2018

On Track Innovations Ltd. Reports Fourth Quarter and Full Year 2018 Financial Results

On Track Innovations Ltd. Reports Fourth Quarter and Full Year 2018 Financial Results

2018 Revenues of $21.9 million, of which 24% recurring;  Expects Revenue Growth in 2019

Rosh Pina, Israel – March 13, 2019 – On Track Innovations Ltd. (OTI) (NASDAQ: OTIV) (the “Company” or “OTI”), a global provider of near field communication (NFC) and cashless payment solutions, today provided a business update and announced financial results for the quarter and full year ended December 31, 2018.

Highlights

  • Recurring revenues accounted for 24% of full-year 2018 revenues and on an absolute dollar basis increased by 12% year-over-year to $5.2 million;
  • Solid improvement in gross margins to 51%, up from 50% in 2017;
  • Reported 2018 net loss of $263,000 versus a net loss of $598,000 in 2017;
  • Debt decreased over the year from $5.0 million to $0.3 million; Year-end cash was $5.9 million;
  • More focused and simplified corporate structure: divested non-core MediSmart division, providing an additional $2.75 million to balance sheet;
  • A successful year of global expansion and sales penetration: delivered more than 5,000 advanced payment systems to Japan, 11,000 advanced contactless readers to the Russian market, more than 16,000 advanced contactless readers for smart ATMs globally and 10,000 advanced contactless readers for the retail self-service market;
  • Received MIR National Card Payment System organization certification in Russia and Interac certification in Canada, which has the potential of significantly increasing OTI’s addressable markets.

Management Commentary

“I continue to remain very pleased with our overall progress in 2018, from both the financial and the strategic perspective,” commented Shlomi Cohen, Chief Executive Officer of OTI. “Despite the short-term volatility in the fourth quarter, our revenues continued to grow on a yearly basis, and we’re especially pleased that almost a quarter of our revenues are now recurring.  Combined with an improvement in the gross margin profile and a relatively stable expense footprint, we were able to bring solid improvements in our overall results in 2018. Furthermore, we significantly improved our balance sheet, lowering our debt levels to almost zero.” Continued Mr. Cohen, “From a strategic perspective, 2018 marked an important year. Alongside success in our existing markets, we continued to expand into new international markets, achieving key certifications in Canada and Russia. Both of these payment markets present very significant potential for us.”

“The positive trends we have seen in 2018 and the solid improvements that we have made at OTI in recent quarters put us in a good position to enjoy the fruits of our investments in 2019. Looking ahead, I expect our growth to accelerate, achieving solid revenue growth in 2019 with corresponding improvements in profitability,” concluded Mr. Cohen.

Following OTI’s sale of its MediSmart division, the financial results of Medismart are included as discontinued operations and all the prior periods’ information has been reclassified to conform with the current period’s presentation.

The full Year 2018 Financial Results Summary

  • Full year revenue of $21.9 million compared with $20.9 million in 2017.
  • Recurring revenues, on an absolute dollar basis, increased by 12% to $5.2 million (24% of total revenues), compared to $4.6 million (22% of total revenue) in 2017.
  • Gross profit of $11.2 million, or 51% of revenues, compared to $10.4 million, or 50% of revenues in 2017.
  • Operating expenses totaled $13.1 million in 2018, compared to $12.6 million in 2017.
  • Net loss of $263,000, or loss of $0.01 per share, compared to a net loss of $598,000, or loss of $0.01 per share, in 2017.
  • Adjusted EBITDA loss from continuing operations of $356,000, compared to adjusted EBITDA loss of $673,000 in 2017.
  • Cash, cash equivalents and short-term investments at December 31, 2018, totaled $5.9 million. Debt at the end of 2018 decreased by 94% to $0.3 million compared to the end of 2017.

Fourth Quarter 2018 Financial Results Summary

  • Total revenue in the quarter was $4.5 million, compared to $6.3 million in the same year-ago period. The revenues in the quarter were impacted by the lower level of orders from the Asia-Pacific region as well as tariffs implemented by the United States on imports from China, where the Company manufactures its products. OTI has taken steps to relocate manufacturing to other locations, a process which is expected to be completed by the end of the first quarter of 2019.
  • Recurring revenues, on an absolute dollar basis, were $1.2 million (26% of total revenues), compared to $1.2 million (18% of total revenues) in the fourth quarter of 2017.
  • Gross profit in the quarter was $2.2 million, or 48% of revenues, compared to $2.9 million, or 46% of revenues, in the same year-ago period.
  • Operating expenses totaled $3.0 million in the fourth quarter, compared to $3.5 million in the same year-ago period.
  • Net income of $533,000, or $0.01 per share, compared to a net loss of $693,000, or loss of $0.02 per share, in the fourth quarter of 2017.
  • Adjusted EBITDA loss from continuing operations of $471,000, compared to adjusted EBITDA loss of $204,000 in the same year-ago period.

Conference Call

Management will host an investor conference call at 9:00 a.m. EDT on March 13, 2019, to discuss the financial results, provide a corporate update, and conclude with a Q&A session with participants. To participate, please use the following dial-in information:

U.S. Dial-in: 1-866-250-8117

International Dial-in: +1-412-317-6011

Webcast: https://www.webcaster4.com/Webcast/Page/1720/29378

Please dial in a few minutes before the start of the call and request to join the “On Track Innovations Earnings Conference Call” to ensure timely participation.

The conference call will be available for replay by clicking here and via the investor relations section of the company’s website.

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. OTI is the proud recipient of the 2017 AI Award for Best Cashless Payment Solutions Provider – Israel. For more information, visit www.otiglobal.com.

Press Contact:

Richard Harris, OTI

Director of Marketing

+972-4-686-8004

press@otiglobal.com

 

Investor Relations Contact:

Gavriel Frohwein

GK Investor & Public Relations

+1 646 688 3559

oti@gkir.com

 

Safe Harbor / Forward-Looking Statements

This press release contains express or implied forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Whenever we use words such as “will,” “look forward,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “believe,” “should,” “can” or similar expressions, we are making forward-looking statements. For example, we are using forward-looking statements when we discuss, among others: the potential from our expansion into new international markets, the importance of the MIR certification in Russia and the Interac certification in Canada for the successful operation in these countries and the potential in these countries, improvement in profitability, positive trends and 2019 revenue growth.  Additional factors that could cause actual results to differ materially from those anticipated by our forward-looking statements are stated under the captions “Risk Factors” in our most recent Annual Report (Form 10-K) and other known and unknown uncertainties and risk factors including those detailed from time to time in the Company’s filings with the Securities and Exchange Commission.  Forward-looking statements are made as of the date of this release, and we expressly disclaim any obligation or undertaking to update forward-looking statements. The reader is cautioned not to place undue reliance on forward-looking statements.

