Etan Rozin

Scitex Corporation Earnings Conference Call (Q3 2002) Mon, Nov 18, 2002,

Listen to the archived event audio

Scitex’s revenues for the third quarter of 2002 were $57.7 million, a decrease of 13% from $66.6 million in Q3 of 2001. Net loss for the quarter was $0.8 million.

If you are REALLY interested, you may listen to the Creo’s fiscal-Q4/2002 call by clicking here.

Scitex’s revenues for the third quarter of 2002 were $57.7 million, a decrease of 13% from $66.6 million in the third quarter of 2001. Operating income was $2.1 million (before amortization of intangibles of $0.8 million), compared to $3 million in the third quarter of 2001 (before amortization of intangibles of $3.1 million). Net loss for the quarter was $0.8 million, compared to a loss of $41.4 million in the third quarter of 2001. Geographically, the Americas contributed 38% of the revenues followed by Europe with 36% of revenues, and the Far East (including Japan) trailed with 23% of revenues.

To read more click: http://biz.yahoo.com/prnews/021117/lnsu003_1.html

The Israeli holding company Clal Industries and Investments said that it was mulling a bid along with affiliate Discount Investment Corp for 6-10 percent of Scitex on the Tel Aviv exchange.

The terms and size of the bid had not yet been decided. Clal and Discount Investment Corp, owned by IDB Development Corp, each hold 22 percent of Scitex. The digital printing firm Scitex soared 13.2 percent to 9.67 shekels on the news on Monday Sept. 26 ($1 = 4.66 shekels).

It may be interesting to note that the ExScite Itai Halevy has recently been appointed VP Business Development at Clal Industries & Investments.

TEL AVIV, Aug 25 (Reuters) – Israeli holding company Clal Industries and Investments said on Sunday it was mulling a bid along with affiliate Discount Investment Corp (Tel Aviv:DISI.TA) for 6-10 percent of high-tech firm Scitex Corp (Tel Aviv:SCIX.TA). The terms and size of the bid had not yet been decided, Clal said in a statement to the Tel Aviv Stock Exchange.

Clal and Discount Investment Corp, owned by IDB Development Corp (Tel Aviv:IDBD.TA), each hold 22 percent of Scitex. Any decision on a bid is dependent on regulatory checks currently being carried out and there is no certainty that a bid will be made, Clal added.

The share prices of Clal and Discount both dropped sharply, posting the day’s largest falls on the Tel Aviv bourse, while IDB also slipped after a report in the Israeli media on Sunday that the firms planned to bid for more Scitex shares. Clal fell 2.5 percent to 16.89 shekels, Discount dropped 3.2 percent to 104.0 shekels and IDB shed 1.4 percent to 94.7 shekels, compared with a 0.3 percent rise on the broader Tel Aviv market. Digital printing firm Scitex soared 13.2 percent to 9.67 shekels on the news ($1 = 4.66 shekels).

It may be interesting to note that the ExScite Itai Halevy has recently been appointed VP Business Development at Clal Industries & Investments.

Vancouver, BC, CANADA (August 16, 2002) – Creo Inc. (NASDAQ: CREO; TSX: CRE) (‘Creo’) today signed a definitive agreement to acquire ScenicSoft, Inc., a privately held company located near Seattle. ScenicSoft develops and markets software for the publishing and printing industries, and is a pioneer in developing digital prepress solutions. Under the terms of the agreement, Creo will acquire ScenicSoft for approximately US$9.5 million in a combination of cash, equity and an assumption of liabilities. The acquisition is expected to close within 90 days and is expected to be accretive to Creo’s adjusted earnings per share within one year from the close.

“After working in partnership with ScenicSoft for the last eight years, Creo welcomes ScenicSoft’s market-leading software for layout and imposition into our product range,” stated Amos Michelson, chief executive officer of Creo. “ScenicSoft is known for its Preps® software, the industry’s leading page imposition layout software for offset printing.” ScenicSoft has built a substantial customer base, with more than 20,000 seats of Preps alone, many of which are installed at the facilities of Creo customers.

Mr. Michelson continued, “Creo also gains several other products that complement our Networked Graphic Production initiative, which integrates all aspects of print-production – from idea to delivery. The added technology, category-leading products, and industry knowledge of the ScenicSoft team will further strengthen our ability to deliver the best solutions to our customers.”

Led by founder and President Erik Smith, ScenicSoft was established in 1985 and currently has 72 employees. ScenicSoft’s print-production software products help streamline and automate prepress workflow. In addition to the Preps imposition package, products include Pandora™, a native PDF step-and-repeat solution for the packaging and label industries; UpFront®, an innovative solution for print-production planning; TrapWise®, a full-featured trapping solution; and Color Central®, an OPI server that automates the time-consuming tasks in the print-production workflow. In addition to its headquarters facility near Seattle, WA, ScenicSoft also operates a development and support center in Turnhout, Belgium.

