Wizcom Technologies Ltd. /
Wizcom Technologies Releases H1 2011 Results
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The issuer is solely responsible for the content of this announcement.
Rosh Ha'ayin, August 24(th), 2011 - Wizcom Technologies Ltd. ("Wizcom") (Prime
Standard: WZM, IL 0010830706), today announces its results for the first six
months of 2011. Figures in this press release are according to US-GAAP and in
US$ thousands.
Financial Highlights
* Revenues for H1 2011 increased by 25% to US$2,693, from US$2,155 for H1
2010.
* The gross margin for H1 2011 increased from 30% to 33%, compared to H1 2010.
* An operating loss of US$968 was recorded, compared to an operating loss of
US$767 for the same period last year.
* A net loss of US$1,146 was posted, as compared to a net loss of US$1,177 for
the first six months of 2010.
* Total operating expenses for the first six months of 2011 came in at
US$1,863, up by 31% from US$1,423 for H1 2010.
* Basic and diluted net loss per common share was US$0.077, as compared to
US$0.099 for H1 2010.
* As of 30 June 2011, cash and cash equivalents stood at US$1,250, compared to
US$386 as of 30 June 2010 and US$639 as of 31 December 2010. Total
shareholders equity turned to a negative US$132, compared to a positive
US$407 as of 31 December 2010.
Summary of important events in H1 and Q2 2011
Mr. Shimon Amouyal, CEO for Wizcom, stated, "Although significantly better than
the results we posted for the first six months of last year, we are not entirely
satisfied with how this year to date has turned out. This is especially true
for the second quarter, where internal problems at a major distributor in Asia,
had a major impact on our ability to sell Wizcom products in this region, a very
important market for us. We have taken steps by appointing a new sales manager
for the region, who will be responsible for signing up new distributors and
reduce our dependence on exclusive partners."
"Outside of Asia, Wizcom's results have been more satisfying, with a positive
role for Russia, where significant revenues were generated within a few months
following the appointment of a new sales manager."
"The increase in operating costs was mainly due to non-cash items such as
compensation related options granted. In addition, higher R&D expenditures,
costs for recruitment and for funding led to higher costs in the first half of
2011. However, recurring operating costs remained on a stable level."
"In May the Company raised ¤1.1 million through the successful issue of a
convertible bond. A substantial portion of the issue was taken up by people
close to the Company, including a number of Wizcom veterans that had already
been engaged during the start-up phase and now returned as investors, as the
turnaround strategy re-established belief and credibility."
Wizcom's cash position continues to be healthy. Part of the proceeds from the
financing round are earmarked for product development, and we expect that 2012
will see the launch of exciting new Wizcom products. The main use for the funds
will be to extend credit lines to customers in order to drive demand."
Outlook
Mr. Amouyal continued, "Although it is early days yet, we expect Q3 to be
similar to Q2 2011. We have taken measures to address the Asia issue, which we
anticipate will start sorting effect towards the end of Q3 or the beginning of
Q4. Furthermore, we are in the process of hiring new sales staff for our US
operations and a territorial sales manager for the UK, which we believe will
both be strong drivers for revenues from these regions."
"We believe that we have an intrinsically strong company. Over the past couple
of years we have worked hard on implementing our turnaround strategy, and the
way markets are responding shows that this new strategy is gaining traction.
Events in the past couple of years have shown that in some areas the Company was
too reliant on single suppliers, contractors or distributors, a situation we
have made great strides in rectifying."
"The investments we made in strengthening our sales organizations in the US, the
UK, China and Russia are important steps towards reaching higher revenue
levels. We have already seen a positive effect and expect more in the near
future."
"Going forward, and taking into consideration the signs we are seeing in the
market, we are confident that we have made the right steps towards becoming
sustainably profitable. Obviously there are uncertainties in the general
economic environment and hence I feel it is too early to make a statement as to
when exactly we will achieve this, but we are on the way, this is clear."
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
comprehension.
For further information, please contact:
Wizcom Technologies Ltd.
Shimon Amouyal, CEO
13 Hamelacha St.
Rosh Ha'ayin, 48091, Israel
Telefon +972-3-9103330
shimona@wizcomtech.com
http://www.wizcomtech.com
SCHWARZ Financial Communication
Frank Schwarz
Investor Relations
Telefon +49-611-1745-398-11
Schwarz@schwarzfinancial.com
--- End of Message ---
Wizcom Technologies Ltd.
13 Hamelacha St. Rosh Ha'ayin Israel
WKN: 915856;ISIN: IL0010830706;Index:Prime All Share,TECH All Share;
Listed: Freiverkehr in Börse Stuttgart,
Freiverkehr in Börse Berlin,
Freiverkehr in Börse Düsseldorf,
Freiverkehr in Bayerische Börse München,
Prime Standard in Frankfurter Wertpapierbörse,
Regulierter Markt in Frankfurter Wertpapierbörse;
Full H1 Report incl. Tables as PDF:
http://hugin.info/130210/R/1540635/471050.pdf
Press Release as PDF:
http://hugin.info/130210/R/1540635/471049.pdf
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Source: Wizcom Technologies Ltd. via Thomson Reuters ONE
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