Use of Non-GAAP Financial Information

This press release contains certain non-GAAP measures, namely, adjusted EBITDA from continuing operations, or adjusted earnings from continuing operations before interest, income tax, depreciation and amortization. Adjusted EBITDA from continuing operations represents earnings before interest or financing expenses, income tax, depreciation and amortization, and further eliminates the effect of patent litigation expenses, stock-based compensation expense and other expenses. Patent litigation expenses are presented only at the end of each year, as we do not consider their impact on quarterly results to be material. OTI believes that adjusted EBITDA from continuing operations should be considered in evaluating the Company’s operations since it provides a clear indication of the Company’s operating results. This measure should be considered in addition to results prepared in accordance with U.S. GAAP, but should not be considered a substitute for the U.S. GAAP results. The non-GAAP measures included in this press release have been reconciled to the U.S. GAAP results in the tables below.

 

RECONCILIATION OF NON-GAAP ADJUSTMENT The following table reflects selected On Track Innovations Ltd. non-GAAP results reconciled to GAAP results (US dollars in thousands):

 

ON TRACK INNOVATIONS LTD.

RECONCILIATION OF NON-GAAP ADJUSTMENTS

The following tables reflect selected On Track Innovations Ltd, non-GAAP results reconciled to GAAP results:

(US dollars in thousands)

 

    Year ended December 31 Three months ended December 31
    2018        2017 2018            2017 

 

Net (loss) income $             (263) $             (598) $               533 $             (693)
  Net (income) loss from discontinued operations (1,625) (1,787) (1,395) 66
  Financial expenses, net 228 341 98 104
  Depreciation  1,328  1,172 307 293
  Income tax benefit, net (301) (138) (34)  (47)
Total EBITDA FROM CONTINUING OPERATIONS $             (633) $          (1,010) $             (491) $             (277)
Patent litigation and maintenance $                  10 $                  31 $                    3 $                    7
Other expenses (income), net 33 52 (37) 52
Stock-based compensation           234           254 54 14
Total adjusted EBITDA FROM CONTINUING OPERATIONS $             (356) $             (673) $             (471) $             (204)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ON TRACK INNOVATION LTD.

CONDENSED CONSOLIDATED BALANCE SHEET

(US dollars in thousands)

 

    December 31
    2018 2017

 

Assets  
 
Current assets
Cash and cash equivalents $              4,827 $           6,742
Short-term investments 1,078             3,331
Trade receivables (net of allowance for doubtful
  accounts of $555 and  $568 as of December 31, 2018
  and December 31, 2017, respectively) 4,530             5,827
Other receivables and prepaid expenses 2,060              3,325
Inventories 3,527             3,009
Total current assets

 

 

16,022            22,234
Long term restricted deposit for employees benefit 451 498
Severance pay deposits 375 405
Property, plant and equipment, net 5,033 5,859
Intangible assets, net                  241               336
 
 

 

 

 

Total Assets $            22,122 $         29,332

 

ON TRACK INNOVATION LTD.

CONDENSED CONSOLIDATED BALANCE SHEET

(US dollars in thousands except share data)

 

  December 31
  2018 2017

 

Liabilities and  Equity  
   
Current Liabilities  
Short-term bank credit and current maturities  
  of long-term bank loans $              260 $           4,181
Trade payables 4,712              7,171
Other current liabilities 3,622 3,276
Total current liabilities 8,594            14,628
Long-Term Liabilities
Long-term loans, net of current maturities 39 814
Accrued severance pay 853 939
Deferred tax liability 445 500
Total long-term liabilities 1,337  2,253
Total Liabilities 9,931            16,881
Commitments and Contingencies
Equity
Shareholders’ Equity
Ordinary shares of NIS 0.1 par value: Authorized –
  50,000,000 shares as of December 31, 2018, and
  2017; issued: 42,473,076 and 42,353,077
  shares as of December 31, 2018 and 2017,
  respectively; outstanding: 41,294,377 and 41,174,378 shares
  as of December 31, 2018 and 2017, respectively 1,068  1,064
Additional paid-in capital 225,022  224,758
Treasury shares at cost – 1,178,699 shares as of December 31, 2018 and 2017 (2,000) (2,000)
Accumulated other comprehensive loss (956) (691)
Accumulated deficit (210,943) (210,680)
Total Equity 12,191  12,451
Total Liabilities and Equity

 

 

 

$         22,122 $         29,332

 

ON TRACK INNOVATIONS LTD.

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(US dollars in thousands except share data)

 

  Year ended December 31 Three months ended December 31
  2018 *      2017 2018 *       2017000

 

Revenues
Sales 16,725          $  $           16,252 $              3,372               $5,157
Licensing and transaction fees 5,153  4,621 1,156 1,169
Total revenues 21,878  20,873 4,528 6,326
Cost of revenues
The total cost of revenues 10,710 10,456 2,360 3,390
Gross profit 11,168 10,417 2,168 2,936
Operating expenses
Research and development 3,175  3,263 782 878
Selling and marketing 5,940 5,633 1,240 1,467
General and administrative 3,971  3,620 978 1,102
Patent litigation and maintenance 10 31 3 7
Other expenses (income), net 33 52 (37) 52
Total operating expenses 13,129 12,599 2,966 3,506
Operating loss from continuing operations (1,961) (2,182) (798) (570)
 
Financial expense, net (228) (341) (98) (104)
Loss from continuing operations before taxes on income (2,189) (2,523) (896) (674)
Income tax benefit, net 301 138 34 47
 
Net loss from continuing operations (1,888) (2,385) (862) (627)
Total income (loss) from discontinued operations

 

1,625 1,787 1,395 (66)
Net (loss) income $             (263) $               (598) $                 533 $               (693)
 
Basic and diluted net (loss) income attributable to
 shareholders per ordinary share
From continuing operations $            (0.05) $             (0.06) $            (0.02) $             (0.02)
From discontinued operations $              0.04 $                0.05 $               0.03 $                   **
 

 

$            (0.01) $             (0.01) $               0.01 $             (0.02)
Weighted average number of ordinary shares used in computing basic and diluted net (loss) income  per ordinary share  

41,268,984

 

40,109,875

 

41,260,426

 

40,140,356

       

 

*    Reclassified to conform with the current period presentation.

