KIBBUTZ SHAMIR, Israel, Aug. 21 /PRNewswire-FirstCall/ -- Shamir Optical
Industry Ltd. (Nasdaq: SHMR) ('Shamir'), a leading provider of innovative
products and technology to the ophthalmic lens market, today announced
unaudited financial results for the second quarter ended June 30, 2008.
For the quarter ended June 30, 2008, revenues increased by 25.4% to $37.1
million, compared to $29.6 million for the second quarter of 2007. Gross
profit for the quarter increased by 28.9% to $20.1 million, or 54.3% of
revenues, compared to gross profit of $15.6 million, or 52.8% of revenues for
the same period last year.
For the quarter ended June 30, 2008, operating income increased by 21.1%
to $3.3 million, or 8.8% of revenues, compared to operating income of $2.7
million, or 9.1% of revenues for the same period last year. Net income for
the quarter increased by 29.8% to $2.6 million, or $0.16 per diluted share,
compared to net income of $2.0 million for the comparable period in 2007.
Excluding the effects of non-cash stock-based compensation expenses,
operating income was $3.5 million, or 9.5% of revenues, compared to operating
income of $2.9 million, or 9.6% of revenues, for the same period of 2007.
Excluding the effects of non-cash stock-based compensation expenses, net
income for the quarter increased 33% to $2.9 million, or $0.18 per diluted
share, from $2.2 million for the comparable period in 2007.
The reconciliation of GAAP operating income and GAAP net income to
non-GAAP operating income and non-GAAP net income is set forth below.
As of June 30, 2008, the Company had cash and cash equivalents, including
short-term investments of $28.1 million.
Commenting on the results, Eyal Hayardeny, Chief Executive Officer of
Shamir, said, 'The second quarter delivered many positives; Europe generated
improved operating results and the United States made significant inroads. We
maintained financial discipline in our operating units and we continued to
develop our global opportunities.'
Mr. Hayardeny continued, 'Progress continued toward advancing our European
distribution network as we purchased the remaining 49% of Altra Trading GmbH,
through which we hold our European operations. We are confident this purchase
will enable us to efficiently manage our European operations. Europe is an
important market for Shamir and we are committed to increasing our footprint
in this geography and will continue to make appropriate investments in
leadership, marketing and sales.'
Mr. Hayardeny concluded, 'In terms of our overall strategy, we continue to
invest for long-term growth, while closely monitoring operational expenses.
Our positive performance thus far this year, combined with our commitment to
growth and operations position us to achieve the goals we have set forth for
Shamir. Based on our results through the first six month of 2008, we
reconfirm our previously announced forecasts of estimate for growth in the
range of 10%-16%, based on the December 2007 exchange rates and excluding the
results of our Mexican operation.'
Conference Call:
Shamir has scheduled a conference call for 9:00 a.m. today to discuss
second quarter results. To participate in the call, please dial 888-562-3356
(U.S. and Canada) or 973-582-2700 (International). The conference ID for this
event is 58931251. For those unable to participate there will be replay
available from 12:00 p.m. EDT on August 21, 2008 through 11:59 p.m. EDT,
August 28, 2008. Please call: 800-642-1687 (U.S. and Canada) 706-645-9291
(International). The ID code for the replay is 58931251.
The call will be available as a live, listen-only webcast at www.kcsa.com.
Please go to the KCSA website at least 15 minutes prior to the scheduled start
time to register, download and install any necessary audio software. A 30-day
archive of the webcast will be available approximately 2 hours after the
conclusion of the live call.
About non-GAAP financial measures
This press release includes non-GAAP financial measures -- non-GAAP
operating income and non-GAAP net income -- that exclude certain charges. The
presentation of this financial information is not intended to be considered in
isolation or as a substitute for the financial information prepared and
presented in accordance with GAAP. Management of Shamir believes that
non-GAAP operating income and non-GAAP net income provides meaningful
supplemental information because these numbers, which exclude the effect of
non-cash stock-based compensation expenses, reflect our core operational
results and are used by management internally to review Shamir's financial
results.
