Orad First Quarter 2000 Highlights

  • Revenues grew by 128% to $3.85 million in the first quarter of 2000 from $1.69 million in the first quarter of 1999
  • Strong and stable gross margin of over 60% across all products
  • Profitability continues; net profit (net of the one-time impact of $2.68 million associated with in-process R&D of ELSET), of $0.46 million in the first quarter of 2000 compared to a loss of $2.52 million in the first quarter of 1999, reflecting the third straight profitable quarter
  • Net loss for the first quarter of 2000 was $2.22 million. The loss was the result of a one-time impact of $2.68 million associated with the acquisition of ELSET
  • Orad finalized the purchase of Accom’s entire ELSET virtual set product line
  • More webcast application sales based on Orad’s CyberSet virtual studios to customers such as Skynet (Hong Kong) and NextStudio (US)
  • Major long term virtual advertising and real-time sports enhancement deals with ISL for the ATP’s Tennis Masters Series and with the Canadian Football League and The Sports Network (TSN)
  • First strategic investment in MirageQuest.com April 2000

Orad Hi-Tec Systems Ltd. today reported results for the first quarter of 2000. Revenues for the first quarter of 2000 increased by 128% to $3.85 million from $1.69 million in the first quarter of 1999. Oradãs net profit, net of a one-time expense of $2.68 million associated with the acquisition of the ELSET virtual set product line, for the first quarter was $0.46 million compared with a net loss of $2.52 million in the first quarter of 1999. A strong and stable gross margin of over 60% was achieved across all of Orad’s products.

Commenting on the financial results for the first quarter of 2000, Avi Sharir, President and Chief Executive Officer of Orad, said: ‘Orad is continuing the successful path it paved in 1999. We are solidifying our position as the market leaders and at the same time expanding our global presence to the emerging markets of webcasting.’

Mr. Sharir continued, ‘We made significant headway in penetrating new markets and adding new customers such as NextStudio (USA), Canadian Football League (Canada), Skynet (Hong Kong), IMAGICA Corp. (Japan) as well as new customers in Eastern Europe, the Middle East, Switzerland, Italy, UK, Japan and others.’

For Further Details on Orad’s Finacial Results and their Operational Highlights, please contact:

Mr. Ariel Kor
Orad Hi-Tec Systems
tel: 972-9-764-2100 ext. 592
fax: 972-9-767-7861
email: ariel.kor@orad.co.il