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OTIV Reports Q3 Results - Some Revenues Shift into 2012 - '11 outlook lowered to $50M

|Includes:On Track Innovations Ltd (OTIV)




·         2H ’11 impacted by Thailand flooding which has delayed customer shipments

·         Some customer delays on existing contracts/execution affecting 2H revenue recognition

·         ~$6M to $8M in Rev’s anticipated in 2011 should shift into 2012, increasing visibility for 2012

·         2nd half delays due to principal inlay contractor plant in Thailand and supply chain disruptions

·         Seeing higher revenues in Q4 which looks to be strongest quarter in 2011

·         Reduced ‘11 revenue guidance to $50M from $55M to $60M

·         Guidance implies solid Q4 with gross margins returning to long term target50%

·         With expected Q4 Rev & margin, expect profitability in Q4 on a non-GAAP basis

·         $7M core tech licensing deal announced 11/30/11 – included in guidance


Financial Highlights

·         9M revenues decreased 19% to $35.2M, Q3 revenue decreased 46% to $8.5M

·         9M licensing/transaction fee Rev. +42% to $4.0M

·         9M Gross margin 49%

·         Non-GAAP operating expenses +17% to $22.2M compared to $19.0M last year. GAAP operating expenses increased by 9% to $24.2M vs. $22.2M last year.

·         9M GAAP operating loss $7.0M vs. profit of $1.4M

·         9M GAAP net loss attributable to shareholders was $7.4M vs. $2.0M

·         Strong balance sheet; cash/equivalents/ST investments $30.8M @ 9/30


Full release here:

Stocks: OTIV