Orad Hi-Tec Systems Ltd. raises revenue and earnings guidance after good third quarter of 2014

– New quarterly record revenue of USD 10.5 Million

– Third-quarter operating profit more than tripled to USD 1.2 million

– Revenue guidance for 2014 raised to USD 40-41 million; target operating profit margin of 8-10%

Kfar-Saba, Israel, November 14, 2014 - Orad Hi-Tec Systems Ltd. (ISIN IL0010838071; Frankfurt - Prime Standard; symbol: OHT), a leading developer, marketer and distributor of state-of-the-art 3D real-time graphics, video servers and MAM solutions, today announced that it recorded a substantial increase in both revenue and earnings in the third quarter of 2014 thanks to an excellent business performance. At USD 10.5 million, Orad posted the highest quarterly revenue in its history. The figure represents a 20 percent increase compared to the previous year’s figure of EUR 8.7 million. The operating profit has more than tripled in the quarter to approx. USD 1.2 million, up from USD 0.4 million. The net profit of USD 0.8 million also was a marked improvement on the net profit of USD 0.2 million recorded in the third quarter of 2013. Due to the highly positive development of business, Orad raises its revenue and earnings guidance for 2014: Orad now expects revenue of USD 40 to 41 million and an operating profit margin that is likely to be 8 to 10 percent. The previous forecast called for revenue of USD 39 to 40 million and an operating profit margin of 6 to 8 percent.

Revenue after nine months in 2014 totalled USD 30.0 million, up from USD 23.1 million in the prior-year period. Operating profit improved to USD 2.9 million compared with a loss of USD 1.7 million in 2013. The net profit was USD 2.3 million after a net loss of USD 2.1 million after nine months of 2013. Earnings per share came to USD 0.21. Cash and cash equivalents increased to USD 9.1 million at the end of September 2014, up from USD 5.8 million at the end of 2013. The equity ratio was a solid 54 percent.
Business performance in the traditional markets such as Europe remains positive, which is an encouraging trend. In Europe, the company had a very successful International Broadcasting Convention (IBC) in September 2014, conducting numerous promising talks with existing and potential customers. The increase in marketing activities in markets such as the United States is also paying off.

The quarterly report is available for download from the Internet in the Investor Relations section at www.orad.tv.

Forward Looking Statements

This press release contains forward-looking statements that are based on the current estimates and projection of future results and trends based on the knowledge of the environment in which the Company currently operates, but because of factors beyond its control, actual results may differ materially from the expectations expressed in the forward-looking statements. Important factors that may cause actual results to differ from anticipated results include, but are not limited to, economic downturn, financial risk, acquisition risk, changes in technology, as well as other risks. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. As a result, investors should not place undue reliance on these forward-looking statements.

About Orad Hi-Tec Systems

Orad Hi-Tec Systems is a world-leading provider of real-time 3D broadcast graphic, video server, and media asset management solutions including news, channel branding, sports production and enhancement, elections and special events, virtual studios, and virtual advertisement. Orad's compelling solutions streamline production workflow, enhance viewer experience, and improve production value. Founded in 1993, Orad is a public company listed on the Frankfurt Stock Exchange (OHT). More information is available at http://www.orad.tv/.

For further information contact:

Orad Hi-Tec Systems Ltd
Ilan Sidi, CFO
ilan@orad.tv

Investor Relations
edicto GmbH
Dr. Sönke Knop,
Eschersheimer Landstraße 42, 60322 Frankfurt, Germany
+49 69 90550551

This release was published on openPR.