Business News
OTI Reports FY 2008 First Nine Months and Third Quarter Financial Results
Monday 01. December 2008 - -- First Nine Months Revenues of $31.1 Million Compared to $30.5 Million in First Nine Months of 2007; -- Third Quarter 2008 Compared to Third Quarter 2007: Revenues Up 10% to $10.9 million; Gross Margin Climbed to 44% from 36%; Non-GAAP Net Loss Down 46% to $3.2 Million; GAAP Net Loss Down 39% to $4.8 Million
On Track Innovations Ltd. (OTI) (NASDAQ:OTIV), a global leader in contactless microprocessor-based smart card solutions for homeland security, payments, petroleum payments and other applications, today announced its consolidated financial results for the first nine months and third quarter ended September 30, 2008. Revenues for the first nine months were $31.1 million, compared to $30.5 million during the first nine months of 2007. Third quarter revenues increased by 10% to $10.9 million compared to $9.9 million in the third quarter of 2007. Gross margin for the first nine months was 39%, the same as the last period last year. Third quarter gross margin increased to 44% from 36% in the third quarter of 2007. Operating expenses on GAAP basis decreased by 24% to $9.5 million from $12.6 million in the third quarter of 2007; on non-GAAP basis, operating expenses decreased by 26% to $7.9 million from $10.7 million in the third quarter of 2007. Net loss for the first nine months on a GAAP basis increased by 14% to $17.4 million compared to $15.2 million for the first nine months of 2007. Net loss on a Non-GAAP basis for the first nine months increased by 8% to $11.2 million compared to $10.4 million for the first nine months of 2007. Net loss on a GAAP basis for the third quarter decreased by 39% to $4.8 million compared to $7.9 million in the third quarter of 2007. On a non-GAAP basis, net loss significantly decreased by 46% in the third quarter to $3.2 million from $6.0 million in the third quarter of 2007. See below for a reconciliation of GAAP to non-GAAP information. Total cash used in operating activities for the third quarter of 2008 decreased by 31% to $1.7 million from $2.5 million in the third quarter of 2007 and decreased by 59% from $4.2 million in the second quarter of 2008.
“We are primarily focusing on controlling and reducing our operating expenses to the most efficient and effective level required to carry out our current and pending pipeline of projects for ’09 and ’10,” said Oded Bashan, OTI Chairman and CEO. “We believe that our strong and healthy balance sheet with $106 Million in total assets and $32 Million in cash, cash equivalents, and short term investments together with the continued shift in focus toward high margin projects with recurring revenues combined with commercial rollouts will pave a clear path to profitability for OTI.”