* Earnings up 10-20 pct annually in next few years
* Sees 20 pct of business from digital printing in 5 years
* Integrating its technology on HP digital presses
By Tova Cohen
HOD HASHARON, Israel, Jan 30 Israel's Advanced
Vision Technology (AVT) sees earnings rising up to 20
percent annually in the coming years as label and packaging
printers increasingly turn to its quality control systems to cut
waste and production costs.
AVT, whose optical inspection systems replace the human eye
in inspecting packaging and labels, said sales are expected to
grow up to 15 percent in the next few years, excluding any
acquisitions. AVT is the industry leader, with a 40 percent
share of the labels and packaging inspection market.
Its competitors in packaging include Isra Vision, BST and
Eltromat, of Germany, while in labels it competes with BST and
PC Industries of the United States, among others.
"We dramatically decrease or void completely waste that
would have been created, or worse, that wouldn't have been
noticed and gone to the customer," its chief executive, Shlomo
Amir, told Reuters in an interview. "This dramatically decreases
Before these systems were available, a typical printing
press would waste 15 percent of its production. AVT's systems
can cut this to below 5 percent.
The majority of its customers are printers in the label and
packaging industry, although 10-15 percent of its clients are
printing press manufacturers, a business that is growing slowly
but steadily for AVT.
A small but growing market for AVT is digital printing. It
is a partner of HP's Indigo division and is integrating
its technology on HP Indigo's presses.
HP Indigo has 70 percent of the digital press market for
labels and Amir expects the U.S. printing company to retain its
"The ability to provide real time feedback and correction on
a digital press is greater than on a conventional one," Amir
said, noting digital presses have recently started to enter the
labels market and will soon penetrate packaging.
While digital printing accounts for only a fraction of AVT's
business, Amir expects it to reach 20 percent in five years.
AVT, whose shares trade in Frankfurt, had revenue of $35.4
million and net profit of $2.9 million in the first nine months
of 2012. It has forecast full year revenue of $49-$50 million
and earnings of $4-$4.5 million.