April 14, 2016

mict


Micronet Enertec Technologies, Inc. Reports Fourth Quarter Results

Montvale, NJ, April 14, 2016 -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 fourth quarter and year ended December 31, 2015.

David Lucatz, Chief Executive Officer of Micronet Enertec Technologies, Inc. stated,
“We are pleased to have reached net profitability in the fourth quarter.  As we previously reported, we took important efficiency steps consolidating Micronet's operations in Salt Lake City creating savings and increasing efficiency and profitability. This is particularly rewarding given we achieved this milestone with lower than expected sequential revenue growth due to the delay in the receipt of certain components.  We anticipate these delayed products will ship over the next few quarters.  Our backlog and pipeline are increasing given the considerable growth opportunity presented by the recent federal mandate requiring electronic logging (the ELD mandate). The Company’s improved cost structure will enable us to achieve better profitability.

Fourth Quarter 2015 Review

  • Total revenue decreased to $6.6 million for the fourth quarter of 2015, as compared to $10.7 million in the fourth quarter of 2014. Sequentially, revenues increased 18% from $5.6 million in the third quarter of 2015. Fourth quarter revenue was primarily impacted by a delay in receiving certain components  in the MRM business which delayed product shipments, as well as by the timing of the receipt of orders in the Aerospace & Defense business.  

  • Gross profit margin was 39% as compared to 31% in the fourth quarter of 2014. The increase in overall gross margin was related to cost savings and higher margin in fourth quarter product mix.

  • Research and development (R&D) expense for the fourth quarter of 2015 was $501,000, or 8% of sales, compared to $643,000, or 6% of sales, in the fourth quarter of 2014.

  • Selling, General and Administrative (SG&A) expense decreased by $1.2 million to $1.6 million, or 25% of sales, as compared to $2.8 million, or 26% of sales, in the fourth quarter of 2014. 

  • Net income attributed to MICT for the fourth quarter of 2015 was $89,000, or $0.02 per basic and diluted share, as compared to a net loss of $28,000, or a loss of $0.00 per basic and diluted share, for the fourth quarter of 2014. Non-GAAP net income for the quarter was $313,000 or $0.05 per basic and diluted share.  A reconciliation of GAAP to non-GAAP net income and earnings per share is provided in the table at the end of this press release.

  • The Company reported operating income of $232,000 for the fourth quarter of 2015, as compared to an operating loss of $465,000 in the fourth quarter of 2014.

  • At December 31, 2015, the Company reported cash and marketable securities totaling $12.1 million and working capital of $13.3 million.

Year End 2015 Review

  • Total revenue decreased to $23.6 million for 2015, as compared to $34.2 million in 2014. Year-end revenue was impacted by operational challenges in the MRM business, which delayed product shipments, and by the timing of receipt of orders in the Aerospace & Defense business.

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