Valor Computerized Systems reported its annual results for the financial year 2001. During this period, Valor recorded total revenues of US$24.9 million, with a net loss of US$0.18 per share, representing a decrease of 15% compared to FY2000, when total revenues were US$29.3 million. In total, Valor reported a net loss of US$3.3 million for FY2001 compared to a net profit of US$3.9 million achieved during the financial year 2000.

Due to economic uncertainty and market momentum in 2001, Valor said, the company experienced a lower level of performance and growth than expected. Nevertheless, the company maintained its market leadership position in the electronics design (Enterprise 3000) and PCB fabrication (Genesis 2000) markets, and penetrated the electronics assembly market with Trilogy 5000, where the 2001 product release further supported Valor's goal of delivering an industry-leading, front-to-back engineering system for manufacturers. In addition, Valor's wholly-owned e4eNet engineering collaboration solutions company released its first production version to a selection of top-tier launch customers.

Commenting on the financial results, Schmil Dolberg, president and CEO of Valor, said, "The worldwide recession gained momentum during 2001 and directly affected Valor's business operations. We witnessed a dramatic decline in the OEM community end user business which severely impacted their purchasing plans and our performance. The weeks following September 11th saw an almost complete halting of purchase orders, particularly in the USA."

"The upside is that Valor was quick to react to these changing conditions and by reviewing expenditure and operational plans we were able to limit the impact on our business and keep a tight control. In Q4 our operating costs and expenses were 19% lower than the average of the former three quarters," continued Dolberg. "Our healthy current cash reserves will be used to carry the company during these difficult times and will be deployed into R&D for investment in current and additional products as we continue to work with our customers and partners and respond to changing market needs."

Valor said that its level of business activity during this next year will be determined largely by the return to a healthy market momentum for electronics OEM and EMS companies. Valor has already managed the recent economic downturn successfully, and the company expects to return to fast growth as soon as the market improves, which is estimated to happen during 2003. Meanwhile Valor will continue to strengthen and extend its product offerings.

During 2001 Valor's R&D expenses increased 52.7% from $6.9 million in 2000 to $10.5 million in 2001, and Valor will continue with its aggressive research and development program into 2002. Investment will be focused on Valor's main revenue growth drivers: Trilogy 5000 engineering software for optimizing electronics assembly; the e4eNet business providing engineering collaboration across the supply chain; and the unique VPL physical component library for electronics assembly. In addition the company will be looking at new opportunities for developing software products while maintaining a sharp focus and commitment to NPI engineering and assembly floor optimization solutions.

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