ON TRACK INNOVATIONS LTD.
(Registrant)
By /s/ Oded Bashan
Oded
Bashan
Chief
Executive Officer and Chairman
|
Press
Release
|
|
·
|
Total
revenues were $26.3 million, a 16% decrease from last
year.
|
|
·
|
Gross
margin increased to 44% vs. 39% last
year.
|
|
·
|
Non-GAAP
operating expenses were $21.1 million, a 6% decrease compared to $22.5
million last year. GAAP operating expenses were $24.7 million, a 13%
decrease compared to $28.6 million last
year.
|
|
·
|
Non-GAAP
operating loss was $9.6 million, a 7% decrease compared to $10.4 million
last year. GAAP operating loss was $13.3 million, a 20% decrease compared
to $16.5 million last year.
|
|
·
|
Non-GAAP
net loss was $10.4 million, a 7% decrease compared to $11.2 million last
year. GAAP net loss was $14.1 million, a 19% decrease compared to $17.4
million last year.
|
|
·
|
Cash
and cash equivalents were $18.4
million.
|
OTI
Contact:
|
Investor
Relations:
|
Galit
Mendelson
|
Miri
Segal
|
Vice
President of Corporate Relations
|
MS-IR
LLC
|
201
944 5200 ext. 111
|
917-607-8654
|
galit@otiglobal.com
|
msegal@ms-ir.com
|
Nine
months ended September 30
|
Three
months ended September 30
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||
Revenues
|
||||||||||||||||
Sales
|
$ | 24,421 | $ | 29,265 | $ | 8,734 | $ | 10,317 | ||||||||
Licensing
and transaction fees
|
1,874 | 1,884 | 674 | 546 | ||||||||||||
Total
revenues
|
26,295 | 31,149 | 9,408 | 10,863 | ||||||||||||
Cost
of revenues
|
||||||||||||||||
Cost
of sales
|
14,846 | 19,093 | 5,649 | 6,052 | ||||||||||||
Total
cost of revenues
|
14,846 | 19,093 | 5,649 | 6,052 | ||||||||||||
Gross
profit
|
11,449 | 12,056 | 3,759 | 4,811 | ||||||||||||
Operating
expenses
|
||||||||||||||||
Research
and development
|
6,699 | 8,909 | 2,146 | 3,008 | ||||||||||||
Selling
and marketing
|
8,930 | 8,086 | 2,748 | 2,911 | ||||||||||||
General
and administrative
|
8,351 | 10,559 | 3,349 | 3,210 | ||||||||||||
Amortization
of intangible assets
|
766 | 1,025 | 251 | 367 | ||||||||||||
Total
operating expenses
|
24,746 | 28,579 | 8,494 | 9,496 | ||||||||||||
Operating
loss
|
(13,297 | ) | (16,523 | ) | (4,735 | ) | (4,685 | ) | ||||||||
Financial
expense, net
|
(763 | ) | (667 | ) | (385 | ) | (101 | ) | ||||||||
Loss
before taxes on income
|
(14,060 | ) | (17,190 | ) | (5,120 | ) | (4,786 | ) | ||||||||
|
||||||||||||||||
Taxes
on income
|
(35 | ) | 177 | (77 | ) | 55 | ||||||||||
Equity
in loss of affiliate
|
- | (342 | ) | - | (92 | ) | ||||||||||
Net
loss
|
(14,095 | ) | (17,355 | ) | (5,197 | ) | (4,823 | ) | ||||||||
Net
loss (income) attributable to noncontrolling interest
|
133 | - | (8 | ) | - | |||||||||||
Net
loss attributable to shareholders
|
(13,962 | ) | (17,355 | ) | (5,205 | ) | (4,823 | ) | ||||||||
Basic
and diluted net loss attributable to shareholders per ordinary
share
|
$ | (0.63 | ) | $ | (0.86 | ) | $ | (0.23 | ) | $ | (0.23 | ) | ||||
Weighted
average number of ordinary
shares used in computing basic and diluted net loss per ordinary share |
22,331,068 | 20,091,808 | 22,939,063 | 20,857,776 |
GAAP
|
Nine
months ended
September
30, 2009
Adjustments
|
Non-GAAP
|
||||||||||
Revenues
|
||||||||||||
Sales
|
$ | 24,421 | - | $ | 24,421 | |||||||
Licensing
and transaction fees
|
