from the May 2001 issue
ISRAEL HI-TECH MODEL PORTFOLIO
IHTIR Millennium Portfolio Company News
AudioCodes (Nasdaq:AUDC), a leading provider of VOP (Voice over Packet) technologies, and ECI Telecom Business Systems, the manufacturer of the Coral FlexiCom, announced their cooperation in the development of the Coral FlexiCom VoIP Universal Gateway based on the integration of AudioCodes' TPM-200 PMC module and the Coral FlexiCom.
Alcatel (NYSE:ALA): has made a strategic decision to utilize AudioCodes' single and multi-channel voice over packet processors. This decision highlights the strong relationship between the companies, and provides a basis for future collaboration. AudioCodes' highly integrated field proven subsystem technologies have enabled Alcatel to cut time to market with several of Alcatel's convergence strategy products.
Merger
Israeli wireless equipment maker BreezeCOM Ltd. (Nasdaq:BRZE) and
Band Floware Wireless Systems Ltd. said they agreed to merge in a
share swap to create a firm valued at more than $330 million.
BreezeCOM shareholders will own 55 % of the combined company and
Floware shareholders 45%.
Both Israeli companies sell equipment that enables telephone
companies and Internet service providers, to supply high-speed phone
and Internet services via wireless connections to individual homes
and offices.
The companies said that they complement each other because they
target different types of customers in different geographic regions.
The transaction is expected to close during the third quarter of
2001, and is subject to approval by shareholders and regulators, the
companies said in a statement.
Based on closing prices on April 4, the combined company will have a
market capitalisation of about $330 million and over $220 million in
cash, the statement said.
Aharon Dovrat, BreezeCOM's chairman, will become the chairman of the
combined company, and Meir Barel, current chairman of Floware, will
act as vice-chairman.
Breezecom posted a 127% increase in sales to $101.5 million for 2000.
It earned a net profit of $10.3 million last year, compared with a
net loss of $3.6 million in 1999.
Floware also posted a sharp rise in revenues in 2000 to $38.5 million
from $3.3 million in 1999, but widened its net loss to $18.6 million
from $9.4 million.
BreezeCOM is strong in North America, Scandinavia and eastern Europe
and has begun to grow in Asia. Floware sells to new telecom companies
in Germany, Spain, Portugal, Latin America and Asia. Institutional
investors were not impressed with the terms of the merger and the
shares sold off sharply in the wake of the announcement.
CheckPoint May be Vulnerable to Slow Down But is Unlikely to Disappoint
In spite of a sharp drop in the price of its shares, CheckPoint's
management continues its business-as-usual attitude and it can be
expected that it maintains its global leadeship in the
security-conscious Internet environment.
WR Hambrecht & Co., (H&Q) a leading American high-tech investment
banking firm, which recently initiated research coverage on
Comverse Technology (Nasdaq:CMVT), cites the company's strong
recurring revenue stream from its legacy voicemail business,
opportunities to upsell new wireless Internet software products, and
excellent track record at meeting or exceeding guidance as key
factors in the company's growth.
H&Q believes that Comverse provides investors with exposure to the
high-growth wireless Internet infrastructure software market, with
the protection of a steady recurring revenue stream from the
company's legacy business.
Estimates are for Comverse to earn $1.78 per share on revenues of
$1.5 billion in 2001 and $2.12 on $1.8 billion in 2002. In 2000,
Converse posted $1.47 EPS on $1.2 billion in revenues.
Comverse Technology, is the world's leading provider of software and
systems enabling network-based multi-media enhanced communications
services, with over 360 customers in more than 100 countries.
Comverse provides a wide range of solutions enabling 3G-ready
multimedia messaging, multi-protocol mobile Internet platforms,
wireless data and short messaging services, speech-controlled
portals, wireless prepaid services, interactive voice response and
other personal communications services.
Orbotech Ltd. (Nasdaq:ORBK), which provides technology to electronics
manufacturers, recently said it expects to report a rise of about 27%
in its first quarter revenues.
The company, which struck a cautionary tone for results beyond the
first quarter, did not disclose exact figures and did not detail
elements of the revenue growth.
Orbotech reported revenues of $105.9 million in the fourth quarter,
with a profit of $22.7 million.
Acknowledging the current business uncertainties Orbotech said it has
scaled down the hiring of new employees and will freeze executive
salaries at their 2000 levels.
The company added that it is not able to anticipate how the existing
economic conditions will affect its results for the full year.
Orbotech plans to increase its investment in research and development
activities, as well as in its worldwide service and support
infrastructure.
The ORBK shares have a 52-week high of $71-9/16 and a 52-week low of $24-1/4.
Shimon Alon, Chief Executive Officer of Precise Software has announced the establishment of a German subsidiary. Precise Software Solutions, (Nasdaq:PRSE) headquartered in Westwood, Massachusetts, with a development facility in Israel, is a provider of IT infrastructure performance management solutions. Precise Software solutions have enabled over 1,300 enterprises, including leading Fortune 500 and e-business companies worldwide, to maximize their technology investments and meet their business goals. Precise serves customers worldwide through its offices in the United States, Israel, the United Kingdom, Germany, France, the Benelux countries and Australia, as well as through a global network of resellers and distributors. The company reported revenues of $27.5 million in 2000, a year-over-year increase of 137 percent.
Retalix Ltd. (Nasdaq:RTLX), a provider of integrated enterprise-wide software solutions for the retail food industry worldwide, announced that, in accordance with U.S. GAAP regulations, it is shifting a capital gain of approximately $2.4 million, which was previously recognized in the fourth quarter of 2000, to the first quarter of 2001.
Following this required adjustment under U.S. GAA regulations, Retalix will have a capital gain, a net loss, and a basic and diluted loss per share of $20,000, $427,000, and $0.04, respectively, for the fourth quarter of 2000, and $20,000, $1,801,000, and $0.16, respectively, for the 12 months of 2000.
The company also reported that it expects its first quarter operating
results will exceed $14 million in revenue with a modest operating
profit .
Retalix Ltd., with headquarters in Israel, provides integrated
enterprise-wide software solutions for the retail food industry
worldwide, including supermarkets, convenience stores and
restaurants. It has installations in more than 15,000 stores and
quick service restaurants across 41 countries.
The company offers a full suite of software applications, that
support a food retailer's essential operations and enable them to
increase their operating efficiencies, while improving customer
acquisition, retention and profitability.
Recently, the company expanded its product line by offering its head-
and back-office applications via the Internet to small chains and
single store food retailers.