2018

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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On Track Innovations Ltd. Reports Second Quarter 2018 Financial Results

Revenues in First Half of 2018 Increase by 10% to $12.0 Million; Gross Margin in Second Quarter Increases to 52%

Rosh Pina, Israel – August 8, 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 second quarter ended June 30, 2018.

Operational Updates:

  • In June, OTI received a purchase order for more than 3,000 cashless payment systems from Japan via its partner, Billing Systems Cooperation (TSEL 3623), a leading payment service provider. OTI will recognize a one-time sale, followed by a high-margin, recurring revenue stream over the long-term. By the end of the third quarter of 2018, OTI will have delivered a total of more than 10,000 advanced payment systems to Japan.
  • Expanded footprint in Poland through new government contracts:
    • In April, OTI secured a recurring revenue contract with the Polish National Post Office (Poczta Polska S.A.) to manage Warsaw’s public transportation “Smart City” card program (i.e. purchase or refill cards for travel via train, bus, or other mode of public transportation). OTI will be providing both the payment portion, as well as the software, in 272 terminals throughout post offices in Warsaw, whereby OTI will manage and control the entire sales and payment process.
    • In May, OTI signed one-year, $500,000 agreement to provide intermediation in the sale of train tickets for trains operated by Mazowieckie Railways in Poland. OTI will provide service to the Masovian Card and sharing information via the infokiosk using 84 ticket vending machines.
    • In June, OTI secured a four-year service contract with the Mazowieckie Railways company to provide and maintain their Smart Cart IT system in support of electronic ticket sales in Poland’s largest and most populous province.
  • In June, OTI received two technology awards from Global Brand Publications (GBR):
    • OTI PetroSmart, OTI’s South Africa based fuel management subsidiary, was named “Most Innovative Technology Company” in Africa.
    • OTI Europa, OTI’s European subsidiary, was named “Most Innovative Cashless Payment Solutions Provider” in Europe.
  • In July, OTI received a purchase order for 5,000 advanced contactless readers to the widespread Russian retail self-service market. OTI has also applied for the Russian Mir certification, a Payment System Established by The Central Bank of Russia. The company expects greater penetration once the Mir certification is officially approved.

 

 

 

Management Commentary

“We’ve continued to experience strong operational execution in our business, evidenced by several purchase orders and contracts in some of our key target markets, including Poland, Japan, and most recently, Russia,” said Shlomi Cohen, Chief Executive Officer of On Track Innovations. “As part of these initiatives, we have continued to invest in our growing list of esteemed certifications, and most recently applied for the Russian Mir certification that we expect to receive in short order, which most likely accelerates penetration in this key market. In fact, we’ve identified Russia as a potential strategic market for OTI, and in July, we received a purchase order for 5,000 advanced contactless readers to the widespread Russian retail self-service market.

 

“In the first half of 2018, we recognized revenues of more than $12.0 million, representing growth of 10% from the year-ago period, and experienced our third consecutive quarter of positive Adjusted EBITDA results as we drive towards profitability. Looking towards the third quarter of 2018, we are expecting double-digit revenue growth compared to the third quarter of 2017 as a result of execution across all business units as we continue gaining market share in the cashless payments arena.”

 

Financial Summary

  • Total revenue in the second quarter of 2018 was $6.2 million, compared to $6.9 million in the same year-ago period. Revenues in the first half of 2018 increased 10% to $12.0 million, compared to $11.0 million in the first half of 2017.
  • Recurring revenues accounted for 24% of total revenues in the first half of 2018, compared to 23% of total revenues in the first half of 2017. On an absolute dollar basis, recurring revenues increased by 14% to $2.9 million, compared to $2.5 million.
  • Gross profit in the second quarter of 2018 was $3.2 million, or 52% of revenues, compared to $3.5 million, or 50% of revenues, in the same year-ago period. In the first half of 2018, gross profit increased 11% to $6.3 million, or 52% of total revenues, compared to $5.7 million, or 52% of revenues, in the same year-ago period.
  • Net loss from continuing operations in the second quarter of 2018 was $230,000, or $(0.01) per share, compared to a net income from continuing operations of $86,000, or $0.00 per share, in the same year-ago period. Net loss from continuing operations in the first half of 2018 was $525,000, or $(0.01) per share, compared to a net loss from continuing operations of $696,000, or $(0.02) per share, in the same year-ago period.
  • Positive adjusted EBITDA in the second quarter of 2018 was $315,000, compared with a positive adjusted EBITDA of $536,000 in the same year-ago period. Positive adjusted EBITDA in the first half of 2018 increased to $429,000, compared to a positive adjusted EBITDA of $227,000 in the same year-ago period.
  • Cash and cash equivalents and short-term investments at June 30, 2018, totaled $8.8 million, compared to $10.5 million at March 31, 2018, and $10.1 million at December 31, 2017. Debt at the end of the second quarter of 2018 decreased to $4.5 million, compared to $4.9 million at the end of the first quarter of 2018.