1,874 | - | 1,874 | |||||||||
Total
revenues
|
26,295 | 26,295 | ||||||||||
Cost
of Revenues
|
||||||||||||
Cost
of sales
|
14,846 | (39 | ) (a) | 14,807 | ||||||||
Total
cost of revenues
|
14,846 | (39 | ) | 14,807 | ||||||||
Gross
profit
|
11,449 | 39 | 11,488 | |||||||||
Operating
Expenses
|
||||||||||||
Research
and development
|
6,699 | (1,570 | ) (a) | 5,129 | ||||||||
Selling
and marketing
|
8,930 | (546 | ) (a) | 8,384 | ||||||||
General
and administrative
|
8,351 | (731 | ) (a) | 7,620 | ||||||||
Amortization
of intangible assets
|
766 | (766 | ) (b) | - | ||||||||
Total
operating expenses
|
24,746 | (3,613 | ) | 21,133 | ||||||||
Operating
loss
|
(13,297 | ) | 3,652 | (9,645 | ) | |||||||
Financial
expenses, net
|
(763 | ) | - | (763 | ) | |||||||
Loss
before taxes on income
|
(14,060 | ) | 3,652 | (10,408 | ) | |||||||
Taxes
on income
|
(35 | ) | - | (35 | ) | |||||||
Net
loss
|
$ | (14,095 | ) | $ | 3,652 | $ | (10,443 | ) | ||||
Net
loss attributable to noncontrolling interest
|
133 | - | 133 | |||||||||
Net
loss attributable to shareholders
|
$ | (13,962 | ) | $ | 3,652 | $ | (10,310 | ) | ||||
Basic
and diluted net loss attributable to shareholders per ordinary
share
|
$ | (0.63 | ) | $ | 0.17 | $ | (0.46 | ) | ||||
Weighted
average number of ordinary
shares used in computing basic and diluted net loss per ordinary share |
22,331,068 | 22,331,068 |
|
(a)
|
The
effect of stock-based compensation in accordance with SFAS 123(R) and EITF
96-18.
|
|
(b)
|
The
effect of amortization of intangible assets.
|
GAAP
|
Three
months ended
September
30, 2009
Adjustments
|
Non-GAAP
|
||||||||||
Revenues
|
||||||||||||
Sales
|
$ | 8,734 | - | $ | 8,734 | |||||||
Licensing
and transaction fees
|
674 | - | 674 | |||||||||
Total
revenues
|
9,408 | 9,408 | ||||||||||
Cost
of Revenues
|
||||||||||||
Cost
of sales
|
5,649 | (11 | ) (a) | 5,638 | ||||||||
Total
cost of revenues
|
5,649 | (11 | ) | 5,638 | ||||||||
Gross
profit
|
3,759 | 11 | 3,770 | |||||||||
Operating
Expenses
|
||||||||||||
Research
and development
|
2,146 | (429 | ) (a) | 1,717 | ||||||||
Selling
and marketing
|
2,748 | (195 | ) (a) | 2,553 | ||||||||
General
and administrative
|
3,349 | (263 | ) (a) | 3,086 | ||||||||
Amortization
of intangible assets
|
251 | (251 | ) (b) | - | ||||||||
Total
operating expenses
|
8,494 | (1,138 | ) | 7,356 | ||||||||
Operating
loss
|
(4,735 | ) | 1,149 | (3,586 | ) | |||||||
Financial
expenses, net
|
(385 | ) | - | (385 | ) | |||||||
Loss
before taxes on income
|
(5,120 | ) | 1,149 | (3,971 | ) | |||||||
Taxes
on income
|
(77 | ) | - | (77 | ) | |||||||
Net
loss
|
$ | (5,197 | ) | $ | 1,149 | $ | (4,048 | ) | ||||
Net
Income attributable to noncontrolling interest
|
(8 | ) | - | (8 | ) | |||||||
Net
loss attributable to shareholders
|
$ | (5,205 | ) | $ | 1,149 | $ | (4,056 | ) | ||||
Basic
and diluted net loss attributable to shareholders per ordinary
share
|
$ | (0.23 | ) | $ | 0.05 | $ | (0.18 | ) | ||||
Weighted
average number of ordinary shares used in computing basic and diluted net
loss per ordinary share
|
22,939,063 | 22,939,063 |
|
(a)
|
The
effect of stock-based compensation in accordance with SFAS 123(R) and EITF
96-18.
|
|
(b)
|
The
effect of amortization of intangible assets.
