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OTI Reports First Half 2012 Financial Results

Stocks in this article: OTIV

ROSH PINA, Israel, Aug. 30, 2012 (GLOBE NEWSWIRE) -- On Track Innovations Ltd. ("OTI") (Nasdaq:OTIV), a global leader in contactless technology that designs, develops and markets secure identification, payment and transaction processing technologies and solutions for use in secure ID, NFC, payment, petroleum and loyalty applications based on its extensive patent and IP portfolio, today announced its results for the three and six month periods ended June 30, 2012.

Financial Highlights for the Six Months Period Ended June 30, 2012:

  • Total revenues decreased by 24% to $20.3 million from $26.7 million for the first half of 2011
  • Gross margin was 50%, the same as the first half of 2011
  • Operating expenses decreased by 2% to $15.2 million from $15.5 million for the first half of 2011
  • Net loss attributable to shareholders was $5.7 million, from $2.3 million last year
  • Adjusted EBITDA loss of $3.6 million from a profit of $43,000 for the first half of 2011
  • Net cash provided by continuing operating activities was $46,000 compared to net cash used by continuing operating activities of $4.0 million in the first half of 2011
  • Cash, cash equivalents and short-term investments of $22.1 million as of June 30, 2012

Operational Highlights:

  • OTI's IP Portfolio further strengthened by the addition of new U.S. patents issued pertaining to Contactless Payments and NFC related to: — Adding contactless payment and NFC capabilities to existing mobile handsets via the connection of a device to a phone's existing SIM card — Supporting multiple applications and/or payment mechanisms on a single contactless device and operating system
  • Order received for 17,000 NFC and Contactless Payment Readers: — To be deployed in Europe. Follows order of 30,000 readers in Q1
  • EasyPark Launches 'EasyPark Private' in Israel: — Expected to broaden the EasyPark customer base and create a new source of recurring revenue
  • OTI and Wright Express sign a strategic cooperation agreement: — Five year agreement with Wright Express appoints OTI as the exclusive reseller in South Africa of Wright Express' Quantum+ solution

Oded Bashan, Chairman and CEO of OTI, commented: "We are disappointed with the results for the first half of the year. We have made progress implementing our long-term growth strategy in the U.S., Europe and Africa. This progress has been impacted in the short-term by factors outside of management's control, however, the negative impact of these events is expected to be partially offset by our insurance coverage for the business. Overall, we believe the company is moving in the right direction to deliver on our business objectives and successfully build market share for each of our technologies as well as enforce the patents for our NFC technology."

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