Iris Graphics- the end

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.

Eldad-Paradigm $1B acquisition

Eldad

The Israeli-founded company is considered the market leader in software for the oil and gas exploration industry.

Europe’s Apax Partners and JMI Equity of the US will pay some $1 billion for the Israeli-founded Paradigm Geophysical developer of software for the oil and gas exploration industry.

“It is exciting for Paradigm to team up with Apax and JMI, With their backing, Paradigm is ready to further accelerate its top line and market share growth and capitalize on the opportunities its market position and leading technologies present,” said Eldad Weiss, Chief Executive Officer of Paradigm.

The ExScite Eldad Weiss founded the company in Herzliya in 1987. In 2002, Fox Paine paid $100 million for the software vendor.

Paradigm’s software solutions are leaders in the marketplace. Its software enables engineers to optimize drilling and production decisions through the analysis of vast quantities of seismic and well-log data, spanning the entire spectrum of the exploration and production lifecycle from basin evaluation through to development and production.

“Paradigm has invested considerable time and money in developing market-leading intellectual property, and employs many of the leading scientists and software engineers in the sector. As such, it is well-placed to benefit from strong tailwinds in the coming years as energy companies look to drill in more challenging locations,” said Ian Jones, a senior Partner at Apax and head of the Energy team. “The software it provides is the best in the market, leading to strong, established relationships with its customers and underpinning an attractive business model.”

Hadar_Himmelman

Hadar Himmelman hadarh@maxbill.com is the chairwoman of MaxBill. Hadar was 6 years with Scitex. Hadar and Micha Himmelman founded MaxBill in 1997.
Also with MaxBill is Vladimir Mitrasinovic vladm@maxbill.com who?s the Managing Director EMEA, working from the UK office. Vladimir was 7 years with Scitex.
Based in Petah-Tikva Israel, the startup MaxBill www.maxbill.com is a provider of Customer Care and Billing (CC&B) solutions. The company?s products combine a billing engine with Customer Relationship Management. Investors are: p3 Technology Partners BV and Azritech.

Charlotte_Gutman

After seven years as a marcom and PR Manager at Scitex Europe Charlotte Gutman charlotte@cgp.be founded and is the Managing Director of C.G.P Europe.
Founded in 1991 in Brussels Belgium, C.G.P Europe http://www.cgp.be is a European public relations and marketing communication company. CGP’s European team of multilingual PR specialists has helped the European launch of a number of companies, including Israeli companies.

anat_Jacoby

Anat Jacoby Ph.D. anatj@experteam.co.il has founded and is the managing director of ExperTeam In Israel. Prior to ExperTeam, Anat has been a freelance consulting working with many hi-tech companies including Scitex, CreoScitex, Mercury,Precise s/w and others. Anat has started her instructional design career in Israel spending 3 years with the Scitex Training department.
ExperTeam www.experteam.co.il provides technical training development and technical writing services. The company?s services include: Consulting and needs assessment, course development and implementation on any media including: Training presentations, Multimedia (CBT, WBT), eLearning, Instructor and student guides, Professional technical trainers, Complete eLearning implementation and Technical writing services.

Guterzon_&_Yochai

David Guterzon david@nessicom.com is VP R&D and co-founder of Nessicom

Zehava Vardi

Zehava Vardi zvardi@cosmocom.com has been appointed Area VP Engineering at CosmoCom. Prior to joining CosmoCom, she was Software Group Manager at NICE where she was responsible for the CLS (Contact Logging System) product. Earlier she had spent 10 years in management and R&D roles at Scitex in Herzlia, focusing on Digital printing applications.
Based in Melville, NY, CosmoCom www.cosmocom.com is a provider of all-IP, universal access contact-center platforms. The company designs and markets systems for contact-center applications, including support to multi-channel customer interactions via telephone and Internet, live and message-based, fixed and wireless.

Now it is nicer at NICE

The three top positions at Israeli company Nice (www.nice.com ) are held by the ExScite members (from left to right in the picture above) Haim Shani (Shaposhnik) CEO (ex- Applied Materials, Orbot, Orbotech, and Scitex), Lauri Hanover CFO (ex-Scitex and Phillip-Morris) and Shlomo Shamir Nice America president (Ex-Scitex America, Scitex Israel and the Government of Israel). Click here to see the other ExScite members at Nice. That’s nice.

The company has published reasonable Q1 financial reports showing improved orders backlog following the closing of several multimillion-dollar deals. NICE retained the second quarter revenue forecast of $37-39 million. Our visibility improved thanks to contracts we closed. We’re retaining our 2002 growth forecast of 20-30%,” said NICE CEO Haim Shani (see complete Globes article).

