30/08/2001

MediVision presents management's report for the period ended on June 30th, 2001
 

Yokneam Elit, Israel, MediVision Medical Imaging Ltd. (EURO.NM: MEDV) released information concerning its operations and the financial results for the period ended June 30th, 2001.

MediVision Medical Imaging Ltd, an Israeli based company which designs, develops, manufactures and markets digital imaging devices for ophthalmic applications, announced today that its sales in the six months period ended June 30, 2001 were U.S.$3,639 thousands, compared to U.S.$705 thousands sales for the six months period ended June 30, 2000. The sales for the three months period ended June 30, 2001 were U.S.$1,698 thousands, compared to U.S.$291 thousands for the three months period ended June 30, 2000. The EBITDA for the six and three months periods ended June 30, 2001 were U.S.$(293) thousands and U.S.$(153) thousands accordingly as compared with EBITDA of U.S.$(285) thousands and U.S.$(180) thousands for the six and three months periods ended June 30, 2000.

Highlights of the period ended June 30, 2001:

• The increase in the volume of sales during the first half of 2001 compared with the parallel period of last year.

• The increase in the Gross profit for the six and three months periods ended June 30, 2001 over the Gross profit of the parallel periods in 2000.

Medivision Line of Business

MediVision specializes in digital imaging devices for ophthalmic applications with an emphasis on diagnostics related to the eye retina.

MediVision products provide digital upgrade for a range of ophthalmic imaging systems, thus significantly enhancing imaging capability and providing its users advanced diagnostic tools.
The Company believes that such digital solutions for the ophthalmic department represent a new market opportunity.

Market trends - Sales of Picture Archiving and Communications Systems (PACS) in the field of radiology have demonstrated continuous growth in recent years. MediVision believes that PACS is poised to make serious inroads in the ophthalmic field in the coming years.

Business strategy - Company goals are to achieve significant market share and be a market leader in the ophthalmic digital imaging field. The management believes that a considerable investment in R&D, sales and marketing will lead the way to accomplish these goals and reach a respectable profitability within a reasonable time frame.
It is the company's intention to attain co-operation with leading companies with complementary product lines. The company is constantly seeking collaboration with potential strategic partners and is presently engaged in exploration of such ventures.

Summary of Operations

Sales - MediVision's consolidated sales for the six months period ended June 30, 2001 aggregated approximately to U.S.$3,639 thousands an increase of 416% over U.S.$705 thousands sales during the six months period ended June 30, 2000. Sales for the three months period ended June 30, 2001 aggregated approximately to U.S.$1,698 thousands, an increase of 484% over U.S.$291 thousands sales during the three months period ended June 30, 2000.
As anticipated by MediVision's management the volume of sales during the six and three months periods were substantially increased as a result of the acquisition of OIS.

Gross profit - During the six months period ended June 30, 2001 the company achieved a Gross profit of 62% from sales and a Gross profit of 64% from sales for the three months period ended June 30, 2001. This level of Gross profit represents a substantial improvement on consolidated basis since traditionally OIS, the US subsidiary have demonstrated a much lower level of Gross profit.
The increase in the Gross profit is attributed among other things to the increase in the share of new products sales which has a lower cost of goods. Such products were introduced by the company to the market during this period.

Introduction of New Products - The effort invested in R&D in recent months by Medivision and OIS jointly, have resulted in the introduction of two new products:

WinStation 3000 - the first ultra high-resolution digital imaging system for Fluorescein Angiography, Color photography and ICG imaging.

WinStation 1400 - high resolution, low-cost digital imaging system for Fluorescein Angiography and Color photography.
Delivery to customers of these two newly introduced systems has started in the beginning of the said period.

Research & Development - In December 2000 the BIRD-F approved the Computerized Guided Laser Therapy (C.G.L.T) R&D project, for a grant of U.S.$800 thousands. The grant is to be solely dedicated for the Research & Development project of a Computerized Retinal Laser Treatment system to be carried out jointly by the Company and its US based subsidiary OIS. The new device is designed to provide the physician with an accurate, safe efficient and user-friendly tool, to treat various Retinal Diseases with intervention using sophisticated laser therapy technique.
During the period ended June 30, 2001 the Company and its subsidiary, OIS, received approximately U.S.$320 thousands from the BIRD-F. An income of U.S.$251 thousands is included in the Research and Development expenses as a decrease of the consolidated expenses, the remaining part of the grant, U.S.$69 thousands is included in accrued income in the consolidated balance sheet.

