Valor Increases Profitability and Operating Margins in Q1/2009

YAVNE, Israel – May 14, 2009 - Valor Computerized Systems Ltd. [Prime Standard: VCR], a global provider of productivity improvement software solutions for the printed circuit board industry, announced today its financial results for the period ending March 31, 2009.

Revenues in the first quarter of 2009 were $9M, similar to the revenues in the previous quarter, which accumulated to $9.1M.

Operating profit in the first quarter of 2009 was $0.8M, as compared with an operating loss of $1M in the previous quarter.

Net profit in the first quarter of 2009 was $0.8M, as compared with a net loss of $0.8M in the previous quarter.

Earnings per Share (diluted) in the first quarter of 2009 were $0.04, as compared with loss per share of $0.04 in the previous quarter.

Summary of Financial Data (Unaudited, $US thousands unless otherwise noted):

Q1/09

Q4/08

% Change

Product Sales

4,564

4,357

4.8%

Service Revenues

4,391

4,712

(6.8%)

Total Revenues

8,955

9,069

(1.3%)

Gross Profit

7,689

7,762

(0.9%)

EBITDA

1,365

(520)*

(362.2%)

EBIT

801

(1,014)*

(178.9%)

Net Profit (Loss)

800

(835)*

(195.7%)

EPS in US$ (diluted)

0.04

(0.04)

(205.1%)

Shareholder’s Equity

40,216

43,494

(7.5%)

Total Assets

50,409

54,924

(8.2%)

Research & Development

2,152

2,622

(17.9%)

Employees (Period End)

231

231

-


* Including restructuring expenses totalling $1.1 Million

Some of the following statements are forward-looking in nature, and actual results may differ materially:

“We are pleased with our Q1 results, which were significantly better on the bottom line than in the previous quarter and in line with our goals” said Dan Hoz, Valor’s CEO. “We succeeded in increasing our net income despite market conditions and the minor decline in revenues, which, as in the preceding quarter, resulted mainly from weakness in the fabrication market, in which we operate via Frontline - our joint venture with Orbotech (Nasdaq: ORBK).”

“The cost saving measures which we have implemented throughout 2008 helped us improve our profitability”, said Hoz. “This, together with the signs of stabilization that we see in the market, indicates that our dynamic approach and actions are the right measures for these times, and we are working to improve our revenues and profitability even further in the following quarters”, Hoz concluded.

The complete financial report can be downloaded from the Investor Relations section on the Valor corporate website: www.valor.com

Valor will hold an Earnings Call on May 14, at 13:00 GMT. To participate, call the following numbers:
Israel Toll Free – 180 934 4019
Germany Toll Free – 0800-330-4462
Germany Local - +49-6971-044-5554
US Toll Free - 1- 888-468-5776
US Local - +1-480-629- 9602

Conference code:4076818
Participant registration begins 5-10 minutes before the scheduled time.

» Pressemitteilung in Deutsch

Risks Regarding Forward Looking Statements
Certain statements included herein are forward-looking in nature and, accordingly, are subject to risks and uncertainties. Such forward-looking statements include statements regarding the size and timing of the proposed offering. These forward-looking statements are only predictions based on our current expectations and projections about future events. Many factors, including those indicated in the press release, as well as general market conditions, could impact the realization of these forward-looking statements. Valor wishes to caution prospective investors not to rely on any such forward-looking statements as predictions of future events. Valor does not undertake, and specifically disclaims any obligation, to update any forward-looking statements, which speak only as of the date made.

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