n Seizing Opportunities 6 Months Report 2012 / January 1st - June 30th

Transcription

1 n Seizing Opportunities 6 Months Report 2012 / January 1st - June 30th

2 Dear Shareholders, In the second quarter of 2012, we witnessed continuing uncertainties around the globe. Some of the EU economies are facing significant economic challenges, and the US recovery stalled. While these issues are not new, they seemed to have gathered negative momentum in recent months. Until the beginning of 2012, it appeared that the packaging and labels markets were immune to the negative global economic trends. However, in the second quarter we saw the slowing of some areas, most evidently in the US markets. AVT financial results for the second quarter of 2012 were affected by this slowdown. Order bookings for the quarter were $11.2 million, 6.5% below the same period in For the first six months of 2012, AVT order bookings amounted to $22.9 million, 3.9% below the same period in While the second quarter s business level in most areas was good, the US products order bookings were low and negatively affected overall company achievements. With $1.25 million, it represents only 14.7% of total products order bookings. In comparison, in 2011 the US contributed $8.3 million or 23% of total products order bookings. In contrast to the US, order bookings in Asia Pacific for the first half of 2012 increased by 27.8% compared with the same period in Total revenues for the quarter were $11.2 million, 2.6% above the corresponding quarter in Total revenues for the first six months of 2012 were $23.6 million, 8.4% above the same period in GAAP operating profit in the second quarter of 2012 was $1.0 million, compared with $0.7 million in the second quarter of 2011, growing 37.7% year on year. For the first six months of 2012, net profit was $1.8 million, compared with a net profit of $1.2 million in the parallel period in In May this year, AVT participated in DRUPA in Dusseldorf, Germany. This is the largest and most important print trade show worldwide that takes place once every four years. AVT s presence at DRUPA was impressive and successful. We launched a number of new products that address both currently served and new markets. AVT s solutions were not only displayed at our booth but also demonstrated with a number of OEM partners such as HP, Comexi and Gallus. Over $2 million of new orders were booked throughout the show, and more than 1,000 new leads were collected, mostly from Europe and Asia. I am sure that our DRUPA success will contribute nicely to our future business. In September this year AVT will present its full labels market solution at the LabelExpo show in Chicago, the most important trade show of the labels sector. As AVT s second largest target market, LabelExpo is an important milestone for the company and will serve as a catalyzer for our business in the US in the second half of I am hopeful that we may have seen the end of this negative cycle. However, I cannot rule out that we may face further decline in one or more of our target markets. With this in mind, we are carefully planning our steps, making sure we are ready for any contingency. Sincerely yours, Shlomo Amir, President & CEO 2. AVT 6 Months Report

3 The following table sets forth consolidated income statements data for each of the six month periods ended June and June , the three month periods ended June and June and for the year ended December (in thousands U.S. dollars, except share and per share amounts): U.S. dollars in thousands (except per share amounts) Six months ended June 30, Three months ended June 30, Year ended December 31, Unaudited Revenues: Products $ 19,262 $ 16,964 $ 9,365 $ 8,646 $ 36,175 Services 4,291 4,767 2,097 2,530 9,792 The following table sets forth selected consolidated income statements data for each of the six month periods ended June , June and for the year ended December , expressed as a percentage of total revenues: Periods Ended Revenues: 100% 100% 100% Products Services Total revenues 23,553 21,731 11,462 11,176 45,967 Cost of revenues Cost of revenues: Products 6,902 6,834 3,290 3,436 14,032 Services 4,184 4,217 2,174 2,240 9,054 Total cost of revenues 11,086 11,051 5,464 5,676 23,086 Gross profit 12,467 10,680 5,998 5,500 22,881 Operating expenses: Research and development 3,548 3,454 1,776 1,781 7,007 Less - grants (329) (345) (159) (185) (638) Selling and marketing 4,705 4,008 2,303 2,011 8,174 General and administrative 2,435 2,459 1,107 1,188 4,961 Total operating expenses 10,359 9,576 5,027 4,795 19,504 Operating income 2,108 1, ,377 Financial income (expense), net (25) 92 (54) (2) (221) Gross profit Operating expenses: Research and development, gross Less - grants (1.4) (1.6) (1.4) Selling and marketing General and administrative Total operating expenses Operating income Financial income (expense), net (0.1) 0.4 (0.5) Income before taxes on income Taxes on income (tax benefit) (1.5) Net income Income before taxes on income 2,083 1, ,156 Taxes on income (tax benefit) (718) Net income $ 1,815 $ 1,153 $ 748 $ 687 $ 3,874 Basic earning per ordinary share $ 0.34 $ 0.22 $ 0.14 $ 0.13 $ 0.73 Diluted earning per ordinary share $ 0.33 $ 0.21 $ 0.13 $ 0.12 $ AVT 6 Months Report

