Sarine Technologies Ltd. and its Subsidiaries
(Incorporated in Israel)
PART 1 INFORMATION REQUIRED FOR ANNOUNCEMENT OF QUARTERLY (Ql, Q2 & Q3), FULL YEAR RESULTS
l(a) An income statement and statement of comprehensive income, or a statement of comprehensive income, for the group, together with a comparative statement for the corresponding period of the immediately preceding financial year.
Consolidated Statements of Comprehensive Income (Loss) for the (US$'000):
Group Group
Quarter ended Nine months ended
September 30, September 30,
2015 2014 Change 2015 2014 Change
% O/o
Revenue 9,479 20,362 (53.4) 36,056 69,450 (48.1)
Cost of sales 3,487 6,119 (43.0) 11,624 19,749 (41.1)
Gross profit 5,992 14,243 (57.9) 24,432 49,701 (50.8)
Research and development expenses 2,634 2,649 (0.6) 8,042 7,922 1.5
Sales and marketing expenses 3,281 3,210 2.2 9,831 9,558 2.9
General and administrative expenses 782 1,553 (49.6) 3,092 4,429 (30.2)
(Loss) profit from operations (705) 6,831 NM 3,467 27,792 (87.5)
Net finance (expense) income (193) NM (154) 168 NM
(Loss) profit before income tax (898) 6,832 NM 3,313 27,960 (88.2)
Income tax expense (539) (1,141) (52.8) (1,200) (4,622) (74.0)
(Loss) profit for the period (1,437) 5,691 NM 2,113 23,338 (90.9)
Foreign currency translation differences from foreign operations | (230) | (160) | 43.8 | (285) | |
Total comprehensive (foss) income for the period | (1,667) | 5,531 | NM | 1,828 | 23,338 |
Other comprehensive expense
NM
(92.2)
Notes to consolidated statements of comprehensive income (loss) (US$'000) (Loss) profit before income tax is stated after charging the following:
Group Quarter ended September 30,
Group
Nine months ended September 30,
2015 | 2014 | Change O/o | 2015 | 2014 | Change O/o | |
(Write back) allowance for doubtful trade receivables | (28) | 30 | NM | 8 | 5 | 60.0 |
Depreciation and amortisation | 970 | 1,104 | (12.1) | 3,094 | 3,535 | (12.5) |
Interest (expense) income, net | (227) | 4 | NM | (168) | 100 | NM |
Exchange rate differences | 34 | (3) | NM | 14 | 68 | (79.4) |
Warranty provision | (86) | 20 | NM | (115) | 42 | NM |
NM- Not meaningful |
l(b)(i) A statement of financial position (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial year.
Statement of Financial Position as at (US$'000):
Group
Company
September 30, 2015 | December 31, 2014 | September 30, 2015 | December 31, 2014 | |
Assets Property, plant and equipment | 12,036 | 11,535 | 1,766 | 1,534 |
Intangible assets | 8,235 | 6,751 | ||
Investment in equity accounted investee | ||||
and subsidiaries | 32,435 | 25,465 | ||
Deferred tax assets | 3,132 | 2,198 | 1,489 | 1,290 |
Total non-current assets | 23,403 | 20,484 | 35,690 | 28,289 |
Inventories | 10,913 | 10,070 | 7,112 | 6,212 |
Trade receivables | 10,477 | 13,486 | 2,032 | 4,080 |
Other receivables | 3,481 | 2,522 | 1,920 | 1,025 |
Short-term investments (bank deposits) | 12,663 | 25,145 | 9,348 | 17,382 |
Cash and cash equivalents | 19,087 | 20,352 | 8,931 | 7,834 |
Total current assets | 56,621 | 71,575 | 29,343 | 36,533 |
Total assets | 80,024 | 92,059 | 65,033 | 64,822 |
Equity Share capital* | ||||
Dormant shares, at cost | (2,366) | (1,033) | (2,366) | (1,033) |
Share premium, reserves and | ||||
retained earnings | 72,268 | 80,664 | 61,480 | 52,325 |
Total equity | 69,902 | 79,631 | 59,114 | 51,292 |
Liabilities | ||||
Employee benefits | 158 | 159 | 142 | 143 |
Total non-current liabilities | 158 | 159 | 142 | 143 |
Trade payables | 1,991 | 2,838 | I, 114 | 1,949 |
Other payables | 7,542 | 8,821 | 4,428 | 11,119 |
Current tax payable | 112 | 176 | ||
Warranty provision | 319 | 434 | 235 | 319 |
Total current liabilities | 9,964 | 12,269 | 5,777 | 13,387 |
Total liabilities | 10,122 | 12,428 | 5,919 | 13,530 |
Total equity and liabilities | 80,024 | 92,059 | 65,033 | 64,822 |
* No par value |
Zero borrowings from banks as at September 30, 2015 and December 31, 2014.
l(c) A statement of cash flows (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year.