About Shamir
Shamir is a leading provider of innovative products and technology to the
spectacle lens market. Utilizing its proprietary technology, the company
develops, designs, manufactures, and markets progressive lenses to sell to the
ophthalmic market. In addition, Shamir utilizes its technology to provide
design services to optical lens manufacturers under service and royalty
agreements. Progressive lenses are used to treat presbyopia, a vision
condition where the eye loses its ability to focus on close objects.
Progressive lenses combine several optical strengths into a single lens to
provide a gradual and seamless transition from near to intermediate, to
distant vision. Shamir differentiates its products from its competitors'
primarily through lens design. Shamir's leading lenses are marketed under a
variety of trade names, including Shamir Genesis(TM), Shamir Piccolo(TM),
Shamir Office(TM), Shamir Nano(TM), Shamir Autograph(TM) and Shamir Smart(TM).
Shamir believes that it has one of the world's preeminent research and
development teams for progressive lenses, molds, and complementary
technologies and tools. Shamir developed software dedicated to the design of
progressive lenses. This software is based on Shamir's proprietary
mathematical algorithms that optimize designs of progressive lenses for a
variety of activities and environments. Shamir also has created software
tools specifically designed for research and development and production
requirements, including Eye Point Technology software, which simulates human
vision.
Safe Harbor Statement
Statements concerning Shamir's business outlook or future economic
performance; product introductions and plans and objectives related thereto;
and assumptions made or expectations as to any future events, conditions,
performance or other matters, are 'forward-looking statements' as that term is
defined under U.S. federal securities laws. Forward-looking statements are
subject to various risks, uncertainties and other factors that could cause
actual results to differ materially from those stated in such statements.
These risks, uncertainties and factors include, but are not limited to: The
conflicts in the region; the effects of competition in our industry, and
changes in our relationships with optical laboratories, distributors, research
and development partners and other third parties; the effects of the
international expansion of our operations and our ability to manage our
growth, including our ability to manage potential future acquisitions; the
effect of global economic conditions in general and conditions in Shamir's
industry and target markets in particular; shifts in supply and demand; market
acceptance of new products and continuing products' demand; the impact of
competitive products and pricing on Shamir's and its customers' products and
markets; timely product and technology development/upgrades and the ability to
manage changes in market conditions as needed; interest rate fluctuations; and
other factors detailed in Shamir's filings with the Securities and Exchange
Commission. Shamir assumes no obligation to update the information in this
release.
SHAMIR OPTICAL INDUSTRY LTD.
Consolidated Balance Sheets
(US dollars in thousands, except share As of Dec. 31, As of June 30,
and per share data) -------------- --------------
2007 2008
-------------- --------------
(Unaudited)
CURRENT ASSETS:
Cash and cash equivalents $18,953 $21,614
Short-term investment 14,375 6,437
Trade receivables (1) 30,719 35,485
Other receivables and prepaid expenses 7,523 10,209
Inventory 27,972 32,718
-------------- --------------
TOTAL CURRENT ASSETS 99,542 106,463
LONG-TERM INVESTMENTS:
Severance pay fund 3,089 3,715
Long-term receivables 1,299 1,085
Investments in affiliates 4,437 1,503
-------------- --------------
TOTAL LONG-TERM INVESTMENTS 8,825 6,303
PROPERTY, PLANT AND EQUIPMENT, NET 39,170 43,044
OTHER ASSETS 5,412 7,237
GOODWILL 7,542 10,630
-------------- --------------
TOTAL ASSETS $160,491 $173,677
============== ==============
CURRENT LIABILITIES:
Short-term bank credit and loans $15,950 $18,204
Current maturities of long-term loans 7,689 13,350
Trade payables 10,852 14,891
Accrued expenses and other liabilities 12,735 12,908
-------------- --------------
TOTAL CURRENT LIABILITIES 47,226 59,353
LONG-TERM LIABILITIES:
Long-term loans 17,491 14,279
Capital leases 4,303 4,264
Accrued severance pay 3,337 4,322
Other long-term liabilities 753 625
Deferred income taxes 1,358 2,088
-------------- --------------
TOTAL LONG-TERM LIABILITIES 27,242 25,578
MINORITY INTERESTS 800 1,114
-------------- --------------
SHAREHOLDERS' EQUITY:
Share capital
Common shares of NIS 0.01 par value
Authorized: 100,000,000 shares at
December 31, 2007 and June 30, 2008;
Issued and outstanding: 16,423,740
shares at December 31, 2007 and
June 30, 2008 37 37
Additional paid-in capital 66,629 67,177
Accumulated other comprehensive income 1,628 1,976
Retained earnings 16,929 18,442
-------------- --------------
TOTAL SHAREHOLDERS' EQUITY 85,223 87,632
-------------- --------------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $160,491 $173,677
============== ==============
(1) Net of allowance for doubtful accounts of $ 2,140 and $ 2,184 as of
December 31, 2007 and June 30, 2008, respectively.
