ROBO ROBO Global Robotics and Automation Index

RoboGroup's Board Approved Voluntarily Deregistration and Delisting from the NASDAQ SmallCap Market ROSH HA'AYIN, Israel, August 4 /PRNewswire-FirstCall/ -- RoboGroup T.E.K. Ltd. (NASDAQ:ROBO) today reported second-quarter and first-half 2005 financial results. Revenues for the second quarter increased by 27% to NIS 16.9 million (US$3.7 million) from NIS 13.3 million (US$2.9 million) for the comparable quarter in 2004. Gross profit for the second quarter was NIS 8.1 million (US$1.8 million) compared with NIS 5.9 million (US$1.3 million) for the comparable period in 2004. The company reported second-quarter net profit of NIS 0.4 million (US$0.1 million) compared with a net loss of NIS 2.9 million (US$0.6 million) in second-quarter of 2004. Backlog, as of June 30, 2005 increased significantly to NIS 13.5 million (US$3 million) from NIS 7.9 million (US$1.7) as of June 30, 2004. Revenues for the six month period totaled NIS 27.8 million (US$6.1 million) compared with NIS 27.7 million (US$6.1 million) for the comparable period in 2004. The net loss for the six month period decreased significantly to NIS 2.2 million (US$0.5 million) from NIS 5.8 million (US$1.3 million) in the comparable period in 2004. Rafael Aravot, chief executive officer of RoboGroup, commented: "I am pleased with our second quarter results. In addition to generating higher revenues and increased backlog, we managed to keep our cost level low as a result of the efficiency improvement measures we have implemented during the last quarters, and we achieved net profit. Looking forward, we plan to focus on realizing the full potential of the market opportunities, while continuing to focus our attention on operating efficiency, thereby maximizing revenues while controlling costs". Deregistration and delisting from the NASDAQ SmallCap Market The Company's board of directors today resolved to voluntarily deregister the Company's shares under the Securities Exchange Act of 1934 and upon deregistration, to delist from the NASDAQ SmallCap Market. To deregister its ordinary shares, the Company will file a Form 15 with the SEC thereby suspending its obligations for filing annual and other reports with the SEC. The Company intends to seek authorization from NASDAQ to maintain the listing of its shares on the NASDAQ SmallCap Market for the period of 90 days from the filing of the Form 15, or such shorter period until the deregistration of its shares becomes effective, and will undertake to continue file reports on a voluntary basis until delisting. In its decision, the Company's board resolved to authorize RoboGroup's management to determine the exact timing for filing the Form 15 and to take all measures and acts required for the implementation of the deregistration and delisting process. Subject to the SEC's review, the Company anticipates completing the process within 90-days. The board's plan to deregister and delist its ordinary shares was made after careful consideration of the advantages and disadvantages of continuing the Company's share registration in the United States and the rising costs and demands on management time arising in connection with SEC and NASDAQ compliance requirements. The Company's board believes that the current burdens associated with being a "reporting company" under the 1934 Act, including the recent obligations arising under the provisions of the Sarbanes-Oxley Act of 2002 outweigh the advantages of being traded both in the US and in Israel. The board estimates that the deregistration and delisting will achieve a substantial reduction in the Company's annual expenses associated with being a reporting company in the US. The Company's shares shall continue to trade on the Tel Aviv Stock Exchange and the Company will continue to issue periodic and other reports in accordance with the rules and regulations of the Israeli Securities Authority. In the opinion of the Company's board, the delisting and deregistration will benefit the Company and all of its shareholders, including its US shareholders, who will be able to continue to trade the Company's shares on the Tel-Aviv Stock Exchange. Mr. Aravot commented on the delisting decision: "As part of our cost control efforts our Board approved the voluntarily delisting and deregistration of our shares from the Nasdaq SmallCap market. We believe that this step will significantly reduce reporting-related expenses, avoid potentially higher future expenses, enable our management to focus more of its time on operating the Company, and create greater value for our shareholders" A complete Directors' Report for the second quarter of 2005 is available on the Company's Website at http://www.robo-group.com/ or as a PDF file upon request. Please contact Ayelet Shiloni at Integrated IR, toll-free +1-866-447-8633. RoboGroup RoboGroup and its subsidiaries are engaged in two major fields of activity. The first is the field of education devoted to RoboGroup's training products and e-learning systems. RoboGroup