27/11/2001

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

Yokneam Elit, Israel, MediVision Medical Imaging Ltd. (EURO.NM: MEDV) released today (November 27, 2001) information concerning its operations and the financial results for the period ended September 30th, 2001.
Its sales in the nine months period ended September 30, 2001 were U.S.$5,062 thousands, compared to U.S.$1,187 thousands sales for the nine months period ended September 30, 2000. The sales for the three months period ended September 30, 2001 were U.S.$1,423 thousands, compared to U.S.$482 thousands for the three months period ended September 30, 2000. The EBITDA for the nine and three months periods ended September 30, 2001 were U.S.$(443) thousands and U.S.$(150) thousands accordingly as compared with EBITDA of U.S.$(449) thousands and U.S.$(164) thousands for the nine and three months periods ended September 30, 2000.

Highlights of the period ended September 30, 2001:

• Investment agreement with AGFA-GEVAERT N.V. - On September 25, 2001 the Company and AGFA-GEVAERT N.V. ("Agfa") signed an agreement. According to the agreement the Company agreed to issue to Agfa, upon completion of the second and third installments approximately 25% of the Company's issued share capital. According to the investment agreement, Agfa will invest an aggregate Euro-link amount of approximately U.S.$3.5 million, which represent a price of EUR2.10 per share. $1 Million upon closing and the remainder in two performance-linked installments over a period of approximately 12 months. Pursuant to Co-Development, Distribution and OEM agreement, the parties also undertook to mutually cooperate in development, promotion, marketing and sales of Digital Imaging and PACS systems for ophthalmic market. Until the balance sheet date the amount of $175 thousands was received and was stated as a receipt on account of shares. Subsequent to the balance sheet date the remaining balance of the first installment in the amount of $825 thousands was received by the Company.

• Increase in sales volume - The increase in the volume of sales during the three quarters of 2001 compared with the parallel period of last year.

• Increase in gross profit percentage - The increase in the Gross profit for the nine and three months periods ended September 30, 2001 over the Gross profit of the parallel periods in 2000.

Information with regard to the Financial Situation For the period ending September 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 nine and three months periods ended September 30, 2001 aggregated approximately U.S.$5,062 thousands and U.S.$1,423 thousands accordingly, as compared to sales of approximately U.S.$1,187 thousands and U.S.$482 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 nine months period 85% of the Company's sales were in U.S.A., 13% were in Europe and 2% were to local and other markets.

Gross profit

For the nine months period ended September 30, 2001 were approximately U.S.$3,175 thousands, which are 63% of sales revenues, as compared with gross profit of approximately U.S.$707 thousands, which are 60% for the comparable period of 2000. Gross profit for the three months period ended September 30, 2001 were approximately U.S.$936 which are 66% of sales revenues, as compared with gross profit of approximately U.S.$282 thousands which are 59% for the comparable period of 2000. The retention of such high percentage of gross profit in the consolidated results of the three quarters of 2001 represents a major improvement in the operations of OIS whose traditional Gross Profit percentage was substantially lower.

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 nine months period ended September 30, 2001 were approximately U.S.$716 thousands, as compared to R&D expenses of approximately U.S.$552 thousands for the comparable period of 2000. The R&D expenses for the three months period ended September 30, 2001 were approximately U.S.$202 thousands as compared with U.S.$179 for the comparable period in 2000. The Increase in R&D expenses for the period ended September 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 nine months period ended September 30, 2001, which is included as a deduction of research and development expenses, amounted to approximately U.S.$286 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 nine and three months periods ended September 30, 2001 were approximately U.S.$2,064 thousands and U.S.$ 560 thousands, which are 41% and 39% 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 nine and three months periods ended September 30, 2001 were approximately U.S.$1,416 thousands and U.S.$457 thousands accordingly, which are 28% and 32% 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 nine months period ended September 30, 2001 were approximately U.S.$194 thousands, attributed mainly to write-off of accounts payable related to previous years.

About MediVision

MediVision specializes in digital imaging devices for ophthalmic applications with an emphasis on diagnostics related to the eye retina. MediVision's products provide digital upgrades for a range of ophthalmic imaging systems, thus significantly enhancing imaging capability and providing its users with advanced diagnostic tools. The company's goals are to achieve significant market share and be a market leader in the ophthalmic digital imaging field.
The company owns a 73% interest in Ophthalmic Imaging Systems Inc. based in Sacramento, California, USA.

This Release contains certain forward-looking statements and information relating to the Company that are based on the beliefs of the Management of the Company as well as assumptions made by and information currently available to the Management of the Company. Such statements reflect the current views of the Company with respect to future events, the outcome of which is subject to certain risks and other factors, which may be outside of the Company's control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results of outcomes may vary materially from those described herein as projected, anticipated, believed, estimated, expected or intended.

For more information, please contact :
Ariel Shenhar
MediVision Medical Imaging Ltd.
Vice President, Chief Financial Officer
Tel. ++972-4-9894884
Fax ++972-4-9894883
cel. ++972-52-821728

Go Back