Shamir first-quarter revenue up 18.2% to $40.1 million

Shamir Optical Industry Ltd. (Nasdaq: SHMR) ("Shamir"), a leading provider of innovative products and technology to the ophthalmic lens market, today announced unaudited financial results for the first quarter ended March 31, 2010.

For the quarter ended March 31, 2010, revenues increased 18.2% to $40.1 million, compared with revenues of $33.9 million for the same period in 2009. Gross profit for the quarter was $21.8 million, or 54.5% of revenues, compared with gross profit of $17.9 million, or 52.6% of revenues for the same period last year.

For the quarter ended March 31, 2010, operating income increased 41.3% to $5.5 million, or 13.6% of revenues, compared with operating income of $3.9 million, or 11.4% of revenues for the same period last year.  

Net income for the quarter increased 78.3% to $3.9 million, compared with net income of $2.2 million for the same period in 2009. Net income attributable to Shamir's shareholders was $3.7 million or $0.22 per diluted share, compared with $2.1 million or $0.13 per diluted share for the same period in 2009.

For the quarter ended March 31, 2010, excluding the effect of non-cash stock-based compensation expenses and amortization of intangible assets, operating income was $6.0 million, or 14.9% of revenues, compared with operating income of $4.3 million, or 12.6% of revenues, for the same period last year.

Excluding the effect of non-cash stock-based compensation expenses, accretion of redeemable non-controlling interest, net of tax, and amortization of intangible assets, net of tax, net income attributable to Shamir's shareholders for the quarter was $4.2 million, or $0.25 per diluted share, compared with net income of $2.5 million, or $0.15 per diluted share for the same period last year.

The reconciliation of GAAP operating income and net income to non-GAAP operating income and non-GAAP net income is set forth below.

As of March 31, 2010, the Company had cash and cash equivalents, including short-term investments of $30.1 million.

Commenting on first quarter results, Amos Netzer, chief executive officer of Shamir, said, "Shamir had a strong first quarter 2010 across all of its major operating regions. Our favorable results reflect the progress we continue to achieve throughout our operations, which includes the strengthening of our brand as well as the improvements we have made in our sales and manufacturing capabilities. The investments we have made in both people and geographic expansion have allowed us to increase our market share."

For the fiscal year ending December 31, 2010, Shamir confirmed its previous estimate for 2010 revenue growth in the range of 8%-12%, under the assumption of December 2009 exchange rates.