OTI Reports Third Quarter 2017 Financial Results
•November 8, 2017Comment
ROSH PINNA, Israel, Nov. 8, 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 third quarter ended September 30, 2017.
Q3 2017 Operational Highlights
First major delivery to 365 Retail Markets, our strategic MicroMarket partner in the U.S.
Received second batch purchase order of 2,000 cashless payment systems from the Japanese market
Received multiple purchase orders totaling 7,000 OTI advanced contactless readers in the ATM global market
Received a sizable purchase order for a rollout of our EasyFuelPlus solution in the Indian market
Financial Details
Revenues for the third quarter were $4.7 million, a decrease of 17% from Q3 last year. For the first 9 months of 2017, our revenues increased by 4% to $15.6 million from $15.0 million in the same year-ago period
Gross margin increased to 53% of revenue compared to 50% of revenue last quarter
Operating expenses decreased 12% to $2.9 million from $3.3 million in the prior quarter
Net income totaled $868,000 compared to net loss of $67,000 in the same year-ago period
Management Commentary - Shlomi Cohen (OTI CEO)
"The third quarter of 2017 marks a significant milestone in our plan to bring OTI to its full potential. Third quarter revenues were $4.7 million. This reflects the quarter to quarter lumpiness as we shift our customer base to purchasers of complete solutions. With this shift, we continue to grow the portion of our sales that derive from recurring revenues and to increase our gross margin."
"A major area of growth is in the ATM vertical, where we continue to increase sales and deployments and expect to reach an installment base of over 10,000 OTI advanced contactless readers in the ATM market globally by the end of 2017. This marks a significant landmark as we complete development and enhancement of our ATM-specific reader product, and we expect to see a ramp-up in ATM orders over the years to come."
"We are similarly optimistic about petroleum product sales through our PetroSmart subsidiary. As a result of long term efforts, we expect to see PetroSmart enter new strategic markets in the coming quarters and complete deliveries to new customers and markets."
"We can see the results of our hard work in our new verticals and markets as we look into our order pipeline for the year to come and continue to believe that we will be able to present a positive adjusted EBITDA in 2017."
Conference Call
OTI will hold a conference call on Wednesday, November 8th at 9:00 AM EST to discuss results for the third quarter of 2017.
OTI CEO Shlomi Cohen and CFO Yishay Curelaru will host the presentation, followed by a question and answer period.