4 The following table sets forth selected proforma consolidated income statements data (adjusted to exclude amortization of acquired intangible assets and stock-based compensation expense) for the six month periods ended June , June and for the year ended December in thousands US dollars: GAAP Adjustments Non GAAP Non GAAP Non GAAP Revenues 23,553-23,553 21,731 45,967 Cost of revenues 11,086 (155) 10,931 10,877 22,746 Gross profit 12,467 (155) 12,622 10,854 23,221 Gross margin % 52.9% % 49.9% 50.5% Operating expenses: Research and development, net 3,219 (35) 3,184 3,062 6,275 Selling and marketing 4,705 (98) 4,607 3,894 7,948 General and administrative 2,435 (31) 2,404 2,414 4,876 Total operating expenses 10,359 (164) 10,195 9,370 19,099 Operating income 2, ,427 1,484 4,122 Financial income (expense), net (25) - (25) 92 (221) Income before taxes on income 2, ,402 1,576 3,901 Taxes on income (tax benefit) (718) Net income 1, ,134 1,533 4,619 Revenues We derive revenues primarily from two sources: Product revenues, which include hardware and software. Service revenues, which are comprised mainly of income from hardware and software maintenance contracts; time and material charges; consulting, installation and training fees, software updates and sales of spare parts. Revenues in the first six months of 2012 were $23.6 million, an increase of 8.4% from revenues of $21.7 million in H Revenues in the second quarter of 2012 totaled $11.5 million representing an increase of 2.6% of the revenues in Q2 of 2011 and a decrease of 5.2% from the first quarter of The increase in total revenues in the first half of 2012 compared with the same period last year is attributable to higher sales to the Packaging and Labels printing markets. The decrease in revenues in Q compared with the previous quarter is attributable to lower sales to the Commercial printing market. Revenues from services are generated from maintenance contracts; time and material charges; consulting, installation and training fees software updates and sales of spare parts. We recognize revenues over the contractual period or as services are performed. Service revenues in the first six months of 2012 totaled $4.3 million (out of the total revenues of $23.6 million), a decrease of 10.0% from revenues of $4.8 million in the first six months of The decrease in service revenues is attributable primarily to lower level of business activtiy in the Commercial printing market. During the first six months of 2012 order booking totaled $22.9 million representing a decrease of 3.9% over H order booking of $23.8 million. The ratio of order booking to revenues in Q was 98.0%. For the first six months of 2012 the ratio of order booking to revenues was 97.3%. As of June 30, 2012 order back-log totaled $15.0 million representing a decrease of 10.2% as compared with the balance at June 30, 2011 and a decrease of 6.3% from December 31, 2011, providing us with visibility of over one quarter of revenues. We estimate that out of this back-log, 50%-65% will become revenue during Q3 of 2012, while major part of the remainder will become revenue in the proceeding three quarters. 6. AVT 6 Months Report