**  Less than $0.01 per ordinary share.

 

ON TRACK INNOVATION LTD.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW

(US dollars in thousands)

 

    Year ended December 31
    2018     *       2017     *      2016
Cash flows from continuing operating activities
Net loss from continuing operations $             (1,888) $             (2,385) $              (3,044)
Adjustments required to reconcile net loss to
net cash used in continuing operating activities:
Stock-based compensation related to options and shares issued
  to employees and others 234 254 239
Loss (gain) on the sale of property and equipment (37) 52 83
Accrued interest and linkage differences, net 19 (6) 56
Depreciation and amortization 1,328 1,172 1,172
Deferred tax benefits, net (477) (165) (155)
Changes in operating assets and liabilities:
Accrued severance pay, net (57) 45 (183)
Decrease (increase) in trade receivables, net 1,118 (124) (3,224)
Decrease (increase) in other receivables and prepaid expenses 350 (838) 349
(Increase) decrease in inventories (573) 110 (106)
(Decrease) increase in trade payables (2,089) (644) 1,631
(Decrease) increase in other current liabilities (110) (597) 288
Net cash used in continuing operating activities (2,182) (3,126) (2,894)
Cash flows from continuing investing activities
Purchase of property and equipment (636) (293) (311)
Proceeds from the sale of property, plant, and equipment 68 17 1,779
Change in short-term investments, net 1,495 1,773 (822)
Investment in capitalized certification costs (120) (239) (188)
Investment in restricted deposit for employee benefits (44)
Proceeds from the restricted deposit for employee benefits 8 44  142
Net cash provided by continuing investing activities 815 1,302 556
Cash flows from continuing financing activities
(Decrease) increase in short-term bank credit, net (3,554) (335) 1,018
Proceeds from long-term bank loans 27
Repayment of long-term bank loans (1,064) (632) (1,581)
Proceeds from exercise of options and warrants 34 92 177
Net cash used in continuing financing activities (4,584) (875) (359)
Cash flows from discontinued operations
Net cash provided by discontinued operating activities 750 2,311 469
Net cash provided by discontinued investing activities 2,750 2,292
 
Total net cash provided by discontinued operations 3,500 2,311 2,761
 
Effect of exchange rate changes on cash and cash equivalents (243) 687 (268)
 
(Decrease) Increase in cash and cash equivalents (2,694) 299 (204)
Cash and cash equivalents at the beginning of the year 7,799 7,500 7,704
 
Cash and cash equivalents at the end of the year $               5,105 $                7,799 $                7,500

 

*    Reclassified to conform with the current period presentation.

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OTI Reports Fourth Quarter and Full Year 2018 Financial Results, Wednesday, March 13th. 2019

Corporate will host a conference call at 9 a.m. EST

 ROSH PINNA, ISRAEL – February 26, 2019 – On Track Innovations Ltd. (OTI) (NASDAQ: OTIV), a global provider of near field communication (NFC) and cashless payment solutions, will release its financial results for the fourth quarter and full year ended December 31, 2018 prior to the market open on Wednesday, March 13, 2019.

Management will host an investor conference call that same day, at 9:00 a.m. ET to discuss the financial results, provide a corporate update, and will conclude the call with a Q&A session with participants.

To participate, please use the following:

Q4 2018 Conference Call and Webcast

Date: Wednesday, March 13, 2019

Time: 9:00 a.m. Eastern Standard Time (6:00 am PST)

U.S. Dial-in: 1-888-317-6002

International Dial-in: +1-412-317-5245

Webcast: https://www.webcaster4.com/Webcast/Page/1720/29378

Please dial in at least 10 minutes before the start of the call and request to join the “On Track Innovations Q4 2018 Earnings Conference Call” to ensure timely participation.

The conference call will be available for replay from this link and via the investor relations section of the company’s website.

About OTI: On Track Innovations (NASDAQ: OTIV) 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 and management requirements for the Internet of Payment Things (IoPT), wearables, automated retail, and petroleum markets. OTI distributes and supports its solutions through a global network of regional offices and alliances. OTI is the proud recipient of the 2017 AI Award for Best Cashless Payment Solutions Provider – Israel. For more information, please visit www.otiglobal.com.

Safe Harbor for Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Whenever we use words such as “will,” “may,” “expect,” “anticipate,” “intend,” “plan,”  or similar expressions, we are making forward-looking statements. For example, we are using forward-looking statements when we discuss our expectations regarding our growth or profitability, reduction of costs and expenses,  plans for our existing and new products and services, penetration of new markets and securing new customers, contributions of our regions to our growth,  strengthening of our balance sheet and deliver long-term shareholder value. Because such statements deal with future events and are based on OTI’s current expectations, they are subject to various risks and uncertainties and actual results, performance or achievements of OTI could differ materially from those described in or implied by the statements in this press release. Forward-looking statements could be impacted by the effects of the protracted evaluation and validation periods in the U.S. and other markets for contactless payment cards, or new and existing products and our ability to execute production on orders, as well as other risks and uncertainties, including those discussed in the “Risk Factors” section and elsewhere in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2018, and in subsequent filings with the Securities and Exchange Commission. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be achieved. Except as otherwise required by law, 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 circumstances or otherwise. The reader is cautioned not to place undue reliance on forward-looking statements.

OTI Press Contact: Richard Harris, Marketing Manager, press@otiglobal.com

OTI Investor Relations Contact: Gavriel Frohwein, GK Investor and Public Relations, Tel: +1-646-688-3559 OTI@gkir.com

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OTI Partners with Puma Energy to Gain Momentum Across Southern Africa

ROSH PINNAIsrael, February 25, 2019On Track Innovations Ltd. (OTI) (NASDAQ: OTIV), a global provider of near field communication (NFC) and cashless payment solutions, today announced that it has successfully partnered with Puma Energy in Namibia and Botswana, launching the iFUELGUARD B2B solution based on OTI’s innovative AVI EasyFuelPlus solution.  Puma Energy also welcomes customers who are contracted to Masana Petroleum, BP’s commercial arm in the region, to Puma stations in Namibia and Botswana for all their cross border refueling requirements.

OTI expects to generate increased revenues from this solution as Puma’s footprint grows and transaction volumes increase.

Puma Namibia recently, embarked on a program to more than double its footprint of service stations offering this facility   This was a significant factor in them securing a recently awarded government tender.  Puma Energy completed the rollout of iFUELGUARD based on the EasyFuelPlus technology solution in Zambia. Implementations in the South African and Angolan markets are underway, with expectations of a commercial launch in the second quarter. Furthermore, five additional Southern African markets are targeted in the next phase of implementation in the near term.

“We are pleased with the partnership with Puma, which will significantly expand our footprint for our EasyFuelPlus solution in the Southern African market,” commented Shlomi Cohen, CEO of OTI. “The partnership using iFUELGUARD and EasyFuelPlus to minimize fuel fraud and effectively manage fuel consumption represents the next generation of B2B fueling. Together with Puma, we aim to expand the deployment of our solution into Central America and APAC in the second half of 2019 and look forward to a long and fruitful partnership together.”

“We are excited to launch this innovative solution to our customers in Africa and look forward to it becoming part of our global offer,” said Sidy Bane Puma Energy’s Chief Operating Officer, Africa. 

