OTI Reports First Nine Months 2011 Financial Results
Revenues were $35.2M with Gross Margin of 49%
Strong Balance Sheet with $30.8M in Cash, Cash Equivalents and Short Term Investments
Strong Balance Sheet with $30.8M in Cash, Cash Equivalents and Short Term Investments
On Track Innovations Ltd. ("OTI") (Nasdaq:OTIV) designs, develops and markets secure identification, payment and transaction processing technologies and solutions for use in secure ID, payment and loyalty applications based on its extensive patent and IP portfolio, today announced results for the third quarter and first nine months ended September 30, 2011.
The following are various financial figures that compare first nine months of 2011 to the same period last year.
The following are various financial figures that compare first nine months of 2011 to the same period last year.
First Nine Months 2011 Highlights:
Total revenues of $35.2M decreased 19% vs. $43.6M last year.Revenues from Licensing and Transaction Fees increased by 42% to $4.0M vs. $2.8M last year.
Gross margin was 49% for the first nine months of 2011.
Non-GAAP operating expenses increased by 17% to $22.2M compared to $19.0M last year. GAAP operating expenses increased by 9% to $24.2M vs. $22.2M last year.
Non-GAAP operating loss was $5.0M, compared to non-GAAP operating profit of $4.6M last year. GAAP operating loss was $7.0M, compared to GAAP operating profit of $1.4M last year.
GAAP net loss attributable to shareholders was $7.4M, compared to $2.0M last year.
Strong balance sheet with cash, cash equivalents and short-term investments of $30.8M at September 30, 2011.
Oded Bashan, Chairman and Chief Executive Officer of OTI, commented, "Our nine months revenues were lower than expected as a result of a weaker than expected third quarter. However, we are experiencing higher revenues in Q4 which right now looks to be our strongest quarter of the year. In addition, the shift in timing of certain contracts, although will reduce this year numbers, will further increase our visibility for 2012.
"Our second half results are being impacted by the flooding in Thailand which has affected our ability to deliver products to certain customers. The delays are due both to the direct impact at the Thailand plant of our principal contractor for inlays, as well as disruptions in our supply chain. Additionally, we have experienced some customer delays which have impacted existing contracts and their execution and as a result, our revenue recognition. In summary, approximately $6M to $8M of previously anticipated 2011 revenues have now been shifted into 2012."
Mr. Bashan concluded, "As a result of these developments, we have reduced our full year 2011 revenue guidance to $50M, from $55 to $60M. However, we reiterate this is a shift, which in our belief, will contribute to the visibility in 2012. Implied in our revised guidance is a solid Q4 performance with gross margins returning to our long term target level of 50% on annual basis. Given the anticipated strong Q4 revenue and gross margin, we expect to be profitable in Q4 on a non-GAAP basis."
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