Conference Call

Management will host an investor conference call at 9:00 a.m. Eastern time on August 8, 2018, to discuss OTI’s second 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, August 8, 2018

Time: 9:00 a.m. Eastern time

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

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

Webcast: https://www.webcaster4.com/Webcast/Page/1720/26753

 

Please dial in at least 10 minutes before the start of the call and request to join the “On Track Innovations Q2 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, patent litigation and maintenance expenses 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 June 30, Six months ended June 30,
  2018 2017 2018 2017
  (Unaudited) (Unaudited) (Unaudited) (Unaudited)
         
Net (loss) income $       (280)  $        93  $       (613)   $        (772)  
Net loss (income) from discontinued operations 50 (7) 88 76
Financial expenses, net 95 39 127 110
Depreciation 345 302 680 583
Taxes on income  (27) 25 (38) 56
Total EBITDA FROM CONTINUING OPERATIONS $     183 $      452 $           244 $           53
Other expenses 70 70                           –
Stock-based compensation          62          84             115             174
Total adjusted EBITDA FROM CONTINUING OPERATIONS $        315 $      536 $         429 $         227

 

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,” “would,” “should,” “can,” “promising” or similar expressions, we are making forward-looking statements. For example, we are using forward-looking statements when we discuss, among others:  our expectations regarding delivery of our payment systems to Japan, receipt of the Russian Mir certification in short order and its potential effect on our penetration to the Russian market, our drive towards profitability and our expectations for revenue growth in Q3 compared to Q2 and market share gaining in the cashless payments arena and our expectations regarding future growth into new markets such as the Russian market.  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)

 

June 30, December 31,
                  2018                     2017

 

Assets

 

Current assets

Cash and cash equivalents $     6,592 $      6,742
Short-term investments 2,161  3,331
Trade receivables (net of allowance for doubtful
 accounts of $550 and $568 as of June 30, 2018
 and December 31, 2017, respectively) 5,536 5,827
Other receivables and prepaid expenses 2,168  1,563
Inventories 3,313 3,009
Total current assets 19,770 20,472

Long-term restricted deposit for employees benefit

473 498
Severance pay deposits 384 405

Property, plant and equipment, net

              5,401               5,859

Intangible assets, net

                 313                   336

 

Total Assets

 $      26,341 $      27,570

 

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

June 30, December 31,
                  2018                     2017

 

Liabilities and Equity  

 

Current Liabilities

 
Short-term bank credit and current maturities
  of long-term bank loans $          3,974 $          4,181
Trade payables 6,418  6,264
Other current liabilities 2,441 2,421
Total current liabilities 12,833  12,866

Long-Term Liabilities

Long-term loans, net of current maturities 477    814
Accrued severance pay 890               939
Deferred tax liability 408               500
Total long-term liabilities 1,775            2,253
Total Liabilities 14,608        15,119

Commitments and Contingencies

Equity

Ordinary shares of NIS 0.1 par value: Authorized –
50,000,000 shares as of June 30, 2018 and
December 31, 2017; issued: 42,473,076 and 42,353,077 shares as
of June 30, 2018 and December 31, 2017, respectively;
outstanding: 41,294,377 and 41,174,378 shares
as of June 30, 2018, and December 31, 2017, respectively 1,068  1,064
Additional paid-in capital 224,903  224,758
Treasury shares at cost – 1,178,699 shares as of June 30,
   2018 and December 31, 2017 (2,000)         (2,000)
Accumulated other comprehensive loss (945)            (691)
Accumulated deficit (211,293)      (210,680)
Total Equity 11,733          12,451
Total Liabilities and Equity  $      26,341 $     27,570

