On Track Innovations (OTI) has announced its consolidated financial results for the fourth quarter and fiscal year ending 31 December 2006.
Revenues for the year ending 31 December 2006 grew to US$40.6 million, an increase of 14% on the same period the previous year. Fourth quarter revenues were also up, hitting US$13.2 million – an increase of 42% on the previous year’s figures.
Gross margin was 46%, compared with 39% in the same period of 2005. Gross margin for the fourth quarter was 48%, compared with 52% in the fourth quarter of the year before.
GAAP net loss for the year decreased to US$(6.6) million from US$(9.1) million in the same period in 2005. GAAP net loss for the fourth quarter was US$(0.3) million, a substantial decrease, compared with US$(2.3) million in the fourth quarter of the previous year.
GAAP operating expenses were US$26.8 million, compared with US$24.2 million for the same period of 2005. GAAP operating expenses for the fourth quarter were US$6.8 million, compared with US$7.3 million for the same period the year previously.
“We are pleased with the company results in 2006. We had good revenue performance and improved gross margin, which, together with our ability to control operating expenses on a Non-GAAP basis, enabled us to significantly reduce our GAAP loss and achieve a net profit on a non-GAAP basis,” says Oded Bashan, chairman, president and CEO of OTI. “The modest decline in cash primarily reflects the need to invest in working capital to support large projects in hand and future growth.”
He adds: “Looking ahead, we believe the two strategic acquisitions we completed during 2006 will enhance our capabilities in both the payments and the ID markets, and position us to increase market share and expand the number of opportunities. The primary impact of the SuperCom IPS assets acquisition will occur in the second half of 2007.”