November 20, 2017

mict


Micronet Enertec Reports Third Quarter 2017 Financial Results

  • A Record backlog of $20.5M
  • Revenue increased by 29% to $6.9M in Q3 2017 as compared to $5.4M in Q3 2016
  • Gross Profit grew to 23% in Q3 as compared to 14% in Q2
  • 2017 yearly revenue estimates remain $25M-$28M
  • Conference call scheduled for today, November 20 at 9:00 AM ET

Montvale, NJ, November 20, 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 (A&D) markets, today announced financial results for the third quarter and nine months ended September 30, 2017.

“We are extremely pleased to see the growing backlog and we believe this demonstrates the market’s acceptance of our advanced technology and solutions,” said David Lucatz, Chief Executive Officer of MICT. “Our Backlog at the end of Q3 stands at $20.5 million and continues to grow and drive revenue growth. This growth is mainly driven by Micronet, our MRM subsidiary. We continue to experience strong demand from the MRM market and we believe that this is mainly attributed to the implementation of the Electronic Logging Device (ELD) mandate and Micronet’s ability to introduce advanced products and solutions at competitive prices. The MRM Division has a strong future pipeline and a growing number of customers are evaluating its new products in the field. Based on our backlog and forecasts, we maintain our previous guidance of $25 million to $28 million in revenue for 2017. Micronet also experienced an improvement in profitability and Q3 EBIDTA was close to breakeven,” stated David Lucatz, Chief Executive Officer of Micronet Enertec Technologies.

In Q3, MICT continued to implement its strategy to combine additional Software-as-a-Service (SaaS) components in its product offerings. Micronet's Guardian System Design (GSD) is a cloud based SaaS platform, which enables remote management of Micronet's products while on the move via Firmware Over the Air (FOTA) updates. The GSD license has started generating recurring yearly revenues which we believe will improve gross margins and customer retention.

Third Quarter 2017 Review

  • Total revenue increased by 29% to $6.93 million for the third quarter of 2017 as compared to $5.35 million in Q3 2016.

  • Gross profit margin for the 3rd quarter of 2017 was 23%, as compared to 14% in the prior quarter and 20% in the 3rd quarter of 2016.

  • Research and development (R&D) expense for the third quarter of 2017 was $676,000, or 10% of sales, as compared to $476,000, or 9% of sales, in the third quarter of 2016.

  • Selling, General and Administrative (SG&A) expense was $1.86 million, or 27% of sales, as compared to $1.86 million, or 35% of sales, in the third quarter of 2016.

  • Net loss attributable to MICT for the third quarter of 2017 was $1.30 million, or ($0.18) per basic and diluted share, as compare to the net loss of $1.29 million, or ($0.22) per basic and diluted share, for the third quarter of 2016.

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