Crow 3Q Net Incomes Rockets By 400 Per Cent

Revenues for the third quarter 2005 were NIS 32.7 million. This represents sequential revenue growth of 19.8per cent from NIS 27.3 million as reported in the second quarter of 2005. Revenues for the 9-month period ended September 30, 2005 were NIS 89.0 million. Gross profit for the third quarter of 2005 was NIS 13.7 million, 44.7 per cent above gross profit of NIS 9.5 million as reported in the second quarter of 2005. Gross margin for the third quarter is 41.9 per cent of revenues, as compared with 34.7 per cent for the second quarter of 2005. Gross profit for the 9-month period ended September 30, 2005 was NIS 33.5 million, or 37.6 per cent of revenues compared with 38.8 per cent for year 2004. Operating income for the third quarter of 2005 was NIS 5.7 million or 17.4 per cent of revenues, representing 275 per cent growth compared with NIS 1.5 million, or 5.5 per cent of revenues in the second quarter of 2005. Operating income for the 9-month period ended September 30, 2005 reached NIS 9.3 million or 10.4 per cent of revenues. Net income for the third quarter of 2005 was NIS 4.3 million or 13.0 per cent of revenues, representing sequential growth of 397 per cent compared with a net income of NIS 858 thousand (or 3.1 per cent of revenues) in the second quarter of 2005. Net income for the 9-month period ended September 30, 2005 was NIS 5.9 million, or 6.6 per cent of revenues. Earnings per 1 ordinary share (of NIS 0.25 par value) for the third quarter of 2005 were NIS 0.98 compared with NIS 0.20 for the second quarter of 2005. Earnings per 1 ordinary share for the 9-month period ended September 30, 2005 were NIS 1.35. This is compared with an EPS of only NIS 0.01 which was reported for the full year 2004. According to Israeli GAAP, earnings per ordinary share of NIS 1 par value are reportable, which represents 4 of Crow’s ordinary shares of NIS 0.25 par value. Earnings per 1 NIS par value, or 4 ordinary shares, for the third quarter were NIS 3.90 compared with NIS 0.78 for the second quarter of 2005. Earnings per 1 NIS par value, or 4 ordinary shares, for the 9-month period ended September 30, 2005 were NIS 5.41. Mr. Shmuel Melman, Chief Executive Officer of Crow said, “Our results represent a substantial improvement over the results from the previous two quarters both in terms of revenues, net profit and profitability. We are well on the way to achieving a record year.” “The recently announced OEM agreement with one of the most prestigious groups in the security industry, is a step in the implementation of our successful strategy,” Melman said. “We believe that this agreement will begin to accrue to our results already in the fourth quarter and throughout 2006. We believe that our revenues will continue to grow in the fourth quarter and in 2006, with margins similar to those of the 9 month period ended September 30, 2005.”