Another year of growth as forecasted - revenues and earnings with double-digit increase

ISRA VISION AG: Preliminary annual financial statement for financial year 2011/2012 - Revenues +12 %, EBT +13 %
(PresseBox) (Darmstadt, ) .
- Revenue growth plus 12% to 83.9 mill. euros (FY 10/11: 75.2 mill. euros)
- EBT growth plus 13% to 14.9 mill. euros (FY 10/11: 13.2 mill. euros)
- Strong margins at high level (compared to total output):
* Gross margin 60% (FY 10/11: 60%)
* EBITDA margin 26% (FY 10/11: 25%)
* EBIT margin 17% (FY 10/11: 17%)
* EBT margin 16% (FY 10/11: 16%)
- Earnings per share plus 17% to 2.44 euros (FY 10/11: 2.09 euros)
- Positive operative cash flow of 11.4 mill. euros (FY 10/11: 10.1 mill. euros)
- Order backlog of approx. 47 mill. euros (PY 40 mill. euros)
- 100 mill. euros revenues within reach
- Guidance: Continued profitable growth for financial year 12/13 is expected in the lower double-digit range - Detailed forecast in February 2013
- Market capitalization exceeds 100 mill. euros

ISRA VISION AG (ISIN: DE 0005488100), one of the world's leading companies of industrial image processing (Machine Vision), global market leader in surface inspection systems, and one of the leading 3D machine vision providers, has fulfilled the growth forecasts once again based on audited - but not yet certified - figures for the financial year 2011/2012 (10-01 to 09-30). The company increased revenues by 12 percent to 83.9 million euros. The net profit rose by 18 percent to 10.7 million euros (FY 10/11: 9.1 mill. euros). This results in strong earnings per share after taxes of 2.44 euros (FY 10/11: 2.09 euros). It can be assumed that a dividend distribution similar to the previous year will be recommended to the general meeting based on the dividend policy of the company (0.25 euro per share). With a value of over 24 euros per share, ISRA has exceeded the market capitalization threshold of 100 million euros. This could lend to additional impulses to the stock performance.

With a growth by 12 percent to 83.9 million euros (FY 10/11: 75.2 mill. Euros) revenue developed positive. Because of disproportional low rise in capitalized work, total output amounts to 93.5 million euros (FY 10/11: 84.7 mill. euros). The gross margin (total output minus cost of materials and labor of production and engineering) confirms with 60 percent (FY 10/11: 60 percent) once again the overall strong margin level of ISRA. As planned the expenditures for research and development rose more moderately, as planned, than the revenues, just like the expenses for the administration. The expenses for sales and marketing increased parallel with the revenues. EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) improved by 12 percent to 23.9 million euros (FY 10/11: 21.4 mill. euros) - a margin development of one percentage point to 26 percent with respect to total output (FY 10/11: 25 percent). EBIT (Earnings before Interest and Taxes) grew - in consequence of significantly higher depreciations - by 10 percent to 15.5 million euros (FY 10/11: 14.1 mill euros), which corresponds to an EBIT margin to total output of 17 percent (FY 10/11: 17 percent) and 18 percent to revenues (FY 10/11: 19 percent). EBT (Earnings before Taxes) grew by 13 percent to 14.9 million euros (FY 10/11: 13.2 mill. euros), which corresponds to an EBT margin of 16 percent to total output (FY 10/11: 16 percent) and 18 percent to revenues (FY 10/11: 18 percent). The operative cash flow continued to develop positively to 11.4 million euros (FY 10/11: 10.1 mill. euros). In addition, 3.7 million euros were paid off for debt and 0.8 million euros for interest payments. As of 09-30-2012, equity ratio amounts to 56 percent (FY 10/11: 57 percent) a similar high level as in the previous year. As a result, the company is equipped with solid capital resources for future growth.

From a regional perspective, the positive business development from the previous quarters continued. Revenues increased across all regions. North America and Europe showed solid growth. With significantly more than 30 percent of revenues, Asia developed above average and will continue to be a growth driver in the future. The regional expansions in East Europe, South America and Asia will gain further in importance over the medium and long term. The company will invest in the aspiring growth region of Indonesia to further strengthen the market penetration. The expansion in international markets will continue to be an integral component of ISRA's strategy and make an important contribution to growth.

In the financial year 2011/2012, ISRA further strengthened its market position globally in both segments, Surface Vision and Industrial Automation. The Surface Vision revenues increased at the strong level of the previous year by 3 percent to 62.4 million euros (FY 10/11: 60.6 mill. euros). EBIT amounted to 11.7 million euros (FY 10/11: 11.6 mill. euros) - the EBIT margin to 17 percent to total output (FY 10/11: 17 percent). With respect to the markets, revenues of the Metal, Plastics and Specialty Paper industries developed strongly. A considerable revenue contribution also came from the segments Glass and Paper. In the solar sector, which makes a low single-digit contribution to revenues, after a good first half year the order entries considerably slowed down in the second half. In the Industrial Automation segment, in which the sales activities focus almost exclusively on the automotive sector, ISRA recorded a strong business development which was carried particularly by the large-scale orders of the automotive industry. Revenues climbed by 48 percent to 21.5 million euros (FY 10/11: 14.6 mill. euros). EBIT rose by 49 percent to 3.8 million euros (FY 10/11: 2.6 mill. euros). The EBIT margin improved to 16 percent in relation to total output (FY 10/11: 15 percent).

For the current financial year, Management expects a positive progress in the Surface Vision segment, particularly in the Metal, Glass, Print and Plastics industries. For Paper and Specialty Paper, a moderate development can be seen for the first half of the year. In the Solar segment, no noteworthy order entries are anticipated in the current financial year. A recovery is not expected until the beginning of the 2013/2014 financial year. The outlook for the Industrial Automation segment is still estimated to be strong. As central component of the profitable growth strategy, the company continues to pursue its dynamic innovation roadmap which envisions a series of new products and applications for the international markets in the coming years. In the area of generic standard products, the portfolio was expanded with the product range of 3D Shape GmbH, which was acquired in September 2012. The synergies resulting from the worldwide sales network and of the "Plug & Automate" product family will give further revenue impulses in the next years. in addition, ISRA invests in the internal infrastructure, especially in software systems for market communication (internet presence) and in productivity increase (Enterprise-Resource-Planning system) with an amount of significantly more than one million euros.

In the next two years, Management expects that the revenue mark of 100 million euros will be exceeded through organic growth. The order backlog of currently approximately 47 million euros (PY approx. 40 mill. euros) represents a solid start position for the current financial year. The bottlenecks, which partially occurred due to the record order backlog in the financial year 2011/2012, are resolved with a targeted increase of capacities. For this purpose, the personnel in the production-based segments was enforced. The further expansion of the Customer Service Center will also contribute positively to the revenue and margin development in the future.

Growth via acquisitions will still remain a measure of the growth strategy. With ten successful acquisitions, ISRA features a solid know-how to integrate teams in the group organization and to realize synergies. Management is currently examining several possible strategic targets and plans an additional completion in the 2012/2013 financial year.

Based on the investments made in research and development, in the international sales and service teams as well as in marketing measures, and assuming a stable economic development, ISRA anticipates a profitable organic revenue growth in the lower double-digit range with at least stable margins, for the 2012/2013 financial year, whereby the focus is still on a medium-term margin improvement. ISRA will be releasing a detailed forecast for financial year 2012/2013 in early February.


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