On Track Innovations Ltd. (OTIV)

[midastouch017]

On Track Posts Wider 3Q Loss
Monday November 28, 9:38 am ET
On Track Innovations Posts Bigger Third-Quarter Loss on Higher Expenses


FORT LEE, N.J. (AP) -- On Track Innovations Ltd., an Israeli maker of microprocessor-based smart cards used in contactless electronic card systems, reported Monday a wider fiscal third-quarter loss, as its cost of revenue and operating expenses outstripped higher sales.

For the quarter ended Sept. 30, On Track reported a loss of $2.1 million, or 23 cents per share, versus a prior-year loss of $1.2 million, or 15 cents per share. Revenue more than doubled to $12.1 million from $5.5 million in the year-ago period.

Wall Street had forecast a 20 cent loss, the average of four analysts surveyed by Thomson Financial, on sales of $8.4 million.

Total operating expenses more than doubled to $7.3 million from $3.7 million.

Contactless cards need to be brought within range of an antenna on a card reading device to be used, rather than being swiped through a reading system like a credit card.

Looking ahead, the company forecast improved gross margins, driven by acquisitions in China that are expected to increase manufacturing capacity by next year's second half.

On Track also said it received approval for its application to delist its shares from the Frankfurt Stock Exchange. The shares will last trade on the Frankfurt exchange on Dec. 20, after which they will only trade on the Nasdaq.

The company's shares fell 20 cents to $13.60 in morning trading on the Nasdaq.

http://biz.yahoo.com/ap/051128/earns_on_track_innovations.html?.v=1

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