5 The following chart sets forth breakdown of revenues by territory for each of the six month periods ended June 30, 2012 and June 30, 2011: The following table sets forth selected consolidated expenditures data for each of the five quarters ended , , , and expressed as a percentage of total revenues: H H % 48% 39% 43% 21% 9% EMEA Americas AsPac During the first six months of 2012 EMEA (Europe, Middle East & Africa) contributed 40% of total revenues compared with 48% in H while the Americas market contributed 39% of total revenues compared with 43% in H Revenues generated in the Asia-Pacific contributed 21% of total revenues compared with 9% in the first six months of Cost of Revenues / Gross Profit Cost of revenues includes materials, labor, and an estimation of costs associated with installation, warranty and training. We generally provide a one-year warranty to the end-user. A provision, based on our experience and engineering estimates, is recorded to cover probable costs in connection with such warranty, for the 12 months period commencing at the end of installation. The Gross margin in the first six months of 2012 was 52.9% compared with 49.1% in H The increase compared with same period last year is due primarily to favorable mix of sales and higher products sales volume coupled with the favorable impact of the Israeli Shekel exchange rate relative to the US Dollar partly offset by the unfavorable impact of the Euro exchange rate relative to the US Dollar. Proforma gross margin (excluding amortization of acquired intangible assets and stock-based compensation expense) increased from 49.9% in H to 53.6% in the first six months of Gross margin increased from 49.2% in the second quarter of 2011 to 52.3% in the second quarter of 2012 due primarily to favorable mix of sales and higher products sales volume coupled with the favorable impact of the Israeli Shekel exchange rate relative to the US Dollar partly offset by the unfavorable impact of the Euro exchange rate relative to the US Dollar. Gross Margin may fluctuate due to changes in product mix as the sale of software options is generally increasing the platform s selling price while keeping the same bill of material cost, and consequently improving the gross profit. Cost of Revenues Selling & Marketing Net R&D General & Administrative 14.3% 13.5% 13.4% 13.2% 14.1% 10.6% 10.4% 10.3% 11.0% 9.7% 18.0% 17.7% 16.7% 19.9% 20.1% 50.8% 48.6% 50.6% 46.5% 47.7% Q2 / 2011 Q3 / 2011 Q4 / 2011 Q1 / 2012 Q2 / AVT 6 Months Report

6 Research and Development Research and development costs are charged to the statement of operations as incurred. Government funding for the development of approved projects is recognized as a reduction of expenses as the related costs are incurred. In the first six months of 2012, net research and development expenses increased to $3,219 thousand, 3.5% higher than the respective period of 2011 ($3,109 thousand). Proforma research and development costs in the first six months of 2012 (excluding stock-based compensation expense) increased to $3,184 thousand, 4.0% higher than H ($3,062 thousand). The increase compared with first six months of 2011 is due primarily to increase in total personnel costs partly offset by the impact of the Israeli Shekel devaluation relative to the US Dollar. On a quarterly basis, net research and development expenses in Q increased to $1,617 thousand, 1.3% higher than the respective period of 2011 ($1,596 thousand). The costs of research and development are partially offset by government grants. In the first six months of 2012 total government grants and participation recorded were $329 thousand compared with $345 thousand recorded in the first six months of Selling and Marketing In the first six months of 2012 selling and marketing expenses were $4,705 thousand, an increase of 17.4% compared with H ($4,008 thousand). Proforma selling and marketing expenses in the first six months of 2012 (excluding amortization of acquired intangible assets and stock-based compensation expense) increased to $4,607 thousand, 18.3% higher than H ($3,894 thousand). The increase in selling and marketing expenses attributable primarily to higher exhibition expenses (in May the company participated in the DRUPA tradeshow) and to higher total personnel costs. On a quarterly basis, selling and marketing expenses in Q totaled $2,255 thousand, an increase of 15.3% compared with Q General and Administrative In the first six months of 2012 general and administrative expenses were $2,435 thousand, a decrease of 1.0% compared with H ($2,459 thousand). Proforma general and administrative expenses in the first six months of 2012 (excluding stock-based compensation expense) decreased to $2,404 thousand, 0.5% lower than in H ($2,414 thousand). The decrease in general & administration expenses is attributable mainly the favorable impact of the Israeli Shekel exchange rate relative to the US Dollar. On a quarterly basis, general and administrative expenses in Q increased to $1,107 thousand, 6.8% lower than in Q Deferred Stock-Based Compensation Based on ASC 718 we recorded commencing January 1, 2006, share-based payments as expenses based on their fair value at the grant date. The compensation is recorded over the requisite service period. The measurement of the benefit is based on the Monte Carlo simulation. Total stock-based compensation expense recorded during the first six months of 2012 was $137 thousand compared with $190 thousand in the first six months of Operating and Net Income Net profit for the six months ended June 30, 2012 was $1,815 thousand or $0.33 per share (diluted) compared with net profit of $1,153 thousand or $0.21 per share (diluted) for H Proforma net income for the first six months of 2012 (excluding amortization of acquired intangible assets and stock-based compensation expense), was $2,133 thousand compared with proforma net income of $1,530 thousand in H Operating income in the first six months of 2012 was a $2,108 thousand an increase of 90.9% compared with H ($1,104 thousand). The increase in operating income in H is attributable primarily to higher revenues and gross margin partly offset by higher total operating expenses (44.0% of revenues in H the same as in H1 2011). Consolidated operating margin was 8.9% of revenues in H compared with 5.1% in H On a quarterly basis, operating income in Q was $971 thousand compared with an income of $705 thousand in Q The increase in operating income is due primarily to higher sales revenues and gross margin partly offset by higher operating expenses. Proforma EBITDA in the first six months of 2012 (excluding stock-based compensation expense) was $2,629 thousand as compared with $1,746 thousand in H Financial Income (Expense), net Financial expense is comprised of interest income incurred on time deposits less interest expenses on lines of credit and exchange rate differences. Net financial expense in the first six months of 2012 was $25 thousand compared with net financial income of $92 thousand in H On a quarterly basis, net financial expense in Q was $54 thousand compared with net financial expense of $2 thousand Q and net financial income of $29 thousand in Q The increase in financial expense as compared with Q is attributable to the devaluation of the Euro relative to the US Dollar in Q as compared with Q Financial income for H accounted for $95 thousand compared to $66 thousand for H An additional net expense of $120 thousand was generated from exchange rate differences, interest and bank charges compared with net income of $26 thousand in H AVT 6 Months Report

