DGAP-News

Electronics Line 3000 Ltd.: Preliminary Figures for 2011 confirm Expectations - Agreement with New Italian Distributor signed

DGAP-News: Electronics Line 3000 Ltd. / Key word(s): Preliminary
Results/Contract
Electronics Line 3000 Ltd.: Preliminary Figures for 2011 confirm
Expectations - Agreement with New Italian Distributor signed

22.03.2012 / 16:16

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Preliminary Figures for 2011 confirm Expectations -
Agreement with New Italian Distributor signed

  - Sales of US$ 24.2 million and operating profit of US$ 1.5 million for
    fiscal 2011

  - Gross profit margin increased to 35% (2010: 31%)

  - Adjusted net profit of US$ 1.1 million

  - 3-year EUR 5.7 million agreement with new Italian distributor signed

  - Outlook for 2012 confirmed

Rishon LeZion, Israel (March 22, 2012) - Electronics Line 3000 Ltd. (´the
Company´ or ´Electronics Line´) (XETRA: ELN), a global provider of wireless
security with remote management solutions, confirms its expectations for
fiscal 2011 with today´s release of the preliminary financial results and
announces the signing of an agreement with a new distributor for the
Italian market.

The Company´s revenues in fiscal 2011 amounted to around US$ 24.2 million,
compared to US$ 26.7 million in the previous fiscal year. Because of
synergetic effects with Risco Ltd. and the implementation of several
successful streamlining measures and cost-saving programs, gross profit
margin increased to 34.8% or US$ 8.4 million of sales, compared to 31.4% or
US$ 8.4 million in fiscal 2010. As a result, the Company was able to
significantly
enhance its profitability and achieved an operating profit of around US$
1.5 million for 2011, compared to an operating loss of US$ 5.0 million for
fiscal 2010. The adjusted net profit, not considering one-time effects from
the sale of a subsidiary, was around US$ 1.1 million compared to a loss of
US$ 5.9 million in the previous year. Net profit for 2011 including
one-time effects was US$ 2.3 million.

Furthermore, Electronics Line announces that the Company recently entered
into a distribution agreement with a leading security service provider for
supplying residential security solutions for the Italian market. The new
customer becomes the exclusively authorized distributor of Electronics
Line´s two-way wireless iConnect and CommPact security, connectivity and
control systems for the residential and small commercial markets in Italy.
According to the agreement, the Company expects to realize a minimum
turnover with the distributor of around EUR 5.7 million from 2012 until the
end of 2014. For the current business year, the Company expects a sales
volume with the new customer of at least US$ 0.9 million.

Electronics Line confirms the previously announced outlook for fiscal 2012