 

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

Three                    Three months ended June 30, Six months ended June 30,
                  2018                     2017                   2018                     2017

 

Revenues    
Sales  $      4,656  $      5,646  $      9,137  $      8,426
Licensing and transaction fees  1,498  1,300 2,879 2,540
Total revenues  6,154  6,946 12,016 10,966
Cost of revenues
Cost of sales  2,973  3,476  5,727  5,276
Total cost of revenues  2,973  3,476 5,727  5,276
Gross profit 3,181 3,470  6,289  5,690
Operating expenses
Research and development 815 889  1,645  1,591
Selling and marketing 1,463 1,492  3,108  2,834
General and administrative      1,065      939 1,972 1,795
Total operating expenses 3,343 3,320  6,725  6,220
Operating (loss) income  from continuing operations (162) 150 (436) (530)
Financial expenses, net  (95)  (39)  (127)  (110)
(Loss) income from continuing operations
 before taxes on income (257) 111 (563) (640)
Income tax 27 (25) 38  (56)
Net (loss) income from continuing operations (230) 86 (525) (696)
Net (loss) income  from discontinued operations (50)   7 (88) (76)
Net (loss) income $       (280) $              93 $         (613) $       (772)
Basic and diluted net loss attributable to shareholders per ordinary share
From continuing operations (0.01) * (0.01) (0.02)
From discontinued operations * * * *
$            (0.01) $                 * $        (0.01) $      (0.02)
Weighted average number of ordinary shares used in computing basic and diluted net income (loss) per ordinary share  

41,271,644

 

41,095,788

 

41,243,169

 

41,087,729

 

*    Less than $0.01 per ordinary share.

 

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

Six months ended June 30,
                 2018                 2017

 

Cash flows from continuing operating activities
Net loss from continuing operations  $              (525)  $              (696)
Adjustments required to reconcile net loss to
net cash used in continuing operating activities:
Stock-based compensation related to options issued
  to employees and others 115 174
Accrued interest and linkage differences, net 7 (47)
Depreciation and amortization 680 583
Deferred tax, net (54) 21
Gain on sale of fixed assets (17) (7)
Changes in operating assets and liabilities:
Accrued severance pay, net (28) 74
Decrease (increase) in trade receivables, net 963 (1,151)
(Increase) decrease in other receivables and prepaid expenses (658) 90
Increase in inventories (344) (47)
Increase (decrease) in trade payables 445 (396)
Decrease in other current liabilities (650) (855)
Net cash used in continuing operating activities (66) (2,257)
Cash flows from continuing investing activities
Purchase of property and equipment, net (414) (98)
Change in short-term investments, net 1,173 2,500
Investment in capitalized product costs (87) (157)
Proceeds from restricted deposit for employee benefits 44
Proceeds from sale of fixed assets 17 12
Net cash provided by continuing investing activities 689 2,301
Cash flows from continuing financing activities
(Decrease) increase in short-term bank credit, net (80) 213
Repayment of long-term bank loans (348) (374)
Proceeds from exercise of options 34 15
Net cash used in continuing financing activities (394) (146)
Cash flows from discontinued operations
Net cash used in discontinued operating activities (107) (71)
Total net cash used in discontinued operations (107) (71)
Effect of exchange rate changes on cash and cash equivalents (288) 463
 
(Decrease) increase in cash, cash equivalents and restricted cash (166) 290
Cash, cash equivalents and restricted cash-beginning of the period 7,799 (*)  7,500
 
Cash, cash equivalents and restricted cash-end of the period $               7,633 $          (*)  7,790

 

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

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On Track Innovations’ Partner, Apriva, Releases White Paper Affirming Ongoing Partnership for Deploying Next-Generation Self-Serve and Vending Technologies

The Strategic Fit Enables the Two Companies to Offer Merchants a Pre-Certified, Off-The-Shelf, EMV Solution for Self-Service Kiosks

ROSH PINNA, ISRAEL – August 7th, 2018On Track Innovations Ltd. (OTI) (NASDAQ: OTIV), a global provider of near field communications (NFC) and cashless payment solutions, has announced their partner, Apriva, a technology company providing an adaptive platform for omnichannel payments and secure mobile communications, has published a white paper titled, “OTI Brings Diverse Cashless Payment Solutions,” which affirms the ongoing partnership for deploying next-generation self-serve and vending technologies.