Statement of Cash Flows (US$'000):
Cash flows from operating activities
Group Group
Quarter ended Nine months ended September 30, Sel!tember 30,
2015 2014 2015 2014
(Loss) profit for the period (1,437) 5,691 2,113 23,338
Adjustments for: Share-based payment expenses | 100 | 791 | 1,152 | 1,977 |
Income tax expense | 539 | 1,141 | 1,200 | 4,622 |
Depreciation of property, plant and equipment | 594 | 463 | 1,578 | 1,612 |
Amortisation of intangible assets | 376 | 641 | 1,516 | 1,923 |
Net finance expense (income) | 193 | (1) | 154 | (168) |
Changes in working capital Inventories | (154) | (1,685) | (644) | (1,818) |
Trade receivables | 2,323 | (170) | 3,009 | (872) |
Other receivables | 108 | (100) | (545) | (187) |
Trade payables | (312) | (657) | (847) | 583 |
Other liabilities | (356) | (172) | (1,546) | (62) |
Employee benefits | (6) | (13) | (1) | (12) |
Income tax refund (paid), net | (849) | (791) | (2,612) | (3,777) |
Net cash from operating activities | 1,119 | 5,138 | 4,527 | 27,159 |
Cash flows from (used in) investing activities Acquisition of property, plant and equipment | (987) | (423) | (2,411) | (2,295) |
Acquisition of intellectual property | (3,000) | |||
Short-term investments, net | 5,598 | 1,431 | 12,482 | (11,451) |
Capitalisation of development expenses | (314) | (1,029) | ||
Interest received | 38 | 49 | 165 | 249 |
Net cash from (used in) investing activities | 4,649 | 743 | 7,236 | (14,526) |
Cash flows used in financing activities Proceeds from exercise of share options | 37 | 194 | 840 | 947 |
Purchase of Company's shares by the Company | (385) | (1,333) | ||
Dividend paid | (5,234) | (10,426) | (12,216) | (17,398) |
Interest paid | (265) | (28) | (333) | (98) |
Net cash used in financing activities | (5,847) | (10,260) | (13,042) | (16,549) |
Net decrease in cash and cash equivalents | (79) | (4,379) | (1,279) | (3,916) |
Cash and cash equivalents at beginning of the period | 19,132 | 20,545 | 20,352 | 20,011 |
Exchange rate differences | 34 | (3) | 14 | 68 |
Cash and cash equivalents at end of the period | 19,087 | 16,163 | 19,087 | 16,163 |
l(d)(i) A statement (for the issuer and group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalization issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year.
Statement of Changes in Shareholders' Eguitt | ||||||
Group (US$'000) | ||||||
Share | ||||||
premium | ||||||
Share | and | Translation | Retained | Dormant | ||
ca pital* | reserves | reserve | earnings | shares | Total | |
Balance at January 1, 2014 | 21,525 | (1,213) | 47,022 | 67,334 | ||
Profit for the period ended | ||||||
September 30, 2014 | 23,338 | 23,338 | ||||
Share-based payment expenses | 1,977 | 1,977 | ||||
Exercise of options | 947 | 947 | ||||
Dividend paid | --- | (17,398) | (17,398) | |||
Balance at September 30, 2014 | = | 24,449 | (1,213) | 52,962 | 76,198 | |
Balance at January 1, 2015 | 25,201 | (1,391) | 56,854 | (1,033) | 79,631 | |
Profit for the period ended | ||||||
September 30, 2015 | 2,113 | 2,113 | ||||
Other comprehensive loss for the | ||||||
period ended September 30, 2015 | (285) | (285) | ||||
Share-based payment expenses | 1,152 | 1,152 | ||||
Exercise of options | 840 | 840 | ||||
Dormant shares, acquired at cost (993,100) | (1,333) | (1,333) | ||||
Dividend paid | --- | (12,216) | (12,216) | |||
Balance at September 30, 2015 | = | 27,193 | (1,676) | 46,751 | (2,366) | 69,902 |
* No par value |
distributed by |