On Track Innovations Ltd.
OTI REPORTS FIRST QUARTER OPERATING RESULTS
Ad hoc announcement §15 WpHG
OTI REPORTS FIRST QUARTER OPERATING RESULTS
Ad hoc announcement processed and transmitted by DGAP.
The issuer is solely responsible for the content of this announcement.
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Fort Lee, NJ – May 23, 2005 – On Track Innovations Ltd. (OTI) (NASDAQ: OTIV;
Prime Standard (Frankfurt): OT5), a global leader in contactless
microprocessor-based smart card solutions, today reported operating results
for the first quarter, ended March 31, 2005. 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.
OTI has scheduled a conference call and simultaneous Web cast for Monday, May
23, 2005, which will be hosted by Oded Bashan, President and CEO, Guy Shafran,
CFO, and Ohad Bashan, Head of Global Marketing and President OTI America, for
10:00 AM EDT to discuss operating results and future outlook. To participate,
call: 1-800-963-8290 (U.S. toll free), 1-800-931-5196 (Israel toll free), 0-
800-182-1463 (Germany toll free), or 1-973-409-9260 (standard international)
ID Code: OTI. To attend the Web cast, use the following links:
http://www.otiglobal.com/content.aspx?id=98
For those unable to participate, the teleconference will be available for
replay until midnight May 30th, by calling U.S: 877-519-4471 or International;
973-341-3080 and entering the PIN number # 6075543, or on the web at:
http://www.otiglobal.com/content.aspx?id=98 .
On Track Innovations Ltd.
Z.H.R. Idustrial Zone
12000 P.O. Box 32 Rosh Pina
Israel
ISIN: IL0010834682
WKN: 924895
Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin-
Bremen, Düsseldorf, Hannover, München und Stuttgart
End of ad hoc announcement (c)DGAP 23.05.2005
Issuer’s information/explanatory remarks concerning this ad hoc announcement:
OTI REPORTS FY 2005 FIRST QUARTER FINANCIAL RESULTS
Revenues Climb 24% Compared to Same Period Last Year
Operating Loss Decreased; Cash Flow at Breakeven
Growth Related Mainly to Orders Delivered in the Payments Market
Fort Lee, NJ – May 23, 2005 – 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. 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 leading position in the payments market bear
fruits; 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.”
Financial Results
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.
About OTI
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 http://www.otiglobal.com .
This press release contains forward-looking statements. These statements can
be identified by their use of the words “will”, “anticipates” and “expects”
and other similar expressions, as well as by such phrases as “starting to see”
and “we believe”. Each of these statements is subject to certain risks and
uncertainties, such as market acceptance of new products and our ability to
execute production on orders, which could cause actual results to differ
materially from those in the statements included in this press release.
Although OTI believes that the expectations reflected in such forward-looking
statements are based on reasonable assumptions, it can give no assurance that
its expectations will be achieved. 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
otherwise. results could differ materially from expected results.
This press release and other releases are available on
http://www.otiglobal.com and http://www.portfoliopr.com
OTI Kontakt: Media Relations IR Kontakt:
Galit Mendelson Adam Handelsman Paul Holm
Director of Corporate
Communication, OTI 5W Public Relations PortfolioPR
201 944 5200 ext. 111 212 999 5585 212 736 9224
galit@otiglobal.com ahandelsman@5wpr.com pholm@portfoliopr.com
End of message (c)DGAP
231600 Mai 05
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