AVT Reports Record Results

HOD-HASHARON, Israel—Advanced Vision Technology Ltd., a supplier of automatic optical inspection and quality assurance systems for the printing and packaging industry, announces sales for Q1 2008 of $17.1 million, an increase of 118 percent over the same period in 2007. Graphics Microsystems, Inc.(GMI), acquired by AVT in October 2007, contributed $8.5 million to Q1 revenues. AVT recorded an increase of 8.1 percent over Q4 2007 ($15.81 million).

GMI is a supplier of closed loop colour control (CLC) systems, colour management and reporting software, and remote digital ink fountain control systems to leading commercial printers and press manufacturers worldwide. Excluding GMI’s results AVT recorded a 9.8 percent revenue increase in Q1 2008 over the respective quarter in 2007 and 3.6 percent increase over Q4 2007. GMI’s revenues increased this quarter 13 percent over Q4 2007.

AVT’s Q1 2008 service revenues increased to $2.7 million, 383.4 percent over same period last year and 21.6 percent over Q4 2007. The sharp increase in service revenues is mostly attributable to the acquisition of GMI that increased AVT’s service revenues to 16 percent of total revenues compared with 7.2 percent at the same period last year. Service orders received during the first quarter of 2008 totalled $3.0 million.

During the first three months of 2008, order bookings totalled $17.4 million, an increase of 74 percent over Q1 2007 ($10 million), and up 13 percent over Q4 2007 ($15.4 million).

AVT’s gross profit in Q1 2008 totaled $9.54 million almost double the $4.83 million gross profit recorded in the respective quarter last year.

2008 first quarter operating income decreased 22.5 percent from $1.0 million in Q1 2007 to $791,000. Excluding the amortization of GMI intangibles and integration costs, proforma operating income increased by 101 percent from $1.0 million in Q1 2007 to $2.1 million in Q1 2008.

Net income decreased to $1.1 million ($1.5 million for the respective period in 2007), mostly attributable to the amortization of GMI’s intangibles. Proforma net income (excluding amortization of intangibles) increased 38.5 percent from $1.5 million to $2.1 million.

“AVT continues to experience solid growth based on our vision of product development and business strategy,” said Shlomo Amir, AVT president and CEO. “While the markets are challenging, AVT and GMI solutions are aimed at improving the profitability of their users, making the competitive edge they provide are particularly attractive.

“The integration of GMI has progressed well. We will jointly present our AVT and GMI product line solutions at the drupa trade show in Düsseldorf, Germany, this month and will demonstrate the strength of our combined organization. ‘Together we make the difference’ is our theme for drupa, and our vision is proving itself to be one that the industry welcomes.”