Terms of the Transaction

Under the proposed terms of the transaction, Creo Acquisition, Inc., a wholly owned subsidiary of Creo, will merge with ScenicSoft. The common share, preferred share and option holders of ScenicSoft will receive an aggregate payment of approximately US$7.2 million at the closing. The Creo subsidiary will also assume approximately US$2.3 million of ScenicSoft’s liabilities. Of the US$7.2 million to be received by ScenicSoft securities holders, US$4.0 million will be payable by Creo one year after the close of the transaction and will be represented by unsecured, non-interest bearing, convertible promissory notes. Creo further has the option to convert these notes into common shares at an average closing price of Creo common shares for the ten days prior to the one-year anniversary of the closing of the transaction.

The completion of the proposed transaction is subject to several conditions, including approval by a majority of the common and preferred shareholders of ScenicSoft and the expiration or waiver of certain notification periods between ScenicSoft and third parties and customers. Creo has entered into a merger voting agreement with certain shareholders of ScenicSoft who represent, in aggregate, over 67 percent of the outstanding ScenicSoft preferred stock and over 67 percent of the outstanding ScenicSoft common stock. Pursuant to this agreement, these shareholders have agreed to vote in favor of the proposed transaction and granted to Creo an irrevocable proxy to vote their respective shares of ScenicSoft in favor of the transaction.

About ScenicSoft

ScenicSoft™ develops and markets software for the publishing and printing industries, and is a pioneer in developing digital prepress solutions.

The company’s full line of print production software helps streamline and automate workflows, featuring products like Preps®, the imposition package; UpFront®, a solution for seamless production planning; TrapWise®, a full featured trapping solution; Pandora™, an entirely native PDF solution for packaging and label imposition jobs; and Color Central®, an OPI server that automates tasks in the print production workflow. ScenicSoft’s products are designed to give users flexibility and choice in the production environment and integrate support for technologies such as PDF and PostScript 3.

In 1999, ScenicSoft acquired Imation Publishing Software Corporation (IPS).

The company provides technology for the world’s largest printers: R.R. Donnelley & Sons, Quebecor, Banta and Quad Graphics. The bulk of America’s most popular magazines, and books such as the most recent Harry Potter novel, are printed using our software.

We have received this note from Eva Duvdevani:
The Alumni of the Technion in Haifa is organizing an evening honoring Efi Arazi – Pioneer of the Israeli HiTec on September 3 at 19:30.
Alumni of both Scitex and the Technion who are interested in participating in the event of honoring Efi, can find more details by calling 04-8293710 (they are on vacation till September 1 though). email: bogrim@tx.technion.ac.il  or its@tx.technion.ac.il .

Over the last few months we have been observing the process of moving substantial portions of Iris and STA to Creo in Vancouver. Last month we posted the news story about the final gasps of Iris (see ExScite News, June 30 “Iris Graphics- the end”).

From what we hear, Creo is handling this transition pretty well. Most the employees in Bedford, who had been slated to be laid-off, have been notified well in advance, as far back as 11/2001. The transition of functions and the planned gradual laid-offs are progressing on schedule, with farewell parties taking place almost every month. For example, this month 30 employees have left after months of advanced warning.

We have also heard that the separation package offered by Creo wasn’t too bad, which no doubt eased the pain of leaving. Creo said that they plan to complete the transition before the end of 2002. The Creo Bedford office (A.K.A STA) will be relocated to the former (and now mostly vacant) Iris building in Billerica MA, a couple of miles to the west.

Ex-Scitex and Ex-Iris employees are encouraged to register at www.exscite.net and to voice their opinion at ExScite Guest Book.

We are sad to convey the news that Jack Stein, one of the first electronics engineers at Scitex has passed away in Tel Aviv Israel, at the age of 54. Jack worked in ECI Telecom subsidiary Lightscape http://www.lightscapenet.com , as VP Sales & Marketing.

He joined Scitex in the early 1970’s as a hardware development engineer. In those days he managed one of the more interesting projects the company has had- a digital controller of carpets inkjet printing press, a world first. Later he relocated to STE in Brussels Belgium, as the Scitex Europe Customer Support manager. Upon his return to Israel he managed ICS (International Customer Support) from Herzlia.

It’s the end of an era. This week marked the (almost) final gasp of Iris Graphics. The Ink-Jet products division of Scitex (errr… excuse me- Creo) has received the final blow in what has been a slow death dance. Additional group of 30 has been laid-off, leaving only 20 employees to hold the candle, for a short while longer.  Creo has already shifted most of the functions to Vancouver and will provide the last training course for support personnel from Europe soon. The brand name Iris has been methodically erased.
ExScite has also heard that the current building of Iris in Billerica MA is undergoing a facelift. The building on Federal Street, will soon house the leftovers of what used to be STA, which will relocate from Oak Park in Bedford MA.
ALL IRIS EMPLOYEES ARE WELCOME TO REGISTER THEMSELVES AT www.ExScite.NET.