 

Apriva enables broad acceptance for attended and unattended payments, including off-the-shelf EMV solutions. OTI’s continued collaboration with Apriva facilitates the production of an adaptive platform for omnichannel payments and secure mobile communications. This pre-integrated payment solution services the ever-growing unattended payments kiosk market.  According to a recent white paper by Frank Meyer titled, “The Present-Day Kiosk and Its Benefit to Today’s Consumer,” the self-serve kiosk industry grew over 17% in 2017 and generated over $7.8 billion in annual sales.

 

“The OTI and Apriva cashless payments solution was the perfect choice for us,” said Renee Smith, President, and CTO of Parking BOXX. “The flexibility to manage both our EASE and CloudEASE portfolios with the same SDK, combined with the efficiency of an off-the-shelf, pre-certified EMV solution not only gave Parking BOXX a time-to-market advantage but also saved us the cost of months of integration and certification.”

 

The OTI/Apriva payment solution supports magnetic stripe reader (MSR) transactions, as well as EMV contact and contactless transactions with Elavon as the processing platform. This allows secure real-time, end-to-end data encryption and uses the industry standard, derived unique key per transaction (DUKPT) encryption method, without the cardholder’s card data stored. The Interactive Self-Service OTIKiosk Payment solution is available in the U.S. through the Las Vegas-based distributor, Unattended Card Payments Inc.

 

“OTI’s best in its class payment solution, combined with Apriva’s adaptive payment platform, brings our customers unmatched value, flexibility, and ease of integration, saving thousands of dollars and many months in development time and certification costs,” said Bill Gostowski, Vice President of Business Development at OTI America Inc. (a wholly owned subsidiary of OTI).

 

About Apriva

Formed in 2003, Apriva is a technology company providing an adaptive platform for secure mobile communications and omnichannel payments. The company’s mobile-first technologies meet the exacting security and reliability requirements of financial services providers, commercial enterprises, government entities, public service sectors, and independent sales organizations. Through its two operating groups, Apriva Payments, and Apriva Mobile Security, the company offers fully-managed, end-to-end security solutions supporting commerce and communications. For more information, please visit www.Apriva.com.

 

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.

 

Safe Harbor for Forward-Looking Statements
This press release may contain 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 “expect,” “anticipate,” “intend,” “plan,” “estimate,” “predict,” “likely,” “should,” “could,” “may,” “will,” “future” 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, continued collaboration with Apriva facilitates the production of an adaptive platform for omnichannel payments and secure mobile communications, reduction of costs and expenses, expected divestitures, plans for our existing and new products and services, penetration of new markets and securing new customers, expectations regarding certain markets growth, 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. The reader is cautioned not to place undue reliance on forward-looking statements.

 

Apriva contact:
Michael Jones – Apriva
+1 480-421-1232
mjones@apriva.com

 

Investor Relations:
MZ North America
Greg Falesnik
Managing Director
Main: 949-385-6449
greg.falesnik@mzgroup.us
www.mzgroup.us

 

 

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Management will host an investor conference call at 9:00 a.m. Eastern time on August 8, 2018, to discuss OTI’s second quarter 2018 financial results

ROSH PINNAIsraelJuly 25, 2018 /PRNewswire/ — 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 second quarter ended June 30, 2018before market open on Wednesday, August 8th.

Management will host an investor conference call at 9:00 a.m. Eastern time on August 8, 2018, to discuss OTI’s second quarter 2018 financial results, provide a corporate update, and conclude with a Q&A from participants. To participate, please use the following information:

Q2 2018 Conference Call and Webcast
Date: Wednesday, August 8, 2018
Time: 9:00 a.m. Eastern time
U.S. Dial-in: 1-888-317-6002
International Dial-in: 1-412-317-5245
Webcast: https://www.webcaster4.com/Webcast/Page/1720/26753

Please dial in at least 10 minutes before the start of the call and request to join the “On Track Innovations Q2 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,”  “would,” “should,” “can,””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, 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 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 June 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 Purchase Order for 5,000 Advanced Contactless Readers to the Widespread Russian Retail Self-Service Market

OTI Applies for Mir Certification, a Payment System Established by The Central Bank of Russia

Russian Payment Market Expected to be a Top Three Strategic Geography for OTI

ROSH PINNA, Israel, July 23, 2018 /PRNewswire/ — 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 5,000 advanced contactless readers to the massive Russian retail self-service market, which will be delivered by the third quarter of 2018. Due to confidentiality, the terms of the contract cannot be disclosed.

