-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GnjGGeWZJ334/IOqKe9X3FffRYVvB5QNQxhpGdGEr8K5nDyI10LyVeeFk7PEw8M2 LoK7AS6IOIgFJ7ycGJAyLA== 0001178913-10-002776.txt : 20101026 0001178913-10-002776.hdr.sgml : 20101026 20101026085622 ACCESSION NUMBER: 0001178913-10-002776 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20101026 FILED AS OF DATE: 20101026 DATE AS OF CHANGE: 20101026 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Vuance Ltd CENTRAL INDEX KEY: 0001291855 STANDARD INDUSTRIAL CLASSIFICATION: SEMICONDUCTORS & RELATED DEVICES [3674] IRS NUMBER: 000000000 STATE OF INCORPORATION: L3 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-33668 FILM NUMBER: 101141003 BUSINESS ADDRESS: STREET 1: PO BOX 5039 CITY: QADIMA STATE: L3 ZIP: 60920 BUSINESS PHONE: 972-9-889-0800 MAIL ADDRESS: STREET 1: PO BOX 5039 CITY: QADIMA STATE: L3 ZIP: 60920 FORMER COMPANY: FORMER CONFORMED NAME: Vuance DATE OF NAME CHANGE: 20070508 FORMER COMPANY: FORMER CONFORMED NAME: SuperCom Ltd. DATE OF NAME CHANGE: 20040526 6-K 1 zk1008931.htm 6-K zk1008931.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
 
 
FORM 6-K
 
 
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
 
For the month of October, 2010
 
 
VUANCE LTD.
(Translation of registrant’s name into English)
 
 
Sagid House “Hasharon Industrial Park”
P.O. Box 5039
Qadima 60920, ISRAEL
(Address of principal executive office)
 
 
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
 
Form 20-F  x    Form 40-F  ¨
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ¨
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ¨
 
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.  
 
Yes  ¨    No  x
 
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-             
 
 
 
 
 
 
 

Second Quarter 2010 Results

Vuance Ltd. (the “Company”), a leading provider of Radio Frequency Verification Solutions, including active radio frequency identification equipment (“Active RFID”), completed its unaudited condensed financial statements for the second quarter period ending June 30, 2010.

As reported in the Company’s Annual Report on Form 20-F, filed with the Securities and Exchange Commission on July 23, 2010, during the quarter ended March 31, 2010, the Company and its wholly-owned subsidiary, Vuance, Inc., completed the sale of certain assets and liabilities related to the Company’s electronic access control market and Government Services Division, which included its Critical Situation Management System and Credentialing suites.  Following the divestiture, the Company has focused its sales and marketing efforts on its core competencies, which include Active RFID technology and its PureRFid Suite, and on servicing existing projects, such as the agreement with a European country to provide an end-to-end system for a national multi-ID issuing and control system.

As of September 2010, the Company has not been in compliance with that certain convertible bond in the amount of $2,500,000.00, issued on November 16, 2006, as amended from time to time thereafter.

Second Quarter 2010 Selected Unaudited Financial Results

Revenues from continuing operations for the quarter ended June 30, 2010 decreased 13% to $1.9 million compared to $2.2 million in the year-ago second quarter. The second quarter revenues from continuing operations increased compared sequentially to the $1.3 million reported for the first quarter of 2010. The year-over-year decrease was largely driven by a decrease in revenues from the European International Airport Project, which were fully recognized through December 31, 2009 and from decrease in revenues from the European country. The quarter-over-quarter increase was due to an increase in revenues from the European country.

Gross profit from continuing operations decreased 2% to $1.44 million for the second quarter compared to $1.46 million for the prior-year second quarter. Gross profit margin for the quarter was 75% compared to 66% in the second quarter of 2009, and compared sequentially to 71% in the first quarter. The changes in gross profit margins attributed to changes in the Company’s mix of revenues.

Total operating expenses from continuing operations for the second quarter of 2010 were $1.8 million, compared to $1.4 million for the first quarter of 2010 and compared to $1.9 million for the second quarter of 2009. The quarter-over-quarter increase was mainly due to an increase in sales and marketing expenses associated with the increase  in revenues.

The Company reported an operating loss from continuing operations for the second quarter of $407,000 compared sequentially to an operating loss from continuing operations of $519,000 for the first quarter of 2010 and compared to an operating loss from continuing operations of $439,000 in the year-ago second quarter.

The net loss from continuing operations for the second quarter was $552,000, or $0.10 per basic and diluted share (based on 5.7 million weighted average shares) compared to a net loss from continuing operations of  $575,000, or $0.10 per basic and diluted share (based on 5.5 million shares) in the year-ago second quarter. Sequentially, the $552,000 net loss from continuing operations for the second quarter of 2010 compares to a net loss from continuing operations of $679,000, or $0.12 per basic and diluted share, for the three months ended March 31, 2010 (based on 5.7 million weighted average shares).

The Company's unaudited condensed financial statements have been prepared on a going concern basis, which presumes the realization of assets and the settlement of liabilities in the normal course of operations.  The application of the going concern basis is dependent upon the Company having sufficient available cash resources and achieving profitable operations to generate sufficient cash flows to fund continued operations.  Should the Company fail to generate sufficient cash flows from operations, it will require additional financing to remain a going concern.  The reported unaudited condensed financial statements are in accordance with generally accepted accounting principles, or GAAP.
 
