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AROTECH CORPORATION REPORTS
RESULTS
FOR THE THIRD QUARTER AND FIRST NINE MONTHS, 2007
Q3 revenues of $15.5 million
and year to date revenues of $40.0 million
are highest third quarter and first nine month revenues ever –
Q3 backlog stands at over $50.9 million, highest September 30 backlog
ever
 November
12, 2007 - Arotech Corporation (NasdaqGM: ARTX), a provider
of quality defense and security products for the military, law enforcement
and security markets, today reported results for the quarter and
nine months ending September 30, 2007.
Third Quarter Results
Revenues for the third quarter reached $15.5 million, compared to
$12.7 million for the corresponding period in 2006, an increase
of 21.5% over the same period last year.
Gross profit for the quarter was $4.4 million, or 28.3% of revenues,
compared to $4.1 million, or 32.0% of revenues, for the corresponding
period in 2006.
The net loss for the third quarter
was $(783,000), or $(0.06) per share, versus $(1.1) million, or
$(0.12) per share, for the corresponding period last year.
“This represents our third
consecutive quarter of record revenues and record backlog at quarter
end,” noted Arotech’s Chairman and CEO Robert S. Ehrlich.
“I believe that we are well on track to making 2007 the best
year that Arotech has ever had,” concluded Ehrlich.
First Nine Months Results
Revenues for the first nine months reached $40.0 million, compared
to $29.0 million for the corresponding period in 2006, an increase
of 37.8% over the same period last year.
Gross profit for the nine months was $12.2 million, or 30.6% of
revenues, compared to $7.6 million, or 26.3% of revenues, for the
corresponding period in 2006.
The net loss for the first nine
months was $(4.0) million, or $(0.35) per share, versus $(13.9)
million, or $(1.77) per share, for the corresponding period last
year.
Backlog
Backlog of orders totaled approximately $50.9 million as of September
30, 2007.
Cash Position at Quarter End
As of September 30, 2007, the Company had $1.7 million in cash,
$248,000 in restricted collateral securities and restricted held-to-maturity
securities due within one year, $1.5 million in an escrow receivable,
and $45,000 in available-for-sale marketable securities, as compared
to at December 31, 2006, when the Company had $2.4 million in cash,
$649,000 in restricted collateral securities and restricted held-to-maturity
securities due within one year, $1.5 million in an escrow receivable
and $41,000 in available-for-sale marketable securities.
The Company had trade receivables
of $10.1 million as of September 30, 2007, compared to $7.8 million
as of December 31, 2006. The Company had a current ratio (current
assets/current liabilities) of 1.94, up from the December 31, 2006
current ratio of 1.79.
Stockholders’ equity at
the end of the quarter was approximately $55.5 million.
Conference Call
The Company will host a conference call tomorrow, Tuesday, November
13, 2007 at 10:00 a.m. EST. Those wishing to access the conference
call should dial 1-800-905-0392 (U.S.) or 1-785-830-1913 (international)
a few minutes before the 10:00 a.m. EST start time. A replay of
the conference call will be available starting Tuesday, November
13, 2007, at 1:00 p.m. until Monday, November 19, 2007 at 1:00 p.m.
The replay telephone number is 1-888-203-1112 (U.S) and 1-719-457-0820
(international). The passcode is: 7130465.
About Arotech Corporation
Arotech Corporation is a leading provider of quality defense and
security products for the military, law enforcement and homeland
security markets. Arotech provides multimedia interactive simulators/trainers,
lightweight armoring and advanced zinc-air and lithium batteries
and chargers. Arotech operates through three major business divisions:
Armoring, Simulation and Training, and Batteries and Power Systems.
Arotech is incorporated in Delaware, with corporate offices in Ann
Arbor, Michigan and research, development and production subsidiaries
in Alabama, Michigan and Israel.
Except for the historical information herein,
the matters discussed in this news release include forward-looking
statements, as defined in the Private Securities Litigation Reform
Act of 1995, including the results of our restructuring program.
Forward-looking statements reflect management’s current knowledge,
assumptions, judgment and expectations regarding future performance
or events. Although management believes that the expectations reflected
in such statements are reasonable, readers are cautioned not to
place undue reliance on these forward-looking statements, as they
are subject to various risks and uncertainties that may cause actual
results to vary materially. These risks and uncertainties include,
but are not limited to, risks relating to: product and technology
development; the uncertainty of the market for Arotech’s products;
changing economic conditions; delay, cancellation or non-renewal,
in whole or in part, of contracts or of purchase orders; and other
risk factors detailed in Arotech’s most recent Annual Report
on Form 10-K for the fiscal year ended December 31, 2006, as amended,
and other filings with the Securities and Exchange Commission. Arotech
assumes no obligation to update the information in this release.
Reference to the Company’s website above does not constitute
incorporation of any of the information thereon into this press
release.
Tables: AROTECH CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
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