On Track Innovations whipsaws on Q2 results

|About: On Track Innovations Ltd (OTIV)|By:, SA News Editor

Shares of On Track Innovations (OTIV) -1.4% jumped 9.7% before fading following the company's Q2 results.

Gross margin expanded 11% Y/Y to 56.7% in Q2.

Opex fell 8% Y/Y to $7.2M due to lower headcount and management costs. Operating expenses will likely continue to fall in 2H. The company divested 2 non-core businesses in Aug. (I, II)

Adjusted EBITDA was -$1.5M in Q2, compared to -$3.5M in Q2 2012.

Subsidiary ASEC won 3 mass transit e-ticket operator projects in Poland. The contract value is expected to be more than $50M over a 5 to 10 year period.