is a world leader in engineering and manufacturing technology training systems. The Company is market driven, deriving its growth from technological leadership, strong partnerships and management expertise. The other field of activity is the development, manufacturing and marketing of motion control products for the industrial market, which is performed through the Company's subsidiary, Yaskawa Eshed Technologies (YET). For more information, visit http://www.robo-group.com/. To the extent that this press release discusses expectations about market conditions or about market acceptance and future sales of the Company's products, or otherwise makes statements about the future, such statements are forward-looking and are subject to a number of risks and uncertainties that could cause results to differ materially from the statements made. These factors include the rapidly changing technology and evolving standards in the industries in which the Company and its subsidiaries operate, risks associated with the acceptance of new products by individual customers and by the market place and other factors discussed in the business description and management discussion and analysis sections of the Company's Annual Report on Form 20-F. RoboGroup T.E.K. Ltd. Balance Sheets NIS in Thousands June, 30 December,31 2005 2005 2004 2004 US$ (K) NIS (K) NIS (K) NIS (K) Unaudited Unaudited Unaudited Audited Convenience translation to US dollars Reported amounts ASSETS Current assets Cash and cash equivalents 1,525 6,976 7,656 6,957 Short-term investments 13 61 - 99 Trade receivables 3,063 14,008 14,735 15,282 Other receivables and debit balances 588 2,689 2,959 2,093 Inventories 2,554 11,683 12,823 9,372 7,743 35,417 38,173 33,803 Long-term investments Investments in investee and other companies - - 15 - Funds in respect of employee rights upon retirement, net 183 836 276 563 183 836 291 563 Fixed assets 7,767 35,527 37,322 36,548 Other assets and deferred expenses 88 404 740 1,036 15,781 72,184 76,526 71,950 RoboGroup T.E.K. Ltd. Balance Sheets NIS in Thousands June, 30 December,31 2005 2005 2004 2004 US$ (K) NIS (K) NIS (K) NIS (K) Unaudited Unaudited Unaudited Audited Convenience translation to US dollars Reported amounts LIABILITIES Current liabilities Credit from banks 3,542 16,200 16,036 15,228 Trade payables 1,548 7,080 6,066 5,853 Other payables and credit balances 2,518 11,516 10,878 10,333 7,608 34,796 32,980 31,414 Long-term liabilities Loans from banks 3,515 16,079 18,494 17,100 Provision for deferred taxes 29 134 - 163 Liability for termination of employee/employer relationship, net 40 184 249 139 3,584 16,397 18,743 17,402 Shareholders' equity Share capital 2,492 11,400 11,400 11,400 Capital reserves and premium on shares 9,677 44,262 44,178 44,179 Accumulated deficit (7,408) (33,882) (29,772) (31,656) Treasury stock (172) (789) (1,003) (789) 4,589 20,991 24,803 23,134 15,781 72,184 76,526 71,950 RoboGroup T.E.K. Ltd. Statement of Operations NIS in Thousands For the six months ended June 30 2005 2005 2004 US$ (K) NIS (K) NIS (K) Unaudited Unaudited Unaudited Convenience translation to US dollars Reported amounts Revenues 6,069 27,762 27,681 Cost of revenues 3,389 15,503 15,632 Gross profit 2,680 12,259 12,049 Operating expenses Research and development expenses, net 721 3,300 4,287 Marketing and selling expenses 1,375 6,290 7,067 Administrative and general expenses 860 3,933 5,020 2,956 13,523 16,374 Operating profit (loss) (276) (1,264) (4,325) Financial expenses, net (86) (392) (1,075) Other income (expenses), net (65) (298) 498 Profit (loss) before taxes on income (427) (1,954) (4,902) Income tax expenses 60 272 901 Net profit (loss) (487) (2,226) (5,803) Profit (loss) per share ("EPS") (0.04) (0.21) (0.54) Weighted average number of shares used in computation of EPS (in thousands) 10,851 10,851 10,746 For the three months ended Year ended June 30 December, 31 2005 2004 2004 NIS (K) NIS (K) NIS (K) Unaudited Unaudited Audited Reported amounts Revenues 16,947 13,316 61,734 Cost of revenues 8,855 7,401 35,843 Gross profit 8,092 5,915 25,891 Operating expenses Research and development expenses, net 1,610 1,985 7,619 Marketing and selling expenses 3,349 3,312 13,204 Administrative and general expenses 1,995 2,498 10,042 6,954 7,795 30,865 Operating profit (loss) 1,138 (1,880) (4,974) Financial expenses, net (276) (310) (2,111) Other income (expenses), net (329) 216 809 Profit (loss) before taxes on income 533 (1,974) (6,276) Income tax expenses 160 901 1,411 Net profit (loss) 373 (2,875) (7,687) Profit (loss) per share ("EPS") 0.03 (0.27) (0.71) Weighted average number of shares used in computation of EPS (in thousands) 10,851 10,746 10,757 Company Contact: Michal Afuta RoboGroup +972-3-900-4112 Agency Contact: Ayelet Shiloni Integrated IR +1-866-447-8633 DATASOURCE: RoboGroup t.e.k. Ltd CONTACT: Company Contact: Michal Afuta, RoboGroup, +972-3-900-4112 Agency Contact: Ayelet Shiloni, Integrated IR, +1-866-447-8633

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