ROSH PINA, Israel, Nov. 20, 2001 (PRIMEZONE) -- OTI (Neuer Markt:OT5), the global provider of contactless smart card technology and product solutions, today announced financial results for the third quarter ended September 30, 2001. The company continues to reduce operating costs, focusing on bringing the company to profitability in operational activities in the second half of 2002. Despite the downturn of worldwide economy, OTI is expecting an increase in annual revenues by approximately 40% over the last year's revenues.
Financial Highlights: 9Mo 2001:
-- Revenues for 9Mo2001 up 41% to US $15.00 million (9Mo2000: US
$10.66 million).
-- Gross profit growing 33% to $7.17 million (9Mo2000: $5.37
million).
-- Operating loss increased by 39% to $7.39 million (9Mo2000: $5.32
million).
-- Net loss for 9Mo2001 up 60% to $8.5 million (9Mo2000: $5.32
million).
-- Loss per share increased by 15% to $0.54 (9Mo2000: $0.47).
-- Cash, cash equivalents and short-term investments at the end of
9Mo2001 totaled $11.35 million, with total assets of $37.20
million (Dec. 31, 2000: $17.48 million and $40.65 million,
respectively).
Adapting to the continued weakness of the global economy, the company has taken several cost-saving measurements, which include, among other actions, salary reductions, dismissal of specific employees and cutbacks of operational expenditures, which enables an immediate cost saving without risking potential business and revenues.
Major Developments During 3Q2001:
The Basel Project, the biometrics-based contactless smart card border-crossing system in Israel, has moved into the implementation design stage.
EasyPark has been selected as a finalist for the SESAME 2001 award for Best Application - Transportation at the CARTES 2001 Trade Show.
EasyPark Ltd. signed an agreement with "Ahuzot Hahof," which manages the parking solution on behalf of the City of Tel Aviv, the largest metropolis in Israel, to expand the EasyPark program in Tel Aviv to include parking payment for parking lots and to implement a complementary system utilizing a SmartID Sticker to manage vehicle registration and parking permits.
OTI and SmartStop are expanding the truck stop industry's first multi-application smart card in all Rip Griffin Travel Centers across the southern United States, as a result of the success of the Terrell, Texas showcase implementation, in operation since August 2000. Gasoline Management System (GMS) will be launched in Bolivia with Isrex through Autotrack Bolivia, which will act as the systems integrator for the system. A first order has been delivered to equip five private gasoline stations and 400 vehicles.
OTI Africa, together with BP Africa, has signed commitments with four prominent commercial fleet companies to join the FuelMaster network in South Africa, which have each enrolled over 600 company vehicles, for a total of approximately 2,750 vehicles added to the system. In particular, a pilot involving 1,000 vehicles of a major utility in South Africa, if successful, has the potential to expand to an additional 18,000 vehicles.
"Due to the overall worldwide economic situation the company will continue its cost saving activities and will reconsider future operational expenses," said Oded Bashan, President and CEO of OTI. "In order to become operationally profitable, in the second half of 2002."
For a detailed financial review of 3Q2001 the Quarterly Report is available at the company's website, www.oti.co.il.
About OTI
Established in 1990, OTI (On Track Innovations) designs and develops contactless microprocessor-based smart card technology to address the needs of a wide variety of markets. Applications developed by OTI include product solutions for mass transit, parking, gas management systems, loyalty schemes, ID and secure campuses. OTI has regional offices in the US, Europe, Asia Pacific, and Africa to market and support its products. The company was awarded the prestigious ESCAT Award for smart card innovation in both 1998 and 2000. Visit OTI on the Internet at www.oti.co.il.
To view the quarterly report, please click the link: http://reports.huginonline.com/840952/97070.pdf
This press release contains forward-looking statements, which reflect management's best judgment based on factors currently known. Such statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from those in the statements included in this press release. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. OTI disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise