Retalix 2nd-quarter loss narrows

Retalix Ltd., an Israeli software maker for food retailers and distributors, said Tuesday its second-quarter loss narrowed, helped by an increase in product revenue.

For the three months ended June 30, the company reported a loss of $1.8 million, or 9 cents per share, compared with a loss of $2.9 million, or 15 cents per share, the year-ago period.

Results include a one-time charge of $700,000 due to transaction costs for two failed acquisitions.

Excluding the one-time charge, the company reported adjusted earnings of $600,000, or 3 cents per share, compared with an adjusted loss of $1.4 million, or 7 cents per share, in the second quarter of 2006.

Revenue for the quarter increased 21 percent to $55.4 million from $45.9 million the same period in 2006. This was helped by a 34 percent increase in product revenue to $20.2 million from $15.1 million in the second quarter last year.

Retalix shares dropped $2.76, or 14.8 percent, to hit $15.84 in afternoon trading. Shares have traded between $14.78 and $23.80 in the past 12 months.

On Tuesday, the company also named Avinoam Bloch its chief operating officer, effective immediately.

Bloch, 50, joined Retalix in 1985 as a programmer. Later, he helped establish Retalix's business and operations for the convenience stores segment in the United States, managed the company's operations in the Israeli market and served as executive vice president of product development.

Most recently, he served as executive vice president and chief operating officer of the international business unit.

Bloch will maintain his current responsibilities as COO of the international business unit.