Scailex Corporation Announces Second Quarter 2006 Results
August 13 2006 - 6:01PM
PR Newswire (US)
Reports Net Income of $4.9 Million TEL AVIV, Israel, August 13
/PRNewswire-FirstCall/ -- Scailex Corporation Ltd. (NASDAQ &
TASE: SCIX) today announced its unaudited financial results for the
second quarter ended June 30, 2006. The results of operations for
the second quarter of 2006 include no revenues. The operating loss
in the second quarter of 2006 was $1.5 million compared to an
operating loss of $2.2 million in the second quarter of 2005.
Scailex Corporation reported net income of $4.9 million in the
second quarter of 2006 compared to net income of $2.8 million in
the second quarter of 2005. The net income this quarter is
primarily attributable to financial income of $3.3 million and a
gain recorded from the previously disclosed additional U.S. federal
income tax receivable of $4.8 million in discontinued operations.
Cash, cash equivalents and investments in securities at the end of
the second quarter of 2006 at Scailex Corporation and its
wholly-owned subsidiaries amounted to $247.0 million. Cash and cash
equivalents at Scailex Vision (Tel Aviv) Ltd., Scailex's majority
owned subsidiary, at the end of the second quarter of 2006 amounted
to $38.9 million (excluding the $24 million retained in escrow
under the agreement with Hewlett-Packard Company). Yahel Shachar,
Scailex's CEO, stated: "We are continuing our quest to identify
appropriate business combination opportunities or to otherwise
engage in various businesses, and, following the change in our
principal shareholders, we may seek investments in petrochemical
companies and related industries. To that end, we intend to
evaluate the possible acquisition of the Oil Refineries in Haifa if
and when the State of Israel commences the tender process, as it
recently indicated it would." Conference Call Scailex will be
holding a conference call to discuss its second quarter of 2006 on
Monday, August 14, 2006 at 08:00 a.m. EST (5:00 a.m. Pacific time,
1:00 p.m. GMT, 3:00 p.m. Israel time). All interested parties will
have the opportunity to listen to a live simultaneous Webcast of
the conference call by connecting online through
http://www.scailex.com/. A replay of the conference call will be
available shortly after the call during the seven days following
the conference call (until August 21, 2006) at the following
numbers: US: 1-800-475-6701 Intl: 1-320-365-3844 Access code:
838001 Scailex Corporation Ltd. Scailex Corporation shares trade on
Nasdaq and The Tel Aviv Stock Exchange under the symbol "SCIX". For
more information, please visit our Web site at
http://www.scailex.com/. Forward Looking Statements Except for the
historical information herein, the matters discussed in this news
release include forward-looking statements within the meaning of
the "safe harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995. Forward-looking statements that are
based on various assumptions (some of which are beyond the
Company's control) may be identified by the use of forward-looking
terminology, such as "may", "can be", "will", "expects",
"anticipates", "intends", "believes", "projects", "potential", "are
optimistic", "view" and similar words and phrases. Actual results
could differ materially from those set forth in forward-looking
statements due to a variety of factors, including, but not limited
to, (1) our absence of significant operations following the sale of
the business of Scailex Vision and uncertainty as to our future
business model and our ability to identify, evaluate and execute
suitable business opportunities, (2) the fact that our U.S.
shareholders may suffer adverse tax consequences if we are
classified as a passive foreign investment company or PFIC, (3)
changes in domestic and foreign economic and market conditions, (4)
the impact of the Company's accounting policies, (5) risks relating
to pursuing strategic alternatives, (6) risks and uncertainties
associated with the tax and accounting consequences of the sale of
the business of Scailex Vision, (7) risks and uncertainties
relating to the Company's plans for its financial assets following
the sale of Scailex Vision, (8) the fact that we may be deemed an
"investment company" under the Investment Company Act of 1940 under
certain circumstances (including as a result of the investments of
assets following the sale of the operations of Scailex Vision),
and/or the risk that we may be required to take certain actions
with respect to the investment of our assets or the distribution of
cash to shareholders in order to avoid being deemed an "investment
company", (9) risks and uncertainties resulting from the sale of
approximately 50% of our outstanding share capital by our former
two principal shareholders to an unaffiliated third party and the
potential impact on the Company and our operations and strategies,
(10) the impact of significant changes in our board of directors
and management resulting from such sale, and (11) the other risk
factors detailed in the Company's most recent annual report and
other filings with the US Securities and Exchange Commission,
including without limitation, those set forth under such headings
as "Risk Factors" and "Trend Information" in the Company's Annual
Report on Form 20-F. Except as may be required by law, the Company
does not undertake, and specifically disclaims, any obligation to
publicly release the results of any revisions which may be made to
any forward-looking statements to reflect the occurrence of
anticipated or unanticipated events or circumstances after the date
of such forward-looking statements. Contact Scailex Corporation
Ltd. Yahel Shachar Chief Executive Officer Tel: +972-3-607-5855
Fax: +972-3-607-5884 E-mail: SCAILEX CORPORATION LTD. (AN ISRAELI
COMPANY) AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (U.S.
Dollars in thousands, except per share data) Quarter ended June 30,
2006 2005 (Unaudited) (Unaudited) Expenses Research and
development, net 657 1,039 Marketing, General and administrative
720 896 Amortization of intangible assets 148 303 Operating loss
(1,525) (2,238) Financial Income - net 3,272 1,024 Other income -
net 0 829 Income (loss) before taxes on income 1,747 (385) Taxes on
income (975) (190) 772 (575) Gain from sale / Share in results of
associated 0 981 company Minority interest in results of a
subsidiary (155) 0 Net income from continuing operations 617 406
Net Income from discontinued operations 4,281 2,346 Net income for
the period 4,898 2,752 Earnings per share - basic & diluted
Continuing operations $0.02 $0.01 Discontinued operations $0.11
$0.06 $0.13 $0.07 Weighted average number of shares used in
computation of EPS (in thousands) - basic 38,066 38,066 computation
of EPS (in thousands) - diluted 38,145 38,134 CONSOLIDATED BALANCE
SHEETS (U.S. Dollars in thousands) June 30, December 31 2006 2005
(Unaudited) (Audited) Assets Current assets: Cash and cash
equivalents 213,624 200,350 Short-term investments 35,091 30,405
Restricted deposit 0 5,165 Other receivables 425 583 Deferred
income taxes 151 1,260 Current Assets of discontinued operations
40,973 80,754 Total current asssets 290,264 318,517 Investments and
other non-current assets Securities held-to-maturity 24,960 29,707
Other investments and prepaid expenses 1,098 1,540 Funds in respect
of employee rights upon 683 613 retirement 26,741 31,860 Property
and Equipment, net of accumulated depreciation and amortization 75
82 Intangible Assets, net of accumulated amortization 337 559
317,417 351,018 Liabilities and Shareholders' Equity Current
liabilities: Trade payables 435 329 Income taxes payable 13,985
13,660 Accrued and other liabilities 1,130 1,507 Current
liabilities related to discontinued 16,738 30,822 operations Total
current liabilities 32,288 46,318 Long-term liabilities: Liability
for employee rights upon retirement 810 715 Long-term liabilities
related to discontinued 1,190 1,192 operation Total long-term
liabilities 2,000 1,907 Total liabilities 34,288 48,225 Minority
interest of discontinued operation 10,300 41,190 Shareholders'
equity 272,829 261,603 317,417 351,018 DATASOURCE: Scailex
Corporation Ltd CONTACT: Scailex Corporation Ltd., Yahel Shachar,
Chief Executive Officer, Tel: +972-3-607-5855, Fax:
+972-3-607-5884, E-mail:
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