May 30, 2013

 

Micronet Enertec Technologies, Inc. Reports
Record Revenues and Increased Gross Margins
in the First Quarter of 2013.

Record Revenues of $10.3 Million vs. $2.0 Million in Q1 2012
Gross Profit Margin up from 30% in Q1 2012 to 35% in Q1 2013
Organic growth of 17% over Q1 2012.

Emerson, New Jersey - May 30, 2013 - Micronet Enertec Technologies, Inc. (NASDAQ: MICT), a developer and manufacturer that integrates and globally markets rugged computers, tablets and computer-based systems for the commercial Mobile Resource Management (MRM) market and for the defense and aerospace markets, announced today record financial results for the first quarter ended March 31, 2013.

First Quarter 2013 Financial Highlights.

  • Total Revenue for the first quarter was $10.3 million, an increase of 431% compared to $2.0 million for the first quarter of 2012. The growth in revenues is mainly attributed to the acquisition of Micronet and was also impacted by organic growth.
  • Gross Profit for the first quarter was $3.6 million, compared to $0.6 million for the first quarter of 2012. Gross margin was 35% compared to 30% for the same period in 2012.
  • Operating Income for the first quarter was $1.5 million, compared to $0.04 million for the first quarter of 2012.
  • Non-GAAP Adjusted Earnings Attributable to Micronet Enertec, were $0.7 million for the first quarter, compared to a Non-GAAP net loss of $0.07 million for the first quarter of 2012, excluding amortization of intangible assets and other non-cash items.
  • Non-GAAP Diluted Adjusted EPS Attributable to Micronet Enertec for the first quarter was $0.18 based on 3.924 million diluted shares outstanding compared to loss of $0.02 per share based on 3.242 million diluted shares outstanding for the same period last year.
  • Balance Sheet: As of March 31, 2013, total cash and cash equivalents was $11.4 million, an increase of $0.8 million since December 31, 2012.

GAAP Net loss attributable to Micronet Enertec for the first quarter was $0.46 million, compared to a net loss attributable to Micronet Enertec of $0.15 million for the same period last year. GAAP net loss per share attributable to Micronet Enertec for the first quarter was $0.13, based on 3.484 million diluted shares outstanding, compared to $0.05, based on 3.242 million diluted shares outstanding, for the same period last year. This first quarter included non-cash expenses in the total amount of $1.2 million.

A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

David Lucatz, Micronet Enertec’s CEO commented, “The first quarter was a positive start for 2013 and a significant milestone in fulfilling our goal to become a leading supplier of mobile powerful computers for the growing needs of Mobile Resource Management solutions and for mission-critical military missions.  We grew from a Company that recorded $2 million in revenues for the first quarter of 2012 to $10 million in revenues for the first quarter of 2013, enjoying organic growth of 23% in sales in the defense and aerospace market and 15% in the MRM market compared to Q1 last year.  In conjunction with our growth, we improved gross margins from 30% in the first quarter of 2012 to 35% in the first quarter of 2013, achieving gross profit of $3.6 million in Q1 2013 versus $0.6 million in 2012.

During the first quarter of 2013, we invested over $0.7 million in R&D, developing the next generation of our solutions based on comprehensive knowledge of market needs and close discussions with our customers,” Mr. Lucatz continued. “We are confident that our marketing and engineering teams will present innovative and unique solutions to ensure our future success and increased market share in the multi-billion dollar markets in which we operate.

We also saw great progress in further solidifying the foundation of our business to position ourselves for long-term sustainable growth. After the quarter ended, we closed on our $8.1 million public offering of common stock and warrants and we received approval from the Indian government for the operation of our joint venture. We are very excited about the multi-billion dollar Indian defense market and we plan to increase our share in this market in the coming years,” Mr. Lucatz concluded.

Continuation...

About Micronet Enertec Technologies, Inc.
Micronet Enertec Technologies, Inc., formerly known as Lapis Technologies, Inc., operates through two companies, Enertec Systems 2001 Ltd ("Enertec"), its wholly-owned subsidiary, and Micronet Ltd ("Micronet"), in which it has a controlling interest. Micronet operates in the growing commercial Mobile Resource Management (MRM) market, mainly in the United States. Micronet designs, develops, manufactures and sells rugged mobile computing devices that provide fleet operators and field workforces with computing solutions in challenging work environments. Enertec operates in the Defense and Aerospace markets and designs, develops, manufactures and supplies various customized military computer-based systems for missile defense systems, command and control and others. The Company's products, solutions and services are designed to perform in severe environments and battlefield conditions.

Micronet Enertec Technologies, Inc. Forward-looking Statement.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Words such as “expect,” “believe,” “intend,” “plan,” “continue,” “may,” “will,” “anticipate,” and similar expressions are intended to identify forward-looking statements.  Actual results may differ materially from those projected in any forward-looking statement.  More detailed information about the risk factors affecting the Company’s performance is contained under the heading “Risk Factors” in the Company’s annual report filed with the SEC, which is available on the SEC’s web site, www.sec.gov.  Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analyses only as of the date hereof.  The Company neither intends to, nor assumes any obligation to, update or revise these forward-looking statements in light of developments that differ from those anticipated.

Contact information:
Miri Segal Scharia

Managing Partner Global Accounts & IPOs
Hayden/ MS-IR LLC
Tel: 917-607-8654
msegal@ms-ir.com

Dina Shir
Micronet Enertec Technologies, Inc.
Tel: +972-544-652806
dina@micronet-enertec.com

 

Copyright Micronet Enertec Technologies, Inc 2013