NetVision, the largest ISP in Israel, moved to $2 million in net profit in ’97.
NetVision lost $2 million in ’96. The profit stems from an increase in the number of subscribers, and NetVision’s passing breakeven point.
NetVision is consolidated in the financial reports of Elron which, until the beginning of ’98, held 50% of the shares. The other half of the shares is held by NetManage. In January ’98, the inclusion of cable company Tevel in NetVision was completed. Tevel invested $10 million in NetVision, and currently holds 35% of the company’s shares. Elron and NetManage each have 32.5%.
Elron closed ’97 with $26.7 million net profit. The profit comprises capital gains following Elbit Systems share issuance, which resulted in Elron’s dilution to 35% of Elbit shares; Elron’s share in Elbit Systems’ profits; capital gain from NetVision; realization of Orbotech shares; and capital gain from allocation of Arel Net shares to Nortel, of Canada.
At the end of ’97, Elron purchased a software division of a US company, through which it set up Elron Software in the US. Elron plans to integrate Elron Software with Israeli companies engaged in software and communications fields.
Published by Israel's Business Arena March 10, 1998