OTI Reports Second Quarter 2017 Financial Results
PR Newswire PR NewswireAugust 9, 2017
- Revenues increase 73% compared to prior quarter and 44% compared to same year-ago period
- Gross profit increase 56% quarter-over-quarter and 42% compared to year ago period
- Company reports net profit and improved adjusted EBITDA
- Entered strategic partnership with 365 Retail Markets to serve MicroMarket in the U.S.
ROSH PINNA, Israel, Aug. 9, 2017 /PRNewswire/ -- On Track Innovations Ltd. (OTI) (OTIV), a global provider of near field communication (NFC) and cashless payment solutions, reported financial results for the second quarter ended June 30, 2017.
Q2 2017 Operational Highlights
Delivered first batch of 3,000 payment systems to the Japanese market.
Signed global supply agreement with Dover Fueling Solutions, facilitating entry into North American fueling market
Announced with Apriva the launch of a semi-integrated solution for unattended market
Q2 2017 Financial Details
Total quarterly revenue increased to $6.9 million, a 73% increase from $4.0 million in the prior quarter and a 44% increase from $4.8 million in the same year-ago period.
Gross profit increased to $3.5 million (50% of revenues), a 56% increase over $2.2 million (55% of revenues) in the prior quarter and an increase of 42% over $2.5 million (51% of revenues) in the same year-ago period.
Net income from continuing operations totaled $86,000 or $0.002 per share, an improvement from a net loss from continuing operations of $782,000 or $(0.02) per share in the prior quarter and an improvement from a net loss from continuing operations of $598,000 or $(0.02) per share in the same year-ago period.
Adjusted EBITDA income from continuing operations improved to $536,000, an improvement from a loss of $309,000 in the prior quarter and an improvement from a loss of $133,000 in the same year-ago period (see discussion about the presentation of adjusted EBITDA from continuing operations, a non-GAAP financial measure, below).
Management Commentary - Shlomi Cohen (OTI CEO)
"The second quarter of 2017 marks a significant milestone in our plan to bring OTI to its full potential. We are pleased to report quarterly revenues of more than $6.9 million dollars and quarterly positive adjusted EBITDA income of more than $500,000. This represents not only the highest quarterly revenue level since we started our overhaul of OTI's operations two years ago, but also the highest quarterly revenue achieved since the second quarter of 2014."
"Our achievements for the second quarter of 2017 result from significant growth in both our retail segment and petroleum segment. In our retail segment, we saw increased sales and the delivery of new products into new and expanding markets and verticals together with outstanding achievement to recover in very short time on lost accounts. In the US market alone we saw a growth of 200% in our reader sales compared to the prior quarter. In our PetroSmart division, we saw during the second quarter of 2017 a revenue growth of more than 100% compared to the first quarter, resulting from long-term efforts to grow existing and new opportunities. In total the second quarter of 2017 presented an increase in revenues of more than 70% compared to the prior quarter and more than 40% compared to the second quarter of 2016 together with positive adjusted EBITDA."
"We followed our plans, executed our strategy, and delivered the expected results. For the long term, I strongly believe that we will continue to see growth within our different verticals and present a positive adjusted EBITDA in 2017."
