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Wizcom Technologies Ltd.: Wizcom Releases Revenue Preview

October 27, 2011 - London

Wizcom Technologies Ltd. /Wizcom Technologies Ltd.: Wizcom Releases Revenue Preview. Processed and transmitted by Thomson Reuters ONE.The issuer is solely responsible for the content of this announcement.

  • Breach of Contract by Asian Supplier Has Impact on Growth
  • Revenue Increase in Areas with Newly Appointed Sales Managers
  • Investments in R&D for 2012 Product Launch to Continue

Rosh Ha'ayin, October 27th, 2011 - Wizcom Technologies Ltd. (Prime Standard: WZM, IL 0010830706) today provides an update to shareholders prior to the release of its Q3 results.

One of Wizcom's Asian distribution partners has failed to fulfill its obligation to purchase pre-set quota of the Company's products.Management therefore considers its partner in breach of contract.Due to the relative large size of this customer, the breach will have a negative impact on revenue growth.As aconsequence, Management expects Q3 revenues to be around US$ 1.4 million, compared to 1.3 million for Q2, with the impact carrying over into Q4.This would correspond to a growth rate of approx. 40% compared to previous year's first nine months.

Shimon Amouyal, CEO for Wizcom, stated, "This is a serious matter and we have already taken steps to remediate the situation.We are considering legal action against the distributor, and at present we are in the investigative phase to assess the potential merits of such an action.Restructuring and financing activities over the last two years have, however, created a stable financial position and the situation is therefore not threatening to the Company.However, this is a set-back for our turnaround roadmap and will delay us returning to profitability."

Wizcom has appointed a new regional sales manager, as announced previously, whose task it will be to select new non-exclusive distributors and drive sales in the region.The recent strengthening of the sales organizations in the UK, Russia and the US has had a positive impact, though as it is early days yet, the full impact of these appointments is yet to come through.

Another measure the Company is taking is the continuation of its cost control program. Certain changes in the organization will reduce operating costs, though investments in sales and R&D will continue.The Company is on track to meet its internal deadline of a major new product launch in 2012.

About Wizcom Group:

Wizcom Technologies Ltd. is the world's leading producer of personal, portable scanning pens that help people read and process text. These pocket-sized, user-friendly devices enable people to understand and use printed material, anytime and anywhere, without disrupting their reading process. Our pens help students of English as a first or second language, as well as people working in multilingual environments, enhancing their fluency and expediting reading comprehension.

For further information, please contact:

Wizcom Technologies Ltd.
Shimon Amouyal, CEO
13 Hamelacha St.
Rosh Ha'ayin, 48091, Israel

Tel +972-3-9103330

SCHWARZ Financial Communication
Frank Schwarz
Investor Relations
Tel +49-611-1745-398-11

Press Release as PDF

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Source: Wizcom Technologies Ltd. via Thomson Reuters ONE


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Wizcom Technologies Ltd.
13 Hamelacha St. Rosh Ha'ayin Israel

WKN: 915856;ISIN: IL0010830706;Index:Prime All Share,TECH All Share;
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