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ROSH PINA, Israel, Aug. 30, 2012 (GLOBE NEWSWIRE) -- On Track Innovations Ltd. ("OTI") (OTIV), a global leader in contactless technology that designs, develops and markets secure identification, payment and transaction processing technologies and solutions for use in secure ID, NFC, payment, petroleum and loyalty applications based on its extensive patent and IP portfolio, today announced its results for the three and six month periods ended June 30, 2012.
Financial Highlights for the Six Months Period Ended June 30, 2012:
•Total revenues decreased by 24% to $20.3 million from $26.7 million for the first half of 2011 •Gross margin was 50%, the same as the first half of 2011 •Operating expenses decreased by 2% to $15.2 million from $15.5 million for the first half of 2011 •Net loss attributable to shareholders was $5.7 million, from $2.3 million last year •Adjusted EBITDA loss of $3.6 million from a profit of $43,000 for the first half of 2011 •Net cash provided by continuing operating activities was $46,000 compared to net cash used by continuing operating activities of $4.0 million in the first half of 2011 •Cash, cash equivalents and short-term investments of $22.1 million as of June 30, 2012 Operational Highlights:
•OTI's IP Portfolio further strengthened by the addition of new U.S. patents issued pertaining to Contactless Payments and NFC related to: -- Adding contactless payment and NFC capabilities to existing mobile handsets via the connection of a device to a phone's existing SIM card -- Supporting multiple applications and/or payment mechanisms on a single contactless device and operating system •Order received for 17,000 NFC and Contactless Payment Readers: -- To be deployed in Europe. Follows order of 30,000 readers in Q1 •EasyPark Launches 'EasyPark Private' in Israel: -- Expected to broaden the EasyPark customer base and create a new source of recurring revenue •OTI and Wright Express sign a strategic cooperation agreement: -- Five year agreement with Wright Express appoints OTI as the exclusive reseller in South Africa of Wright Express' Quantum+ solution Oded Bashan, Chairman and CEO of OTI, commented: "We are disappointed with the results for the first half of the year. We have made progress implementing our long-term growth strategy in the U.S., Europe and Africa. This progress has been impacted in the short-term by factors outside of management's control, however, the negative impact of these events is expected to be partially offset by our insurance coverage for the business. Overall, we believe the company is moving in the right direction to deliver on our business objectives and successfully build market share for each of our technologies as well as enforce the patents for our NFC technology."
Mr. Bashan continued: "We are overcoming specific challenges to our business associated with the flooding in Thailand now that the manufacturing has been back to full capacity for the past few months. We have filed claims for $11 million in connection with the outcomes of the flooding which may offset lost sales. If these claims are paid, the long-term impact of these events will be minimalized from a cash flows standpoint."
The order for 17,000 NFC readers in July follows our previous order for 30,000 readers received in the prior quarter. As a result, 47,000 of OTI's readers will be deployed across the U.S. and European markets by this time next year. OTI provides first-rate products that support the increasing adoption of NFC technology across the world."
"We continued to focus on establishing our U.S. presence by being more aggressive with the U.S. sales and marketing of our solutions, which are primarily focused on introducing EasyPark, our NFC solutions and MediSmart. Recently, we signed a contract for EasyPark for Dover, NH which follows additional cities and colleges in the U.S., such as UC Davis in California and the City of Austin, Texas, that have been adopting EasyPark as their parking payment solution."
"In other regions, we have also been busy making changes and signing new agreements that will help drive long-term success. This includes making key management changes for our subsidiary in France. We believe that this new leadership can execute the rollout of EasyPark in the municipalities that signed up for the solution," continued Mr. Bashan.
"We are therefore updating our revenue guidance to $40-$42 million for 2012. We remain optimistic about 2013 and beyond," concluded Mr. Bashan.
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