Israel’s Nexus Telocation Systems Ltd., a provider of Location Based Services (LBS), announced its consolidated financial results for the third quarter and nine months, which ended September 30, 2002.
Nexus' net loss for the three months period was $1.8 million, compared to a net loss of $2.5 million in the third quarter of 2001, a decrease of 26 percent for the corresponding quarter of 2001. Basic loss per share for the three months was $0.16 compared to the basic loss per share of $0.23 for the third quarter of 2001.
The company's net loss for the nine months period, which ended September 30, 2002, was $5.8 million compared to a net loss of $5.4 million in the first nine months of 2001. Basic loss per share for the nine months was $0.51 compared to the basic loss per share of $0.54 for the first nine months of 2001.
Results were mainly affected by the continued losses of NexusData, the company's fully owned subsidiary, as well as from the overall slow-down and political uncertainties in some of the company's main customers' countries—Venezuela and Israel. However, the company's operation in Argentina has significantly improved in the third quarter achieving its growth plans.
The company received a term sheet from DBSI, an Israeli investment house, to invest at least two million dollars in Nexus. The investment has been approved by the company's shareholders recently and is planned to be closed by the end of February 2003. Although no assurance can be provided, it will be closed as planned.
As a condition to the said investment, and in line with the company's intention to focus its operation on LBS—NexusData has been sold to a US group of investors in December. The closing of the transaction has been completed in January, and Nexus is expected to recognize a significant capital gain of around eight million dollars in Q1/2003. Nexus has already presented in its Q3/2002 results the effect of NexusData discontinued operation.
Commenting on the results, Shlomo Sadowsky, president and CEO of Nexus said: "Third and forth quarter were not easy for us. The markets' instability caused a significant slow-down in the demand for our products within our two main customers and the negative effect of NexusData's continued investments made it no easier for us affecting mainly our plans for signing new sales agreements and fielding our system in China.”
“Yet, towards the year-end and more notably at the beginning of 2003, I see reasons for optimism: The indications of higher demands in South America for our LBS products, the impressive growth of Tracsat, our Argentinean subsidiary, the increased demand and performance for Pointer in Israel, the successful implementation of the company restructuring plan enabling us to cut our burn rate significantly since year end, the progress of our ASAP project in Europe planned to be demonstrated by mid year in the Netherlands and the planned signing of the DBSI funding will enable us return to growth focusing on our LBS core business" concluded Sadowsky.
Nexus Telocation Systems Ltd. develops manufactures and markets low energy wireless communications and location based information systems through the application of digital spread spectrum technologies. Nexus Telocation security services business is performed through business partners in Israel, Venezuela, Argentina and Russia. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
