Given Imaging Ltd. and its Consolidated Subsidiaries
Specified Items
For the Three Months Ended March 31, 2009 and 2010
(Unaudited, dollars in thousands)
General
Research Selling And
And And Administra-
Development Marketing tion Total
Three month period ended
March 31, 2010
Compensation expenses $ 83 $ 327 $ 1,203 $ 1,613
Acquisition expenses - - 686 686
----------- ----------- ----------- -----------
Total $ 83 $ 327 $ 1,889 $ 2,299
=========== =========== =========== ===========
Three month period ended
March 31, 2009
Compensation expenses $ 78 $ 153 $ 1,279 $ 1,510
----------- ----------- ----------- -----------
Total $ 78 $ 153 $ 1,279 $ 1,510
=========== =========== =========== ===========
Given Imaging Ltd. and its Consolidated Subsidiaries
Reconciliation of GAAP results to non-GAAP results
For the three months ended March 31, 2010 and 2009
Condensed, in thousands except share and per share data
Q1 2010 Q1 2009
Specified Specified
Items Non Items Non
GAAP (*) GAAP GAAP (*) GAAP
-------- ------- -------- -------- ------- --------
Revenues $ 32,097 - $ 32,097 $ 30,473 - $ 30,473
Cost of revenues (7,336) - (7,336) (7,318) - (7,318)
-------- ------- -------- -------- ------- --------
Gross profit 24,761 - 24,761 23,155 - 23,155
-------- ------- -------- -------- ------- --------
Gross profit as a
% of revenues 77.1% - 77.1% 76.0% - 76.0%
Operating expenses
Research and
development, net (3,777) 83 (3,694) (3,676) 78 (3,598)
Sales and marketing (14,749) 327 (14,422) (13,958) 153 (13,805)
General and
administrative (5,134) 1,889 (3,245) (4,415) 1,279 (3,136)
Termination of
marketing
agreement - - - - - -
Other, net (63) - (63) (12) - (12)
-------- ------- -------- -------- ------- --------
Total operating
expenses (23,723) 2,299 (21,424) (22,061) 1,510 (20,551)
-------- ------- -------- -------- ------- --------
Operating profit 1,038 2,299 3,337 1,094 1,510 2,604
Operating profit
as a % of
revenues 3.2% 10.4% 3.6% 8.5%
Financing income
(expense), net 978 - 978 (1,126) - (1,126)
-------- ------- -------- -------- ------- --------
Profit (loss)
before taxes on
income 2,016 2,299 4,315 (32) 1,510 1,478
Income tax expense (129) - (129) (28) - (28)
-------- ------- -------- -------- ------- --------
Net Profit (loss) 1,887 2,299 4,186 (60) 1,510 1,450
Net loss
attributable to
non-controlling
interest 166 - 166 299 - 299
-------- ------- -------- -------- ------- --------
Net profit
attributable to
shareholders $ 2,053 $ 2,299 $ 4,352 $ 239 $ 1,510 $ 1,749
======== ======= ======== ======== ======= ========
Net profit
attributable to
shareholders as
a % of revenues 6.4% 13.6% 0.8% 5.7%
Earnings per share
Basic Earnings
attributable to
shareholders per
Ordinary Share $ 0.07 $ 0.08 $ 0.15 $ 0.01 $ 0.05 $ 0.06
======== ======= ======== ======== ======= ========
Diluted Earnings
attributable to
shareholders per
Ordinary Share $ 0.07 $ 0.07 $ 0.14 $ 0.01 $ 0.05 $ 0.06
======== ======= ======== ======== ======= ========
Given Imaging Ltd. and its Consolidated Subsidiaries
Interim Consolidated Balance Sheets
In thousands except share data
(Unaudited)
March 31 December 31
----------- -----------
2010 2009
----------- -----------
Assets
Current assets
Cash and cash equivalents $ 26,975 $ 46,458
Short-term investments 27,916 31,736
Accounts receivable:
Trade (Net of provisions for doubtful debts of
$259 and of $252 as of March 31, 2010 and
December 31, 2009, respectively) 21,714 24,742
Other 4,572 3,799
Inventories 16,444 17,302
Prepaid expenses 1,595 1,036
Deferred tax assets 2,001 2,207
Advances to suppliers 377 534
----------- -----------
Total current assets 101,594 127,814
----------- -----------
Deposits 1,084 1,062
Assets held for employee severance payments 5,231 4,968
Marketable Securities 9,987 16,956
Non-current Inventory 5,448 6,015
Fixed assets, at cost, less accumulated
depreciation 13,742 13,843
Advance on account of business combination (See
Note 4) 35,000 -
Deferred tax assets 192 192
Intangible assets, less accumulated amortization 11,046 11,284
Goodwill 3,586 3,586
----------- -----------
Total Assets $ 186,910 $ 185,720
=========== ===========
Given Imaging Ltd. and its Consolidated Subsidiaries
Interim Consolidated Balance Sheets
In thousands except share data
(Unaudited)
March 31 December 31
----------- -----------
2010 2009
----------- -----------
Liabilities and equity
Current liabilities
Current installments of obligation under capital
lease $ 145 $ 145
Accounts payable
Trade 5,817 6,789
Other 15,902 20,060
Deferred income 486 234
----------- -----------
Total current liabilities 22,350 27,228
----------- -----------
Long-term liabilities
Obligation under capital lease, net 320 356
Liability in respect of employees' severance
payments 5,795 5,530
----------- -----------
Total long-term liabilities 6,115 5,886
----------- -----------
Total liabilities 28,465 33,114
----------- -----------
Equity
Shareholders' equity
Ordinary Shares, NIS 0.05 par value each
(90,000,000 shares authorized; 29,615,152
and 29,370,972 shares issued and fully paid