 
 
 
 
 
  VUANCE LTD.  
  CONDENSED CONSOLIDATED BALANCE SHEETS  
  AT JUNE 30, 2010  
                   
   
Jun-30
    
Dec-31
  
   
2010
    
2009
    
2009
  
   
Unaudited
    
Audited
  
   
U.S. dollars in thousands
  
ASSETS
                  
                   
CURRENT ASSETS:
                  
   Cash and cash equivalents
     229       106       656  
   Restricted cash deposits
     130       988       330  
   Trade receivables, net
     891       1,441       857  
   Other accounts receivable and prepaid expenses
     220       363       315  
   Inventories, net
     157       905       82  
  Assets attributed to discontinued operations
     -       -       1,996  
Total current assets
     1,627       3,803       4,236  
                         
SEVERANCE PAY FUND
     299       253       283  
                         
PROPERTY AND EQUIPMENT, NET
     133       199       157  
                         
OTHER ASSETS:
                        
   Goodwill
     -       685       -  
   Intangible assets and deferred charges, net
     -       1,268       6  
Total other assets
     -       1,953       6  
                         
Total assets
     2,059       6,208       4,682  
 
 
 
 
 
 
VUANCE LTD.  
CONDENSED CONSOLIDATED BALANCE SHEETS  
AT JUNE 30, 2010  
                   
   
Jun-30
    
Dec-31
  
   
2010
    
2009
    
2009
  
   
Unaudited
    
Audited
  
   
U.S. dollars in thousands
  
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
              
                   
CURRENT LIABILITIES:
                  
   Short-term bank credit
     -       572       -  
   Trade payables
     820       1,301       982  
   Employees and payroll accruals
     183       275       462  
   Accrued expenses and other liabilities
     3,392       2,386       2,859  
   Convertible bonds
     715       820       430  
   Liabilities attributed to discontinued operations
     -       -       1,599  
Total current liabilities
     5,110       5,354       6,332  
                         
LONG-TERM LIABILITIES:
                        
    Convertible bonds
     2,316       2,304       2,624  
    Long-term loan and others
     1,961       1,425       1,693  
    Accrued severance pay
     325       296       304  
Total long-term liabilities
     4,602       4,025       4,621  
                         
SHAREHOLDERS' EQUITY (DEFICIT):
                        
   Ordinary shares
     89       87       89  
   Additional paid-in capital
     41,035       40,795       41,019  
   Accumulated deficit
     (48,777 )     (44,053 )     (47,379 )
Total shareholders' equity (deficit)
     (7,653 )     (3,171 )     (6,271 )
                         
Total liabilities and shareholders' equity (deficit)
     2,059       6,208       4,682  
 
 
 
 
 
 
 
VUANCE LTD.  
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  
FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2010  
                               
   
6 months ended
    
3 months ended
    
year ended
  
   
Jun-30
    
Jun-30
    
Dec-31
  
   
2010
    
2009
    
2010
    
2009
    
2009
  
   
Unaudited
    
Unaudited
    
Audited
  
   
U.S. dollars in thousands, except share data
  
                               
REVENUES
     3,215       5,152       1,922       2,218       9,304  
COST OF REVENUES
     853       2,070       479       753       3,365  
                                         
GROSS PROFIT
     2,362       3,082       1,443       1,465       5,939  
                                         
OPERATING EXPENSES:
                                        
   Research and development
     216       435       81       225       898  
   Selling and marketing
     2,016       2,700       1,211       1,171       5,131  
   General and administrative
     1,056       787       558       508       1,778  
Total operating expenses
     3,288       3,922       1,850       1,904       7,807  
                                         
OPERATING LOSS
     (926 )     (840 )     (407 )     (439 )     (1,868 )
                                         
FINANCIAL EXPENSES, NET
     (281 )     (229 )     (132 )     (128 )     (620 )
                                         
LOSS BEFORE TAXES ON INCOME
     (1,207 )     (1,069 )     (539 )     (567 )     (2,488 )
                                         
TAXES ON INCOME
     (24 )     (14 )     (13 )     (8 )     (71 )
NET LOSS FROM CONTINUING OPERATIONS
     (1,231 )     (1,083 )     (552 )     (575 )     (2,559 )
LOSS FROM DISCONTINUED OPERATIONS
     (167 )     (676 )     12       (244 )     (2,526 )
                                         
NET LOSS FOR THE PERIOD
     (1,398 )     (1,759 )     (540 )     (819 )     (5,085 )
                                         
                                         
LOSS PER SHARE BASIC AND DILUTED:
                                        
   Loss from continuing operations
     (0.22 )     (0.20 )     (0.10 )     (0.10 )     (0.46 )
   Loss from discontinued operations
     (0.03 )     (0.13 )     -       (0.08 )     (0.46 )
Net loss per share
     (0.25 )     (0.33 )     (0.10 )     (0.18 )     (0.92 )
                                         
Weighted average number of ordinary shares used in computing basic and diluted loss per share
     5,724,421       5,386,092       5,724,421       5,495,539       5,511,948  
 
 
 
 
 
 
 
 
Signatures
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
Vuance Ltd.
(formerly, SuperCom Ltd.)
     
 
By:  
/s/ Ron Peer                                     
 
Name: Ron Peer
 
Title: Chief Executive Officer

Date: October 22, 2010­­­­
 
 
 
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