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Healthcare Technologies Reports Loss for 2007 Second Quarter & Six Months Results
Date:8/19/2007

PETACH-TIKVA, Israel, August 16 /PRNewswire-FirstCall/ -- Healthcare Technologies Ltd. (NASDAQ: HCTL), today announced unaudited results for the second quarter and six months period ended June 30, 2007.

Revenues for the first six months of 2007 were $7.75 million, compared to $7.05 million for the first six months of 2006. The gross profit for the first half of the year was $2.43 million versus $2.57 million for the same period in 2006. The net loss for such period was $(319) thousand, versus a net profit of $523 thousand for the first half of 2006.

Revenues for the second quarter of 2007 were $3.67 million, as compared to $3.46 million for the corresponding quarter last year. The second quarter gross profit was $1.08 million, as compared to $1.18 million in the second quarter of 2006. The net loss for the second quarter was $(432) thousand, compared to a net profit of $171 thousand for the second quarter of last year. Healthcare's loss in Q2 2007 is mainly due to the following: (i) a decrease of approximately $300 thousand in sales to the clinical diagnostics market vs. the first quarter; (ii) financial expenses relating to the depreciation of the NIS versus the US dollar; and (iii) one time legal settlement expenses amounting to approximately $155 thousand. The net loss was decreased by the creation of deferred tax income amounting to $119 thousand, which was recorded by the company.

Shareholders' equity on June 30, 2007 was $6.9 million, compared to $7.3 million on December 31, 2006. Current assets net of current liabilities at the end of the period were $1.5 million, compared to $2.6 million on December 31, 2006.

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