Shamir Optical Industry first quarter revenues increase 12.8% to $45.2 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, 2011.

For the quarter ended March 31, 2011, revenues increased 12.8% to $45.2 million, compared with revenues of $40.1 million for the same period in 2010. Gross profit for the quarter was $24.4 million, or 54.0% of revenues, compared with gross profit of $21.8 million, or 54.5% of revenues for the same period last year.

For the quarter ended March 31, 2011, operating income was $5.2 million, or 11.4% of revenues, compared with operating income of $5.5 million, or 13.6% of revenues for the same period last year.  The reduction in operating income year-over-year was primarily due to costs associated with the Company's previously announced transaction with Essilor International and an increase in marketing and selling expenses associated with its expansion efforts in Europe and Israel.

Net income for the quarter was $4.2 million, compared with net income of $3.9 million for the same period in 2010. Net income attributable to Shamir's shareholders was $3.9 million or $0.22 per diluted share, compared with $3.7 million or $0.22 per diluted share for the same period in 2010.

Excluding the effect of non-cash stock-based compensation expenses, amortization of intangible assets and Essilor transaction costs in 2011, operating income for the quarter was $6.1 million, or 13.4% of revenues, compared with operating income of $6.0 million, or 14.9% of revenues, for the same period last year.

Excluding the effect of non-cash stock-based compensation expenses, amortization of intangible assets, accretion of redeemable non-controlling interest and Essilor transaction costs in 2011, all net of tax, net income attributable to Shamir's shareholders for the quarter was $4.8 million, or $0.27 per diluted share, compared with net income of $4.2 million, or $0.25 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, 2011, the Company had cash and cash equivalents, including short-term investments of $32.9  million.

Commenting on the results, Amos Netzer, Chief Executive Officer of Shamir, said, "I am pleased with our results for the first quarter of 2011.  During the quarter, we successfully executed our business plan, with particular strength in Europe, Australia and Mexico.  We also expanded our footprint during the quarter in the Netherlands and Israel via our recently reported acquisitions."