ROSH PINA, ISRAEL (ots)
- OTI (Neuer Markt: OT5), the global
provider of contactless smart card technology and product solutions,
today announced financial results for the quarter ended 31 March 2001
with significant increases in both revenue and gross profit.
- Revenues for the quarter are up 297% to US $4.07 million
(1Q2000: US $1.025 million).
- Gross profit ahead 356% to $1.94 million (1Q2000: US $0.425
- Operating expenses remain at a consistent level of $5.11 million
according to the company's corporate strategy and level of operations
and thus the operating loss for the three months ended March 31, 2001
were $3.171 million.
- Net loss of $3.219 million (1Q2000: US $3 million) in line with
company expectations as a result of operating expenses and the
inclusion of e-Smart's operating loss of $0.642 million. Given the
current economic situation and OTI's conservative financial approach,
the company has taken an additional provision for bad debt in the
amount of $0.5 million for customers who have not paid within 180
days and who the company believes might not have adequate securities
- These results are in line with the company's expectations to
break even and reach profitability for the fourth quarter of 2001.
"We are continuing to grow and meet projections," said Oded
Bashan, President and CEO of OTI. "Our revenues have almost
quadrupled, and we have strengthened our global operations and
marketing network. We have launched additional products that
strengthen our position as the technology leader in our marketplace."
OTI has initiated an expansion strategy in 2000 that has revolved
around investing in R&D, expanding marketing infrastructure and
increasing the global operations. As a result of such expansion, the
company has reached a strategic level of operation that incurs
operating expenses of approximately. $5 million per quarter.
Revenues for the quarter ended 31 March 2001 were $4.07 million,
an increase of 297% compared with US$1.02 million for 1Q2000. The
gross profit for the quarter grew by 356% to $1.94 million compared
with $0.42 million in 1Q2000.
Research & development expenses increased by 82% to $1.4 million
from $0.79 million in 1Q2000. Marketing expenses rose by 66% to
$2.306 million from $1.392 million in the same period, while general
and administrative expenses increased by 70% to $1.089 million
compared with $0.64 million in 1Q2000.
The net loss for 1Q2001 was $3.219 million (1Q2000: US$3 million)
up from $2.993 million in the previous quarter. The increase in net
loss was strongly related to the investments made in marketing,
infrastructure, and global expansion including acquisitions, and
research & development. These are planned expenses and are in line
with OTI's expansion strategy. In addition, given the current
economic situation and OTI's conservative financial outlook, the
company has taken an additional provision for bad debt in the amount
of $0.5 million for customers who have not paid within 180 days and
who the company believes might not have adequate securities.
Reflecting the company's strategy, the operating expenses remain
at the same level as in 4Q2000. The company ended 1Q2001 with
operating expenses of $5.11 million and operating losses of $3.17
million. Including e-Smart's loss of $0.642 million OTI finished
1Q2001 with a net loss of $3.219 million.
OTI ended 1Q2001 with cash, cash equivalents, and short-term
investments of $15.5 million and total assets of $41.3 million.
Some of the major developments during the first quarter include:
- Xerox Connect and OTI are providing payment and information
solutions for the U.S. campus market. The relationship provides
end-to-end solutions for universities and corporate campuses.
- City of Tel Aviv will equip two additional country clubs with
OTI's contactless smart card campus solution.
- OTI and P-Card System will jointly launch the first Europe-wide
currency-independent contact/contactless smart card solution to
issuers throughout Europe.
- OTI acquired the remaining 49 percent of leading European smart
card system integrator InterCard Kartensysteme GmbH and electronic
smart card hardware manufacturer InterCard System Electronic GmbH.
- e-Smart System will commence a field test for OTI's smart card
and readers for use in an automated fare collection service in CKI's
toll bridge in Panyu, Guandong province of China.
- MediKredit Integrated Healthcare Solutions (Pty) Ltd and OTI
Africa began a pilot project for the introduction of OTI's Medical
- The Israel Postal Authorities are to market and distribute
EasyPark electronic parking cards nationwide.
- OTI launched its Saturn Reader, the first fully integrated smart
card reader to accept both ISO 7816 contact cards and ISO 14443 Type
A, B, and D contactless cards.
- OTI will provide the first contactless smart card supporting
public-key infrastructure (PKI) encryption, used for digital
certificates in such secure environments as Internet transactions and
in government agencies.
- Hindustan Petroleum Corporation Ltd. (HPCL) is launching a
multi-application contactless smart card program throughout India
offering a payment and loyalty solution for use at HPCL's retail
Established in 1990, OTI (On Track Innovations) designs and
develops contactless microprocessor-based smart card technology to
address the needs of a wide variety of markets. Applications
developed by OTI include product solutions for mass transit, parking,
gas management systems, loyalty schemes, ID and secure campuses. OTI
has regional offices in the US, Europe, Asia Pacific, and Africa to
market and support its products. The company was awarded the
prestigious ESCAT Award for smart card innovation in both 1998 and
Visit OTI on the Internet at www.oti.co.il
ots Originaltext: OTI (On Track Innovations)
Kirchhoff Consult AG
Phone +49 69 7474 8615
Mobile +49 17 5221 1108
This press release contains forward-looking statements, which
reflect management's best judgment based on factors currently known.
Such statements are subject to certain risks and uncertainties, which
could cause actual results to differ materially from those in the
statements included in this press release. Readers are cautioned not
to place undue reliance on these forward-looking statements, which
speak only as of the date hereof. OTI disclaims any intention or
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.