Arotech Corporation Reports
For The First Quarter, 2008
revenues of $13.3 million are highest first quarter revenues ever;
Net loss of $(971,000) is smallest first quarter net loss ever
19, 2008 - 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 ended
March 31, 2008.
First Quarter Results
Revenues for the first quarter
of 2008 reached $13.3 million, compared to $11.5 million for the
corresponding period in 2007, an increase of 15%.
Gross profit for the first quarter
of 2008 was $3.2 million, or 25% of revenues, compared to $4.1 million,
or 36% of revenues, for the corresponding period in 2007.
The Company reported an operating loss for the first quarter of
2008 of $(1.1) million, compared to $(1.5) million for the corresponding
period in 2007.
The Company’s net loss for
the first quarter of 2008 was $(971,000), or $(0.08) per share,
compared to $(1.7) million, or $(0.15) per share, for the corresponding
period in 2007.
“Our first quarter is traditionally
our weakest quarter of the year, yet we ended the quar-ter with
the smallest first quarter net loss we ever had of $(971,000) and
we had a positive oper-ating cash flow of $685,000,” said
Arotech Chairman and CEO Robert S. Ehrlich.
“During the first quarter
we purchased the minority ownership interest in our MDT Israel and
MDT Armor subsidiaries. Our FAAC subsidiary also purchased Realtime
Technologies, Inc., thus adding to our growing training and simulation
business. These purchases were funded internally without adding
to our debt level,” continued Ehrlich.
“We also adjusted our escrow
receivable in connection our 2004 acquisition of Armour of America
from $1.5 million to $3.3 million, reflecting the finalization in
the first quarter of our arbitration with the former owner of AoA.
These funds were paid to us after the end of the quar-ter,”
“We hope that all of these
events will be positive to the future growth and financial re-sults
of Arotech,” concluded Ehrlich.
Backlog of orders totaled approximately
$49.7 million as of March 31, 2008.
Cash Position at Quarter End
The Company had trade receivables
of $11.0 million as of March 31, 2008, compared to $14.6 million
as of December 31, 2007. The Company had a current ratio (current
assets/current liabilities) of 1.83, down from the December 31,
2007 current ratio of 1.93.
As of March 31, 2008, the Company
had $2.4 million in cash, $162,000 in restricted col-lateral deposits,
$3.3 million in an escrow receivable, and $51,000 in available-for-sale
market-able securities, as compared to December 31, 2007, when the
Company had $3.4 million in cash, $320,000 in restricted collateral
deposits, $1.5 million in an escrow receivable, and $47,000 in available-for-sale
Stockholders’ Equity at
the end of the quarter was approximately $57 million.
The Company will host a conference
call today, Monday, May 19, 2008 at 11:00 a.m. EDT. Those wishing
to access the conference call should dial 1-800-967-7154 (U.S.)
or 1-719-325-2403 (international) a few minutes before the 11:00
a.m. EDT start time. A replay of the conference call will be available
starting Monday, May 19, 2008 at 12:00 p.m. (noon) EDT until Wednesday,
May 21, 2008 at 12:00 p.m. The replay telephone number is 1-888-203-1112
(U.S) and 1-719-457-0820 (international). The replay pass code is:
About Arotech Corporation
Arotech Corporation is a leading
provider of quality defense and security products for the military,
law enforcement and homeland security markets, including multimedia
interactive simulators/trainers, lightweight armoring and advanced
zinc-air and lithium batteries and charg-ers. Arotech operates through
three major business divisions: Armoring, Training and Simula-tion,
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. 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, 2007, as amended, and other filings with the Securities
and Exchange Commission. Arotech as-sumes no obligation to update
the information in this release. Reference to the Company’s
website above does not constitute in-corporation of any of the information
thereon into this press release.
CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)