Mivtach Shamir Finance (TASE:MVTF), a subsidiary of Mivtach Shamir Holdings (TASE:MISH), reports another quarter in the red.

This time Mivtach Shamir Finance MSF - lost NIS 12.9 million, 8% less than in the parallel quarter of last year.

The loss derived from writing down the company's investment in Gilat Satellite Networks (Nasdaq:GILTF) bonds by NIS 14.6 million.

MSF holds 16.5 million Gilat bonds, which had been recorded at NIS 54 million. But their current market value is a mere NIS 10.8 million. Their valuation was accordingly lowered in MSF's books by NIS 39.3 million, reflecting a value of 50 cents per bond.

That holding aside, MSF also holds shares in Scitex Corporation (Nasdaq:SCIX), which are recorded at a value of NIS 49.1 million, after being written down by tens of millions of shekels last year. The market value of this stake is NIS 19 million, meaning, NIS 30 million less than its book value.

MSF's losses have shrunk its equity to NIS 20.9 million, compared with NIS 84.2 million at the end of the second quarter of last year. At the end of 2001, MSF's shareholders equity stood at NIS 34 million.

Parent company reports growing net

The parent company, Mivtach Shamir Holdings, today reported netting a million shekel, compared with losing NIS 7.1 million in the parallel quarter of 2001. For the first half, Mivtach Shamir Holdings netted NIS 6 million, about 15% more than achieved in the comparable half-year of 2001.

Revenues of Mivtach Shamir Holdings grew 53% compared with the parallel to NIS 16.6 million, bringing its half-year revenues to NIS 26.2 million, about double its achievement in the parallel half.

Chairman Meir Shamir commented that the improved net of the parent company was influenced by better results of affiliated companies, chiefly Lipman Electronic Engineering (TASE:LPMA), Alony Hetz (TASE:ALHE) and the Atudot pension fund.