ISRA reports positive outlook for FY09/10

Industrial image-processing and surface inspection system providerISRA Vision (Darmstadt, Germany) says it has managed to remain financially stable despite economic fluctuations. Robust business during the first quarter of fiscal year 2009/2010 (FY09/10)—the three-month period from October to December 2009—indicates that the worst of the temporary dip in revenues is now over, according to the company. Cost reduction and efficiency measures have begun to take effect, showing reduced costs of more than EUR0.8 million in the first quarter compared to the previous year. Profitability figures thus showed good improvement, ISRA reports.

Compared to the previous year’s 1Q results, which were aided by a large order backlog from the period prior to the global economic crisis, in 1Q09/10 ISRA earned stable revenues of EUR14.0 million (PY: EUR15.5 million). The company says this was in favorable contrast to the rest of the relevant industry. Highest performance was seen in Asia, while business declined slightly in Western Europe and did not recover in the United States.

EBITDA (earnings before interest, taxes, depreciation, and amortization) totaled EUR4.0 million (PY: EUR4.4 million). The EBITDA margin came in at 26% of total output and 29% of revenues, or three percentage points higher than in financial year 2008/2009. EBT--a key performance indicator for value-oriented corporate governance--totaled EUR2.4 million (PY: EUR2.5 million). The EBT margin improved by two percentage points over financial year 2008/2009 to 15 percent of total output (and 17 percent of revenues). After taxes and minority interest, consolidated net profit totaled EUR1.6 million (PY: EUR1.7). Net profit relative to total output totaled 10% (PY: 10%), while earnings per share equaled EUR0.36 (PY: EUR0.40/share).

ISRA plans a return to profitable growth with the introduction of more than 20 new customer solutions and applications, more than ten of which are planned for the current financial year. Last year, the industry was forced to postpone several important investment projects, which will likely be completed in the near future. The rise in the order backlog to around EUR33 million, says the company, indicates that the worst of the economic slowdown might be over. Information from the market indicates possible growth in the second half of FY09/10. Timely cost-saving measures have already led to permanent cost reductions as of the first quarter. These efforts will continue with three large programs aimed at increasing efficiency and productivity and further streamlining production (lean production).

A key component of ISRA’s long-term growth strategy is external expansion through acquisitions. Multiple projects are underway, with one new acquisition about to be completed. Assuming the economy will continue to recover, management expects a slight increase in revenues and stable profits for FY09/10 (Oct. 1, 2009- Sept. 30, 2010).

--Posted by Carrie Meadows,Vision Systems Design