SECURITIES AND EXCHANGE COMMISION
WASHINGTON, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
The Securities Exchange Act of 1934
February 20, 2003
SCITEX CORPORATION LTD.
(Translation of registrant's name into English)
3 Azrieli Center
Triangle Building
Tel Aviv, 67023
Israel
(Address of principal executive offices)
Indicate by check mark whether the
registrant files or will
file annual reports under
cover Form 20-F or Form
40-F.
Form 20-F _X_ Form 40-F ____
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also furnishing the information to the Commission
pursuant to Rule 12g3-2(b) under the Securities and Exchange Act of 1934.
Yes ____ No _X_
Attached to the Registrant's Form 6-K, and incorporated by reference herein is
the Registrant's press release dated February 18, 2003, announcing the
Registrant's fourth quarter and full year 2002 results.
SIGNATURE
Pursuant to the requirement of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
SCITEX CORPORATION LTD.
Yahel Shachar
Chief Financial Officer
February 20, 2003
[Graphic Omitted]
NEWS
FOR IMMEDIATE RELEASE
SCITEX ANNOUNCES FOURTH QUARTER AND FULL YEAR 2002 RESULTS
TEL AVIV, ISRAEL - FEBRUARY 18, 2003. SCITEX CORPORATION LTD. (NASDAQ & TASE:
SCIX), a world leader in industrial digital inkjet printing solutions, today
announced financial results for the fourth quarter and full year ended December
31, 2002.
Revenues for the fourth quarter of 2002 were $65.6 million, an increase of 11%
from $59.1 million in the fourth quarter of 2001. Operating income, before
amortization of intangibles (of $0.9 million) was $0.4 million. Net loss was
$28.0 million, primarily associated with a $22.3 million write-down of Scitex's
carrying value of its holding in Creo Inc. to align with the decrease in Creo's
market valuation (see below for further details on Creo's write-down). Revenues
for the fiscal year 2002 were $242.8 million, a decrease of 5% from $256.2
million in 2001. Operating income for 2002 was $5.4 million before amortization
of intangibles (of $3.3 million). Net loss was $32.0 million, of which $22.3
million associated with the writedown of Scitex's holding in Creo and $4.1
million associated with equity losses on investments in Objet Geometries Ltd.
and Jemtex Ink Jet Ltd.
Geographically, the Americas contributed 40% of the yearly revenues, followed by
Europe with 37% of revenues, and the Far East (including Japan) and rest of the
world with 23% of revenues.
Mr. Yeoshua Agassi, President and CEO of Scitex, commented: "2002 was the second
full year in which Scitex has been focusing on its industrial ink jet digital
printing business activities. During the year, we demonstrated this focus by
continuous investments by our primary operating subsidiaries, Scitex Digital
Printing and Scitex Vision, in new products and markets; by combining the
operations of Scitex Vision and Aprion Digital; and by further investment in
Jemtex. We have now completed the main phase of our strategic evolutional
structure change into a company specialized in industrial inkjet digital
printing solutions through our subsidiaries and strategic investments."
Mr. Agassi continued: "Despite the challenging market environment, especially
the capital equipment market, Scitex managed to obtain only a slightly lower
annual revenues level compared to 2001 and a positive operating income, compared
to several other companies in the industrial printing arena that have suffered a
more significant decrease in their annual revenues. Scitex Digital Printing
revenues for 2002 decreased on an annual basis compared to 2001, but the company
achieved a considerable growth during the fourth quarter of 2002, increasing its
revenue by an additional $10 million compared to the previous quarter. All in
all, Scitex Digital Printing's revenues for the second half of 2002 were
slightly higher than those for the first half of the year. Scitex Vision's
revenues for 2002 decreased on an annual
basis compared to 2001, as well as on a quarterly basis compared to the third
quarter of 2002, but were similar to those of the second quarter of 2002 and
higher than the fourth quarter of 2001."
Mr. Agassi concluded: "As for 2003, while global economic conditions remain
uncertain and markets are expected to stay tough, we will exert our primary
efforts to increase our revenues, as well as to improve our gross margin and
profitability. In sum, I believe that Scitex enters 2003 as a more efficient
company, focused on its core business in the digital printing arena, and well
positioned for the time when global economic and industry conditions recover".
