KIBBUTZ SHAMIR, Israel,
May 10 /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 first quarter ended March 31,
2010.
For the quarter ended March 31,
2010, revenues increased 18.2% to $40.1 million, compared with revenues of
$33.9 million for the same period in
2009. Gross profit for the quarter was $21.8
million, or 54.5% of revenues, compared with gross profit of
$17.9 million, or 52.6% of revenues
for the same period last year.
For the quarter ended March 31,
2010, operating income increased 41.3% to $5.5 million, or 13.6% of revenues, compared with
operating income of $3.9 million, or
11.4% of revenues for the same period last year.
Net income for the quarter increased 78.3% to $3.9 million, compared with net income of
$2.2 million for the same period in
2009. Net income attributable to Shamir's shareholders was
$3.7 million or $0.22 per diluted share, compared with
$2.1 million or $0.13 per diluted share for the same period in
2009.
For the quarter ended March 31,
2010, excluding the effect of non-cash stock-based
compensation expenses and amortization of intangible assets,
operating income was $6.0 million, or
14.9% of revenues, compared with operating income of $4.3 million, or 12.6% of revenues, for the same
period last year.
Excluding the effect of non-cash stock-based compensation
expenses, accretion of redeemable non-controlling interest, net of
tax, and amortization of intangible assets, net of tax, net income
attributable to Shamir's shareholders for the quarter was
$4.2 million, or $0.25 per diluted share, compared with net income
of $2.5 million, or $0.15 per diluted share for the same period last
year.
The reconciliation of GAAP operating income and net income to
non-GAAP operating income and non-GAAP net income is set forth
below.
As of March 31, 2010, the Company
had cash and cash equivalents, including short-term investments of
$30.1 million.
Commenting on first quarter results, Amos Netzer, chief executive officer of Shamir,
said, "Shamir had a strong first quarter 2010 across all of its
major operating regions. Our favorable results reflect the progress
we continue to achieve throughout our operations, which includes
the strengthening of our brand as well as the improvements we have
made in our sales and manufacturing capabilities. The investments
we have made in both people and geographic expansion have allowed
us to increase our market share."
For the fiscal year ending December 31,
2010, Shamir confirmed its previous estimate for 2010
revenue growth in the range of 8%-12%, under the assumption of
December 2009 exchange rates.
Conference Call:
Shamir has scheduled a conference call for 10:00 a.m. ET today to discuss first 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 72108068. For those unable to participate there will
be replay available from 1:00 p.m. ET
on May 10, 2010 through 11:59 p.m. EDT, May 17,
2010. Please call: (800) 642-1687 (U.S. and
Canada) (706) 645-9291
(International). The ID code for the replay is 72108068.
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 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 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.
(Tables to follow)
SHAMIR OPTICAL INDUSTRY
LTD.
|
|
|
|
|
|
Consolidated Balance Sheets
|
|
|
|
|
|
(US dollars in thousands, except share
and per share data)
|
|
|
|
As of December
31,
|
|
As of March
31,
|
|
|
|
2009
|
|
2010
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
CURRENT ASSETS:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
19,929
|
|
$
16,605
|
|
Short-term investment
|
|
11,679
|
|
13,539
|
|
Trade receivables (1)
|
|
33,648
|
|
37,574
|
|
Other receivables and prepaid
expenses
|
|
7,918
|
|
8,423
|
|
Inventory
|
|
26,946
|
|
25,587
|
|
TOTAL CURRENT
ASSETS
|
|
100,120
|
|
101,728
|
|
|
|
|
|
|
|
LONG-TERM INVESTMENTS:
|
|
|
|
|
|
Severance pay fund
|
|
2,909
|
|
2,979
|
|
Long-term receivables
|
|
427
|
|
415
|
|
Investments in affiliates
|
|
1,306
|
|
1,298
|
|
TOTAL LONG-TERM
INVESTMENTS
|
|
4,642
|
|
4,692
|
|
|
|
|
|
|
|
PROPERTY, PLANT AND EQUIPMENT,
NET
|
|
38,568
|
|
36,736
|
|
OTHER ASSETS
|
|
7,439
|
|
7,022
|
|
GOODWILL
|
|
12,945
|
|
13,366
|
|
TOTAL