 About Puma Energy

Puma Energy is an integrated local and global energy organization. We bring secure, safe and affordable fuels, lubricants and other oil products to businesses, households, and motorists every day. Our customer base and product categories worldwide include Aviation, Bunkering, Bitumen, Liquid Petroleum Gas, Lubricants and Fuel. We are obsessed with product quality and the safety of our people and customers. Whilst we work hard to deliver service excellence, Puma Energy is about making a real difference in the lives of ordinary people and all the communities within which we operate. We have a growing network of over 3,130 high-quality service stations (and counting) across 49 countries

 About OTI

On Track Innovations (OTI) is a global leader in the design, manufacture, and sale of secure cashless payment solutions using contactless NFC technology with an extensive patent and IP portfolio. OTI’s field-proven innovations have been deployed around the world to address cashless payment and management requirements for the Internet of Payment Things (IoPT), wearables, automated retail, and petroleum markets. OTI distributes and supports its solutions through a global network of regional offices and alliances. OTI is the proud recipient of the 2017 AI Award for Best Cashless Payment Solutions Provider – Israel. For more information, visit www.otiglobal.com.

OTI Press Contact: Richard Harris: Marketing Manager +972-4-686-8004 press@otiglobal.com

Investor Relations Contact: Gavriel Frohwein +1 646 688 3559 oti@gkir.com

Safe Harbor for Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Whenever we use words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions, we are making forward-looking statements. For example, we are using forward-looking statements when we discuss our expectations regarding our growth, revenues, profitability, plans for our existing and new products and services, penetration of new markets and securing new customers, position in the market, contributions of new or existing regions or markets to our growth, strengthening of our balance sheet and deliver long-term shareholder value. Because such statements deal with future events and are based on OTI’s current expectations, they are subject to various risks and uncertainties and actual results, performance or achievements of OTI could differ materially from those described in or implied by the statements in this press release. Forward-looking statements could be impacted by the effects of the protracted evaluation and validation periods in the U.S. and other markets for contactless payment cards, or new and existing products and our ability to execute production on orders, as well as other risks and uncertainties, including those discussed in the “Risk Factors” section and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2016, and in subsequent filings with the Securities and Exchange Commission. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be achieved. Except as otherwise required by law, 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 circumstances or otherwise.

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On Track Innovations Ltd. Announces Agreement to Divest Non-Core Legacy MediSmart Division

Divestiture to Fortify OTI’s Balance Sheet with $2.75 Million in New Capital

ROSH PINA, ISRAEL – December 6, 2018 – On Track Innovations Ltd. (OTI) (NASDAQ: OTIV), a global provider of near field communication (NFC) and cashless payment solutions, together with its South African subsidiary, OTI Petrosmart (PTY) Limited, have entered into an agreement to divest their non-core legacy division of MediSmart to a current customer, Smart Applications International Ltd. (“SMART”). Under the terms of the transaction, SMART will acquire MediSmart for total consideration of $2.75 million in cash. The transaction is subject to customary conditions and is expected to close in January 2019.

MediSmart is an information management and claims submission system for the medical sector. MediSmart is designed to benefit medical administrators, hospitals, clinics, medical service providers and patients. Through an integrated system, incorporating contactless smart card and biometric technologies, MediSmart offers fast and secure access to medical information, transaction generation, claims management, expenditure control, and reporting.

“I am pleased to announce the sale of MediSmart to SMART, the sole user of the legacy product,” said Shlomi Cohen, CEO of On Track Innovations. “The MediSmart business is a non-core, legacy business generating approximately $1.5 million in annual revenues. This divestiture will further shore up our balance sheet, providing us with additional capital to advance our aggressive growth initiatives while allowing us to remain laser-focused on continued operational execution across our core business units.”

About OTI

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 and management requirements for the Internet of Payment Things (IoPT), wearables, automated retail, and petroleum markets. OTI distributes and supports its solutions through a global network of regional offices and alliances. OTI is the proud recipient of the 2017 AI Award for Best Cashless Payment Solutions Provider – Israel. For more information, visit www.otiglobal.com.

Safe Harbor / Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Any statements that are not statements of historical fact should be considered forward-looking statements. Whenever we use words such as “will,” “look forward,” “anticipate,”, “plan,” “can” or similar expressions, we are making forward-looking statements. For example, we are using forward-looking statements when we discuss, among other things, the timing of the closing of the divestiture of our MediSmart division, our aggressive growth initiatives, our expectation of shoring up our balance sheet and our future operational execution. Forward-looking statements are made as of the date of this document and are inherently subject to risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, including the fulfillment of conditions for the MediSmart sale to close. Additional factors that could cause actual results to differ materially from those anticipated by our forward-looking statements are stated under the captions “Risk Factors” in our most recent Annual Report (Form 10-K) and other known and unknown uncertainties and risk factors including those detailed from time to time in the Company’s filings with the Securities and Exchange Commission. Forward-looking statements are made as of the date of this release, and we expressly disclaim any obligation or undertaking to update forward-looking statements. The reader is cautioned not to place undue reliance on forward-looking statements.

 

Investor Relations Contact:

Greg Falesnik
MZ North America
+1-949-385-6449
Greg.Falesnik@mzgroup.us

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On Track Innovations Receives Additional Purchase Order for More Than 3,000 Advanced Systems in Russia

OTI Will Deliver More Than 11,000 Advanced Payment Systems to the Widespread Russian Retail Self-Service Market by the End of 2018

ROSH PINNA, ISRAEL – December 4, 2018 — On Track Innovations Ltd. (OTI) (NASDAQ: OTIV), a global provider of near field communication (NFC) and cashless payment solutions, has received a purchase order for more than 3,000 advanced payment systems to the massive Russian retail self-service market from a current customer. This order follows OTI’s successful acceptance of the mandatory MIR certification in the ever-growing Russian market.

To date, OTI has delivered more than 11,000 advanced payment systems in the Russian self-service market. Due to confidentiality, the terms of the agreement cannot be disclosed.

The MIR credit card approval grants OTI’s Russian customers with the ability to use OTI cashless payment solutions as a convenient way to pay in the Russian unattended automated machines. The Russian national payment system created the Mir payment card in 2014 with the primary objective of sovereign payments to be independent of foreign organizations; By the end of 2016, 1.76 million Mir cards issued by 64 banks, and according to the Bank of Russia in September 2017, 30 million Mir cards planned for release.

“This latest purchase order underscores our customers commitment to OTI as a company with the most advanced technologies and highest security standards. This traction also further solidifies us as a major player in the Russian and European markets,” said OTI’s CEO, Shlomi Cohen. “We look forward to a bright future in Eastern Europe as we continue to deliver best-in-class advanced payment solutions for Russia, one of our top strategic markets.”

About OTI

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 and management requirements for the Internet of Payment Things (IoPT), wearables, automated retail, and petroleum markets. OTI distributes and supports its solutions through a global network of regional offices and alliances. OTI is the proud recipient of the 2017 AI Award for Best Cashless Payment Solutions Provider – Israel. For more information, visit www.otiglobal.com.