SCITEX'S SUBSIDIARIES
Scitex Digital Printing, Inc. (SDP)
Revenues for the fourth quarter of 2002 were $44.7 million, an increase of 15%
from $39 million in the fourth quarter of 2001. Operating income, before
amortization of intangibles, for the fourth quarter of 2002, was $1.3 million
compared to $2.5 million (excluding also restructuring costs) for the fourth
quarter of 2001.
Revenues for 2002 were $157.1 million compared to $164.6 million for 2001,
reflecting a 5% decrease. Operating income, before amortization of intangibles,
for 2002, was $6.1 million compared to $11.2 million (excluding also
restructuring costs) for 2001.
In the fourth quarter, SDP experienced a significant increase in demand in the
commercial printing marketplace in North America after over two years of
weakness in capital investments in this sector. In the Far East, SDP experienced
a slow year in Japan, but made great strides in the Chinese marketplace. The
Chinese market will continue to be a focus for SDP in 2003.
SDP also placed a full-color Scitex VersaMark Business Color Press system in
Data One, a French customer that already uses a Scitex VersaMark solution to
print black output. SDP expects this installation to be a valuable point of
reference for other European customers who are looking to provide high-volume
dynamic color output. The release of the solvent-based Liberty and
drop-on-demand-based Passport products resulted in promising initial placements
in America and Europe in the fourth quarter of 2002.
Recently, SDP announced a change in leadership for its European operations with
the appointment of Karl Cerny as Vice President and Managing Director. Mr. Cerny
is a longtime veteran in the printing industry, having served 19 years in Xerox,
including an assignment as vice president of the Xerox Production Systems Group,
Europe.
SCITEX VISION LTD.
On January 1, 2003, Aprion Digital Ltd. acquired from Scitex all of the
outstanding share capital of Scitex Vision Ltd. in exchange for shares in
Aprion. Following the consummation of the transaction, Scitex held approximately
75% of Aprion's outstanding share capital. As the transaction with Aprion closed
after year-end, the financial results for the period ended December 31, 2002 do
not reflect this transaction
2
Revenues for the fourth quarter of 2002 were $20.9 million, an increase of 4%
from $20.1 million in the fourth quarter of 2001. Operating loss, before
amortization of intangibles, for the fourth quarter of 2002, was $0.3 million
compared to operating loss of $1.8 million (excluding also restructuring costs)
for the fourth quarter of 2001.
Revenues for 2002 were $85.7 million compared to $91.6 million for 2001,
reflecting a 6% decrease. Operating income, before amortization of intangibles,
for 2002, was $2.3 million compared to $6.7 million (excluding also
restructuring costs) for 2001.
The fourth quarter of 2002 was marked by the preparations of Scitex Vision for
the planned transaction with Aprion Digital Ltd. The detailed planning
contributed substantially to a smooth transition into a combined company. The
combined company, which retained the Scitex Vision name, is now operating as one
integrated unit in the graphic arts and packaging market, as well as in the
textile market through its partnership programs.
The fourth quarter of 2002 also marks the end of a challenging year for Scitex
Vision, having to cope with adverse global economic conditions. Nevertheless,
Scitex Vision generally maintained its gross margins on an annual base on a
slightly less than yearly average level of revenues.
Following the end of the year, Scitex Vision's VEEjet, a digital printer
utilizing UV ink and a manual sheet-fed system for printing on rigid and
flexible media, began its beta testing programs at customer sites.
Recently, Scitex Vision appointed Steve Zunde as President of Scitex Vision
America. Mr. Zunde brings with him a wide global management experience in the
graphic arts industry, including serving as President of the Digital Division of
KBA North America. Prior thereto, Mr. Zunde was President of Anchor Chemicals,
the printing chemicals division of International Paper Co.
INDUSTRIAL INK JET COMPANIES
Jemtex Ink Jet Printing Ltd.
Jemtex develops industrial digital printing systems, based on its novel
Continuous Ink Jet technology. During 2002, Jemtex focused on the development of
a printing bar for the heavyduty digital textile printing market - the JemBar,
as well as on the continuation of the project to develop a digital system for
the decorative ceramic tile printing market, together with strategic partners.
