2ee1613b-7849-480e-a571-f90fd5efc654.pdf

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


l(b)(ii) Aggregate amount of Group's borrowings and debt securities.

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

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