SOURCE: Lapis Technologies

November 14, 2011 16:20 ET

LAPIS TECHNOLOGIES, INC. Reports 2011 Third Quarter Results

80% Increase in Third Quarter Net Income on 24% Increase in Revenues

EMERSON, NJ--(Marketwire - Nov 14, 2011) - LAPIS TECHNOLOGIES, INC. (PINKSHEETS: LPST) today announced results for the third quarter and nine months ended September 30, 2011.

For the three months ended September 30, 2011 net sales increased by 24% to $2,973,000 compared to $2,402,000 in 2010; Gross margin increased to 38% compared to 35% in 2010 and net income increased 80% to $361,000 compared with $200,000 in 2010.

Commenting on the third quarter results, David Lucatz, President & Chief Executive Officer, stated, "I am encouraged by the positive trends in business operations and financial results since I became CEO in 2009. Lapis' third quarter results show substantial improvement over the third quarter of 2010 and a 20% growth in revenues over the second quarter of 2011. We are focusing on generating growth combined with profitability."

For the nine months ended September 30, 2011, net sales were $6,947,000 as compared to $7,517,000 in 2010, a 7.5% decrease. Gross margin slightly increased to 40% as compared to 39% in 2010 and net profit slightly increased to $863,000 compared to $854,000. Current assets grew to $12,140,000 from $8,794,000 at December 31, 2010.

Tali Dinar, CFO, commented: "Our recent results are in line with our strategy of financial strength and profitability. We have a stronger balance sheet and improved financial ratios that is setting the base for continuous growth."

Mr. Lucatz concluded, "The flow of recently awarded projects should help insure future growth and success. We are also proud to participate in strategic state of the art systems that are important for national security. These projects have the potential for significant purchase orders worldwide. Lapis combines high tech capabilities with battle-proven defense experience."

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About Lapis Technologies, Inc.

Lapis Technologies, Inc. (PINKSHEETS: LPST) was formed in 2002 and is focused on becoming a major force in the aerospace and defense industries. The company's wholly owned subsidiary Enertec Systems 2001 Ltd. (Enertec Systems) is an Israeli-based developer, manufacturer and provider of military and airborne systems, missiles command and control systems, simulators, automatic test equipment (ATE) and sophisticated power supplies, converters and other power conversion products. Lapis Technologies' operations are located in Israel and serve leading Israeli defense integrators in the market for both local Israeli and worldwide sales. Lapis Technologies is currently engaged in the formation of a new joint venture a leading Indian industrial group, for the formation of a manufacturing and marketing platform in India of products based on the Enertec Systems aerospace and defense technology and expertise. For more information online please visit:

Lapis Technologies, Inc. Forward-looking Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements often are preceded by words such as "believes," "expects," "may," "anticipates," "plans," "intends," "assumes," "will" or similar expressions. Such forward-looking statements are based on the current expectations and certain assumptions of Lapis Technologies' management, and are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond Lapis Technologies' control, affect Lapis Technologies' operations, performance, business strategy and results and could cause the actual results to differ materially from any future results, performance or achievements that may be expressed or implied by the forward-looking statements contained in this press release. More detailed information about the risk factors affecting Lapis Technologies' performance is contained in Lapis Technologies' filings with the U.S. Securities and Exchange Commission ("SEC"), which are available on the SEC's website, Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analyses only as of the date hereof. Lapis Technologies neither intends to, nor assumes any obligation to update or revise these forward-looking statements in light of developments that differ from those anticipated.

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