Rosh Ha'ayin, Israel - March 6, 2008 - BVR Systems (1998) Ltd. (OTCBB: BVRSF.OB), a diversified world leader in advanced military training and simulation systems, today announced a net loss of $2 million or $0.02 per share for the fourth quarter of 2007, compared with a net loss of $0.1 million, or $0.00 per share for the fourth quarter of 2006. Net loss for fiscal year 2007 was $3.9 million or $0.03 per share, compared with a net loss of $2.2 million or $0.02 per share for fiscal year 2006.
Revenues for the fourth quarter of 2007 were $3.4 million, compared with revenues of $3.7 million for the fourth quarter of 2006. In fiscal year 2007, BVR's revenues were $13.1 million compared with revenues in fiscal year 2006 of $10.1 million.
Gross loss for the fourth quarter of 2007 was $0.6 million, compared with a gross profit of $1.2 million for the fourth quarter of the previous year. The gross loss for the fourth quarter of 2007 includes an inventory write-off of $0.7 million. For fiscal year 2007, gross profit was $1.7 million compared with a gross profit of $2.2 million for fiscal year 2006.
Operating loss for the fourth quarter of 2007 was $2.0 million, compared with an operating loss of $35 thousand for the same period last year. Operating loss for fiscal year 2007 was $3.8 million compared with an operating loss of $2.0 million for fiscal year 2006.
BVR's order backlog at the end of fiscal year 2007 was approximately $50.9 million.
The company concluded 2007 with new booked orders in the total value of approximately US $42.0 million. In January 2008 the company announced the award of two new orders in the total value of approximately US $21.6 million.
BVR Systems (1998) Ltd., (OTCBB: BVRSF.OB) is a diversified world leader in advanced defense training and simulation systems. For more information, visit the Company's web site at http://www.bvrsystems.com/.
Safe Harbor
This press release contains forward-looking statements within the meaning of the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations or beliefs of BVR Systems' management and are subject to a number of factors and uncertainties that could cause actual results or performance of the Company to differ materially from those contemplated in such forward-looking statements. These factors include but are not limited to the fact that the Company has experienced reductions in backlog; the Company has reported operating and/or net losses in the past and may report operating and/or net loses in the future, conditions in Israel affect the Company's operations and may limit its ability to produce and sell its products, changes in technology and market requirements; decline in demand for the Company's products; inability to timely develop and introduce new technologies, products and applications; loss of market share and pressure on pricing resulting from competition. For other factors that could cause BVR Systems' results to vary from expectations, please see the Company's reports filed from time to time with the SEC.
Contacts:
Ilan Gillies, CEO
BVR Systems (1998) Ltd.
Tel: + 972 3 900 8000
Consolidated Balance Sheets as of December 31
2007 | 2006 | ||
US$ thousands | US$ thousands | ||
Unaudited | Audited |
Assets |
| |
| ||
Current assets |
| |
Cash and cash equivalents | 1,520 | 3,421 |
Restricted bank deposits | 1,328 | 967 |
Trade receivables | 2,780 | 4,383 |
Other receivables and prepaid expenses | 313 | 262 |
Inventories | 1,322 | 2,021 |
| ||
Total current assets | 7,263 | 11,054 |
| ||
Other non-current assets | 2,242 | 1,155 |
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Fixed assets, net | 880 | 865 |
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Other assets, net | 122 | 219 |
Total assets | 10,507 | 13,293 |
Consolidated Balance Sheets as of December 31
2007 | 2006 | ||
US$ thousands | US$ thousands | ||
Unaudited | Audited |
Liabilities and Shareholders’ equity |
| |
| ||
Current liabilities |
| |
Short-term bank credit and current maturities of long-term bank loans | 466 | 516 |
Short-term loan | 620 | 120 |
Trade payables | 1,922 | 1,487 |
Excess of advances from customers over amounts |
| |
recognized as revenue | 3,583 | 2,952 |
Other payables and accrued expenses | 2,167 | 2,492 |
| ||
Total current liabilities | 8,758 | 7,567 |
| ||
| ||
Long-term liabilities |
| |
Long-term payable in respect of income tax | - | 154 |
Liability for employee severance benefits, net | 189 | 166 |
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Total long-term liabilities | 189 | 320 |
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Shareholders’ equity |
| |
Share capital: |
| |
Ordinary shares, NIS 1.00 par value |
| |
400,000,000 shares authorized, |
| |
116,863,757shares issued,and outstanding |
| |
as of December 31, 2007 and 2006 | 25,861 | 25,861 |
Additional paid-in capital | 17,010 | 16,992 |
Accumulated deficit | (41,311) | (37,447) |
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Total shareholders' equity | 1,560 | 5,406 |
| ||
Total liabilities and shareholders’ equity | 10,507 | 13,293 |
Year ended December 31 | Three months ended December 31 | |||
2007 | 2006 | 2007 | 2006 | |
US$ thousands | US$ thousands | US$ thousands | US$ thousands | |
Unaudited | Audited | Unaudited | Audited | |
Revenues: | ||||
Sales | 12,547 | 9,827 | 3,344 | 3,679 |
Royalties and commissions | 559 | 276 | 31 | 64 |
Total revenues | 13,106 | 10,103 | 3,375 | 3,743 |
Cost of sales | 10,719 | 7,866 | 3,233 | 2,578 |
Inventory write-off | 699 | - | 699 | - |
Total cost of revenues | 11,418 | 7,866 | 3,932 | 2,578 |
Gross profit | 1,688 | 2,237 | (557) | 1,165 |
Operating expenses: | ||||
Research and development | 959 | 615 | 240 | 158 |
Selling and marketing | 2,232 | 1,430 | 602 | 411 |
General and administrative | 2,343 | 2,155 | 651 | 631 |
Operating loss | (3,846) | (1,963) | (2,050) | (35) |
Financial expenses, net | (18) | (185) | 27 | (93) |
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