Nicer, NICE

CEO Haim Shani: We’re seeing significant recovery

Globes, Israel, by: Hadass Geyfman 14 May 02 19:04

NICE-Systems (Nasdaq: NICE) published reasonable first quarter 2001 financial reports today. They show improved orders backlog following the closing of several multimillion dollar deals. NICE’s managers retained the second quarter revenue forecast of $37-39 million.

“Our visibility improved thanks to contracts we closed. We’re retaining our 2002 growth forecast of 20-30%,” said NICE Systems CEO Haim Shani. “We signed several million dollars worth of deals in each of our businesses in the first quarter, including two CEM (Customer Experience Management) deals. Some of the contracts will begin generating revenue in by the second quarter of 2002, and others in the following quarters. There has been an increase in forward orders on a scale not previously seen.”

NICE’s first quarter orders totaled $91.7 million, compared with $89 million in the fourth quarter of 2001. Inventory fell to $9.2 million, mainly because of implementation of the first stage of the company’s production outsourcing plan.

“NICE is currently involved in several deals requiring a move from only quality management solutions to comprehensive recording solutions,” added Shani. “We received substantial order in the first quarter for our NiceTrack and NiceVision Pro products from a major US airport. Revenues from Europe, Middle East and Africa (EMEA) rose 10% thanks to the investment of resources in this region.”

“Globes”: What’s happening in CEM?

Shani: “We are seeing a significant recovery in the CEM business; our core business. I think NICE is recovering quite well.”

Is your market beginning to show signs for the better?

“Market is a relative concept. On the macro level, we are part of the global economy, where we see no change. At the micro level, we are beginning to see results for our efforts and we’re recovering lost market share, mainly in CEM. Although we weakened in this field early this year, we have now stabilized and are beginning to expand our market share.”

You’re still losing money on providing services.

“We actually see our service business as one of our greatest achievements in the quarter. We had 200 service personnel last year, and they’re still employed. This activity is a strategic asset for us. We have set a target this year to increase revenue from professional services and maintenance. Revenue increased from $3.9 million in the fourth quarter of 2001 to $4.9 million in the first quarter of 2002. There was a considerable improvement compared with the almost $2 million loss in the fourth quarter of 2001.

“After all, the aim was to build an professional services and maintenance organization. We had to professionalize and make services into a business. We used to lose a lot of money on services, since NICE provided them virtually gratis. We are now approaching the break-even point, and I hope we earn a profit from services in the future.”

Verint Systems is expected to hold an IPO on Nasdaq tomorrow. Will you consider a merger afterwards?

“We’re not thinking about it at all.”

You’ve talked about a multimillion dollar deal with the defense sector. When will you fill the order?

“This year.”

What is the importance of this deal for new contracts?

“We hope a successful deal will open doors for us with similar organizations in other countries.”

Is revenue from the deal included in your forecast?

“Yes.”

Oscar Gruss Israel senior analyst Rami Rosen comments: “Most of the improvement in the profit and loss statement was derived from declines in almost all the operational expenditures items. While this item amounted to $19.7 million in the previous quarter, excluding amortization, it totaled $18.4 million this quarter. This means that NICE is taking significant streamlining measures.

“I think NICE will reach operational break-even only in another two quarters. Nevertheless, the good news is that the company is maintaining its trend of improving results.”

NICE announced when it published its results that it was setting up a new Security Group under the leadership of Doron Eidelman, who joins NICE as Executive Vice President and President of the Security Group. The Security Group will combine the digital video recording and threat analysis capabilities of the VIM Division with the government, military, and law enforcement communications intelligence experience of the ISS Division, and is expected to represent about 25% of NICE’s total revenue this year

“We concluded that in order to exploit the opportunity of this huge market, we must integrate all our varied security and intelligence systems and exploit their synergy,” said Shani. “We estimate the market potential for security products at $15 billion a year. NICE operates in a segment within his market worth $1-1.5 billion.”

Published by Globes [online] – www.globes.co.il – on May 14, 2002

Scitex Corp. keeps shrinking Q1 2002 resuls are in

Scitex’s revenues for the first quarter 2002 were $60.7 million, a decrease of 5% from $64.1 million in the first quarter of 2001. But, managed to achieve a 3% increase in revenues from the previous quarter and more than $2 million of operating income.

Analyst conference call access is now available through www.scitex.com . The replay will be available until midnight on May 22, 2002.

