MIRA
INFORM REPORT
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Report Date : |
03.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
COMSYS
COMMUNICATION & SIGNAL PROCESSING
LTD. |
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Registered Office : |
P.O. Box 12675, Herzliya, 9 Hamenofim Street, Herzliya Pituach Industrial
Zone, Herzlia 46725 |
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Country : |
Israel |
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Date of Incorporation : |
04.09.1994. |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Developers, manufacturers, exporters and
marketers of digital baseband processors for the wireless telecommunications area,
offering wireless IP baseband solutions for 2.5G, 3G and 4G wireless
communications, focusing Cellular/Mobile WiMAX convergence. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
COMSYS COMMUNICATION
& SIGNAL PROCESSING LTD.
(Also known as: COMSYS MOBILE)
Telephone 972
9 971 78 88
Fax 972
9 971 18 87
P.O. Box 12675, Herzliya
9 Hamenofim Street
Herzliya Pituach
Industrial Zone
HERZLIA 46725 ISRAEL
HISTORY
A private limited
company, incorporated as per file No. 51-202036-3 on the 04.09.1994.
In 1997, while
headed by Dr. Giora Yaron (still involved in subject –see below), subject
sold for several tens of US$ millions its PC wireline software-based modems Division
to the American communications giant ROCKWELL (later a spin-off took place and CONEXANT SYSTEMS,
a current investor in subject, emerged).
SHARE
CAPITAL
Authorized share capital NIS 422,000.00, divided into –
20,000,000 ordinary shares,
3,500,000 ordinary "A"
shares,
4,000,000 senior "A"
shares,
600,000 senior "A 1"
shares,
3,000,000 senior "A 2"
shares,
4,900,000 senior "A 1 B"
shares,
2,600,000 senior "B"
shares,
3,600,000 senior "C"
shares, all of NIS 0.01 each,
of which shares amounting to NIS 174,882.41 were
issued.
SHAREHOLDERS
Subject is owned by corporate, individuals and
venture capital funds, including:
1. PITANGO VENTURES CAPITAL LP (Fund II), a local venture capital fund,
2 GENESIS PARTNERS,
a local venture capital fund,
3. KOOR VENTURES CAPITAL FUND, a local venture capital fund of the KOOR
INDUSTRIES Group (part of the I.D.B. Concern, controlled by Nochi Dankner),
4. MICRO-DENT LTD., a local
venture capital firm controlled by Eitan Wertheimer, part of the ISCAR Group,
5. RAMATON HOLDINGS LTD.,
6. SHREM FUDIM GROUP LTD., a
local investment firm, a public limited company, whose shares are traded on the
Tel Aviv Stock Exchange, controlled by Itzhak Shrem and Yair Fudim,
7. CONEXANT SYSTEMS INC., of the
U.S.A., a public limited company, whose shares are traded on the Nasdaq Stock
Exchange,
8. A.Z.A.D. HOLLAND LTD., a
foreign company,
9. Eliyahu Hai Plotnik,
10. Dr. Giora Yaron,
11. Jean Klinhendler,
12. Ms. Ofra Meir,
13. Ofir Vardi,
14. Amir Gavrieli.
We are informed that
the first 4 shareholding firms are the main shareholders.
DIRECTORS
1. Rami Kalish, Chairman (of the PITANGO VC),
2. Elkana Ben-Sinai, General Manager,
3. Eliyahu Hai Plotnik, one of subject's
founders,
4. Dr. Giora Yaron,
5. Ronni Cohen, one of subject's founders,
6. Dan Goldman (of MICRO-DENT).
BUSINESS
Developers, manufacturers, exporters and
marketers of digital baseband processors for the wireless telecommunications area,
offering wireless IP baseband solutions for 2.5G, 3G and 4G wireless
communications, focusing Cellular/Mobile WiMAX convergence.
Subject also offers advanced baseband IP solutions designed for
efficient integration into any type of cellular handset, chip, or base-station
system.
100% of sales are
for export.
Designing activities
are in Israel, while manufacturing is carried out abroad.
Among customers are international wireless chip, handset and
base-station equipment manufacturers, such as TEXAS INSTRUMENTS (U.SA.), QUANTA
COMPUTERS (Taiwan), DATANG MICROELECTRONICS (China)
Operating from
rented premises (offices and development facilities), on an area of 1,800 sq.
meters, in 9 Hamenofim Street, Herzliya Pituach Industrial Zone, Herzliya.
Having 90 employees.
MEANS
Subject holds no stocks.
Up to 2001, according to reports, subject
raised capital from its VC Funds investors in sum of US$ 17 million.
Subject is entitled for financial assistance
from the Chief Scientist Office (CSO) at the Ministry of Industry & Trade.