as of March 31, 2010 and December 31, 2009,
respectively) 348 345
Additional paid-in capital 186,257 182,203
Capital reserve 2,166 2,166
Accumulated other comprehensive loss 294 399
Accumulated deficit (31,132) (33,185)
----------- -----------
Shareholders' equity 157,933 151,928
----------- -----------
Non-controlling interest 512 678
----------- -----------
Total Equity 158,445 152,606
----------- -----------
Total liabilities and equity $ 186,910 $ 185,720
=========== ===========
Given Imaging Ltd. and its Consolidated Subsidiaries
Interim Consolidated Statements of Operations
In thousands except share and per share data
(Unaudited)
Three month period
ended March 31 Year ended
---------------------- December 31
2010 2009 2009
---------- ---------- -----------
Revenues $ 32,097 $ 30,473 $ 141,763
Cost of revenues (7,336) (7,318) (33,145)
---------- ---------- -----------
Gross profit 24,761 23,155 108,618
---------- ---------- -----------
Operating expenses
Research and development, gross (4,024) (4,010) (17,842)
Government grants 247 334 1,109
---------- ---------- -----------
Research and development, net (3,777) (3,676) (16,733)
Sales and marketing (14,749) (13,958) (61,428)
General and administrative (5,134) (4,415) (18,919)
Other, net (63) (12) (1,220)
---------- ---------- -----------
Total operating expenses (23,723) (22,061) (98,300)
---------- ---------- -----------
Operating income 1,038 1,094 10,318
Financing income (expense), net 978 (1,126) 1,584
---------- ---------- -----------
Income (loss) before taxes on income 2,016 (32) 11,902
Income tax expense (129) (28) 1,542
---------- ---------- -----------
Net income (loss) 1,887 (60) 13,444
Net loss attributable to
non-controlling interest 166 299 891
---------- ---------- -----------
Net profit attributable to owners of
the company $ 2,053 $ 239 14,335
========== ========== ===========
Earnings per share
Basic Earnings attributable to
shareholders per Ordinary Share $ 0.07 $ 0.01 $ 0.49
========== ========== ===========
Diluted Earnings attributable to
shareholders per Ordinary Share $ 0.07 $ 0.01 $ 0.47
========== ========== ===========
Weighted average number of Ordinary
Shares used to compute basic
Earnings per Ordinary share 29,427,767 29,257,785 29,281,897
========== ========== ===========
Weighted average number of Ordinary
Shares used to compute diluted
Earnings per Ordinary share 30,646,418 29,910,943 30,423,162
========== ========== ===========
Given Imaging Ltd. and its Consolidated Subsidiaries
Consolidated Statements of Cash Flows
In thousands
(Unaudited)
Three month period
ended March 31, Year ended
------------------ December 31,
2010 2009 2009
-------- -------- ------------
Cash flows from operating activities:
Net income (loss) $ 1,887 $ (60) $ 13,444
Adjustments required to reconcile net
profit (loss) to net cash used in
operating activities:
Depreciation and amortization 1,498 1,465 6,096
Goodwill impairment - - 483
Deferred tax assets 206 10 (1,221)
Stock option compensation 1,613 1,510 7,268
Other 87 9 570
Decrease (increase) in accounts
receivable - trade 3,028 (181) (3,069)
Decrease (increase) in accounts
receivable - other (320) 2,334 863
Decrease (increase) in prepaid expenses (559) (255) 595
Decrease (increase) in advances to
suppliers 157 (41) 3,006
Decrease (increase) in inventories 1,425 (3,364) (4,386)
Increase (decrease) in accounts payable (5,210) 178 1,819
Increase (decrease) in deferred income 252 (394) (1,289)
-------- -------- ------------
Net cash provided by operating
activities 4,064 1,211 24,179
-------- -------- ------------
Cash flows from investing activities:
Purchase of fixed assets and intangible
assets (1,222) (1,056) (4,794)
Payment on account of business
combination (35,000) - -
Deposits (24) 3 34
Proceeds from sales of marketable
securities and short term investments 18,208 21,781 38,085
Investments in trading and marketable
securities (7,546) (250) (27,410)
-------- -------- ------------
Net cash provided by (used in) investing
activities (25,584) 20,478 5,915
-------- -------- ------------
Cash flows from financing activities:
Principal payments on capital lease
obligation (34) (33) (131)
Proceeds from the issuance of Ordinary
Shares 1,991 - 954
Dividend distribution - (15,799) (15,799)
Purchase of shares from a non-controlling
shareholder in a subsidiary - - (382)
-------- -------- ------------
Net cash (used in) provided by financing
activities 1,957 (15,832) (15,358)
-------- -------- ------------
Effect of exchange rate changes on cash 80 (258) 25
-------- -------- ------------
Increase (decrease) in cash and cash
equivalents (19,483) 5,599 14,761
Cash and cash equivalents at beginning of
period 46,458 31,697 31,697
-------- -------- ------------
Cash and cash equivalents at end of
period $ 26,975 $ 37,296 $ 46,458
======== ======== ============
Supplementary cash flow information
Income taxes paid $ 48 $ 44 $ 877
======== ======== ============
Contact Information: For further information contact: Fern Lazar/David Carey Lazar Partners Ltd. 1-212-867-1768 /