Isra Vision revenue down 9%, but positive signs from China
Isra Vision's revenue has fallen nine per cent to €64.6m over the first half of its financial year compared to the same period last year.
The company said that the Covid-19 restrictions in Asia from January onward led to a decline in orders and postponements of previously announced orders. A similar trend was seen in the American and European markets towards the end of the second quarter.
While the company said there were 'an increasing number of postponed orders', it also said there were hardly any cancellations.
It added that 'initial positive impulses' have now become noticeable again in China.
Isra has initiated cost optimisation programmes to conserve cash during the second half of the year.
The company's industrial automation segment generated revenues of €19.5m in the first half of its financial year, up 14 per cent compared to 2019.
The glass unit recorded significant growth at the beginning of the financial year and also had a number of larger orders in the second quarter. The company has a number of further offers placed in the market, although the date of assignment is unknown.
The advanced materials unit has projects in the lower single-digit million euro range, which have been partially booked and have the potential to support growth in the coming months.
However, revenues in the surface vision segment amounted to €45.1m in the first half of the financial year, a decline of 16 per cent on the same period in 2019. The metals inspection business has also seen a decline in revenue.
Isra Vision said that it's hard to give a financial outlook for the second half of the year, but expects a turnaround in order intake at the end of the third quarter or in the fourth quarter.
The company stated: 'In an unclouded economic environment, the offers placed on the market and the number of major orders to be negotiated for future projects still would have the potential to generate profitable revenues and earnings growth in the lower double-digit percentage range. These will continue to shift, however, due to the massive global impact of the Covid-19 pandemic, which means that a realisation of revenues in the current financial year (30 September 2020) cannot be forecasted with certainty, although order entries from Asia, especially China, are already showing initial signs of recovery.'