NextVision Stabilized Systems, the imaging-system maker based in Ra’anana, Israel, reported a 125% increase in third-quarter revenue to $106.4 million on November 9, as higher sales and production efficiency lifted profits. Its order backlog, however, fell from the level reported with its second-quarter results, adding a caution to the growth picture.
The company makes stabilized day- and night-vision camera systems for aerial and ground platforms, including drones and small unmanned aircraft. Its results show how growing deliveries are translating into sales and cash, while the backlog decline raises a separate question about the pace at which new orders will replace completed work.
Net profit rose 113% to $60.1 million from $28.2 million a year earlier, according to NextVision’s results announcement and financial tables. Operating profit increased to $65.8 million from $28.3 million. The operating margin reached 61.8%, compared with 59.8% a year earlier and 58.8% in the second quarter.
Revenue for the first nine months reached $261.9 million, up 117%. Europe remained the largest market, contributing $164.6 million over that period, an increase of 138%. North American revenue rose 80% to $57.1 million. The company also reported growth in Israel and other markets without providing the same regional detail in the release.
NextVision said it has more than 300 customers worldwide, with 185 active during the first nine months. Customers outside its three largest accounts generated about $105 million over that period, including approximately $52 million in the third quarter. That gives a measure of business beyond the largest buyers, although the announcement does not name the customers or break down individual contracts.
Order backlog stood at $209.3 million on the release date, up 69% from $124 million a year earlier but below the $265.2 million reported with the second-quarter results. Backlog is work awaiting delivery rather than revenue already booked. Its movement therefore needs to be read alongside the company’s rising shipments.
Management attributed the decline from the earlier figure in part to higher delivery volumes and the timing of new orders it expects in the coming weeks. Those anticipated orders are not confirmed additions to the disclosed backlog. The release does not provide their values, customers or timing beyond that expectation.
Cash flow from operations reached $128.4 million in the first nine months, compared with $35.2 million a year earlier, despite an approximately $38.9 million increase in inventory. Third-quarter operating cash flow was $53.3 million. Inventory on the September 30 balance sheet stood at $92.4 million, reflecting the company’s effort to hold components as production expands.
The company said more efficient manufacturing and higher output per employee helped profitability even as raw-material and component costs rose. Gross margin was 66.7% in the quarter, up from 65.2% in the second quarter. Operating expenses increased more slowly than sales, reducing their share of revenue to 4.9% from 8.9% a year earlier.
NextVision is also establishing production capability and a subsidiary in Europe to serve customers that prefer local manufacturing. Chairman Chen Golan described plans to expand production to the United States as well. The announcement does not give the European line’s location, capacity or opening date, nor a timetable or investment budget for the U.S. plan.
The immediate business test is whether new orders and expanded manufacturing can sustain the pace of deliveries without eroding profitability. The reported quarter shows substantial growth; it does not settle the timing of future orders or the returns from production facilities still being developed. The company also described targeted acquisitions as part of its strategy, without announcing a specific deal in these results.
JBizNews Desk | Ra’anana, Israel
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