Jemtex began to recognize revenues in 2002.
In the fourth quarter of 2002, Scitex signed an agreement to invest $2.4 million
in Jemtex, coupled with options for Scitex to invest an additional $1.6 million.
Following the $2.4 million investment, Scitex currently owns 49.8% of Jemtex.
3
Objet Geometries Ltd.
Objet develops and manufactures rapid prototyping ink jet printers for the
creation of threedimensional models. During 2002, Objet installed tens of
systems throughout the world, mainly in the Far East, and Objet recognized
revenues for the first time in the fourth quarter. Scitex currently owns 17.4%
of Objet.
OTHER INVESTMENTS
CREO INC.
For Creo's first fiscal quarter of 2003 (ended December 31, 2002), Creo reported
revenues of $142.8 million compared to revenues of $139.5 million in the first
fiscal quarter of 2002 and $138.4 million in previous quarter. Creo's adjusted
earnings for the first quarter were $2.4 million or $0.05 per share (diluted).
The adjusted earnings exclude the effect of intangibles amortization,
restructuring and business integration costs, the royalty arrangement with the
Office of the Israeli chief Scientist, equity loss on investments, and their tax
effects.
With effect from December 1, 2001, Scitex has accounted for the Creo investment
as "available for sale" for which changes in its share price value are recorded
to shareholders' equity. Gain or loss from this investment is recognized in the
event of a sale or in the event of impairment in value, which has other-than
temporary in nature. Due to the decrease in the market price of Creo's shares
for some time, Scitex was required in the fourth quarter of 2002 to recognize a
loss that amounted to $22.3 million. Creo's share price in Scitex's books after
recording the loss is $8.17 per share (Creo's share price on NASDAQ at December
31, 2002). Following the release of Creo's financial results for the first
fiscal quarter of 2003, Creo's share price fell significantly and as at February
14, 2003, Creo's share price on NASDAQ is $6.58. Scitex holds 12.7% in Creo's
outstanding share capital.
BALANCE SHEET AND CASH FLOW
Scitex's cash and cash equivalents as at the end of 2002, on a consolidated
basis, remained the same compared to the third quarter of 2002. During the
fourth quarter, receivables increased, mainly due to increased revenue level,
extended payments terms, and VAT returns. Inventory was slightly increased.
CONFERENCE CALL
Scitex will be holding a conference call to discuss its fourth quarter 2002 and
full year results on Thursday, February 20, 2003 at 10:00 a.m. EST (7:00 a.m.
Pacific time, 3:00 p.m. GMT, 5:00 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 www.scitex.com. A replay of the conference
call will be available shortly after the call during the seven days following
the conference call (until midnight February 27, 2003) at the following numbers:
US: 1 800 475-6701
Intl: 1 320 365-3844
Access code: 672899 5
4
ABOUT SCITEX CORPORATION LTD.
Scitex Corporation Ltd., is a world leader in digital industrial inkjet printing
solutions. Through its subsidiaries and strategic investments, Scitex
strengthens its market position in this specialized sector. Scitex shares trade
on NASDAQ and The Tel Aviv Stock Exchange under the symbol SCIX. For more
information, please visit our Web site at www.scitex.com.
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"
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) RISKS IN PRODUCT AND TECHNOLOGY DEVELOPMENT, (2) MARKET
ACCEPTANCE OF NEW PRODUCTS AND CONTINUING PRODUCT DEMAND, (3) THE IMPACT OF
COMPETITIVE PRODUCTS AND PRICING, (4) CHANGES IN DOMESTIC AND FOREIGN ECONOMIC
AND MARKET CONDITIONS, (5) TIMELY DEVELOPMENT AND RELEASE OF NEW PRODUCTS BY
STRATEGIC SUPPLIERS, (6) THE IMPACT OF THE COMPANY'S ACCOUNTING POLICIES, AND
(7) THE OTHER RISK FACTORS DETAILED IN THE COMPANY'S MOST RECENT ANNUAL REPORT
AND OTHER FILINGS WITH THE US SECURITIES AND EXCHANGE COMMISSION. 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.