ASSETS
|
|
$
163,714
|
|
$
163,544
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
Short-term bank credit and
loans
|
|
$
11,033
|
|
$
8,874
|
|
Current maturities of long-term
loans
|
|
6,879
|
|
5,873
|
|
Trade payables
|
|
11,680
|
|
11,719
|
|
Accrued expenses and other
liabilities
|
|
15,447
|
|
15,061
|
|
TOTAL CURRENT
LIABILITIES
|
|
45,039
|
|
41,527
|
|
|
|
|
|
|
|
LONG-TERM LIABILITIES:
|
|
|
|
|
|
Long-term loans
|
|
12,599
|
|
11,631
|
|
Capital leases
|
|
2,367
|
|
2,051
|
|
Accrued severance pay
|
|
3,270
|
|
3,421
|
|
Other long-term liabilities
|
|
2,763
|
|
2,942
|
|
Deferred income taxes
|
|
2,224
|
|
2,174
|
|
TOTAL LONG-TERM
LIABILITIES
|
|
23,223
|
|
22,219
|
|
|
|
|
|
|
|
Redeemable non-controlling
interest
|
|
690
|
|
702
|
|
EQUITY:
|
|
|
|
|
|
Share capital
|
|
|
|
|
|
Common shares of NIS 0.01 par
value
|
|
|
|
|
|
Authorized:
100,000,000 shares at December 31, 2009 and March 31, 2010; Issued
and outstanding: 16,592,345 and 16,773,596 shares at December
31, 2009 and March 31, 2010, respectively
|
|
37
|
|
38
|
|
Additional paid-in capital
|
|
68,230
|
|
69,844
|
|
Accumulated other comprehensive
income
|
|
(1,122)
|
|
(2,577)
|
|
Retained earnings
|
|
24,795
|
|
28,488
|
|
Total Shamir
Optical Industry Ltd. Shareholders' equity
|
|
91,940
|
|
95,793
|
|
Non-controlling interests
|
|
2,822
|
|
3,303
|
|
TOTAL
EQUITY
|
|
94,762
|
|
99,096
|
|
TOTAL LIABILITIES
AND EQUITY
|
|
$
163,714
|
|
$
163,544
|
|
|
|
(1) Net of allowance for doubtful
accounts of $3,076 and $3,088 as of December 31, 2009 and March 31,
2010, respectively
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2009
|
|
2010
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Revenues, net
|
$
33,920
|
|
$
40,095
|
|
Cost of revenues
|
16,065
|
|
18,257
|
|
Gross profit
|
17,855
|
|
21,838
|
|
|
|
|
|
|
|
Operating Expenses:
|
|
|
|
|
|
Research and development
costs
|
741
|
|
1,089
|
|
|
Selling and marketing
expenses
|
9,865
|
|
11,170
|
|
|
General and administrative
expenses
|
3,380
|
|
4,114
|
|
Total operating expenses
|
13,986
|
|
16,373
|
|
Operating income
|
3,869
|
|
5,465
|
|
|
|
|
|
|
|
Financial expenses and other,
net
|
833
|
|
166
|
|
Income before taxes on
income
|
3,036
|
|
5,299
|
|
Taxes on income
|
867
|
|
1,277
|
|
Income after taxes on
income
|
2,169
|
|
4,022
|
|
|
|
|
|
|
|
Equity in earnings of affiliates,
net
|
(27)
|
|
(1)
|
|
Accretion of redeemable non
controlling interest
|
-
|
|
107
|
|
Net income
|
$
2,196
|
|
$
3,916
|
|
|
|
|
|
|
Net income attributable to
non-controlling interests
|
74
|
|
223
|
|
Net income attributable to Shamir
Optical Industry Ltd. Shareholders
|
$
2,122
|
|
$
3,693
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per share:
|
|
|
|
|
|
Basic
|
$
0.13
|
|
$
0.22
|
|
|
Diluted
|
$
0.13
|
|
$
0.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares:
|
|
|
|
|
|
Basic
|
16,424
|
|
16,679
|
|
|
Dilutive
|
16,453
|
|
16,767
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAMIR OPTICAL INDUSTRY
LTD.
|
|
Reconciliation of Non-GAAP Operating
Income and Net Income
|
|
(US dollars in thousands, except
per share data)
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2009
|
|
2010
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
Operating income
|
$
3,869
|
|
$
5,465
|
|
|
|
|
|
|
|
Non-GAAP adjustment:
|
|
|
|
|
|
Stock based compensation
|
147
|
|
137
|
|
|
Amortization of intangible
assets
|
244
|
|
357
|
|
Non-GAAP operating income
|
$
4,260
|
|
$
5,959
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Shamir
Optical Industry Ltd. Shareholders
|
$
2,122
|
|
$
3,693
|
|
|
|
|
|
|
|
Non-GAAP adjustment:
|
|
|
|
|
|
Stock based compensation
|
147
|
|
137
|
|
|
Amortization of intangible assets,
net
|
185
|
|
264
|
|
|
Accretion of redeemable non
controlling interest
|
-
|
|
107
|
|
Non-GAAP net income attributable to
Shamir Optical Industry Ltd. Shareholders
|
$
2,454
|
|
$
4,201
|
|
|
|
|
|
|
|
Net earnings per share:
|
|
|
|
|
|
Basic
|
$
0.15
|
|
$
0.25
|
|
|
Diluted
|
$
0.15
|
|
$
0.25
|
|
|
|
|
|
|
|
Number of shares:
|
|
|
|
|
|
Basic
|
16,424
|
|
16,679
|
|
|
Dilutive
|
16,453
|
|
16,767
|
|
|
|
|
|
|
SOURCE Shamir Optical Industry Ltd.