Safe Harbor / Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Any statements that are not statements of historical fact should be considered forward looking statements. Whenever we use words such as “will,” “look forward,” “anticipate,”, “plan,” “can” or similar expressions, we are making forward-looking statements. For example, we are using forward-looking statements when we discuss, among others: our plans for the future, our expectations regarding future product launches and growth into new markets such as the Russian market, the importance of the MIR certification in Russia, sources of revenue and anticipated revenue, including the contribution from the growth of new products, services and markets and our expectation of bringing tremendous value to our industry while generating predictable, high-margin, recurring revenues for the Company and great value for our shareholders. Forward-looking statements are made as of the date of this document and are inherently subject to risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements. Additional factors that could cause actual results to differ materially from those anticipated by our forward-looking statements are stated under the captions “Risk Factors” in our most recent Annual Report (Form 10-K) and other known and unknown uncertainties and risk factors including those detailed from time to time in the Company’s filings with the Securities and Exchange Commission. Forward-looking statements are made as of the date of this release, and we expressly disclaim any obligation or undertaking to update forward-looking statements. The reader is cautioned not to place undue reliance on forward-looking statements.

Investor Relations Contact:

Greg Falesnik
MZ North America
+1-949-385-6449
Greg.Falesnik@mzgroup.us

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On Track Innovations Ltd. Reports Third Quarter 2018 Financial Results

Third Quarter Revenues Increase 39% to $6.5 Million; Debt Reduced by 89% to $0.5 Million

Rosh Pina, Israel – November 7, 2018 – On Track Innovations Ltd. (OTI) (NASDAQ: OTIV) (the “Company” or “OTI”), a global provider of near field communication (NFC) and cashless payment solutions, has provided a business update and announced financial results for the third quarter ended September 30, 2018.

Operational Updates:

  • OTI delivered a total of more than 3,000 advanced payment systems to Japan.
  • OTI delivered approximately 8,000 advanced contactless readers to the widespread Russian retail self-service market.
  • The Company received the MIR National Card Payment System organization certification, a key component of effectively penetrating the strategic Russian unattended payment market.
  • In August, Apriva released a white paper affirming its ongoing partnership with OTI for deploying next generation self-serve and vending technologies, enabling OTI to offer merchants a pre-certified, off-the-shelf EMV solution for self-service kiosks.
  • In October, OTI was granted the Interbank Network Interac certification, allowing Canadian businesses to integrate OTI’s secure cashless payment solutions into vending machines, kiosks and other unattended devices throughout the significant Canadian market.

Management Commentary

“I am pleased to announce another quarter of continued operational execution, highlighted by our robust sequential and year-over-year revenue growth,” said Shlomi Cohen, Chief Executive Officer of On Track Innovations. “The third quarter revenue of $6.5 million represents the highest third quarter revenue achieved since 2013. We continued to make notable progress on several key fronts, primarily through successful sales efforts in Japan and the United States.

 

“Alongside success in our existing markets, we continued to expand our efforts to new international markets – as evidenced through the granting of the MIR certification in Russia, where we delivered almost 8,000 advanced contactless readers in the third quarter, as well as the Interac certification in Canada. Both of these certifications are crucial to successfully operating in these countries, allowing our sales team to now focus their efforts on well-suited opportunities abroad.

 

“We also experienced our fourth consecutive quarter of positive adjusted EBITDA while expanding our recurring revenue base by 19% on an absolute dollar basis to $1.5 million per quarter, compared to $1.2 million in same year ago period. We also reduced our debt by 89% in the quarter when compared to the prior quarter, with total debt now standing at just $0.5 million.

 

“Our ability to maintain a significant technological advantage over the competition while diligently managing our expenses has positioned us well for continued revenue growth and shareholder value creation over the long-term,” concluded Cohen.

 

Q3 2018 Financial Highlights

  • Total revenue in the third quarter of 2018 increased 39% to $6.5 million, compared to $4.7 million in the same year-ago period.
  • Recurring revenues, on an absolute dollar basis, increased by 19% to $1.5 million, compared to $1.2 million in the same year-ago period.
  • Gross profit in the third quarter of 2018 was $3.4 million, or 53% of revenues, compared to $2.5 million, or 53% of revenues, in the same year-ago period.
  • Net loss from continuing operations in the third quarter of 2018 was $158,000, or $(0.00) per share, compared to a net loss from continuing operations of $573,000, or ($0.01) per share, in the same year-ago period.
  • Adjusted EBITDA in the third quarter of 2018 was $362,000, compared with adjusted EBITDA loss of $74,000 in the same year-ago period.
  • Cash, cash equivalents and short-term investments at September 30, 2018 totaled $5.9 million, compared to $8.8 million at June 30, 2018 and $8.7 million at September 30, 2017. Debt at the end of the third quarter of 2018 decreased by 89% to $0.5 million, compared to $4.5 million at the end of the second quarter of 2018.

 

Conference Call

Management will host an investor conference call at 9:00 a.m. EST on November 7, 2018, to discuss OTI’s third quarter 2018 financial results, provide a corporate update, and conclude with a Q&A from participants. To participate, please use the following information:

 

Date: Wednesday, November 7, 2018

Time: 9:00 a.m. Eastern Standard Time (6:00 a.m. Pacific Standard Time)

U.S. Dial-in: 1-888-317-6002

International Dial-in: 1-412-317-5245

Webcast: https://www.webcaster4.com/Webcast/Page/1720/27970

 

Please dial in at least 10 minutes before the start of the call and request to join the “On Track Innovations Q3 2018 Earnings Conference Call” to ensure timely participation.

 

The conference call will be available for replay by clicking here and via the investor relations section of the company’s website.

 

 

Use of Non-GAAP Financial Information

This press release contains certain non-GAAP measures, namely, adjusted EBITDA from continuing operations, or adjusted earnings from continuing operations before interest, income tax, depreciation and amortization. Adjusted EBITDA from continuing operations represents earnings before interest or financing expenses, income tax, depreciation and amortization, and further eliminates the effect of stock-based compensation expense and other expenses. OTI believes that adjusted EBITDA from continuing operations should be considered in evaluating the Company’s operations since it provides a clear indication of the Company’s operating results. This measure should be considered in addition to results prepared in accordance with U.S. GAAP, but should not be considered a substitute for the U.S. GAAP results. The non-GAAP measures included in this press release have been reconciled to the U.S. GAAP results in the tables below.

 

ON TRACK INNOVATIONS LTD.

RECONCILIATION OF NON-GAAP ADJUSTMENTThe following table reflects selected On Track Innovations Ltd. non-GAAP results reconciled to GAAP results: (US dollars in thousands)

 

  Three months ended Sept. 30, Nine months ended Sept. 30,
  2018 2017 2018 2017
  (Unaudited) (Unaudited) (Unaudited) (Unaudited)
         
Net (loss) income $       (184)  $        868  $       (797)   $        96  
Net loss (income) from discontinued operations 26 (1,441) 114 (1,365)
Financial expenses, net 2 126 129 236
Depreciation 342 295 1,022 878
Taxes on income  111 12 73 68
Total EBITDA FROM CONTINUING OPERATIONS $     297 $      (140) $           541 $           (87)
Other expenses 70                           –
Stock-based compensation          65          66             180             240
Total adjusted EBITDA FROM CONTINUING OPERATIONS $        362 $      (74) $         791 $         153

 

 

 

 

 

 

 

 

 

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. OTI is the proud recipient of the 2017 AI Award for Best Cashless Payment Solutions Provider – Israel. For more information, visit www.otiglobal.com.

