May 22, 2017

mict


Micronet Enertec Reports First Quarter 2017 Financial Results

Conference call scheduled for today, May 22 at 9:00 AM ET

Montvale, NJ, May 22, 2017 -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 Aerospace and Defense markets, today announced financial results for the first quarter ended March 31, 2017.

“During the first quarter of 2017, we were awarded contracts for our combined businesses totaling $5.6 million, most of which is scheduled for fulfillment in the second, third and fourth quarters of 2017. Although our revenues declined in the first quarter compared to the same period in 2016, we expect more favorable revenue levels for the balance of 2017 as we deliver on the purchase orders received during the first quarter and book the associated sales. The decrease in sales during the first quarter of 2017 is mainly due to a delay in the Company’s Micronet subsidiary’s new product line. 

Micronet had a backlog of $7.3 million as of March 31, 2017 and $9.3 million as of May 15, 2017. Our combined backlog also remains strong at $15.4 million as of March 31, 2017,” stated David Lucatz, Chief Executive Officer of Micronet Enertec Technologies.

First Quarter 2017 Review

  • Total revenue decreased 19% to $5.3 million for the first quarter of 2017, as compared to $6.5 million in the first quarter of 2016. Revenues increased by 25% on a sequential quarter-over-quarter basis.
  • Gross profit margin was 13%, as compared to 32% in the first quarter of 2016. The decrease in overall gross margin was related to an increase in cost associated with the introduction of a new line of products at Micronet and engaging in strategic contracts with lower profitability at the Company’s Enertec subsidiary.
  • Research and development (R&D) expense for the first quarter of 2017 was $533,000, or 10% of sales, compared to $700,000, or 11% of sales, in the first quarter of 2016.  
  • Selling, General and Administrative (SG&A) expense increased by $516,000 to $2.0 million, or 38% of sales, as compared to $1.5 million, or 23% of sales, in the first quarter of 2016.
  • Net loss attributable to Micronet Enertec Technologies, Inc. for the first quarter of 2017 was $1,612,000, or ($0.25) per basic and diluted share, as compared to a net loss of $339,000, or ($0.06) per basic and diluted share, for the first quarter of 2016.  Non-GAAP net loss for the quarter was $1,448,000 or ($0.23) per basic and diluted share, as compared to $116,000, or ($0.02) per basic and diluted share, for the first quarter of 2016. A reconciliation of GAAP to non-GAAP net loss and loss per share is provided in the table at the end of this press release.
  • The Company reported a loss from continuing operations of $2,091,000 for the first quarter of 2017, as compared to an operating loss of $343,000 in the first quarter of 2016.
  • At March 31, 2017, the Company reported cash totaling $7.1 million and working capital of $6.6 million.

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