OTI has identified Russia as a top three strategic market, and as part of the company’s efforts to expand in the region they have applied for the Russian Mir certification, a Payment System Established by The Central Bank of Russia. Although this certification is not a pre-requisite for sales into Russia, OTI expects greater penetration of the Russian market once approved.

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. In 2016, 1.76 million Mir cards were issued by 64 banks. According to the Bank of Russia, in September 2017, 30 million Mir cards are planned for release. Unlike international payment card transactions, Mir transactions cannot be suspended, and no external financial or governmental factors control their processing.

“We have continuously invested in our growing list of esteemed certifications and expect the Russian Mir certification to follow in short order. These efforts have allowed OTI to rapidly expand on a global basis, while creating secure and cost-efficient cashless solutions that support today’s modern payment requirements,” said Shlomi Cohen, CEO of On Track Innovations. “As part of our efforts to expand internationally, we have set a keen focus on the Russian payments market, which is expected to be a top three geography for OTI moving forward. Over the past 18-months, we have worked tirelessly to grow our presence in the region where we have experienced tremendous interest, most recently, with our purchase order to deliver 5,000 advanced contactless readers by the third quarter of 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 may contain 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 “plan,” “will” “expect,” “anticipate,” “intend,” “would,” “should,” “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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On Track Innovations Receives Purchase Order for 3,000 Cashless Payment Systems for the Japanese Market

ROSH PINNA, Israel, June 28, 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 a purchase order for 3,000 cashless payment systems from Japan via its partner, Billing Systems Cooperation (TSEL 3623), a leading payment service provider.

The systems include OTI’s turnkey solution, which is comprised of a new UNO Plus EMV and FeliCa contactless reader as well as the GoBox Multi-Service Telemetry Gateway. OTI’s GoBox is a powerful Machine-to-Machine (M2M) controller, payment gateway and multi-services enabler for unattended machines, providing innovative new revenue streams for machine operators.

OTI’s turnkey solution offers a single point of contact for vending machine operators looking to implement cashless payment solutions. The company expects the purchase order to be delivered 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. Once complete, OTI will have delivered a total of 10,000 advanced payment systems to Japan to-date.

“I am very pleased to report this new purchase order, which increases our footprint in the key Japanese cashless payment systems market to 10,000 units,” said Shlomi Cohen, CEO of On Track Innovations. “At an estimated six million units, the total estimated size of the Japanese electronic vending machine market is significant, leaving us a substantial runway to continue to execute with our partner, Billing Systems Cooperation. I look forward to continued sales execution in this key global market,” 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. Any statements that are not statements of historical fact should be considered forward looking statements. Whenever we use words such as “estimate,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “would,” “should,” “will,” “look-forward,” “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 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, traction with our cryptocurrency efforts 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 Wins Two Technology Awards from Global Brand Publications

ROSH PINNA, Israel, June 26, 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 won two technology awards from Global Brand Publications (GBR).

OTI PetroSmart, OTI’s South Africa based fuel management subsidiary, was named “Most Innovative Technology Company” in Africa, while OTI Europa, OTI’s European subsidiary, was named “Most Innovative Cashless Payment Solutions Provider” in Europe.

The Global Brand Publications awards were established with the aim of recognizing and rewarding companies who have demonstrated excellent performance across various sectors including Finance, Education, Hospitality, Lifestyle, Automobiles and Technology. Over 7,000 companies were evaluated by Global Brands Publications’ external research agency, which scrutinizes all award nominees prior to review by an internal panel.