7 Financial income for H accounted for $95 thousand compared to $66 thousand for H An additional net expense of $120 thousand was generated from exchange rate differences, interest and bank charges compared with net income of $26 thousand in H Taxes We operate within multiple taxing jurisdictions and are subject to audit in those jurisdictions. For AVT product line we conducted a Transfer Pricing study during 2010 in the United States. For AVT and GMI product lines we conducted Transfer Pricing study during 2010 in Germany. The recommendations of those studies were incorporated in our tax estimates. In our opinion, an adequate asset and provision for income taxes has been made in the financial statements. Liquidity and Capital Resources As of June our total current assets were $32.2 million, including a total cash and financial investment balance of $14.4 million compared with cash and financial investment balance of $10.3 million at June 30, 2011 and $13.9 million at December 31, During the first six months of 2012, $544 thousand were provided by operating activities compared with $296 thousand that were used in operating activities during the first six months of We focus on managing our working capital, particularly in maintaining the relative low level of accounts receivable Days Sales Outstanding (DSO) and inventories. DSO in accounts receivable at the end of June 2012 were 60 days compared with 62 days at the end of June 2011 and 58 days as of December Our net capital expenditures on fixed assets were $184 thousand in the first six months of 2012, compared with $195 thousand in the respective period of Employees Our employees consistently remain our major asset, committed to the drive for technological leadership and outstanding customer service. Our dedicated team has repeatedly demonstrated that it shares our vision, and has the motivation, innovation and commitment to customer satisfaction that are the key ingredients of healthy growth. On June , 202 people were employed by us worldwide compared with 199 and 198 we employed at December and June respectively. The breakdown of employees by activity is as follows: Operations & Customer Manufacturing Support R&D Selling & Marketing General & Administrative Our employees are based in the following areas per their subsidary affiliation: EUROPE USA ISRAEL AsPac 24% 23% 21% 18% 14% 46% 38% 13% 3% 12. AVT 6 Months Report

8 Financial Table of Contents Report of Independent Auditors The Board of Directors Advanced Vision Technology (A.V.T.) Ltd. Review of Unaudited Interim Consolidated Financial Statements 15. Consolidated Balance Sheets Consolidated Statements of Operations 18. Statements of Changes in Shareholders Equity 19. Consolidated Statements of Cash Flow 20. Notes to Interim Consolidated Financial Statements Re: Review of unaudited interim consolidated financial statements for the six-month and three-month periods ended June 30, 2012 We have reviewed the accompanying interim consolidated balance sheet of Advanced Vision Technology (A.V.T.) Ltd. and its subsidiaries (the Company ) as of June 30, 2012 and the related interim consolidated statements of operations for the six and three month periods ended June 30, 2012 and 2011 the interim consolidated statements of cash flow for the six month period ended June 30, 2012 and 2011, and the interim statement of changes in shareholders equity for the six month period ended June 30, 2012, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. All information included in these financial statements is the representation of the Company s management. A review consists principally of inquiries of Company personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to the accompanying interim consolidated financial statements in order for them to be in conformity with accounting principles generally accepted in the United States. Tel-Aviv, Israel August 8, 2012 KOST FORER GABBAY & KASIERER A Member of Ernst & Young Global 14. AVT 6 Months Report

