Israel's Elbit Vision Systems, which makes optical inspection and monitoring systems for the textile industry, said net sales for the first quarter of 2002, ended 31 March, were $1.9 million, versus $2.0 million in the same period in 2001.

Net loss for the first quarter was $0.3 million, or $0.03 per diluted share, versus net loss of $0.6 million, or $0.07 per diluted share, for the same period in 2001.

President and chief executive officer Ofer Yuval commented: " We see some encouraging recovery signs in our markets, and expect better market conditions later this year.

"EVS is focused on its main challenges of penetrating new markets, and developing future technologies and solutions for our customers."