WizCom Announces Results for First Half of 2007
Jerusalem, August 28th, 2007 - WizCom Technologies Ltd. ("WizCom")
(Prime Standard: WZM, IL 0010830706), a global provider of handheld
scan and translation tools, announces the financial results for the
first half of 2007, reporting a dynamic revenue growth.
Highlights for First Half of 2007
WizCom achieves record net income.
Continued launch of the new generation products in the U.S. and U.K.
New exclusivity agreement signed with Hexaglot in Germany.
The Board of directors appoints Roy Cohen as company's new CFO.
Sales in the first half of 2007 increased by 63% to $6.2 million,
compared to $3.8 million in the first half of 2006.
Gross profit in the first half of 2007 reached 39%, compared to 47%
in the first half of 2006.
Operating income in the first half of 2007 reached $381 thousand,
compared to an operating income of $174 thousand in the first half of
2006, representing an increase of 119%.
Net income in the first half of 2007 increased by 41% to $221
thousand compared to $157 thousand in the first half of 2006, and
$157 thousand for the full year of 2006.
Cash and cash equivalents as of June 30, 2007 was $824 thousand,
compared to $1.2 million as of December 31, 2006.
Net cash used in operating activities amounted to $224 thousand in
the first half fiscal year 2007 compared to cash provided by
operating activities of $363 thousand in first half fiscal year of
2006 and compared to cash provided by operating activities of $430
thousand as of December 31, 2006.
Comments and Outlook
Michael Kenan, CEO of WizCom Technologies, commented: "The first half
of the fiscal year 2007 brought dynamic revenue growth to WizCom.
WizCom was able to maintain the positive sales development of recent
quarters, even though WizCom introduced a new 3rd generation line of
products in some of the territories. So far it was introduced in the
US retail market and displayed at important industry events, such as
CES in Vegas (USA) and CeBIT in Hanover (Germany). It is planned to
continue the expansion and introduction of the 3rd generation
products all over the world.
WizCom has signed an important exclusivity agreement with Hexaglot
Holding GmbH in Germany. The exclusivity agreement is based on a
minimum purchase of 30 thousand units a year, which equals to $3
million agreement a year. It is WizCom's main goals to continue in
profound and expand the business in east Europe, Americas and Asia
pacific. The way to do so is to continue the momentum of finding
large entities and to sign new exclusivity agreements in other
countries all over the world. In addition WizCom signed an agreement
with 360 Management Group Inc. as a business partner in the
commercial development and sale of the Quicktionary translation pen
and the Info scan scanner pen in Canada. The revenue potential of the
Canadian market has been estimated at half a million dollars per
WizCom undertakes extensive steps to invest also in other strategic
important markets such as North and South America, key countries in
Europe such as Russia and Poland, as well as Japan, by expanding both
headcount capacity and marketing activities in those markets.
WizCom's goal is to add at least two more exclusivity agreements
until the end of fiscal year 2007.
WizCom's financial statements for the first half and second quarter
of fiscal year 2007 may be viewed at the Company's website:
About Wizcom Group:
WizCom Technologies Ltd. is the world's leading producer of personal,
portable scanning pens that help people read and process text. These
pocket-sized, user-friendly devices enable people to understand and
use printed material, anytime and anywhere, without disrupting their
reading process. Our pens help students of English as a first or
second language, as well as people working in multilingual
environments, enhancing their fluency and expediting reading
Ligature Ltd. is a world leader developer of Optical Character
Recognition (OCR) technologies and applications. The company offers
innovative approach to OCR based solutions for specialized markets
partnering with OEMs, VARs and system integrators incorporating
CharacterEyes into software applications and hardware products.
Galil Microwaves Israel (2003) Ltd. is a third party manufacturer and
assembler of electronic modules for microelectronic and microwave
For further information please contact:
WizCom Technologies Ltd.
Roy Cohen, CFO
8B HaMarpe St.
SCHWARZ Financial Communication
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WizCom Technologies Ltd.
8B Hamarpe St. Jerusalem
ISIN: IL0010830706; Index: Prime All Share, TECH All Share;
Listed: Freiverkehr in Börse Berlin Bremen, Freiverkehr in Börse
Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg, Freiverkehr
in Niedersächsische Börse zu Hannover,
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