DGAP-Adhoc

Electronics Line 3000 Ltd.: Results of the first half year 2014 below expectations - outlook for 2014 adjusted

Electronics Line 3000 Ltd. / Key word(s): Forecast/Half Year Results

13.08.2014 16:13

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Electronics Line 3000 Ltd.: Results of the first half year 2014 below
expectations - outlook for 2014 adjusted

- Revenues after six months decreased to US$ 6.6 million (H1 2013: US$
8.5 million)

- Gross profit of US$ 2.6 million (H1 2013: US$ 3.6 million) at a
slightly decreased margin of 40%

- Net loss of US$ 0.5 million (H1 2013: Net profit of US$ 1.3 million)

- Net cash provided by operating activities amounted to US$ 0.5 million
(H1 2013: US$ 1.4 million)

- Outlook adjusted, revenues of ca. US$ 14 million with earnings
adversely affected

Rishon LeZion, Israel (August 13, 2014) - Electronics Line 3000 Ltd. ("the
Company" or "Electronics Line") (XETRA: ELN), a global provider of wireless
security with remote management solutions, today announces the results for
the first half year of 2014 ("Reporting Period").

The sales volume was lower than expected and revenues decreased compared to
H1/2013 by 23% from US$ 8.5 million to US$ 6.6 million mainly as a result
of the delay in launching of a new product line, which served as the basis
for the Company's volume expectations. Accordingly, the gross profit
decreased from US$ 3.6 million in the comparable period H1/2013 to US$ 2.6
million in the Reporting Period. The gross profit margin decreased slightly
to 40% (H1 2013: 42%).

Compared to last year, the management increased the spending for research
and development as well as for distribution and marketing. Consequently,
research and development expenses rose to US$ 586 thousand (H1 2013: US$
552 thousand) and expenses for selling and marketing to US$ 919 thousand
(H1 2013: US$ 884 thousand) in the Reporting Period. The general and
administrative costs increased to US$ 1,022 thousand (H1 2013: US$ 854
thousand). Tax expenses in total amount of US$ 0.5 million were recorded in
the Reporting Period, principally because of the revaluation of tax loss
carry forwards.

The net loss for the Reporting Period amounted to US$ 0.5 million, compared
to a net profit of US$ 1.3 million in the respective period 2013.

The Company's cash and cash equivalents as of June 30, 2014 (hereafter:
"the Reporting Date") were US$ 2.2 million, compared to US$ 2.0 million on
December 31, 2013.

Shareholders' equity on the Reporting Date amounted to US$ 6.2 million,
corresponding to an equity ratio of 77%, compared to US$ 6.7 million (71%)