 

Safe Harbor / Forward-Looking Statements

This press release contains express or implied forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Whenever we use words such as “will,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “believe,” “should,” “can” or similar expressions, we are making forward-looking statements. For example, we are using forward-looking statements when we discuss, among others: the importance of the MIR certification in Russia and the Interac certification in Canada for the successful operation in these countries, future opportunities and revenue growth and shareholder value creation over the long-term due to our ability to maintain a significant technological advantage over the competition while diligently managing our expenses.  Forward-looking statements are made as of the date of this document and are inherently subject to risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements.  Additional factors that could cause actual results to differ materially from those anticipated by our forward-looking statements are stated under the captions “Risk Factors” in our most recent Annual Report (Form 10-K) and other known and unknown uncertainties and risk factors including those detailed from time to time in the Company’s filings with the Securities and Exchange Commission.  Forward-looking statements are made as of the date of this release, and we expressly disclaim any obligation or undertaking to update forward-looking statements. The reader is cautioned not to place undue reliance on forward-looking statements.

 

Investor Relations Contact:

Greg Falesnik

MZ North America

1-949-385-6449

Greg.Falesnik@mzgroup.us

 

 

 

ON TRACK INNOVATION LTD.INTERIM UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET(US dollars in thousands)

 

 

September 30, December 31,
2018 2017

 

Assets

 

Current assets

Cash and cash equivalents $     4,514 $      6,742
Short-term investments 1,391  3,331
Trade receivables (net of allowance for doubtful
 accounts of $619 and $568 as of September 30, 2018
 and December 31, 2017, respectively) 4,026 5,827
Other receivables and prepaid expenses 2,676  1,563
Inventories 3,356 3,009
Total current assets 15,963 20,472

Long-term restricted deposit for employees benefit

468 498
Severance pay deposits 358 405

Property, plant and equipment, net

5,246 5,859

Intangible assets, net

              264                 336

 

Total Assets

 $      22,299 $      27,570

 

 

 

 

 

 

 

 

ON TRACK INNOVATION LTD.INTERIM UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET(US dollars in thousands) 

September 30, December 31,
2018 2017

 

Liabilities and Equity  

 

Current Liabilities

 
Short-term bank credit and current maturities
  of long-term bank loans $          504 $          4,181
Trade payables 6,670  6,264
Other current liabilities 2,133 2,421
Total current liabilities 9,307  12,866

Long-Term Liabilities

Long-term loans, net of current maturities 8    814
Accrued severance pay 874               939
Deferred tax liability 452               500
Total long-term liabilities 1,334            2,253
Total Liabilities 10,641        15,119

Commitments and Contingencies

Equity

Shareholders’ Equity

Ordinary shares of NIS 0.1 par value:
Authorized: 50,000,000 shares as of September 30, 2018 and
December 31, 2017; issued: 42,473,076 and 42,353,077 shares as
of September 30, 2018 and December 31, 2017, respectively;
outstanding: 41,294,377 and 41,174,378 shares
as of September 30, 2018, and December 31, 2017, respectively 1,068  1,064
Additional paid-in capital 224,968  224,758
Treasury shares at cost – 1,178,699 shares as of September 30,
   2018 and December 31, 2017 (2,000)         (2,000)
Accumulated other comprehensive loss (901)            (691)
Accumulated deficit (211,477)      (210,680)
Total Equity 11,658          12,451
Total Liabilities and Equity $       22,299 $     27,570

 

 

 

 

 

 

 

ON TRACK INNOVATION LTD.INTERIM UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS(US dollars in thousands, except share and per share data)

 

 

  Three months ended
September 30,
Nine months ended
September 30,
  2018 2017 2018 2017
   
Revenues  
Sales  $      5,020  $      3,445  $     14,157  $     11,871
Licensing and transaction fees 1,453  1,225 4,332 3,765
Total revenues  6,473  4,670 18,489 15,636
Cost of revenues
Cost of sales 3,051 2,192 8,778 7,468
Total cost of revenues 3,051 2,192 8,778 7,468
Gross profit 3,422 2,478 9,711 8,168
Operating expenses
Research and development 777 823 2,422 2,414
Selling and marketing 1,592 1,332 4,700 4,166
General and administrative 1,098 758 3,070 2,553
 
Total operating expenses 3,467 2,913 10,192 9,133
Operating loss from continuing operations (45) (435) (481) (965)
Financial expenses, net  (2)  (126)  (129)  (236)
 
Loss from continuing operations
 before taxes on income (47) (561) (610) (1,201)
Income tax  (111)  (12)  (73)  (68)
 
Net loss from continuing operations (158) (573) (683) (1,269)
Net (loss) income from discontinued operations (26) 1,441 (114) 1,365
 
Net (loss) income (184) 868 (797) 96
 
 

Basic and diluted net gain (loss) attributable to shareholders per ordinary share

From continuing operations (*) (0.01) (0.02) (0.03)
From discontinued operations (*) 0.03 (*) 0.03
$           (*) $         0.02 $       (0.02)  $            (*)
Weighted average number of ordinary shares
 used in computing basic and diluted net (loss)
 income per ordinary share 41,294,377 41,122,965 41,260,426 41,099,603

 

(*) Less than $0.01 per ordinary share.

 

 

 

 

ON TRACK INNOVATION LTD.INTERIM UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW(US dollars in thousands) 

Nine months ended September 30,
2018 2017
Cash flows from continuing operating activities
Net loss from continuing operations  $              (683)  $              (1,269)
Adjustments required to reconcile net loss to
net cash used in continuing operating activities:
Stock-based compensation related to options and shares issued
  to employees and others 180 238
Depreciation and amortization 978 878
Deferred tax, net (20) 37
Gain on sale of property and equipment (25) (9)
Accrued interest and linkage differences, net (41)
Changes in operating assets and liabilities:
Accrued severance pay, net (19) 72
Decrease in trade receivables, net 1,744 187
Increase in other receivables and prepaid expenses (1,162) (435)
Increase in inventories (381) (710)
Increase (decrease) in trade payables 668 (611)
Decrease in other current liabilities (273) (777)
Net cash provided by (used in) continuing operating activities 1,007 (2,440)
Cash flows from continuing investing activities
Purchase of property and equipment (467) (160)
Proceeds from sale of property and equipment 52 14
Change in short-term investments, net 1,195 2,917
Investment in capitalized certification costs (92) (185)
Proceeds from restricted deposit for employees benefit 8 44
Net cash provided by continuing investing activities 696 2,630
Cash flows from continuing financing activities
Decrease in short-term bank credit, net (3,449) (72)
Repayment of long-term bank loans (979) (469)
Proceeds from exercise of options and warrants 34 25
Net cash used in continuing financing activities (4,394) (516)
Cash flows from discontinued operations
Net cash used in discontinued operating activities (115) (86)
Total net cash used in discontinued operations (115) (86)
Effect of exchange rate changes on cash and cash equivalents (187) 460
 
(Decrease) increase in cash, cash equivalents and restricted cash (2,993) 48
 
Cash, cash equivalents and restricted cash – beginning of the period 7,799 (*) 7,500
 
Cash, cash equivalents and restricted cash – end of the period $               4,806 $           (*) 7,548

 

(*) Reclassified to conform with the current period presentation.

