OTI Reports Profitable Fourth Quarter Strong Year-End Financial Results for FY 2003

Monday 22 March 2004 10:25 CET | News

On Track Innovations,has reported consolidated financial results for the fourth quarter and fiscal year ended December 31, 2003. Revenues for the fourth quarter of 2003 rose 46% to a record $5.8 million, from $3.9 million for the fourth quarter of 2002.

Gross profit for the fourth quarter was $3.3 million up 78% from $1.9 million in the fourth quarter of 2002. Gross margin was 57% as compares to 47% in the fourth quarter last year. Operating profit for the fourth quarter reached $315,000 compared to a loss of $(1.2) million in the fourth quarter of last year. Net profit for the fourth quarter was $102,000, compared to a net loss of $(2.0) million in the fourth quarter of 2002. Cash and cash equivalents at year ended December 31, 2003 increased by 352% or $7.6 million to a level of $9.7 million at December 31, 2003 compared to $2.1 million at December 31, 2002. Revenues for FY 2003 increased by 9% (or by $1.6 million) to $19.6 million from $18.0 million in FY 2002. Gross profit for FY 2003 was up 20% (or by $1.6 million) to $10.1 million from $8.5 million in the same period last year. Operating loss for fiscal year 2003 decreased by 43% (or by $1.8 million) to $(2.3) million from $(4.1) million in FY 2002. Net loss for the period dropped by 43% or $2.6 million from the same period last year, from $(6.2) million to $(3.6) million in FY 2003, and net loss per share for the period was down to $(1.52) from $(3.76) in fiscal year 2002. Net cash provided by operating activities in fiscal year 2003 was positive and summed to $267,000. The increases in revenues and gross profit, together with the sharp decrease in operating loss, reflect OTIs ongoing business developments, including its previously announced decision to focus on higher margin projects and recurring revenue models that generate service fees from ongoing customer services, technical support and transaction fees. During the fourth quarter of 2003, several key business developments took place that advanced OTI towards its goal of becoming a leading provider of contactless microprocessor-based smart card solutions: -- OTIs EasyFuel Petroleum Payment Solution entered the European Market with its first gas station network being installed in Spain. -- OTI and Scheidt & Bachmann formed an alliance to provide mass transit ticketing solutions, with first implementation in the Houston Area Transit Authority with contactless ticketing solutions. -- OTI installed its EasyFuel Wireless Petroleum Payment Solution in a chain of gas stations in Mexico. -- OTI was named to Deloitte & Touche - Brightman Almagor Technology Fast 50 List of Fastest Growing Israeli Tech Companies. -- Atmel and OTIs contactless solution was selected for use in MasterCard PayPass contactless payment rollout in the US. More recently, OTI announced record volume growth of its Petroleum Payment Solution implemented by BP, the successful pilot study and beginning of implementation of its MediSmart Solution to CareCross HealthCare Network in South Africa, and the installation in Turkey of the 200th gas station with its Petroleum Payment System.

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Categories: Payments & Commerce | Cards
Countries: World
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