A.C.S. Electronics Ltd., Year End Results|
PR Newswire - April 16, 1999 08:14
* Revenues Up 15.3%
* 1998 EPS of $0.28 vs. $0.50 in 1997
MIGDAL HA'EMEK, Israel, April 16 /PRNewswire/ -- A.C.S. Electronics Ltd., (Nasdaq: ACSEF - news), a developer of advanced digital motion control products, today reports the full year 1998 revenues and earnings.
Revenues for the year ended December 31, 1998 were $5.25 million, an increase of 15.3% compared to US $4.55 million for 1997. Net income for the year was $785,000 down 12.9% from $901,000 in 1997. Earnings per share were $0.28 in 1998, on a greater share count, versus $0.50 in 1997. The increase in the number of shares outstanding was a result of the Company's IPO which was completed in the third quarter of 1997.
"During the second half of 1998 the weakness in the semi conductor industry affected some of our OEM customers and the company." said Ze'ev Kirshenboim, Chief Executive Officer of A.C.S. Electronics. "Now it seems that the semiconductor sector is recovering from that slowdown and we expect to see the effect of this positive trend. During the slowdown we were looking for opportunities in other industries and won new projects with OEM customers.
"We have increased our marketing and new technology and products development efforts. We have signed a merger and acquisition agreement with Technology 80, MN, USA, that is expected to close during the second quarter of 1999, subject to customary due diligence, Technology 80's share holders' approval and final regulatory approval. Technology 80 's line of products complements our line of motion control products. It provides us with immediate access to the important North American market through an American company with an excellent reputation. Technology 80 is provided access to markets outside the US through ACS channels of distribution. It is an excellent synergy, and we believe it is a good move for the benefit of our shareholders.
"We have invested $1.1 million, acquiring 20% of Netzer Motion Sensors (NMS). NMS is an Israel Company that developed and patented a unique rotary and linear absolute encoder sensing technology and products. This technology has significant cost and performance advantages when compared with available technologies, and very good marketing potential.
"We expect to see results of these efforts commencing in the third quarter of 1999."
"We believe that the price of ACS shares does not reflect the true value of the company." added Ze'ev Kirshenboim. "During the last six months we have bought back over 100,000 shares of the Company -- about 7.2% of the shares that were held by the public, and we intend to buy more."
A.C.S. Electronics develops and markets programmable motion control products that provide automated systems with the ability to move accurately and quickly. The Company's motion control products are utilized in advanced industrial applications, such as semiconductor manufacturing equipment, electronic testing and inspection stations, medical scanning and imaging systems, and high-quality printing machinery.
This press release contains forward-looking statements. Such statements involve various risks that may cause actual results to differ materially. These risks and uncertainties include, but are not limited to: market demand for the Company's product, successful implementation of the Company's product, competitive factors, the ability to manage the Company's growth and the ability to recruit additional personnel.