 

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On Track Innovations Partners with The George Municipality Western Cape Government to Offer Smart Cards in South Africa’s Public Transportation System

Partnership Marks OTI’s First Cashless Payments Entrance to South Africa Outside of Fueling

ROSH PINNA, Israel – October 6th, 2018 — On Track Innovations Ltd. (OTI) (NASDAQ: OTIV), a global provider of near field communication (NFC) and cashless payment solutions, has partnered with Almex Transport Solutions ticketing machines for the George Municipality Western Cape Government to implement the Go GEORGE Smart Cards, a “smart card” solution for South Africa’s public transportation system which will replace the paper ticketing system currently used on buses in the region.

The project, called The George Integrated Public Transport Network (GIPTN), is aimed at launching a new and improved public transport system for South Africa. OTI’s wholly owned subsidiary, OTI Africa, will supply ultra-intelligent OTI TRIO cashless readers that will register the fare upon boarding the bus via contactless NFC technology, which inevitably will save much-needed time for public transport scheduling, as well as eliminating the need for correct cash change and cleaning up the paper tickets waste problem.

 

“This new partnership to assist in the implementation of a ‘smart card’ program in South Africa is meaningful, as it marks our second entrance into the payment market in South Africa,” said Shlomi Cohen, CEO OTIGlobal. “We are confident that our TRIO cashless readers will help ensure a smooth transition and greatly benefit those using public transportation in the region.”

GO GEORGE Smart Cards will be issued and facilitated by the Standard Bank, whereby cardholders can load trips in different packages and fare categories onto the card at Smart Card kiosks, registered by GO GEORGE Smart Card top-up vendors and participating Standard Bank vendors such as supermarkets, self-service kiosks, petrol stations, and restaurants.

“GO GEORGE is proud to announce the implementation of the long-awaited GO GEORGE Smart Card, resembling a flexible bank card and replacing the awkward paper ticket system,” said James Robb, GO GEORGE Manager. “The service will be available on starting November 15th, and OTI is providing a critical component to ensure a successful launch.”

About Go George

The George Integrated Public Transport Network (GIPTN) is a project aimed at launching a new and improved public transport system for George and surrounding areas. GO GEORGE is operated by the public transport operators with existing services in the George area. The first trial phase launched on 8 December 2014, with routes rolling out in phases over the following months. The aim is to provide a quality public transport service that is reliable, affordable, safe, convenient and accessible and contributes to a better quality of life for all. Visit: http://www.gogeorge.org.za/

 

About OTI

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 and management requirements for the Internet of Payment Things (IoPT), wearables, automated retail, and petroleum markets. OTI distributes and supports its solutions through a global network of regional offices and alliances. OTI is the proud recipient of the 2017 AI Award for Best Cashless Payment Solutions Provider – Israel. For more information, visit www.otiglobal.com.

Safe Harbor / Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Any statements that are not statements of historical fact should be considered forward-looking statements. Whenever we use words such as “will,” “anticipate,” “intend,” “look forward,” “can,” “may” or similar expressions, we are making forward-looking statements. For example, we are using forward-looking statements when we discuss, among others: our plans for the future, our plans for continued sales, our expectations regarding future product launches and growth into new markets, our ability to attract or retain customers, increases our footprint in key markets and our expectation of bringing tremendous value to our industry while generating predictable, high-margin, recurring revenues for the Company and great value for our shareholders. Forward-looking statements are made as of the date of this document and are inherently subject to risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements. Additional factors that could cause actual results to differ materially from those anticipated by our forward-looking statements are stated under the captions “Risk Factors” in our most recent Annual Report (Form 10-K) and other known and unknown uncertainties and risk factors including those detailed from time to time in the Company’s filings with the Securities and Exchange Commission. Forward-looking statements are made as of the date of this release, and we expressly disclaim any obligation or undertaking to update forward-looking statements. The reader is cautioned not to place undue reliance on forward-looking statements.

 

Investor Relations Contact:

Greg Falesnik
MZ North America
+1-949-385-6449
Greg.Falesnik@mzgroup.us

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On Track Innovations Receives Interac Certification for Canadian Market

ROSH PINNA, Israel – October 30th, 2018 — On Track Innovations Ltd. (OTI) (NASDAQ: OTIV), a global provider of near field communication (NFC) and cashless payment solutions, has received a renewed Interbank Network Interac certification, which now allows Canadian businesses to integrate OTI’s secure cashless payment solutions into vending machines, kiosks and other unattended devices throughout Canada.

Interac Corp. operates an economical, world-class debit payments system with broad-based acceptance, reliability, security, and efficiency. The organization is one of Canada’s leading payments brands and is chosen an average of 16 million times daily to pay and exchange money.

“We are pleased to announce that we have received the Interac certification, reaffirming our commitment to remain at the forefront of innovation within the exciting Canadian unattended payment market,” said Shlomi Cohen, CEO of OTI. “Canada has over 59,000 automated teller machines and over 450,000 merchant locations accessible through the Interac network, making this certification essential to doing business in Canada. I look forward to addressing this significant market opportunity by leveraging our continued technological advantage and aggressive new sales efforts nationwide,” concluded Cohen.

About OTI

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 and management requirements for the Internet of Payment Things (IoPT), wearables, automated retail, and petroleum markets. OTI distributes and supports its solutions through a global network of regional offices and alliances. OTI is the proud recipient of the 2017 AI Award for Best Cashless Payment Solutions Provider – Israel. For more information, visit www.otiglobal.com.

 

Safe Harbor / Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Whenever we use words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions, we are making forward-looking statements. For example, we are using forward-looking statements when we discuss our expectations regarding our growth or profitability, reduction of costs and expenses, expected divestitures, plans for our existing and new products and services, penetration of new markets and securing new customers, contributions of our regions to our growth, resolution of our outstanding patent infringement claims, strengthening of our balance sheet and deliver long-term shareholder value. Because such statements deal with future events and are based on OTI’s current expectations, they are subject to various risks and uncertainties and actual results, performance or achievements of OTI could differ materially from those described in or implied by the statements in this press release. Forward-looking statements could be impacted by the effects of the protracted evaluation and validation periods in the U.S. and other markets for contactless payment cards, or new and existing products and our ability to execute production on orders, as well as other risks and uncertainties, including those discussed in the “Risk Factors” section and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2016, and in subsequent filings with the Securities and Exchange Commission. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be achieved. Except as otherwise required by law, 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 circumstances or otherwise.

