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Samy Gharb PATENT -Unitronics business- USA PATENT LAW
October 1999 / Giza Investment Letter
Unitronics in 1999 for business only with PLC programmable logic controller WITHOUT gsm Mobile phone among available services; the high cost of increasing
bandwidth and adding servers and firewalls; and the
operation and administrative burden of managing a
complex network.
Radware’s advantages Radware’s products enable uninterrupted
availability and potentially better performance by
distributing traffic among a network’s resources.
They (a) direct end-users to functioning resources
and applications by bypassing off-line and failed
resources; (b) allocate IP traffic among dispersed
network resources based on feedback from
monitoring: and (c) provide scalability to enable
resources to be added to capacity without the need
for upgrading or replacing existing resources.
Products for multiple needs
Radware offers three product lines:
Web Server Director – distributes IP traffic among
continued on page 2
Radware is accorded hot reception 1
The Market 4 US-Traded Securities 6
Tel Aviv-Listed Shares 7New & Noteworthy:
Internet Gold - Golden Lines Ltd. 8
deltathree.com, Inc. 10
Unitronics (1989) (R”G) Ltd. 11
On Track Innovations Ltd. 13
Technology - at the cutting edge:
Collgard Biopharmaceuticals, Ltd. 15
Radware Ltd. is the most promising company of
the RAD-BYNET Group to have made an initial
public offering in the US to date. At the end of
September, Radware sold 3.5 million shares through
underwriters led by Salomon Smith Barney; CIBC
World Markets; and U.S. Bancorp Piper Jaffray. The
market responded positively, thrusting Radware
shares to a huge 126% premium by the end of the
first 10 days of trading.
Internet traffic cop
As several other Israeli IPOs this year, Radware is
attracting an investor following because its business
is directly involved with the Internet. Its products
manage and direct Internet traffic so customers can
be assured of uninterrupted availability and optimal
performance of IP-based applications.
It is the exponential and rapid growth of the
Internet and the forecast for further expansion that
has created the demand for Radware’s products.
The growth in traffic, the variety of data, and
demands for access at almost any time, has strained
network infrastructure. Companies and other
organizations have realized that slow response times
and technical difficulties within their network will
result in customers going elsewhere.
While many companies have undertaken network
expansion to alleviate the problems of overload,
there are several problems not addressed by
expansion. These include the risk of a single point
of failure; lack of efficient distribution of traffic
The #1 newsletter on Israeli Securities
Radware is accorded hot reception
October 1999
No. 47
In This Issue...
Traded: Nasdaq Symbol: RDWR
Recent Price: $40 3/4
1999 High-Low: $49 - $24
Initial Public Offering Price: $18/sh.
Shares Offered: 3,500,000
Shares Outstanding: 14,604,209
Market Capitalization: $595 million
Unitronics (1989) (R”G) Ltd.
Unitronics, a manufacturer of programmable logic
controllers (PLCs), is in the process of an initial
public offering on the Euro.NM Belgium. The
subscription period for the 2,000,000 shares being
offered at €3.72 is from September 21 through
October 15, 1999. Smeets Securities of Antwerp is
the lead underwriter, joined by Delta Lloyd Bank of
Amsterdam and Cyril Finance Gestion of Paris.
PLCs are computer-based electronic devices used
in automation to control machinery and other
systems. They are programmed to perform specific
control tasks in real-time and allow continuous
closed loop control capabilities by processing
feedback from input sensors and activating output
tasks. PLCs are used in a variety of fields including
the automotive, petrochemical, plastics, textile,
pharmaceutical, energy, packaging
industries.
Unitronics is a minuscule factor in the $6 billion
world PLC market, but hopes to become an
important player through the development of PLCs
embedded with Internet and intranet capabilities.
The company sees the Internet as enabling easier
monitoring of systems and production line tasks via
remote control, and intranet technology as
improving production line efficiency by facilitating
peer-to-peer communications between linked PLCs.
The company provides the following instance of
how web-based PLCs could be utilized to save time
and money through remote monitoring: A
manufacturer in Brussels which has Unitronics’ PLC
devices integrated into a factory in Indonesia could
diagnose and troubleshoot certain production line
problems via the web – without incurring the
expense of sending specialty personnel to the
Indonesian factory.
Unitronics now has its WebPLC product in an
advanced stage of development. WebPLC is to have
Internet and intranet communications capabilities
via TCP/IP communications protocols. These will
allow a network supervisor to monitor, diagnose
and correct problems from remote locations via the
Internet.
The first WebPLC device is expected to be
released for the micro PLC market. Characterized by
diminished size and increased functionality,
Unitronics cites a Frost & Sullivan study indicating
this to be the fastest growing segment of the
market.
Also under development are devices for the small
and medium PLC markets. Its products are intended
as both PLCs and Web servers having
Internet/Ethernet, HTML, FTP and SMTP/POP3-
enabled e-mail capabilities. Additionally, features
enabling increased connectivity, advanced software
concepts and CPUs which can obtain faster
response and control are planned. These are for
monitoring complex machinery requiring an
operator-friendly graphical interface. Product lines
in these areas are expected to be introduced
through the year 2000.
Existing products are basis for web-based
PLCs
Two types of PLCs are manufactured by
Unitronics – those that contain integrated human
machine interface operating panels and more
standard PLC devices that do not. The company’s
product range is built around a 32-bit high speed
central processing unit with varying computational
and connectivity capabilities. Unitronics’ PLCs can
handle different communication protocols for
communication on multiple platforms and for
operation together with devices of different
manufacturers. They serve as the basis for the new,
more advanced models being developed.
IPO proceeds
Most of the €7 million ($7 million) in proceeds
from the initial public offering is expected to be
used for working capital, with the remainder slated
for marketing, general and administrative costs,
Income Statement Data
(NIS 000s, adjusted)
1999 1998
Revenues 11,051 10,662
Cost of revenues 6,219 6,588
Gross profit 4,832 4,074
R&D exp., net. 1,446 1,994
Selling & marketing exp. 1,586 1,485
General and admin. exp. 1,451 1,187
Operating profit (loss) 349 (592)
Financing expenses 141 194
Other income (expenses) 6 (67)
Pretax income 214 (683)
Tax benefits (taxes on income) (167) 192
Share in affiliates’ results (19) (23)
Profit (loss) for the year 28 (684)
Profit (loss) per NIS 1 share (NIS) 0.21 (5.60)
Balance Sheet Data
(NIS 000s, adjusted)
Dec. 31, 1998 Dec. 31, 1997
Cash and equivalents 213 39
Accounts receivable 2,813 1,379
Inventory 1,094 897
Total current assets 3,928 3,529
Investment in affiliate 129 225
Property and equipment 1,301 1,319
Deferred taxes 178 71
Total assets 5,536 5,144
Credit from banks and others 995 769
Accounts payable 2,691 3,098
Total current liabilities 3,686 3,867
Long-term debt 276 994
Accrued severance pay, net 743 302
Long-term liabilities 1,019 1,296
Loans 822 -
Stockholders’ equity 9 (19)
Total liabs. and shareholders’ equity 5,536 5,144
Sales by Locale - 1998
