On Track Innovations first quarter financial results shows a 24% increase in revenues primarily due to the growing implementation of contactless payment programs around the world for the contactless micrprocessor-based smart card solutions provider.
FORT LEE, N.J., May 23 /PRNewswire-FirstCall/ – On Track Innovations Ltd. (OTI) (Nasdaq: OTIV; Prime Standard (Frankfurt): OT5), 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 quarter ended March 31, 2005.
– Revenues for the first quarter increased by 24% to $6.55 million from $5.30 million for the same period of last year.
– Net loss for the period decreased by 16% to $(1.67) million from $(1.99) million in the first quarter last year.
– Licensing and transaction fees for the quarter were up 280% to $825,000 from $217,000 for the same period last year.
– Cash flow from operating activities was at breakeven with $97,000 for the quarter.
Oded Bashan, President and CEO of OTI commented: “During the first quarter we continued to build on our growth and positioning in the three key vertical markets we serve – payments for small ticket items, Smart ID for verification of individuals and petroleum payments. In this quarter, sales of products represented most of our revenues. Licensing and transaction fees continued to rise.”
Mr. Bashan continued, “We are encouraged by the recent developments and announcements in the contactless payments market in the US. In this quarter we saw our strategy of capturing a leading position in the payments market bear fruit; revenues from the payments market constituted 49% of our revenues. Our gross profit has declined compared to the same period last year, mainly due to the execution of initial stages of projects which are characterized by lower margins in their early stages.”
Revenues for the first quarter ended March 31, 2005 increased to $6.55 million from $5.30 million for the first quarter of last year. The increase was due to the growing implementation of contactless payment programs around the world. Gross Profit for the first quarter was $2.20 million versus $2.26 million for the same period last year. This was mainly due to the execution of initial stages of projects which are characterized by lower margins in their early stages. The operating loss for first quarter of 2005 decreased to $(1.63) million from $(1.85) million in the same period in 2004. Net loss for the quarter decreased to $(1.67) million, or $(0.20) loss per share, from $(1.99) million, or $(0.39) loss per share, for the first quarter of 2004. For the period ended March 31, 2005, cash and cash equivalents and short term investments were at $30.0 million compared to $28.5 million on December 31, 2004 and $13.8 million on March 31, 2004.
Established in 1990, OTI (Nasdaq: OTIV, Prime Standard: OT5) designs, develops and markets secure contactless microprocessor-based smart card technology to address the needs of a wide variety of markets. Applications developed by OTI include product solutions for petroleum payment systems, homeland security solutions, electronic passports and IDs, micropayments, mass transit ticketing, parking, loyalty programs and secure campuses. OTI has a global network of regional offices to market and support its products. The company was awarded the prestigious ESCAT Award for smart card innovation in both 1998 and 2000. For more information on OTI, visit www.otiglobal.com.