9 Consolidated Balance Sheets Consolidated Balance Sheets ASSETS June 30, 2012 December 31, 2011 Unaudited U.S. dollars in thousands LIABILITIES AND SHAREHOLDERS EQUITY U.S. dollars in thousands (except share and per share data) June 30, 2012 December 31, 2011 Unaudited CURRENT ASSETS: Cash and cash equivalents $ 9,353 $ 6,422 Short-term deposits 5,020 7,524 Trade receivables (net of allowance for doubtful accounts of $ 463 and $ 459 as of June 30, 2012 and December 31, 2011, respectively) 7,805 7,350 Inventories 6,979 6,424 Other accounts receivable and prepaid expenses 3,031 3,071 CURRENT LIABILITIES: Trade payables $ 1,335 $ 1,859 Employees and payroll accruals 2,097 2,271 Customer advances and deferred revenues 2,640 3,156 Accrued expenses and other liabilities 3,769 3,334 Total current liabilities 9,841 10,620 Total current assets 32,188 30,791 ACCRUED SEVERANCE PAY 3,597 3,476 LONG-TERM ASSETS: Deferred income taxes Severance pay fund 2,606 2,483 Total long-term assets 2,923 2,759 PROPERTY AND EQUIPMENT, NET 1,250 1,269 INTANGIBLE ASSETS, NET 888 1,069 Total assets $ 37,249 $ 35,888 SHAREHOLDERS EQUITY: Share capital: Ordinary shares of New Israeli Shekels (NIS) 2 par value: 15,000,000 shares authorized at June 30, 2012 and December 31, 2011; 6,296,898 shares issued at June 30, 2012 and December 31, 2011; 5,379,953 and 5,339,316 shares outstanding at June 30, 2012 and December 31, 2011, respectively 3,402 3,402 Additional paid-in capital 62,618 62,655 Treasury shares at cost - 916,945 and 957,582 shares at June 30, 2012 and December 31, 2011, respectively (7,727) (8,069) Accumulated deficit (34,482) (36,196) Total shareholders equity 23,811 21,792 Total liabilities and shareholders equity $ 37,249 $ 35,888 The accompanying notes are an integral part of the consolidated financial statements. The accompanying notes are an integral part of the consolidated financial statements. 16. AVT 6 Months Report

10 Consolidated Statements of Operations U.S. dollars in thousands (except per share amounts) Six months ended June 30, Three months ended June 30, Year ended December 31, Unaudited Revenues: Products $ 19,262 $ 16,964 $ 9,365 $ 8,646 $ 36,175 Services 4,291 4,767 2,097 2,530 9,792 Total Revenues 23,553 21,731 11,462 11,176 45,967 Cost of revenues: Products 6,902 6,834 3,290 3,436 14,032 Services 4,184 4,217 2,174 2,240 9,054 Total cost of revenues 11,086 11,051 5,464 5,676 23,086 Gross profit 12,467 10,680 5,998 5,500 22,881 Operating expenses: Research and development 3,548 3,454 1,776 1,781 7,007 Less - grants (329) (345) (159) (185) (638) Selling and marketing 4,705 4,008 2,303 2,011 8,174 General and administrative 2,435 2,459 1,107 1,188 4,961 Total operating expenses 10,359 9,576 5,027 4,795 19,504 Consolidated Statements of Changes in Shareholders Equity Share capital Additional paid-in capital Treasury shares Accumulated deficit Total Shareholders' equity Balance as of January 1, 2011 $3,402 $62,337 $(8,170) $(40,033) $17,536 Issuance of treasury shares upon exercise of options - (53) 101 (37) 11 Stock-based compensation related to options granted to employees Net income ,874 3,874 Balance as of December 31, ,402 62,655 (8,069) (36,196) 21,792 Issuance of treasury shares upon exercise of options - (174) 342 (101) 67 Stock-based compensation related U.S. dollars in thousands to options granted to employees Net income ,815 1,815 Balance as of June 30, 2012 (unaudited) 3,402 62,618 (7,727) (34,482) 23,811 Operating income 2,108 1, ,377 Financial income (expense), net (25) 92 (54) (2) (221) Income before taxes on income 2,083 1, ,156 Taxes on income (tax benefit) (718) Net income $ 1,815 $ 1,153 $ 748 $ 687 $ 3,874 Basic earnings per Ordinary share $ 0.34 $ 0.22 $ 0.14 $ 0.13 $ 0.73 Diluted earnings per Ordinary share $ 0.33 $ 0.21 $ 0.13 $ 0.12 $ 0.70 The accompanying notes are an integral part of the consolidated financial statements. The accompanying notes are an integral part of the consolidated financial statements. 18. AVT 6 Months Report

