Micronet Enertec Technologies, Inc. Reports Second Quarter 2014 Financial Results; Quarterly Sequential Revenue Growth of 18% With 42% Increase in Backlog Over Year End
* Company expects a significant increase in the second half of 2014 revenues, in excess of 35 % compared to the first half of 2014.
* Results of one month of the recently acquired Beijer business are included in this quarter; earnings impacted by acquisition related expenses.
Montvale, NJ August 14, 2014 /PRNewswire/ -- Micronet Enertec Technologies, Inc. (NASDAQCM: MICT), a developer and manufacturer of rugged computers, tablets and computer-based systems for the commercial Mobile Resource Management (MRM) market and for the defense and aerospace markets, today announced financial results for the second quarter and six months ended June 30, 2014.
David Lucatz, Chief Executive Officer of Micronet Enertec Technologies, Inc. stated, “We are at an exciting point in our growth, however, this is not yet reflected in our quarterly results, given the timing of certain events as part of our road map going forward. In June, we acquired Beijer Electronics’ MRM division, establishing ourselves as a dominant player in the MRM market. Only one month of the acquired division’s revenues are consolidated in the second quarter results. We also witnessed a reduction in revenue from one of our legacy customers during the quarter, temporarily impacting our revenue performance. That said, we saw healthy growth in our MRM business, transitioning our revenue to a more diverse customer base with increased market share in the higher growth local fleet vehicle vertical. Given our improved backlog performance, we expect our revenues for the second half of 2014 to grow in excess of 35% compared to the first half of the year.”
Second Quarter 2014 Review
• Total revenue declined 15% to $6.6 million, as compared to $7.8 million in the second quarter of 2013, due to reduced sales to the Company’s major client. Sequentially, revenues increased 18% compared to the first quarter of 2014. Second quarter revenues include approximately one month of revenue contribution from the recent acquisition of Beijer's MRM division.
• Selling General & Administrative (SG&A) expense increased to $2 million as compared to $1.2 million in the same quarter of 2013, primarily related to costs associated with the acquisition of Beijer’s MRM division and consolidating the Company’s MRM operations within the U.S.