Scitex and the Scitex logo are registered trademarks and service marks of Scitex
Corporation Ltd. Scitex Vision and VEEjet are trademarks of Scitex Vision Ltd.
Scitex VersaMark, Business Color Press, Liberty and Passport are registered
trademarks or trademarks of Scitex Digital Printing, Inc.
CONTACTS
SCITEX CORPORATION LTD.
Yahel Shachar Dalit Yehuda
Chief Financial Officer Corporate Assistant
Tel: +972 3 607-5755 Tel: +972 3 607-5755
Fax: +972 3 607-5756 Fax: +972 3 607-5756
E-mail: yahel.shachar@scitex.com E-mail: dalit.yehuda@cii.co.il
(TABLES TO FOLLOW)
5
SCITEX CORPORATION LTD. (AN ISRAELI COMPANY) AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(U.S. DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
QUARTER ENDED DEC. 31, YEAR ENDED DEC. 31,
2002 2001 2002 2001(*)
(UNAUDITED) (Unaudited) (AUDITED) (Audited)
-------------------------------------------------------------------------------------------------------------
REVENUES
Sales $ 38,595 $ 34,324 $ 140,352 $ 160,996
Service and supplies 27,009 24,793 102,420 95,218
-------- -------- --------- ---------
TOTAL REVENUES 65,604 59,117 242,772 256,214
-------- -------- --------- ---------
COST OF REVENUES
Cost of sales 19,037 17,316 71,034 77,190
Cost of service and supplies 19,153 18,385 73,460 70,363
-------- -------- --------- ---------
TOTAL COST OF REVENUES 38,190 35,701 144,494 147,553
-------- -------- --------- ---------
GROSS PROFIT 27,414 23,416 98,278 108,661
EXPENSES
Sales and marketing 12,060 11,788 43,848 46,960
General & administrative 8,158 6,061 24,710 24,370
Research and development, net 6,799 6,109 24,292 25,471
Reorganization costs 0 1,719 0 1,719
Amortization of goodwill and other intangibles 887 18,099 3,319 26,974
-------- -------- --------- ---------
OPERATING INCOME (LOSS) (490) (20,360) 2,109 (16,833)
Financial income (expense) - net (528) (1,052) (2,036) (2,889)
Other income (expenses) - net (25,626) (6,497) (26,453) (13,034)
Writedown of equity investment (149,704)
-------- -------- --------- ---------
INCOME (LOSS) BEFORE TAXES ON INCOME (26,644) (27,909) (26,380) (182,460)
Taxes on income 345 600 1,544 3,054
-------- -------- --------- ---------
(26,989) (28,509) (27,924) (185,514)
Share in losses of equity investments (1,036) (8,093) (4,106) (67,506)
-------- -------- --------- ---------
INCOME (LOSS) FROM CONTINUING OPERATIONS (28,026) (36,602) (32,030) (253,020)
INCOME FROM DISCONTINUED OPERATIONS - DISPOSAL
-------- -------- --------- ---------
NET INCOME (LOSS) ($28,026) ($36,602) ($ 32,030) ($253,020)
======== ======== ========= =========
-------- -------- --------- ---------
EARNINGS (LOSS) PER SHARE - BASIC: ($0.65) ($0.85) ($0.74) ($5.88)
======== ======== ========= =========
-------- -------- --------- ---------
EARNINGS (LOSS) PER SHARE - DILUTED: ($0.65) ($0.85) ($0.74) ($5.88)
======== ======== ========= =========
WEIGHTED AVERAGE NUMBER OF SHARES
OUTSTANDING (IN THOUSANDS) - BASIC AND DILUTED 43,018 43,018 43,018 43,018
======== ======== ========= =========
(*) In January 2002, the Company changed its method of accounting for an
investment from cost to equity, as required by generally accepted accounting
principles. The prior year financial statements reflect the retroactive adoption
of the equity method.
