Creating a Leaner, More Efficient Organization
ROSH PINA, ISRAEL — March 14, 2016 — On Track Innovations Ltd. (oti) (NASDAQ: OTIV), a global provider of near field communication (NFC) and cashless payment systems, has completed the major phase of its efficiency program that was initiated in September 2015.
Over the last six months, the company implemented several strategic initiatives designed to optimize the company’s internal processes, reduce costs and enhance gross margins. This included outsourcing certain manufacturing processes, reducing personnel in non-strategic areas by almost 20%, and lowering salaries at the company’s headquarters by 10% across the board.
“The successful execution of these initiatives have transformed oti into a more efficient and focused organization,” said company CEO Shlomi Cohen. “These changes will significantly reduce our operating expenses in 2016, enhance gross margins, and make us more competitive in the marketplace.”
“We have reapportioned some of the cost savings toward strengthening our sales organization in terms of both personnel and geographic reach,” continued Cohen. “Our sales and marketing team has grown significantly over the last six months, reflecting a transition to a more capable and effective sales organization that can take better advantage the strong growth in the multi-billion-dollar cashless payment market.”
The company has recently achieved a number of significant customer wins and secured key new relationships, such as its strategic partnership with Apriva for addressing a significant unmet need in the global kiosk market.
On Track Innovations Ltd. (oti) is a leader in contactless and NFC applications based on its extensive patent and IP portfolio. oti’s field-proven innovations have been deployed around the world to address NFC and other cashless payment solutions, petroleum payment and management, cashless parking fee collection systems and mass transit ticketing. oti markets and supports its solutions through a global network of regional offices and alliances. 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 “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions, we are making forward-looking statements. 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, 2014, 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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