Click here for the Scitex Q1, 2002 press release in PDF format: http://www.scitex.com/Press/Microsoft%20Word%20-%20Q1’02_release_final_15.5.02.pdf

Scitex Announces Q4 and Full Year 2001 results

*Annual ink jet revenues increase 13% to $256 million
*Over 50% of Creo holdings sold for $78M (gross proceeds)
*Annual losses related to holding in Creo amounted to $219 million
*Global economic slowdown negatively impacted Q4 results
*During 2001, Scitex underwent organizational changes, with the resignation of Yoav Chelouche as CEO and the appointment of Yeoshua Agassi to that post. Yossy Zylberberg, formerly CFO, has taken up the position of COO at Scitex Digital Printing in Dayton, Ohio, Scitex’s largest subsidiary. Yahel Shachar, who joined the Company during the fourth quarter, was appointed CFO and Corporate Secretary.
*During the fourth quarter of 2001, Scitex conducted extensive negotiations with the Internal Revenue Service with regard to the conclusion of audits of US subsidiaries for the years 1992-1996 and made an advance payment of $20 million. Scitex is expecting the final IRS position to be received in the coming few months.

FOR IMMEDIATE RELEASE

Scitex Announces Fourth Quarter and Full Year 2001 Results

Highlights:

2001 marks focus on industrial ink jet digital printing activities
* Annual ink jet revenues increase 13% to $256 million
* Over 50% of Creo holdings sold for $78M (gross proceeds)
Annual losses related to holding in Creo amounted to $219 million
Global economic slowdown negatively impacted Q4 results

Tel Aviv, Israel – March 7, 2002. Scitex Corporation Ltd. (NASDAQ & TASE: SCIX), a world leader in industrial inkjet digital printing solutions, today announced results for the fourth quarter and year ended December 31, 2001. Scitex recorded significant annual revenue growth in its industrial ink jet businesses during 2001, although the fourth quarter and annual results were significantly affected by the worldwide economic slowdown.

Revenues for the fourth quarter were $59.1 million, a decrease of 9% from $64.5 million in the fourth quarter of 2000. Operating loss before amortization of intangibles (of $18.1 million) and restructuring costs (of $1.7 million) was $0.5 million. Net loss was $35.8 million.

Revenues for 2001 were $256.2 million, representing over 13% growth compared to the combined revenues of Scitex Digital Printing and Scitex Vision in 2000. Operating income for 2001 was $11.9 million (before restructuring costs and amortization of intangibles). Net loss was $250.3 million, of which $219 million associated with Scitex’s holding in Creo and $27 million associated with amortization of intangibles.

Beginning in the second quarter of 2000, Scitex’s involvement in the digital preprint business changed from full ownership to an equity investment in Creo Products Inc. Accordingly, a year over year comparison of 2001 to 2000 is not meaningful.

Mr. Yeoshua Agassi, President and CEO of Scitex commented: “Year 2001 is the first full year in which Scitex was mainly focused on its industrial ink jet digital printing business activities, which grew 13% compared to 2000 and yielded operating income of $17.9 million in 2001 (the combined operating income of Scitex Digital Printing and Scitex Vision before restructuring costs and amortization of intangibles).

Mr. Agassi continued: “during the year, we primarily demonstrated this focus by continuous investments by Scitex Digital Printing and Scitex Vision in new products and markets and by the increase in our share in Aprion Digital to a total of 43%. In addition, during the final quarter of the year, we sold a major portion of the shares held in Creo Products, bringing our holding in that company from 27% down to approximately 13%, and significantly improving our cash position. As for the financial results and the economic slowdown, especially in the second half of the year, both Scitex Digital Printing and Scitex Vision took measures to reduce their expenses by reducing their workforce and cutting various expenses.”

Mr. Agassi concluded: “The considerable revenue growth of our subsidiaries during the first three quarters of 2001 was affected in the last quarter by adverse market conditions. As for 2002, while global economic conditions remain uncertain, we would like to see moderate revenue growth, as well as some improvements in gross margin and profitability.”

During 2001, Scitex underwent organizational changes, with the resignation of Yoav Chelouche as President and Chief Executive Officer and the appointment of Yeoshua Agassi to that post. As part of Scitex’s overall strategy of strengthening its operating units, Yossy Zylberberg, formerly Corporate Vice President and Chief Financial Officer, has taken up the position of Chief Operating Officer at Scitex Digital Printing in Dayton, Ohio, Scitex’s largest subsidiary. Yahel Shachar, who joined the Company during the fourth quarter, was appointed Chief Financial Officer and Corporate Secretary.

During the fourth quarter of 2001, Scitex conducted extensive negotiations with the Internal Revenue Service with regard to the conclusion of audits of US subsidiaries for the years 1992-1996 and made an advance payment of $20 million. Scitex is expecting the final IRS position to be received in the coming few months.

Scitex’s Subsidiaries

Scitex Digital Printing, Inc. (SDP)

Notwithstanding the weakness in the fourth quarter due to global events, SDP experienced continued revenue growth for the year 2001.

