Mr. Amir Eilam, OTI’s new Chief Executive Officer (CEO), commented, “We are pleased with our results – particularly the revenue growth, which has shown solid recovery and is up 69% year-over-year and up 77% sequentially . We see strong traction in our target regions, particularly in the United States, bringing a number of new customers in the quarter, all with potential for long-term recurring revenue growth.”
Mr. Holtzman, OTI’s CEO until November 3rd, commented, “I was brought to OTI two years ago to bring about a turnaround in the business. With our shift towards a recurring, software-as-a-service, revenue model, I believe I leave OTI well positioned. I welcome Amir Eilam as the new CEO, a long-time OTI employee. I believe he will be a strong CEO and bring OTI to the next level.”
Third Quarter 2021 Financial Results Summary
- Revenue in the quarter was $5.0 million, compared to $3.0 million in the third quarter of 2020, an increase of 69%. These amounts include Software-as-a-Service (SaaS) revenues, which are recurring by nature, and amounted to $407 thousand in the quarter of 2021, compared to $362 thousand in the third quarter of last year, an increase of 12%.
- Gross profit in the quarter was $1.3 million, or 26% of revenues, compared to $1.2 million, or 39% of revenues, in the third quarter of last year.
- Operating expenses totaled $2.4 million in the quarter, compared to operating expenses of $2.4 million in the third quarter of last year.
- Operating loss from continuing operations was $1.1 million, compared to an operating loss from continuing operations of $1.3 million in the third quarter of last year.
- Net loss was $1.5 million, or loss of $0.02 per share, compared to a net loss of $1.6 million, or loss of $0.03 per share, in the third quarter of last year.
- Adjusted EBITDA loss from continuing operations was $1.0 million in the quarter, compared to adjusted EBITDA loss of $1.1 million in the third quarter of last year.
- As of September 30, 2021, the Company had cash and cash equivalents of $1.3 million.
As a result of the uncertainty regarding the likelihood that the Company will be required to repay its loan agreement on the extended maturity date, OTI management has added a going concern note in the third quarter of 2021 financial results. The Company is negotiating the terms of a loan agreement with its controlling shareholder that would address its cash needs.
Management will host a live investor conference call at 9:00 a.m. ET today, November 15, 2021, to discuss OTI’s financial results, provide a corporate update, and conclude with a Q&A session taking live questions from participants as well as answering many of the previously submitted questions by investors.
To participate, please use the following information:
U.S. Dial-in: 1 888 723 3164
International Dial-in: +972 3 918 0691
Please dial in a few minutes before the start of the call and request to join the “On Track Innovations Q3 2021 Earnings Conference Call” to ensure timely participation.
A replay of the conference call will be available via the investor relations section of the Company’s website, the content of which does not form a part of this press release.
About On Track Innovations Ltd
On Track Innovations (OTI) is a global leader in the design, manufacture, and sale of secure cashless payment solutions using contactless NFC technology. OTI’s field-proven innovations have been deployed around the world to address cashless payment, automated retail and petroleum markets. OTI distributes and supports its solutions through a global network of regional offices and alliances. For more information