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SCITEX ANNOUNCES THIRD QUARTER 1999 RESULTS; PRODUCT LINES SIGNIFICANTLY BROADENED AND REVENUES UP 11%
HERZLIA, ISRAEL -- October 27, 1999--Scitex Corporation Ltd. (Nasdaq: SCIX), a world leader in digital imaging solutions for graphics communication, reported net income for the third quarter of 1999 of $5.1 million or $0.12 per share (diluted), compared to a loss of $78.7 million or $1.83 per share for thethird quarter of 1998. Third quarter 1998 results include a $68.9 million loss from discontinued operations.
Revenues for the third quarter of 1999 were $167 million, up 11% from the $150 million recorded in the third quarter of 1998. Gross profit for the third quarter of 1999 was $69.2 million (42% of sales), compared with $61.8 million (41% of sales) in the same period last year. Operating income for the third quarter of 1999 was $10.7 million, compared to a loss of $5.2 million recorded in the third quarter of 1998.
Commenting on the results, Yoav Z. Chelouche, President and Chief Executive Officer of Scitex, said, "Scitex made strategic progress during the quarter and recorded double-digit revenue growth. We significantly expanded a number of product lines and demonstrated many of the new products at the recently held GraphExpo '99 show in Chicago. We also made key placements of systems which are important future growth drivers of the company."
Digital Preprint revenues for the third quarter of 1999 were $113 million compared with $107 million in the third quarter of 1998. Revenues from Digital Printing in the third quarter of 1999 were $53 million, up 23% compared to the $43 million recorded in the same period last year.
In the third quarter of 1999, revenues from the Americas were $78 million compared to $68 million for the third quarter of 1998. Revenues from Europe were $57 million compared to $55 million for the third quarter last year. Japan recorded revenues of $14 million for the quarter compared to $17 million for the third quarter last year, while Asia Pacific and other regions recorded $18 million in revenues compared to $10 million for the third quarter of 1998.
For the first nine months of 1999, the company recorded income of $12.7 million or $0.29 per share (diluted) from continuing operations compared to a loss from continuing operations of $40.7 million or $0.95 per share last year. Total net income for the first nine months of 1999 was $17.7 million or $0.41 per share compared to net loss (including $44.3 million of acquired in-process R&D) of $117.2 million or $2.73 per share for the same period last year.
Revenues for the first nine months of 1999 were $494 million, up 7% compared to $463 million for the first nine months of 1998.
In a separate release Scitex announced that Rimon Ben-Shaoul was elected Chairman of the Board of Directors of Scitex Corporation Ltd., succeeding Mr. Dov Tadmor who retired.
Chelouche continued, "Within Digital Preprint, we expanded our industry-leading Lotem(tm) computer-to-plate system offering to a complete product line. We also introduced important innovations for workflow management, including the new Brisque Extreme(tm) digital front end, incorporating Scitex and Adobe technologies to create the most open and versatile production solution. In addition, we expanded our scanning and proofing product lines bringing our high quality to the desktop with the introduction of the Iris iPROOF(tm) and our EverSmart Jazz(tm) scanner.
"Digital Printing experienced strong growth, albeit from a relatively low third quarter last year. The Wide Format Printing division recorded particularly strong growth in the quarter. We are also very pleased with the agreement with Commercial Data Center, Inc. (CDCI), which will print and mail Social Security Statements over the next three years. Virtually every American, 25 years of age and over, will receive a personalized letter created on a Scitex VersaMark(tm) printer. We are proud of being selected for such an important application."
Scitex also made progress in two joint ventures, the 74 Karat digital offset press, and the Vio(R) network. After the close of the quarter, the company announced delivery of the 74 Karat press to a key high-end digital prepress shop and commercial printer in New York City. Karat Digital Press also delivered a 74 Karat press to a major customer in Belgium.
Vio, the global communications network for the graphic arts industry, has extended its service to the Internet. Vio-dgn.com now provides Internet entry-level Vio services to customers. Over 250 customers were registered to use the system in the first three days.
During the quarter, the company consummated its previously announced spin-off of the Advanced Printing Products Division. The newly independent company will focus on the development of unique industrial digital printing solutions based upon high speed, high quality Drop-on-Demand piezo-electric inkjet technologies and specialty inks.
Contacts: Bob Nagle/Scitex Corporation Ltd. Phone: 781-280-7242.
Mark Sullivan/Scitex America Corp.. Phone: 781-275-5150.
Craig Kevghas/CPR Marketing, Inc.. Phone: 978-392-8990