Company backlog as of March 31st 2010 had a net growth of $1.55 billion since the beginning of the year, reaching a record high of $9.4 billion. Exports comprise 83% of the backlog orders.
Company sales for the first quarter of 2010 reached $769 million, much like the first quarter of 2009. Export sales reached $624 million, an increase of 2% compared to the same quarter in 2009.
Gross profit for the quarter reached $112 million (15% of sales), compared to $129 million (17% of sales) in the same quarter in 2009. The decrease in gross profit is primarily a result of the revaluation of the Israeli shekel, which affected the company's shekel-based expenses.
Research and development expenses in the first quarter of 2010 were $32 million (4.1% of sales), compared to $28 million (3.7% of sales) in the first quarter of 2009, an increase of 12%.
Marketing, management, and general expenses in the first quarter of 2010 reached $50 million, compared to $47 million in the first quarter of 2009. The increase in expenses stems from the revaluation of the shekel.
Other expenses (revenue), net in the first quarter were $10 million, a similar amount to that of the same quarter in 2009. The increase in expenses is a result of the shekel revaluation, which has also affected the company's fiscal responsibilities to its employees.
The company's financial revenues came primarily from income from bonds and from currency hedging operations, both of which are affected by changes in the exchange rate.
Net profit for the first quarter was $17 million, compared to $15 million in the first quarter of 2009. This profit was reached in 2010 despite the shekel revaluation and the significant slowdown in certain commercial sectors in which the company operates.
Positive cash flow from current activities was $330 million, compared to $209 million as of December 31st, 2009. The improved cash flow reflects the company's financial stability.
On May 16th, 2010, the company signed an agreement with Eurocom Communications Ltd, in which IAI sold all of its shares of "Spacecom Ltd" to Eurocom in a private transaction. The shares comprise 14.57% of all issued and outstanding Spacecom shares, which have a total worth of 167,325,000 shekels.
The balance sheet data are as follows:
|
|
As of 31.3.2010
|
As of 31.3.2009
|
|
|
In USD millions
|
%
of the balance
|
In USD millions
|
%
of the balance
|
|
Total balance
|
4,317
|
100
|
3,853
|
100
|
|
Current Assets
|
3,286
|
76
|
2,942
|
76
|
|
Of which: cash and cash equivalents and short-term investments
|
1,552
|
36
|
1,382
|
36
|
|
Current Liabilities
|
2,878
|
67
|
2,646
|
69
|
|
Long-Term Liabilities
|
699
|
16
|
532
|
14
|
|
of which: Bonds
|
377
|
9
|
234
|
6
|
|
Equity Capital
|
740
|
17
|
675
|
18
|
Following is a summary of the business results (in millions of USD):
|
|
For the three month period ending on March 31st
|
For the twelve month period ending on December 31st
|
|
|
2010
|
2009
|
2009
|
|
|
$
|
%
|
$
|
%
|
$
|
%
|
|
Sales
|
769
|
100
|
775
|
100
|
2,881
|
100
|
|
Gross profit
|
112
|
15
|
129
|
17
|
436
|
15
|
|
R&D expenses
|
32
|
4
|
28
|
4
|
122
|
4
|
|
Administrative, marketing and general expenses
|
50
|
6
|
47
|
6
|
192
|
7
|
|
Income from ordinary activities
|
30
|
4
|
38
|
5
|
75
|
3
|
|
Financial income / (expenses), net
|
(10)
|
(1)
|
(10)
|
(1)
|
6
|
0
|
|
Profit before taxes on income
|
21
|
3
|
28
|
4
|
84
|
3
|
|
Taxes on income
|
(4)
|
(1)
|
(13)
|
(2)
|
(23)
|
(1)
|
|
Net profit
|
17
|
2
|
15
|
2
|
61
|
2
|