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SCANVEC AMIABLE, LTD. ANNOUNCES RESULTS FOR THE SECOND QUARTER OF 2002
Added: (Thu Aug 15 2002)
FOR IMMEDIATE RELEASE
CONTACT:
Scanvec Amiable Ltd.
International Plaza II, Suite 625
Philadelphia, Pa 19113
Gerald J. Kochanski
Vice President and CFO
610-521-6300
SCANVEC AMIABLE, LTD. ANNOUNCES RESULTS FOR THE SECOND QUARTER OF 2002
Philadelphia, Pa., August 15, 2002 – Scanvec Amiable Ltd. (OTCBB: SVECF) announced a net profit of $320,000 or $0.05 per share, for the second quarter ended June 30, 2002, compared to a net profit of $355,000 or $0.05 per share, reported for the same period last year. Revenue for the second quarter of 2002 decreased 0.2% to $4,298,000 from $4,310,000 for the same period in 2001.
The company announced a net profit of $552,000 or $.08 per share for the six months ended June 30, 2002, compared to a net profit of $5,000 reported for the same period last year. Revenue for the first six months of 2002 decreased 0.4% to $8,300,000 from $8,336,000 for the same period in 2001.
Total operating expenses for the second quarter decreased 4.5% to $2,982,000 compared to $3,123,000 for the same period in 2001. Total operating expenses for the six months decreased $861,000 or 13.1% to $5,737,000 compared to $6,598,000 for the same period in 2001. The decrease in operating expenses was due primarily to the discontinuation of an e-commerce project in 2001, resulting in a reduction of research and development expenses. The Cost of Goods Sold for the six months ended June 30, 2002 increased $241,000 or 13.8% to $1,984,000 compared to $1,8743,000 reported for the same period in 2001. The increase was due to a change in the product sales mix resulting in higher royalty costs.
Dr. Ramon Harel, CEO of Scanvec Amiable, stated, "Despite the current state of the global economy, the company’s ability to stay on target and hit aggressive sales targets is quite remarkable. Revenue levels of our core business are expected to remain strong. With the introduction of three new versions of our main product lines, EnRoute 3ä in the first quarter, FlexiFAMILYä 7 in the second quarter, and PhotoPRINT 3ä in the third quarter, we expect an increase in our overall revenue generation.
In the second quarter, we have made key investments to the sales and marketing staffs. These individuals are responsible for increasing our market share in new industries, specifically the digital printing and CNC manufacturing industries.
We are proactively managing operating expenses by identifying and leveraging synergies and economies while increasing productivity to insure profit maximization. Scanvec Amiable anticipates continued positive results in the second half of 2002.
About Scanvec Amiable
Scanvec Amiable is the recognized global leader, enabling the professional graphics manufacturing industry in creating innovative and cutting edge displays. Scanvec Amiable offers complete and professional solutions for the sign making, digital printing, and CAD/CAM for CNC manufacturing industries. Scanvec Amiable is headquartered in Philadelphia, PA. Scanvec Amiable has additional offices in San Juan Capistrano, CA., and Brussels, Belgium. For additional information please call 800-229-9066, 610-521-6300, e-mail us at Info@ScanvecAmiable.com, or visit www.ScanvecAmiable.com.
Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including, without limitation, risks associated with the Company's dependence on a limited number of products, uncertainty of market acceptance, an limited number of customers, as well as risks of downturns in economic conditions generally, and in the health care industry specifically, risks associated with competition and competitive pricing pressures, and other risks detailed in the Company's filings with the Securities and Exchange Commission.