 

Investor Relations Contact:

Greg Falesnik
MZ North America
+1-949-385-6449
Greg.Falesnik@mzgroup.us

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On Track Innovations Ltd. to Report Third Quarter 2018 Financial Results and Host a Conference Call on Wednesday, November 7th at 9 a.m. EST

ROSH PINNA, ISRAEL – October 29, 2018 – On Track Innovations Ltd. (OTI) (NASDAQ: OTIV), a global provider of near field communication (NFC) and cashless payment solutions, will release financial results for the third quarter ended September 30, 2018 before market open on Wednesday, November 7th at 9:00 a.m. EST.

Management will host an investor conference call at 9:00 a.m. EST on November 7th, 2018, to discuss OTI’s third quarter 2018 financial results, provide a corporate update, and conclude with a Q&A from participants. To participate, please use the following information:

Q3 2018 Conference Call and Webcast

Date: Wednesday, November 7, 2018

Time: 9:00 a.m. Eastern Standard Time (6:00 am PST)

U.S. Dial-in: 1-888-317-6002

International Dial-in: 1-412-317-5245

Webcast: https://www.webcaster4.com/Webcast/Page/1720/27970

Please dial in at least 10 minutes before the start of the call and request to join the “On Track Innovations Q3 2018 Earnings Conference Call” to ensure timely participation.

The conference call will be available for replay by clicking here and via the investor relations section of the company’s website.

 

About OTI

On Track Innovations (NASDAQ: OTIV) 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 and management requirements for the Internet of Payment Things (IoPT), wearables, automated retail and petroleum markets. OTI distributes and supports its solutions through a global network of regional offices and alliances. OTI is the proud recipient of the 2017 AI Award for Best Cashless Payment Solutions Provider – Israel. For more information, please visit www.otiglobal.com.

 

Safe Harbor for Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Whenever we use words such as “will,” “may,” “expect,” “anticipate,” “intend,” “plan,”  or similar expressions, we are making forward-looking statements. For example, we are using forward-looking statements when we discuss our expectations regarding our growth or profitability, reduction of costs and expenses,  plans for our existing and new products and services, penetration of new markets and securing new customers, contributions of our regions to our growth,  strengthening of our balance sheet and delivery long-term shareholder value. Because such statements deal with future events and are based on OTI’s current expectations, they are subject to various risks and uncertainties and actual results, performance or achievements of OTI could differ materially from those described in or implied by the statements in this press release. Forward-looking statements could be impacted by the effects of the protracted evaluation and validation periods in the U.S. and other markets for contactless payment cards, or new and existing products and our ability to execute production on orders, as well as other risks and uncertainties, including those discussed in the “Risk Factors” section and elsewhere in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2018, and in subsequent filings with the Securities and Exchange Commission. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be achieved. Except as otherwise required by law, 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 circumstances or otherwise. The reader is cautioned not to place undue reliance on forward-looking statements.

 

OTI Press Contact:

Richard Harris

Marketing Manager

press@otiglobal.com

 

OTI Investor Relations Contact:

Greg Falesnik

Managing Director

MZ Group – MZ North America

Main: 949-385-6449

OTIV@mzgroup.us

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On Track Innovations Receives MIR Certification For Russian Market

Receipt of MIR Certification Positions OTIV as a Leading Competitor in the Russian Payment Industry; OTI Expects to Deliver 5,000 Advanced Payment Systems in Q3 2018

ROSH PINNA, ISRAEL – August 22nd., 2018 – On Track Innovations Ltd. (OTI) (NASDAQ: OTIV), a global provider of near field communication (NFC) and cashless payment solutions, today announced that it has received the MIR National Card Payment System organization certification in the Russian market.

OTI expects to deliver 5,000 advanced payment systems to the Russian market in the third quarter of 2018, for which OTI will recognize a one-time sale, followed by a high-margin, recurring revenue stream over the long-term. Due to confidentiality, the terms of the contract cannot be disclosed.

The MIR certification was granted after tests between OTI and MIR concluded with zero errors.

This certification grants OTI’s Russian customers the ability to use OTI’s cashless payment solutions within the Russian market.

The Russian national payment system created the MIR payment card in 2014 with the primary objective of making sovereign payments fully independent of foreign organizations. As opposed to traditional international payment card transactions, MIR transactions cannot be suspended, as no external financial or governmental factors control their processing. By the end of 2016, 1.8 million MIR cards had been issued by 64 banks, and according to the Bank of Russia as of September 2017, a total of 30 million MIR cards are planned for release.

“We are very pleased to announce our receipt of the MIR certification, a key component of our strategy to penetrate the strategic Russian unattended payment market,” said Shlomi Cohen, Chief Executive Officer of On Track Innovations. “Our successful tests concluded with zero errors, making our solution a clear favorite for the industry. We currently expect to deliver at least 5,000 advanced payment systems to the Russian market in Q3 2018.”

 

About OTI

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 and management requirements for the Internet of Payment Things (IoPT), wearables, automated retail and petroleum markets. OTI distributes and supports its solutions through a global network of regional offices and alliances. OTI is the proud recipient of the 2017 AI Award for Best Cashless Payment Solutions Provider – Israel. For more information, visit www.otiglobal.com.

 

Safe Harbor / Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Any statements that are not statements of historical fact should be considered forward looking statements. Whenever we use words such as “expect,” “plan,” “anticipate,” “intend,” “would,” “should,” “will,” “can” or similar expressions, we are making forward-looking statements. For example, we are using forward-looking statements when we discuss, among others: our plans for the future, our expectations regarding future product launches and growth into new markets such as the Russian market, sources of revenue and anticipated revenue, including the contribution from the growth of new products, services and markets and our expectation of bringing tremendous value to our industry while generating predictable, high-margin, recurring revenues for the Company and great value for our shareholders. Forward-looking statements are made as of the date of this document and are inherently subject to risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements. Additional factors that could cause actual results to differ materially from those anticipated by our forward-looking statements are stated under the captions “Risk Factors” in our most recent Annual Report (Form 10-K) and other known and unknown uncertainties and risk factors including those detailed from time to time in the Company’s filings with the Securities and Exchange Commission. Forward-looking statements are made as of the date of this release, and we expressly disclaim any obligation or undertaking to update forward-looking statements. The reader is cautioned not to place undue reliance on forward-looking statements.

 

Investor Relations Contact

Greg Falesnik
MZ North America
+1-949-385-6449
Greg.Falesnik@mzgroup.us

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