In April 2008, the CSO approved a R&D project for subject in budget of NIS
18 million, of which NIS 7.2 million is a State grant.
In March 2006, it
was reported that subject plans to raise US$ 6 -12 million in return for its
shares. The data was exposed in the framework of a legal procedure handled in
the Tel Aviv District Court regarding shares allocations. It was also reported
that its assets as of 2005 summed up to US$ 4 million and total liabilities
were US$ 3.5 million.
There are 3 charges for unlimited amounts
registered on the company's assets, in favor of Mercantile Discount Bank Ltd.
(for financial assets), a leasing company (for computer
equipment) and MICRO-DENT LTD (a current shareholder).
ANNUAL SALES
2005 sales reported
to be US$ 9,000,000, all for export.
2006 sales reported
to be US$ 9,000,000, all for export.
2007 sales reported
to be US$ 26,000,000, all for export.
We are informed that
2007 sales were much higher thanks to a one-time major deal.
2008 figures still
not available, however subject's CFO informed us that sales are expected to
return to the normal scales of the previous years.
OTHER
COMPANIES
PITANGO VENTURE
CAPITAL, a local venture capital fund, which has holdings and invests in
numerous start ups and hi-tech companies in the IT, electronics and life
science industries at different stages.
GENESIS PARTNERS, established in 1996, an Israeli venture capital firm
focused on early stage companies in the information and communication
technology (ICT) sectors. Manages over US$500 million in capital commitments
across three funds, and has made over 70 investments with 21 successful exits.
MICRODENT LTD., a
local venture capital firm led by Eitan Wertheimer, president of ISCAR Group,
invests in high-tech companies.
KOOR INDUSTRIES LTD., parent company of the KOOR VC Fund, investment and
holdings, current market value US$ 1,044 million.
BANKERS
Mizrahi Tefahot Bank Ltd., El Al House
Branch (No. 407), Tel Aviv.
CHARACTER
AND REPUTATION
Nothing unfavorable learned.
In May 2007, subject "ComMAX" processor has been awarded the
title of 'Best WIMAX Product or Service' at Wireless Broadband Innovation
Awards ceremony in London.
Subject's
shareholding venture capital funds PITANGO and GENESIS, are leading funds in
the local market.
PITNGO VENTURE CAPITAL FUND is Israel's
largest venture capital fund, manages funds in excess of US$ 1 billion. PITANGO's various funds have invested in more than 110 high-tech ventures
and have a proven track record for building successful businesses. Twenty of
their portfolio companies have been acquired or are publicly traded in the
United States and Europe.
Both KOOR Group
and SHREM FUDIM Group are well known holdings and investment firms, both public
limited companies, whose shares are traded on the Tel Aviv Stock Exchange.
KOOR is a subsidiary of the IDB concern, one of
the largest and most influential groups in Israel.
The ISCAR Group is
a world's leading manufacturer in the cutting tools field.
In July 2006, BERKSHIRE HATHAWAY, the
American investment company headed by investments guru Warren Buffett,
completed the acquisition of 80% of ISCAR, for a sum of US$ 4 billion.
Subject's director Dr. Giora Yaron, has a vast experience in hi-tech
start-ups industry and in which he also been investing. He also has seen hefty
rewards when companies he was involved in were sold: PENTCOM and P-CUBE, both
were sold to CISCO for US$ 118 million and US$ 200 million respectively.
Dr. Yaron, as the chairmen of MERCURY INTERACTIVE, has led this software
company to be sold to HP in July 2006 HP and of Israel (IT management software
and services company) announced a deal according to which will acquire MERCURY
in consideration of US$ 4.5 billion in cash.
According to the Israel Association of Electronics & Software, 2006
sales of the IT and electronics industries amounted to US$ 18.7 billion, of
which US$16 billion were for export, which is half of Israel's industrial
export.
In comparison, 2005 sales were US$16.6 billion (a 6% increase from
2004), whereas exports in 2005 were US 14.2 billion (a 6% increase from 2004).
The division of sales whithin the branches is approximately as follows:
circa 24% Software, 23% Communications and Telecom (inclusive military), around
18% Industrial Equipment, over 13% Defense Systems, over 13% Components and
close to 9% Medical Systems.
There are some 60,000 employees serving in the IT and Electronics
sectors directly.
SUMMARY
Good for trade engagements.
Maximum unsecured
credit recommended US$ 500,000.
NOTE
Subject has no
relation to the address you provided in 32 Ben Yehuda Street, Tel Aviv. The
telephone number provided (972-2-6201485) is disconnected.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.43.30 |
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UK Pound |
1 |
Rs.86.13 |
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Euro |
1 |
Rs.68.72 |
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)