May 14, 2015

MICT 2015


Micronet Enertec Technologies, Inc. Reports First Quarter Results

Montvale, NJ, May 14, 2015 -- 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 first quarter ended March 31, 2015.
David Lucatz, Chief Executive Officer of Micronet Enertec Technologies, Inc. stated, “During the first quarter we began the introduction of our new Android All-In-One wireless platforms.  This is a very exciting solution for the industry, offering for the first time 3.5G /4G LTE, Blue Tooth and Wi-Fi applications in an All-In-One Rugged platform, providing our customers with real-time connectivity.  This new platform has recently been  certified by Verizon and we are concurrently working to achieve certification from other major wireless carriers as well.  Sales to the MRM market for the quarter were 9% higher than our sales in the first quarter of 2014.  We expect sales to further accelerate for our new product line that provides a better, innovative and efficient solution.  Many of our partners, customers and new potential customers are currently in the process of adapting their solutions to our new platforms.  We are enthusiastic about the initial reception by customers, as demonstrated by our announcement, subsequent to the close of the quarter, of a large, three-year purchase agreement with a leading U.S. based K-12 school bus fleet and workforce Management Company.  The first year of this order may exceed $4 million, and we expect increased volumes for each of the following two years.   “We continue to grow and diversify our customer base, 84% of our revenues of first quarter 2015 were generated by new customers and we are in advanced discussions with many more. We believe that we are well positioned, particularly with our new solutions and product offerings, to further penetrate the MRM market and improve Micronet Enertec’s brand recognition as a leading supplier.  Additionally, the consolidation of our MRM operations in the U.S. is progressing well, enhancing our reach into the local fleet vertical, the largest vertical in the MRM space.”

 First Quarter 2015 Review

  • Total revenue increased 2% to $5.7 million, as compared to $5.6 million in the first quarter of 2014.   
  • Gross profit margin was 31%, up from 29% for the year ended 31 December 2014 and down from a gross margin of 37% in the first quarter of 2014.
  • Selling, General & Administrative (SG&A) expense was $1.6 million, or 28% of sales, as compared to $1.3 million, or 23% of sales, in the first quarter of 2014.  The increased SG&A expense is primarily related to costs associated with the reorganization of the Company’s MRM operations in the U.S. including the integration of the vehicle business acquired in June 2014.  
  • Net loss attributable to Micronet Enertec for the first quarter was $705,000, or a loss of $0.12 per basic and diluted share as compared to net loss attributable to Micronet Enertec of $332,000, or $0.06 per basic and diluted share, for the first quarter of 2014.
  • The Company reported an operating loss of $874,000 as compared to an operating loss of $60,000 in the first quarter of 2014.

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