ROSH PINA, ISRAEL — (Marketwired) — 08/06/15 — (NASDAQ: OTIV), a global provider of near field communication (NFC) and cashless payment solutions, reported financial results for the second quarter ended June 30, 2015.
Formed strategic partnership with Billing System Corporation to provide oti–s NFC payment solutions in Japan.
Integrated NFC readers with Android Pay to support retail mobile payment and customer loyalty programs.
Released CONNECT 3000, a new telemetry controller device that enables a range of machine-to-machine (M2M) communication methods and ability to bundle with any oti cashless payment reader.
OTI PetroSmart expanded EasyFuel implementations with strategic partner, Wayne Fueling Systems, into Africa, South America and Asia.
Total revenues increased 8% to $5.4 million from $5.0 million in the prior quarter, and decreased 25% from $7.2 million in the same year-ago period.
Gross profit increased 8% to $2.7 million (50% of revenue) from $2.5 million (50% of revenue) in the prior quarter, and decreased 18% from $3.3 million (46% of revenue) in the same year-ago period.
Operating expenses were $4.6 million, an increase of 7% from $4.3 million in the prior quarter, and decreased 13% from $5.3 million in the same year-ago period.
Net loss from continuing operations totaled $2.0 million, or $(0.05) per share, an improvement from a net loss from continuing operations of $2.1 million, or $(0.05) per share, in the prior quarter and an improvement from a net loss from continuing operations of $2.2 million, or $(0.07) per share, in the same year-ago period.
Adjusted EBITDA loss from continuing operations totaled $683,000, an improvement from adjusted EBITDA loss from continuing operations of $1.1 million in the prior quarter and $1.0 million in the same year-ago period (see discussion about the presentation of adjusted EBITDA from continuing operations, a non-GAAP financial measure, below).
At quarter-end, cash and cash equivalents and short-term investments totaled $14.4 million.
“The second quarter was in line with our expectations, with meaningful progress on our key corporate initiatives,” said Ofer Tziperman, the company–s outgoing CEO. “This included securing new strategic partnerships, driving sequential topline growth, and generating greater operating efficiencies to continue our march toward profitability. From a sales perspective, we continued to expand our key global partnerships and distribution channels, including securing two new channel partners.
“Earlier this week, our board appointed my successor, Shlomi Cohen, who will officially take effect on August 11th. Shlomi is a very talented and accomplished executive who has the right set of skills and experience to take oti to its next level of growth and development.”
Cohen commented: “I would like to thank Ofer, as well as the board of directors, for assisting in a seamless CEO transition. Working together, we have already established a number of strategies and initiatives that I plan to immediately implement or carry forward, which are designed to build upon the strong progress oti has made over the last few years.
“Our technologies have been widely accepted and proven in the field, and during his tenure, Ofer did a tremendous job restructuring and realigning the company–s operations to take advantage of its core strengths. So, now in the next stage of our development we plan to cost-effectively accelerate our growth by leveraging our well-established global partnerships and worldwide distribution channels, allowing us to further penetrate existing markets as well as enter new ones.
“Given the tremendous global market opportunity for NFC, which was greatly strengthened by the adoption of the wireless transaction technology by Apple and Google, oti–s patented and proven NFC technology is well positioned to generate long-term revenue growth and reach profitability. I–m looking forward to working with our customers, world-class partners, and our dedicated and talented employees to realize the potential of our NFC technology that has already delivered millions of secure transitions around world.”
oti management will hold a conference call on Monday, August 10, 2015 at 10:30 a.m. Eastern time to discuss these results.
Investors and analysts are encouraged to submit questions they would like the company to address on the call. Please submit your questions to by 5:00 p.m. Eastern time today, August 6, 2015.
Date: August 10, 2015
Time: 10:30 a.m. Eastern time (7:30 a.m. Pacific time)
Listen-only U.S. dial-in: 877-407-0784
Listen-only international dial-in: 201-689-8560
Webcast: Click
To listen to the call, dial the conference telephone number 10 minutes prior to start time. An operator will register your name and organization. If you have any difficulty connecting, please contact Liolios Group at 1-949-574-3860.
A replay of the call will be available after 1:00 p.m. Eastern time on the same day through September 10, 2015.
U.S. replay dial-in: 877-870-5176
International replay dial-in: 858-384-5517
Replay ID: 13616198
Webcast: Click
This press release contains certain non-GAAP measures, namely, adjusted EBITDA from continuing operations, or adjusted earnings from continuing operations before interest, income tax, depreciation and amortization. Adjusted EBITDA from continuing operations represents earnings before interest or financing expenses, income tax, depreciation and amortization, and further eliminates the effect of share-based compensation expense, patent litigation and maintenance expenses and other expenses. oti believes that adjusted EBITDA from continuing operations should be considered in evaluating the company–s operations since it provides a clearer indication of oti–s operating results. This measure should be considered in addition to results prepared in accordance with US GAAP, but should not be considered a substitute for the US GAAP results. The non-GAAP measures included in this press release have been reconciled to the US GAAP results in the tables below.
On Track Innovations Ltd. (oti) is a leader in contactless and NFC applications based on its extensive patent and IP portfolio. oti–s field-proven innovations have been deployed around the world to address NFC and other cashless payment solutions, petroleum payment and management, cashless parking fee collection systems and mass transit ticketing. oti markets and supports its solutions through a global network of regional offices and alliances. For more information, visit .
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Whenever words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions are used, the company is making forward-looking statements. Because such statements deal with future events and are based on oti–s current expectations, they are subject to various risks and uncertainties and actual results, performance or achievements of oti could differ materially from those described in or implied by the statements in this press release. Forward-looking statements could be impacted by the effects of the protracted evaluation and validation periods in the U.S. and other markets for contactless payment cards, as well as oti–s new and existing products and our ability to execute production on orders, as well as other risks and uncertainties, including those discussed in the “Risk Factors” section and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2014, and in subsequent filings with the Securities and Exchange Commission. Although the company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can provide no assurance that expectations will be achieved. Except as otherwise required by law, oti disclaims any intention or obligation to update or revise any forward-looking statements, which speak only as of the date hereof, whether as a result of new information, future events or circumstances or otherwise.
**Less than 0.01 per ordinary share
Scott Liolios or Matt Glover
Liolios Group, Inc.
949-574-3860
Inbar Ben-Hur
oti Marketing Communication Manager
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