On-Track Innovations Ltd, (OTI) (NASDAQ: OTIV; Prime Standard [Frankfurt]: OT5), a global leader in contactless microprocessor-based smartcard solutions for homeland security, micropayments and petroleum payments, reported today that its EasyPark parking payment system has reached more than 130,000 subscribers in 24 cities in Israel.
With more than 2 million vehicles in Israel, EasyPark has just begun to realize its potential:
· About 5,000 new EasyPark devices are being sold monthly, compared to about 3,000 during the first quarter of 2003.
· Transaction fee generated in the first quarter grew 318% to $70,000 compared to $22,000 the same period last year.
· Total revenues from EasyPark for the quarter were $367,000 up 212% from $173,000 in the same quarter last year.
· The EasyPark program offers a constant stream of revenues from additional product sales as well as licensing and transaction fees.
EasyPark demonstrates OTI’s business model of generating revenues from product sales as well as transaction fees and customer support. In the first stage of deployment, most revenues are generated from setting up the infrastructure. Once a critical mass of infrastructure is in place, early adopters begin using the product routinely. Currently, EasyPark has reached a level where there is a sufficient user base to provide a constant stream of revenues. This business model of generating on- going licensing and transaction fees also has been successfully implemented by OTI in its petroleum payment product and some SmartID programs.
With EasyPark, when drivers park their car, they turn on the contactless in-vehicle parking device and display it in their window; when they return to the car, they simply turn off the device. This eliminates the need for parking meters in the street, and creates a uniquely convenient user experience. The EasyPark system is being used for on-street parking payments. Soon, it will be extended to parking lots, where the device is simply presented at the gate when entering or exiting the lot.
Oded Bashan, Chairman, President and CEO of OTI said, “The increase in revenues from the EasyPark program is an excellent example of the growing impact of OTI’s strategic shift to higher margin recurring revenue-based programs. More than just selling products, OTI ensures the continuous development of the project by also receiving transaction fees.”
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. Major clients include: MasterCard International, Atmel, BP, Scheidt & Bachmann, EDS, Repsol and the Government of Israel. For more information on OTI, visit www.otiglobal.com .