Continuing the previous management querterly ritual, Scitex interim CEO Yeoshua Agassi announced $35M write off, following Creo’s announcement of $366M writeoff of its own. Scitex shares are traded at the $3, the lowest EVER.
The tradition continues: Scitex warns on $35 mln write-off, expects Q3 loss of $40 -$41 mln

Globes correspondent
18.10.2001 10:47
Dual-listed Scitex (Nasdaq: SCIX ), which develops inkjet and digital imaging solutions, announced yesterday after US markets closed that its third quarter results would include a one-time charge of $35 million, reflecting Scitex’s share of write-offs announced by Creo Products (Nasdaq: CREO).On October 11, Creo announced one-time write-offs of $366 million in total.

Scitex owns 27% of Creo. Scitex’s net loss for the third quarter 2001 is therefore expected to be $40 – $41 million, which includes the $35 million charge resulting from the write-downs announced by Creo.

Scitex’s revenue for the third quarter 2001 is expected to be in the range of $65 – $67 million. On the basis of this estimate, Scitex expects a pro forma net profit of $2-$3 million ($0.05 to $0.07 per share).

Scitex CEO Yeoshua Agassi said, “In spite of current difficult market conditions, both Scitex Digital Printing and Scitex Vision continued to demonstrate year on year revenue growth. Scitex remains focused on its digital printing operations to ensure strong performance in these core businesses.”

Following the announcement, Scitex’s owners reported their shares of the loss. Discount Investments, which owns 22% of Scitex, reported that it expected to record a $9 million loss in its third quarter results as its share in Scitex’s loss. For the same reason, Clal Industries, which also owns 22% of Scitex, announced that it would also record a $9 million loss in its third quarter results. IDB Development owns 71.6% of Discount Investments and 63.6% of Clal Industries.

Scitex will report its third quarter 2001 results after the market closes on November 6, 2001. The company’s shares closed on Wednesday at $3.15 on the Nasdaq Exchange.


Published by Israel’s Business Arena on 18 October, 2001