ORT Technologies Ltd. (TASE:ORTC) subsidiary Orpak Industries (1983) Ltd. (AIM:ORPK) today published its financial report for the fourth quarter and full year of 2008. The automated fueling systems developer achieved its 22nd consecutive quarter of growth and it expects to gain market share in emerging markets during 2009.
Orpak posted $18.9 million revenue for the fourth quarter of 2008, 12% more than the $16.8 million revenue in the corresponding quarter of 2007. GAAP-based net profit rose 6% to $2.83 million for the fourth quarter from $2.7 million for the corresponding quarter, while non-GAAP net profit rose to $3 million from $2.7 million.
For the year as a whole, the company posted $71.2 million revenue, 23% more than the $58 million in 2007. However, GAAP-based net profit fell to $7.1 million in 2008 from $9 million in 2007, and non-GAAP net profit fell to $7.9 million from $9.4 million. The company attributed most of the decline to write-downs on securities and the weak dollar during most of the year.
Orpak increased its cash and cash equivalents to $32.6 million at the end of 2008 from $28.6 million a year earlier.
Looking ahead, Orpak says that demand for its products remains strong, and that it has a "robust order book, with a high level of repeat business." The company signed a number of new contracts with international fuel companies in Turkey through its local subsidiary Turpak. In January, subsidiary Orpak USA Inc., signed an agreement to install Orpak technology in new fleet management systems of with Gilbarco Inc. unit Gasboy International.
Orpak CEO Hayim Kohen said, "We are pleased that this period has seen sustained momentum in revenue growth as demand for our products across all markets remains encouraging. Our quick response to the challenges arising from the weakness of the US dollar and financial markets succeeded in mitigating most of the negative impact.
Orpak's share was unchanged at ₤1.175 in morning trading today, giving a market cap of ₤38 million.
Published by Globes [online], Israel business news - www.globes-online.com - on February 26, 2009
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