KIBBUTZ SHAMIR, Israel, May 28 /PRNewswire-FirstCall/ -- Shamir Optical Industry Ltd. ("Shamir"), a leading provider of innovative products and technology to the progressive ophthalmic lens market, today announced unaudited financial results for the first quarter ended March 31, 2008.
For the quarter ended March 31, 2008, revenues increased 29.5% to $38.0 million, compared to revenues of $29.3 million for the same period of 2007. Gross profit for the quarter increased 34.8% to $20.8 million, or 54.7% of revenues, compared to gross profits of $15.4 million, or 52.5% of revenues for the same period last year.
For the quarter ended March 31, 2008, operating income increased 27.2% to $4.3 million, or 11.2% of revenues, from operating income of $3.3 million, or 11.4% of revenues for the same period last year. Net income for the quarter increased 25.2% to $2.9 million, or $0.17 per diluted share, compared to net income of $2.3 million or $0.14 per diluted share for the comparable period in 2007.
For the quarter ended March 31, 2008, excluding the effects of non-cash stock-based compensation expenses, operating income was $4.5 million, or 11.9% of revenues, compared to operating income of $3.7 million, or 12.5% of revenues, for the same period last year.
Excluding the effects of non-cash stock-based compensation expenses, net income for the quarter was $3.2 million, or $0.19 per diluted share, an increase of 19.7%, from net income of $2.6 million for the same period last year.
The reconciliation of GAAP operating income and net income to non-GAAP operating income and non-GAAP net income is set forth below.
As of March 31, 2008, the Company had cash and cash equivalents, including short-term investments of $27.6 million.
Commenting on first quarter results, Eyal Hayardeny, chief executive officer of Shamir, said, "Overall Shamir had a good start in 2008. During the first quarter, we experienced favorable results, many of which reflect the changes we have instituted throughout our organization to effectuate improved sales and manufacturing capabilities. Our growth this quarter was spread out over most of our operations. In addition, our R&D team diligently improved our technological capabilities which are reflected in our innovative products."
Mr. Hayardeny concluded, "Our sales efforts continue to be bolstered by the investments we have made to expand our selling and marketing capabilities. These capabilities support our long range goals. To that end, in February 2008 we increased our ownership in our lab in Mexico to 51% from 26%. We were encouraged with the performance of our investment in Mexico and are pleased to have been able to increase our ownership in the subsidiary."
Based on the results through the first quarter of 2008, Shamir is increasing their estimated revenue growth for the fiscal year ending on December 31, 2008, to the range of 10% to 16% under the December 2007 exchange rates and excluding the results of our Mexican operation.
Shamir has scheduled a conference call for 9:00 a.m. today to discuss first quarter results. To participate in the call, please dial (800) 254-5933 (U.S. and Canada) or (973) 409-9255 (International). The conference ID for this event is 46827103. For those unable to participate there will be replay available from 12:00 p.m. EDT on May 28, 2008 through 11:59 p.m. EDT, June 2, 2008. Please call: (800) 642-1687 (U.S. and Canada) (706) 645-9291 (International). The ID code for the replay is 46827103.
The call will be available as a live, listen-only webcast at www.kcsa.com. Please go to the KCSA website at least 15 minutes prior to the scheduled start time to register, download and install any necessary audio software. A 30-day archive of the webcast will be available approximately 2 hours after the conclusion of the live call.
About non - GAAP financial measures
This press release includes non-GAAP financial measures -- non-GAAP operating income and non-GAAP net income -- that exclude certain charges. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management of Shamir believes that non-GAAP operating income and non-GAAP net income provides meaningful supplemental information because these numbers, which exclude the effect of non-cash stock-based compensation expenses, reflect our core operational results and are used by management internally to review Shamir's financial results.
Shamir is a leading provider of innovative products and technology to the progressive spectacle lens market. Utilizing its proprietary technology, the company develops, designs, manufactures, and markets progressive lenses to sell to the ophthalmic market. In addition, Shamir utilizes its technology to provide design services to optical lens manufacturers under service and royalty agreements. Progressive lenses are used to treat presbyopia, a vision condition where the eye loses its ability to focus on close objects. Progressive lenses combine several optical strengths into a single lens to provide a gradual and seamless transition from near to intermediate, to distant vision. Shamir differentiates its products from its competitors' primarily through lens design. Shamir's leading lenses are marketed under a variety of trade names, including Shamir Genesis(TM), Shamir Piccolo(TM), Shamir Office(TM), Shamir Nano(TM) and Shamir Autograph(TM). Shamir believes that it has one of the world's preeminent research and development teams for progressive lenses, molds, and complementary technologies and tools. Shamir developed software dedicated to the design of progressive lenses. This software is based on Shamir's proprietary mathematical algorithms that optimize designs of progressive lenses for a variety of activities and environments. Shamir also has created software tools specifically designed for research and development and production requirements, including Eye Point Technology software, which simulates human vision.
Safe Harbor Statement
Statements concerning Shamir's business outlook or future economic performance; product introductions and plans and objectives related thereto; and assumptions made or expectations as to any future events, conditions, performance or other matters, are "forward-looking statements" as that term is defined under U.S. federal securities laws. Forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results to differ materially from those stated in such statements. These risks, uncertainties and factors include, but are not limited to: The conflicts in the region; the effects of competition in our industry, and changes in our relationships with optical laboratories, distributors, research and development partners and other third parties; the effects of the international expansion of our operations and our ability to manage our growth, including our ability to manage potential future acquisitions; the effect of global economic conditions in general and conditions in Shamir's industry and target markets in particular; shifts in supply and demand; market acceptance of new products and continuing products' demand; the impact of competitive products and pricing on Shamir's and its customers' products and markets; timely product and technology development/upgrades and the ability to manage changes in market conditions as needed; interest rate fluctuations; and other factors detailed in Shamir's filings with the Securities and Exchange Commission. Shamir assumes no obligation to update the information in this release.
CONTACT: Roni Gavrielov, KM - KCSA Investor Relations, +972-3-516-7620,
firstname.lastname@example.org; or Jeffrey Goldberger, +1-212-896-1249,
email@example.com, or Marybeth Csaby, +1-212-896-1236, firstname.lastname@example.org,
both of KCSA Strategic Communications; all for Shamir Optical Industry Ltd.
Web site: http://www.shamir.co.il/