control) may be identified by the use of
forward-looking terminology, such as “may”, “can be”, “will”,
“expects”, “anticipates”, “intends”, “believes”,
“projects”, “potential”, and similar words and phrases. Actual
results could differ materially from those set forth in forward-looking
statements due to a variety of factors, including, but not limited to, (1)
risks in product and technology development, (2) market acceptance of new
products and continuing product demand, (3) the impact of competitive
products and pricing, (4) changes in domestic and foreign economic and
market conditions, (5) timely development and release of new products by
strategic suppliers, (6) the impact of the Company’s accounting
policies, and (7) the other risk factors detailed in the Company’s most
recent annual report and other filings with the US Securities and Exchange
Commission. Except as may be required by law, the Company does not
undertake, and specifically disclaims, any obligation to publicly release
the results of any revisions which may be made to any forward-looking
statements to reflect the occurrence of anticipated or unanticipated
events or circumstances after the date of such forward-looking statements. Scitex
and the Scitex logo, are registered trademarks and service marks of Scitex
Corporation Ltd. Scitex Vision is a trademark of Scitex Vision Ltd. Scitex
VersaMark is a registered trademark and Scitex VersaMark Business Color
Press and Business Color Press are trademarks of Scitex Digital Printing,
Inc. Contacts
(Tables
to Follow)
|