AVT Announces 113% Six Month Revenue Increase

Published: September 26, 2008

HOD-HASHARON, ISRAEL | Advanced Vision Technology Ltd., (AVT), among the world’s leading suppliers of automatic optical inspection and quality assurance systems for the printing industry, has announced second quarter 2008 revenues of $ 16.9 million, an increase of 109.4% over the same period in 2007. First quarter 2008 revenues reached $ 34 million, an increase of 113.7% compared to the same period in 2007.

Graphics Microsystems, Inc. (GMI), acquired by AVT in October 2007, contributed $ 8.2 million to Q2 revenues. AVT product line revenues in the second quarter of 2008 amounted to $8.7 million, representing an increase of 8.3% of the revenues in same period of 2007.

Service revenues in the first six months of 2008 totaled $5 million (out of the total revenues of $34 million), a 328% increase over H1 2007. The increase in service revenues is attributable to the significant contribution of GMI’s product line and the continued increase in the number of service contracts signed during the quarter. Service orders received during H1 of 2008 were $5.6 million or 318% higher than in H1 2007. During the first six months of 2008 order booking totaled $32.3 million, representing an increase of 72% over H1 2007 order booking of $18.8 million.

Operating income in the first six months of 2008 decreased by 20.6% from $ 2.5 million in 2007 to $ 2.0 million in the respective period of 2008. The decrease is attributable to the amortization of GMI intangibles and integration costs. Proforma operating income (excluding amortization of GMI’s intangible assets) increased in H1 2008 to $3.4 million, 35.9% higher than in H1 2007.

Net income for the first half of 2008 was $ 1.7 million compared with $3.5 million for H1 2007. The results of H1 2008 include amortization expense of intangible assets of $1.4 million.