KIBBUTZ SHAMIR, Israel, Aug. 21 Shamir OpticalIndustry Ltd. (Nasdaq: SHMR) ("Shamir"), a leading provider of innovativeproducts and technology to the ophthalmic lens market, today announcedunaudited financial results for the second quarter ended June 30, 2008.
For the quarter ended June 30, 2008, revenues increased by 25.4% to $37.1million, compared to $29.6 million for the second quarter of 2007. Grossprofit for the quarter increased by 28.9% to $20.1 million, or 54.3% ofrevenues, compared to gross profit of $15.6 million, or 52.8% of revenues forthe same period last year.
For the quarter ended June 30, 2008, operating income increased by 21.1%to $3.3 million, or 8.8% of revenues, compared to operating income of $2.7million, or 9.1% of revenues for the same period last year. Net income forthe quarter increased by 29.8% to $2.6 million, or $0.16 per diluted share,compared to net income of $2.0 million for the comparable period in 2007.
Excluding the effects of non-cash stock-based compensation expenses,operating income was $3.5 million, or 9.5% of revenues, compared to operatingincome of $2.9 million, or 9.6% of revenues, for the same period of 2007.
Excluding the effects of non-cash stock-based compensation expenses, netincome for the quarter increased 33% to $2.9 million, or $0.18 per dilutedshare, from $2.2 million for the comparable period in 2007.
The reconciliation of GAAP operating income and GAAP net income tonon-GAAP operating income and non-GAAP net income is set forth below.
As of June 30, 2008, the Company had cash and cash equivalents, includingshort-term investments of $28.1 million.
Commenting on the results, Eyal Hayardeny, Chief Executive Officer ofShamir, said, "The second quarter delivered many positives; Europe generatedimproved operating results and the United States made significant inroads. Wemaintained financial discipline in our operating units and we continued todevelop our global opportunities."
Mr. Hayardeny continued, "Progress continued toward advancing our Europeandistribution network as we purchased the remaining 49% of Altra Trading GmbH,through which we hold our European operations. We are confident this purchasewill enable us to efficiently manage our European operations. Europe is animportant market for Shamir and we are committed to increasing our footprintin this geography and will continue to make appropriate investments inleadership, marketing and sales."
Mr. Hayardeny concluded, "In terms of our overall strategy, we continue toinvest for long-term growth, while closely monitoring operational expenses.Our positive performance thus far this year, combined with our commitment togrowth and operations position us to achieve the goals we have set forth forShamir. Based on our results through the first six month of 2008, wereconfirm our previously announced forecasts of estimate for growth in therange of 10%-16%, based on the December 2007 exchange rates and excluding theresults of our Mexican operation."
Shamir has scheduled a conference call for 9:00 a.m. today to discusssecond quarter results. To participate in the call, please dial 888-562-3356(U.S. and Canada) or 973-582-2700 (International). The conference ID for thisevent is 58931251. For those unable to participate there will be replayavailable from 12:00 p.m. EDT on August 21, 2008 through 11:59 p.m. EDT,August 28, 2008. Please call: 800-642-1687 (U.S. and Canada) 706-645-9291(International). The ID code for the replay is 58931251.
The call will be available as a live, listen-only webcast at www.kcsa.com.Please go to the KCSA website at least 15 minutes prior to the scheduled starttime to register, download and install any necessary audio software. A 30-dayarchive of the webcast will be available approximately 2 hours after theconclusion of the