SHAMIR OPTICAL INDUSTRY LTD.
Consolidated Statements of Income
(US dollars in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
------------------------ ------------------------
2007 2008 2007 2008
----------- ----------- ----------- -----------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues, net $29,551 $37,055 $58,889 $75,053
Cost of revenues 13,948 16,949 27,875 34,174
----------- ----------- ----------- -----------
Gross profit 15,603 20,106 31,014 40,879
Operating Expenses:
Research and
development costs 632 865 1,262 1,739
Selling and marketing
expenses 9,200 11,388 17,508 23,055
General and
administrative
expenses 3,078 4,593 6,210 8,575
----------- ----------- ----------- ----------
Total operating expenses 12,910 16,846 24,980 33,369
----------- ----------- ----------- ----------
Operating income 2,693 3,260 6,034 7,510
Financial expenses and
other, net 100 426 158 500
----------- ----------- ----------- ----------
Income before taxes on
income 2,593 2,834 5,876 7,010
Taxes on income 1,043 127 2,075 1,684
----------- ----------- ----------- ----------
Income after taxes on
income 1,550 2,707 3,801 5,326
Equity in losses
(earnings) of
affiliates, net (26) (15) 3 (25)
Minority interest in
earnings (losses) of
subsidiaries (444) 101 (532) (162)
----------- ----------- ----------- ----------
Net income $2,020 $2,621 $4,330 $5,513
=========== =========== =========== ==========
Net earnings per share:
Basic $0.12 $0.16 $0.27 $0.34
=========== =========== =========== ==========
Diluted $0.12 $0.16 $0.26 $0.33
=========== =========== =========== ==========
Number of shares:
Basic 16,257 16,424 16,257 16,424
Dilutive 16,548 16,532 16,545 16,535
SHAMIR OPTICAL INDUSTRY LTD.
Reconciliation of Non-GAAP Operating Income and Net Income
(US dollars in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
------------------------ ------------------------
2007 2008 2007 2008
----------- ----------- ----------- -----------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Operating income $2,693 $3,260 $6,034 $7,510
Non-GAAP adjustment:
Stock based
compensation (157) (274) (493) (548)
----------- ----------- ----------- -----------
Non-GAAP operating
income $2,850 $3,534 $6,527 $8,058
=========== =========== =========== ===========
Net income $2,020 $2,621 $4,330 $5,513
Non-GAAP adjustment:
Stock based
compensation, net (157) (274) (493) (548)
----------- ----------- ----------- -----------
Non-GAAP net income $2,177 $2,895 $4,823 $6,061
=========== =========== =========== ===========
Net earnings per share:
Basic $0.13 $0.18 $0.30 $0.37
=========== =========== =========== ===========
Diluted $0.13 $0.18 $0.29 $0.37
=========== =========== =========== ===========
Number of shares:
Basic 16,257 16,424 16,257 16,424
Dilutive 16,548 16,532 16,545 16,535
SOURCE Shamir Optical Industry Ltd.