Information with regard to the Financial Situation For the period ending June 30, 2001

CONSOLIDATED STATEMENTS OF OPERATIONS
US Dollars (in thousands - except per share amounts)

Management's Discussion and Analysis of the Financial Condition and Results of
Operations of the Company
Sales - The Company's consolidated sales for the six and three months periods ended June 30, 2001 aggregated approximately U.S.$3,639 thousands and U.S.$1,698 thousands accordingly, as compared to sales of approximately U.S.$705 thousands and U.S.$291 thousands for the comparable periods of 2000. The increase in the volume of sales is attributed to the consolidation of OIS, which was acquired in August 2000. During the six months period 84% of the Company's sales were in U.S.A., 13% were in Europe and 3% were to local and other markets.

Gross profit - for the six months period ended June 30, 2001 were approximately U.S.$2,239 thousands, which are 62% of sales revenues, as compared with gross profit of approximately U.S.$425 thousands which are 60% for the comparable period of 2000. Gross profit for the three months period ended June 30, 2001 were approximately U.S.$1,090, which are 64% of sales revenues, as compared with gross profit of approximately U.S.$180 thousands which are 62% for the comparable period of 2000. The retention of such high percentage of gross profit in the consolidated results of the two quarters of 2001, represents a major improvement in the operations of OIS whose traditional Gross Profit percentage was substantially lower and could have otherwise adversely effect the consolidated results.

Research and Development Expenses - In accordance with International Accounting Standards (IAS), the Company does not capitalize its research and development expenses. Accordingly, statements of operations include research and development expenses. The Company's total R&D expenses for the six months period ended June 30, 2001 were approximately U.S.$514 thousands, as compared to R&D expenses of approximately U.S.$403 thousands for the comparable period of 2000. The R&D expenses for the three months period ended June 30, 2001 were approximately U.S.$258 thousands as compared with U.S.$192 for the comparable period in 2000. The Increase in R&D expenses for the period ended June 30, 2001 is attributed mainly to the R&D efforts made by the company in connection with the C.G.L.T. project, which is supported by the participation of the BIRD-F. The participation of the BIRD-F during the six months period ended June 30, 2001, which is included as a deduction of research and development expenses, amounted to approximately U.S.$251 thousands.

During the year ended December 30, 2000 the Company received a conditional grant from the BIRD-F of a total aggregate amount of U.S.$800 thousands for the 24-month project duration. The grant is to be solely dedicated for the Research & Development project of a Retinal laser treatment system to be carried out jointly by the Company and its US based subsidiary OIS. The new device is designed to provide the physician with an accurate, efficient, safe and user-friendly tool to treat various Retinal diseases with intervention using sophisticated laser therapy technique.

Selling and Marketing Expenses - Total net Selling and Marketing expenses for the six and three months periods ended June 30, 2001 were approximately U.S.$1,504 thousands and U.S.$ 691 thousands, which are 41% and 41% of total sales revenues accordingly.
Marketing expenses include expenses stemming from a worldwide marketing campaign of the Company's systems, trade shows, travel, salaries and advertising in professional publications.

General and Administrative Expenses - Constitutes the administrative and general expenses of the Company and include mainly management salaries, professional services, rental, maintenance and doubtful accounts. Total General and Administrative Expenses for the six and three months periods ended June 30, 2001 were approximately U.S.$959 thousands and U.S.$503 thousands accordingly, which are 26% and 30% of the total sales during these periods
Other Income, net - in accordance with International Accounting Standards (IAS), the Company includes expenses and income that occurred with connection to single unique events which are not directly related to the Company's main course of business. Total other income, net for the period ended June 30, 2001 were approximately U.S.$194 thousands, attributed mainly to write-off of accounts payable related to previous years.

NOTE: THIS PRESS RELEASE CONTAINS FORWARD LOOKING STATEMENTS THAT ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE SET FORTH IN THE FORWARD LOOKING STATEMENTS. THESE FORWARD LOOKING STATEMENTS REPRESENT MEDIVISION MEDICAL IMAGINGS' JUDGEMENT AS OF THE DATE OF THIS RELEASE. MEDIVISION DISCLAIMS ANY INTENT OR OBLIGATION TO UPDATE THESE FORWARD-LOOKING STATEMENTS.

MediVision Medical Imaging Ltd. CONTACT:
Ariel Shenhar, Vice President &CFO
P.O. Box 45, Yokneam Elit Industrial Park 20692, Israel

Go Back