6
CONSOLIDATED BALANCE SHEETS
---------------------------
(U.S. DOLLARS IN THOUSANDS)
DECEMBER 31 December 31
2002 2001(*)
(AUDITED) (Audited)
--------- ---------
ASSETS
------
Current assets:
Cash and cash equivalents $ 30,969 $ 61,592
Short-term investments 2,561 2,517
Restricted deposit 20,203
--------- ---------
Total cash and short-term investments 53,733 64,109
Trade receivables - net 95,054 76,783
Other receivables 9,900 7,262
Inventories 51,561 52,911
Deferred income taxes 20,974 20,765
--------- ---------
231,222 221,830
Investments and other non-current assets 67,012 99,044
Property and equipment - net 36,857 41,654
Goodwill and other intangible assets - net 34,465 35,262
--------- ---------
$ 369,556 $ 397,790
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Current liabilities:
Short term debt and current maturities $ 37,184 $ 33,649
Current maturity of Creo note 18,523
Trade payables 22,200 18,668
Accrued and other liabilities 57,011 55,804
--------- ---------
134,918 108,121
--------- ---------
Long-term liabilities:
Banks 5,493 4,500
Creo note 17,579
Deferred income taxes 5,033 4,835
Other 2,933 2,593
--------- ---------
13,459 29,507
Shareholders' equity:
Share capital 6,205 6,205
Capital surplus 364,619 364,619
Accumulated other comprehensive income (loss) 801 7,754
Retained earnings (accumulated deficit) (146,239) (114,209)
Treasury stock at cost (4,207) (4,207)
--------- ---------
221,179 260,162
--------- ---------
$ 369,556 $ 397,790
========= =========
(*) In January 2002, the Company changed its method of accounting for an
investment from cost to equity, as required by generally accepted accounting
principles. The prior year financial statements reflect the retroactive adoption
of the equity method.
7
SCITEX DIGITAL PRINTING, INC.
US Dollar in Thousands
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31 DECEMBER 31
2002 2001 2002 2001
Unaudited Unaudited Audited Audited
REVENUES
Equipment 26,659 22,195 87,504 101,242
Service and Consumables 18,090 16,839 69,606 63,354
-------- -------- --------- ---------
TOTAL REVENUES 44,749 39,034 157,111 164,596
GROSS PROFIT 17,783 15,808 58,538 64,852
EXPENSES:
S,G&A 11,715 8,403 35,165 34,217
Research and Development 4,720 4,873 17,232 19,389
OPERATING INCOME
BEFORE RESTRUCTURING COSTS AND
AMORTIZATION OF INTANGIBLES 1,348 2,533 6,141 11,246
Restructuring costs 679 679
Amortization of and write-down of Intangibles 155 882 375 3,528
-------- -------- --------- ---------
OPERATING INCOME 1,193 972 5,767 7,039
======== ======== ========= =========
8
SCITEX VISION LTD.
US Dollar in Thousands
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31 DECEMBER 31
2002 2001 2002 2001
Unaudited Unaudited Audited Audited
REVENUES
Equipment 11,936 12,129 52,847 59,753
Service and Consumables 8,919 7,954 32,814 31,865
-------- -------- -------- --------
TOTAL REVENUES 20,855 20,082 85,661 91,618
GROSS PROFIT 9,631 7,608 39,740 43,810
EXPENSES:
S,G&A 7,897 8,273 30,357 31,285
Research and Development 2,079 1,182 7,033 5,866
OPERATING INCOME
BEFORE RESTRUCTURING COSTS AND
AMORTIZATION OF INTANGIBLES (345) (1,846) 2,350 6,660
Restructuring costs 540 540
Amortization of and write-down of Intangibles 732 17,217 2,944 23,447
-------- -------- -------- --------
OPERATING (LOSS) INCOME (1,077) (19,603) (594) (17,327)
======== ======== ======== ========
9
INVESTMENTS AT DECEMBER 31, 2002
US Dollars in Thousands
TOTAL HOLDING AT
INVESTMENT DECEMBER 31, 2002
COMPANY
Creo Inc. 196,915 12.7%
Aprion Digital Ltd. 3,238 42.5%
Jemtex Ink Jet Ltd. 7,800 49.8%
Objet Geometries Ltd. 8,667 17.4%
RealTimeImage Ltd. 5,300 14.9%
InfoBit Ltd. 1,000 21.3%
XMPie Inc. 500 19.4%
Dor Capital Ventures 2,400
10