Governor of the Bank of Israel Prof. Stanley Fischer and other officials visited Ophir Optronics Ltd. (TASE:OPIR) today at an interesting time. The company notified the Tel Aviv Stock Exchange (TASE) today that it signed a three-year framework agreement with its main customer, a leading US defense systems company, which could result in $60 million revenue. The contract, through US subsidiary Ophir Optics Inc., came into effect in September.
Ophir Optronics posted $73.7 million revenue in 2007 and $101.1 million in 2008, so the new contract should help the company maintain its strong growth. Revenue in the first half of 2009 was well above revenue in the corresponding half of last year.
Ophir Optronics chairman and CEO Dr. Yaacov Zerem told "Globes" today that the contract was with a current customer, and that the receipt of orders would depend on the receipt of orders by the customer.
Ophir Optronics develops and manufacturers electo-optical systems, including infrared and laser measuring equipment. Infrared night vision equipment accounted for 70% of sales in the first half of 2009, while laser measuring equipment accounted for 25%, a fifth less than in the corresponding half. The company also makes non-contact 2D and 3D measuring equipment through subsidiary Optical Metrology Ltd.
Ophir Optronics also develops dental equipment, which while it is still only a small part of the company's business, is considered a future growth engine.
Ophir Optronics' orders backlog totaled $40.9 million in early August.
"Globes": Have you emerged from the crisis?
Zerem: "The industry was mostly affected in the US, Europe, and Japan, but less in other parts of the Far East. It's impossible to say that we're seeing the real end of the crisis, but we're starting to see sees, though it's not clear whether they are real."
Will the tension in Israeli-Turkish relations affect you?
"Our revenue in Turkey is $1 million a year, so it's not substantial for us. I'll go there in a few weeks, and we'll get a better indication of developments in the country."
Ophir Optronics' share rose 7.2% today to NIS 15.43, giving a market cap of NIS 365 million.
Published by Globes [online], Israel business news - www.globes-online.com - on October 12, 2009
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