Micronet Enertec Technologies, Inc. Reports Third Quarter Results
- New Full Connectivity Product Line Gaining Marketplace Traction; 4Q Revenues Expected to Increase More Than 60% From Q3
Montvale, NJ, November 18, 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 third quarter ended September 30, 2015.
David Lucatz, Chief Executive Officer of Micronet Enertec Technologies, Inc. stated, “During the third quarter we began to see marketplace momentum from our new All-In-One wireless platforms for the MRM sector. While not reflected in our third quarter results, our new, U.S.-based sales team has generated tremendous interest in our full connectivity product line and we’re encouraged by significant increases to our order pipeline. The growing MRM vertical presents substantial opportunities for our technology as our state-of-the-art solution has the capability to meet the needs of a broad base of MRM customers across diverse applications. We saw a meaningful increase in our backlog during the quarter which sets us up for a particularly strong fourth quarter and 2016.”
Third Quarter 2015 Review
Total revenue decreased to $5.6 million for the third quarter of 2015, as compared to $11.4 million in the third quarter of 2014. Sequentially, revenues decreased slightly from $5.7 million in the second quarter of 2015. Third quarter revenue was impacted by the shift of certain deliveries in our Aerospace & Defense division from the third quarter to the fourth quarter of 2015. Total revenue for the nine months ended September 30, 2015 was approximately $17 million, as compared to $23.6 million for the same period in 2014.
- Gross profit margin was 20%, as compared to 25% in the third quarter of 2014. The decline in overall gross margin was related to the shift in Aerospace & Defense deliveries, as detailed above. Gross profit of the MRM division was 27%, as compared to 26% for the same period in 2014.
- Research and development (R&D) expense for the third quarter of 2015 was $485,000, or 8.7% of sales, compared to $546,000, or 4.8% of sales, in the third quarter of 2014. On a sequential basis, R&D expense decreased 32%, as compared to the second quarter of 2015.
- Selling, General and Administrative (SG&A) expense was $1.5 million, or 28% of sales, as compared to $2.2 million, or 19% of sales, in the third quarter of 2014.
- Net loss attributed to MICT for the third quarter of 2015 was $1.2 million, or a loss of $0.22 per basic and diluted share, as compared to a net loss of $0.5 million, or a loss of $0.09 per basic and diluted share, for the third quarter of 2014.
- The Company reported an operating loss of $1.2 million for the third quarter of 2015, as compared to an operating loss of $0.2 million in the third quarter of 2014.
- At September 30, 2015, the Company reported cash and marketable securities totaling $10.7 million and working capital of $13.1 million.
Positive Outlook for Q4 and 2016
“MRM backlog grew considerably throughout the third quarter as customers embraced our new product line, and we anticipate 60 plus percent revenue growth over the third quarter and improved gross margin performance in the fourth quarter as orders are shipped.