August 16, 2017

mict


Micronet Enertec Reports Second Quarter 2017 Financial Results

  • Record Backlog of $16.5M at end of Q2 and $22.5M as of August 10, 2017
  • 2017 yearly revenue estimated between $25M-$28M
  • Conference call scheduled for today, August 16 at 9:00 AM ET

Montvale, NJ, August 16, 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 second quarter and six months ended June 30, 2017.

“We achieved a record backlog of $16.5 million and $22.5 million as of the end of the second quarter and August 10, 2017 respectively, with most of that attributed to new contracts signed for thousands of units to be delivered by Micronet, our MRM division. As Micronet works to increase its production to meet demand, its backlog has grown, though its impact on year-to-date revenues has been delayed. Primarily for this reason, during the second quarter and the first six months of 2017, we experienced a decline in revenues as compared to the same periods in 2016. We anticipate top line numbers to increase for the balance of 2017 as Micronet delivers on purchase orders during the third and fourth quarters of 2017. Enertec continues its consistent performance, delivering on previously signed long-term contracts for Aerospace and Defense contracts and services,” stated David Lucatz, Chief Executive Officer of Micronet Enertec Technologies.

“Technology is our core competence, and as Micronet-Enertec continues to enhance its top management team, we are pleased to welcome Mr. David Markus as the new CEO of Micronet Israel,” Lucatz commented.

Mr. Markus previously served as the Chief Technology Officer (CTO) at Pointer Telocation - a global MRM company, where he built and managed the company’s R&D group and was also responsible for the company's products strategy, customer support and IT. He brings deep knowledge in technology, strategy and business development in the MRM space and will lead the fast-paced growth at Micronet.

Second Quarter 2017 Review

  • Backlog as of June 30, 2017 for Micronet was $9.1 million and for Enertec was $7.4 million, for a combined backlog of $16.5 million, an increase of 7% quarter-over-quarter.

  • Total revenue was $5.9 million for the second quarter of 2017, an increase of 12% on a quarter-over-quarter basis from revenues of $5.3 million in the first quarter of 2017 and a decrease of 12% from $6.7 million in the second quarter of 2016.

  • Gross profit margin was 14% in the second quarter of 2017, an increase of 1% on a quarter-over-quarter basis and a decrease of 9 % as compared to 23% in the second 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 contracts with lower profitability at Enertec.

  • R&D expense for the second quarter of 2017 was $618,000, or 10% of sales, compared to $683,000 or 10% of sales, in the second quarter of 2016.

  • SG&A expense decreased by $253,000 to $1.75 million, or 30% of sales, as compared to $2.0 million, or 30% of sales, in the second quarter of 2016. 

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