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ISRA Report Q1 Financial Results As Anticipated

ISRA VISION has published its quarterly financial figures for the first three months of financial year 2019 / 2020 following the announcement of the public offer by Atlas Copco on February 10, 2020. ISRA achieved revenues of 33.1 million euros in the first quarter of 2019 / 2020 (Q1 18 /19: 34.2 million euros). With a moderate decline of three percent compared to the strong figures of the previous year, ISRA already sees a recovery compared to the last quarter of the financial year 2018/2019.

Some of the orders expected for the fourth quarter have been completed in the last weeks of the first quarter of 2019 / 2020, others at the beginning of Q2 2019 / 2020; to date, also larger orders, are still in the closing process. The order entry dynamics in the next moths, especially from Asia, will largely depend on the extent to which the Coronavirus has an effect. With solid EBT of 6.6 million euros (Q1 18 /19: 6.9 million euros), the company underscores its robust
profitability and has so far put itself off positively from the sector in an uncertain global economic situation.

In the European markets, the company is still registering slight restraint in some sectors. Revenues in Asia have remained at a similarly high level as in the previous year thus far. Orders from American customers developed similarly. The Industrial Automation segment, whose customer base includes in particular well-known premium manufacturers from the automotive industry as well as global players from various industries, increased its revenues to 8.4 million euros in the first quarter of the financial year (Q1 18 /19: 8.3 million euros). In addition to innovative 3D Machine Vision solutions for robot-guided assembly and high-precision 3D metrology, the segment result is being driven by good customer demand for the “Touch & Automate” products prepared for Industry 4.0.

In the coming months and quarters, ISRA expects significant revenues from a frame agreement with a premium automobile manufacturer for innovative measurement technology solutions. A large order in the mid-single-digit million range for several systems for 100 % paint inspection in automotive production should also make a positive contribution to earnings. Further market potential will be tapped by the first jointly developed innovations in the area of Embedded Systems for Smart Factory automation after complete integration of Photonfocus. These innovations are about to be launched on the market and are aimed at applications for 3D measurement and 3D robot guidance in the automobile industry as well as broader markets for the automation of discrete manufacturing processes.

Revenues in the Surface Vision segment in the first quarter of 2019 / 2020 amounted to 24.7 million euros (Q1 18 /19: 25.9 million euros). In the metal inspection segment, management expects growth in the current financial year, supported in particular by the complete portfolio strategy and the further development of innovative steel inspection solutions for the automobile industry as well as the expansion of new software solutions for the entire metal production process and Industry 4.0-capable systems. The Glass business recorded significant growth in the reporting period and is also benefiting from a major order in the current quarter. The company anticipates that a significant number of additional systems will be ordered in the months ahead. Solutions for the inspection of display as well as solar and automobile glass are also increasingly in demand.

Due to the currently unpredictable effects of the Coronavirus on the supply chains and the handling of projects at ISRA’s customers, visibility is currently
limited and a forecast is only possible to a limited extent. First effects are being felt in the form of delays in projects with customers in China. Should there be significant delays in the placement of orders or in the completion of projects, this could lead to a later onset of the growth dynamics and a slower development of revenues for the entire financial year. The management has already prepared measures to compensate effects of the Corona virus and maintain the Company’s profitability.

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