11 Consolidated Statements of Cash Flow Notes to Consolidated Financial Statements U.S. dollars in thousands Six months ended June 30, Year ended December 31, Unaudited Cash flows from operating activities: Net income $ 1,815 $ 1,153 $ 3,874 Adjustments to reconcile net income to net cash used in operating activities: Stock-based compensation related to options granted to employees Depreciation of property and equipment Amortization of intangible assets Increase in trade receivables, net (455) (1,404) (1,654) Increase in inventories (555) (577) (496) Decrease (increase) in other accounts receivable and prepaid expenses (42) (189) 489 Decrease (increase) in deferred income taxes, net 41 - (785) Increase (decrease) in trade payables (524) Decrease in employees and payroll accruals (174) (467) (129) Increase (decrease) in customer advances and deferred revenues (516) Increase (decrease) in accrued expenses and other liabilities 435 (46) (68) Increase (decrease) in accrued severance pay, net (2) Net cash provided by (used in) operating activities 544 (296) 3,455 Cash flows from investing activities: Investment in short-term deposit, net 2,504 (586) (4,524) Purchase of property and equipment (184) (195) (336) Net cash provided by (used in) investing activities 2,320 (781) (4,860) Cash flows from financing activities: Proceeds from exercise of options granted to employees Note 1: General Advanced Vision Technology (A.V.T.) Ltd. ("A.V.T.") was incorporated under the laws of the State of Israel on December 10, 1992 and commenced operations thereafter. A.V.T. and its whollyowned subsidiaries ("the Company") design, develop, manufacture, market and support advanced video-based print inspection systems that automatically detect defects in various types of printing processes, as well as closed loop color control (CLC) systems, color management and reporting software, and remote digital ink fountain control systems to leading commercial printers and press manufacturers worldwide. Note 2: Significant Accounting Policies The significant accounting policies applied in the annual financial statements of the Company as of December 31, 2011 are applied consistently in these financial statements. Note 3: Unaudited Interim Consolidated Financial Statements The accompanying unaudited interim consolidated financial statements have been prepared in accordance with Statement on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the six and three month periods ended June 30, 2012 are not necessarily indicative of the results that may be expected for the year ended December 31, Net cash provided by financing activities Increase (decrease) in cash and cash equivalents 2,931 (1,066) (1,394) Cash and cash equivalents at the beginning of the period 6,422 7,816 7,816 Cash and cash equivalents at the end of the period $ 9,353 $ 6,750 $ 6,422 Supplemental disclosure of cash flow information: Cash paid during the period for income taxes $ 61 $ 91 $ 218 The accompanying notes are an integral part of the consolidated financial statements. 20. AVT 6 Months Report

12 AVT LTD. 6 Hanagar St., P.O.B 7295, Hod-Hasharon 45241, Israel Tel / Fax AVT GmbH Donnersbergerstr. 22a, München, Germany Tel / Fax AVT EMEA Mechelsesteenweg 132, B-2860 Sint-Katelijne-Waver, Belgium Tel. +32 (0) / Fax. +32 (0) AVT China AVT Ltd Shanghai Representative Office, Room 808B, Building 555, No. 555 Nanjing Xilu, Shanghai , China Tel / Fax AVT INC. 900 Circle 75 Parkway, Suite 175, Atlanta, GA 30339, USA Tel / Fax GMI INC Science Place, Rockwall, TX 75032, USA Tel / Fax AVT and PrintVision are trademarks owned by AVT Ltd. AVT reserves the right to make changes to the specifications without prior notification. 22. AVT 6 Months Report

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