Revenues for the fourth quarter 2001 were $39 million, a decrease of 10% from $43 million in the fourth quarter of 2000. The decreased revenues negatively affected operating income, which totalled $2.5 million as compared to $4.6 million in the fourth quarter of 2000 (figures are before restructuring costs and amortization of intangibles).

Annual revenues for 2001 were $165 million, reflecting an 8.1% increase from $152 million in 2000. SDP marked a consistent growth of its recurring revenue business as a result of recent changes to the company’s service and ink strategies and “click-based” transactions coming into effect.

SDP’s business in 2001 continued to be geographically balanced with US, Europe and Asia Pacific (including Japan) each contributing over 30%.

The 9” format VersaMark product line continues to gain momentum and constituted over 47% of 2001 equipment sales as compared to 41% for 2000.

Scitex Vision Ltd.

Scitex Vision revenues for the fourth quarter of 2001 were $20.1 million, a decrease of 6.4% from $21.5 million in 2000, marking a weak ending to an otherwise strong year for the company. In the fourth quarter, Scitex Vision recorded a technology write-down ($15 million, following an economic analysis of the value of intangibles acquired in 1998) and restructuring costs ($0.5 million of reduction in workforce). The operating loss for the fourth quarter before these non-recurring expenses and amortization of intangibles was $1.8 million compared to a $2.4 million operating income in the fourth quarter of 2000.

The year 2001 was one of continued strong growth for Scitex Vision. Annual revenues totalled $91.6 million, compared with $75.5 million in 2000, an increase of 21%. Operating income (before restructuring costs and goodwill amortization) amounted to $6.7 million.

During 2001, Scitex Vision increased its product line with the launch of the Scitex EnJet and XLJet, as well as introduction of the VeeJet. All products are unique in their categories.

Industrial Ink Jet Companies

Aprion Digital Ltd.

Aprion develops Drop-On-Demand ink jet technologies and systems for a variety of end user digital printing applications. During the year, Aprion signed agreements with two strategic partners to develop future systems for the printing industry. As part of these agreements, the partners invested $11.5 million in Aprion. The company is progressing to conclusion of its beta testing program and expects to start recording revenue in the coming months.

During the fourth quarter, Scitex converted a note it held in Aprion into Aprion’s shares, and increased its ownership in Aprion to 43%.

Jemtex Ink Jet Printing Ltd.

Jemtex develops heavy-duty digital printing systems, based on its novel Continuous Ink Jet technology. During 2001, Jemtex moved from the technology development stage to initial commercialization through two programs with strategic partners. Scitex holds 36.6% in Jemtex.

Objet Geometries Ltd.

Objet develops and manufactures ink jet printers for the creation of three-dimensional models.

In 2001, the company moved from the R&D phase to commercial activity with several units installed at leading customer sites. During the year, Objet established a platform of marketing, sales and customer support in Europe and the USA. The company will start recording revenues in the next few months. During 2001, Scitex invested an additional $1.7 million in Objet (of which $0.7 million was invested in the fourth quarter) and now holds 18.7%.

Other Investments

Creo Products Inc.

(Reported with a three month lag)

For the fourth fiscal quarter of 2001 (ended September 30, 2001), Creo reported revenues of $143 million compared to revenues of $173.3 million in the fourth fiscal quarter of 2000. Creo’s adjusted loss for the quarter was $5.7 million or $0.12 per share (diluted). The adjusted loss did not include one-time charges related to intangible assets, investments, future tax assets, account receivables, obsolete inventory and other assets. It also did not include restructuring charges related to reduction in work force. Creo’s net loss for the fourth fiscal quarter under US GAAP was $351.4 million.

Scitex’s share in Creo’s one-time charges was included in Scitex’s third quarter financial statements. Therefore, in the fourth quarter results, Scitex included only its share in Creo’s ongoing losses. During the quarter, Scitex sold seven million Creo shares and reduced its holding in Creo to 12.7%. The loss recorded from the sale totalled $6 million.

Under US GAAP, beginning December 1, 2001, Scitex accounts for the Creo investment as “available for sale” and the changes in its value are accrued into capital surplus. Profit or loss from this investment will be recognized in the event of an additional sale of shares or permanent impairment.

Scidel Technologies Ltd.

Scidel develops a technology for electronic insertion of virtual advertisements into live and taped televised sporting events. On February 28, 2002 (subsequent to the date of the 2001 financial statements), Princeton Video Image, Inc. (NASDAQ: PVII), a leader in virtual advertising and imaging solutions, signed a definitive agreement to acquire the assets of SciDel. Scitex holds 29.4% in Scidel.