“As CEO of OTI, I am incredibly proud of our dedicated employee base and strong corporate culture, which made receipt of these awards possible,” said Shlomi Cohen, Chief Executive Officer of On Track Innovations. “Their continued execution has formed us into an industry thought leader and the innovative company that we are today. I want to thank each and every employee for their contributions to the company,” 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 may contain 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 “believe,” “expect,” “anticipate,” “intend,” “plan,” “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, traction with our cryptocurrency efforts, 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 Signs Long-Term Service Contract with Mazowieckie Railways

Rosh Pinna, Israel – June 6, 2018 — On Track Innovations Ltd. (OTI) (NASDAQ: OTIV), a global provider of near field communication (NFC) and cashless payment solutions, today announced a new long-term service contract with the Mazowieckie Railways Company.

As part of the four-year contract, which as an estimated value of $155,000, OTI Europa will provide and maintain Mazowieckie Railways’ Masovian Smart Cart IT system in support of electronic ticket sales. Mazowieckie Railways is part of an integrated public transit system that provides regional passenger rail service on behalf of the Mazowieckie voivodeship local government, Poland’s largest and most populous province.

“We are pleased that Mazowieckie Railways chose OTI as their partner for ongoing IT support,” said Shlomi Cohen, CEO of On Track Innovations. “Our significant experience within the European mass transit market positions us favorably for future contract wins in this segment. This multi-year service contract stands as a testament to our continued efforts to build a steady base of long-term recurring revenues, which we believe will be a notable long-term value driver for our shareholders. We look forward to continued execution on this front.”

 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,”  “would,” “should,” “will,” “look-forward,” “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, traction with our cryptocurrency efforts 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 Secures New Ticketing Contract in Poland

ROSH PINNA, Israel, May 29, 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 announced that the Company’s European branch, OTI Europa ASEC (ASEC S.A.), has signed a new agreement to provide intermediation in the sale of train tickets for trains operated by Mazowieckie Railways in Poland.

As part of the contract, OTI Europa ASEC will provide service to the Masovian Card and share information via the info-kiosk using 84 ticket vending machines. The contract has a one-year value of approximately $500,000 USD to OTI.

“Our ticketing sales network in Poland continues to gain traction in a meaningful way, which we view as a testament to the value we offer to our customers,” said Agnieszka Swiatly, Managing Director, OTI Europa ASEC.  “We look forward to a long and successful relationship with Mazowieckie Railways as we work to expand our footprint and gain additional market share in the year ahead.”

About Mazowieckie Railways

Since 2005, the Mazowieckie Railways has provided a public service in the field of regional rail passenger services on behalf of the Mazowieckie voivodeship local government.  Mazowieckie has provided high-quality passenger rail transport in the Warsaw agglomeration and the rest of the Mazowieckie Voivodeship, as part of an integrated public transport system.

OTI Europa ASEC (ASEC S.A.) is one of the largest operators of e-ticketing and paper ticket sales systems in the public transport on polish market. It creates, delivers, implements and supports IT systems for public transport, OTI Europa ASEC provides and integrates certified solutions for contactless payments, allowing for quick cashless payment transactions with bank cards and NFC.

OTI Europa ASEC is a part of OTI – On Track Innovations group. For more information, visit www.otieuropa.com.

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 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,” “will,” “look forward” or similar expressions, we are making forward-looking statements. For example, we are using forward-looking statements when we discuss our expectations regarding gain additional market shares, our growth or profitability, expected divestitures, plans for our existing and new products and services, penetration of new markets and securing new customers 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. 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 to Present at the Ladenburg Thalmann Technology Expo in New York on May 31

Rosh Pinna, Israel – May 25, 2018 — On Track Innovations Ltd. (OTI) (NASDAQ: OTIV), a global provider of near field communication (NFC) and cashless payment solutions, today announced that management is scheduled to present at the Ladenburg Thalmann Technology Expo in New York City. The conference is being held on May 31, 2018, at Convene on Park Avenue.

On Track Innovations management will host one-on-one meetings throughout the day on May 31st and is scheduled to present as follows:

Ladenburg Thalmann Technology Expo

Date: Thursday, May 31, 2018

Presentation Time: 8:30 a.m. Eastern time

Location: Park Hub East Room – Convene, 101 Park Avenue, New York City

Registration is mandatory for conference participation. For more information on the conference or to schedule a one-on-one meeting, please contact your Ladenburg Thalmann representative.  

 

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,” “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, traction with our cryptocurrency efforts 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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