|
GAAP
|
Nine
months ended September 30, 2008
Adjustments
|
Non-GAAP
|
||||||||||
Revenues
|
||||||||||||
Sales
|
$ | 29,265 | - | $ | 29,265 | |||||||
Licensing
and transaction fees
|
1,884 | - | 1,884 | |||||||||
Total
revenues
|
31,149 | 31,149 | ||||||||||
Cost
of Revenues
|
||||||||||||
Cost
of sales
|
19,093 | (45 | ) (a) | 19,048 | ||||||||
Total
cost of revenues
|
19,093 | (45 | ) | 19,048 | ||||||||
Gross
profit
|
12,056 | 45 | 12,101 | |||||||||
Operating
Expenses
|
||||||||||||
Research
and development
|
8,909 | (2,368 | ) (a) | 6,541 | ||||||||
Selling
and marketing
|
8,086 | (1,064 | ) (a) | 7,022 | ||||||||
General
and administrative
|
10,559 | (1,657 | ) (a) | 8,902 | ||||||||
Amortization
of intangible assets
|
1,025 | (1,025 | ) (b) | - | ||||||||
Total
operating expenses
|
28,579 | (6,114 | ) | 22,465 | ||||||||
Operating
loss
|
(16,523 | ) | 6,159 | (10,364 | ) | |||||||
Financial
expenses, net
|
(667 | ) | - | (667 | ) | |||||||
Loss
before taxes on income
|
(17,190 | ) | 6,159 | (11,031 | ) | |||||||
Taxes
on income
|
177 | - | 177 | |||||||||
Equity
in loss of affiliate
|
(342 | ) | - | (342 | ) | |||||||
Net
loss
|
$ | (17,355 | ) | $ | 6,159 | $ | (11,196 | ) | ||||
Net
loss attributable to noncontrolling interest
|
- | - | - | |||||||||
Net
loss attributable to shareholders
|
$ | (17,355 | ) | $ | 6,159 | $ | (11,196 | ) | ||||
Basic
and diluted net loss attributable to shareholders per ordinary
share
|
$ | (0.86 | ) | $ | 0.30 | $ | (0.56 | ) | ||||
Weighted
average number of ordinary shares used in computing basic and diluted net
loss per ordinary share
|
20,091,808 | 20,091,808 |
|
(a)
|
The
effect of stock-based compensation in accordance with SFAS 123(R) and EITF
96-18.
|
|
(b)
|
The
effect of amortization of intangible assets.
|
GAAP
|
Three
months ended September 30, 2008
Adjustments
|
Non-GAAP
|
||||||||||
Revenues
|
||||||||||||
Sales
|
$ | 10,317 | - | $ | 10,317 | |||||||
Licensing
and transaction fees
|
546 | - | 546 | |||||||||
Total
revenues
|
10,863 | 10,863 | ||||||||||
Cost
of Revenues
|
||||||||||||
Cost
of sales
|
6,052 | (15 | ) (a) | 6,037 | ||||||||
Total
cost of revenues
|
6,052 | (15 | ) | 6,037 | ||||||||
Gross
profit
|
4,811 | 15 | 4,826 | |||||||||
Operating
Expenses
|
||||||||||||
Research
and development
|
3,008 | (633 | ) (a) | 2,375 | ||||||||
Selling
and marketing
|
2,911 | (139 | ) (a) | 2,772 | ||||||||
General
and administrative
|
3,210 | (432 | ) (a) | 2,778 | ||||||||
Amortization
of intangible assets
|
367 | (367 | ) (b) | - | ||||||||
Total
operating expenses
|
9,496 | (1,571 | ) | 7,925 | ||||||||
Operating
loss
|
(4,685 | ) | 1,586 | (3,099 | ) | |||||||
Financial
expenses, net
|
(101 | ) | - | (101 | ) | |||||||
Loss
before taxes on income
|
(4,786 | ) | 1,586 | (3,200 | ) | |||||||
Taxes
on income
|
55 | - | 55 | |||||||||
Equity
in loss of an affiliate
|
(92 | ) | - | (92 | ) | |||||||
Net
loss
|
$ | (4,823 | ) | $ | 1,586 | $ | (3,237 | ) | ||||
Net
loss attributable to noncontrolling interest
|
- | - | - | |||||||||
Net
loss attributable to shareholders
|
$ | (4,823 | ) | $ | 1,586 | $ | (3,237 | ) | ||||
Basic
and diluted net loss per
ordinary share
|
$ | (0.23 | ) | $ | 0.07 | $ | (0.16 | ) | ||||
Weighted
average number of ordinary shares used in computing basic and diluted net
loss per ordinary share
|
20,857,776 | 20,857,776 |
|
(a)
|
The
effect of stock-based compensation in accordance with SFAS 123(R) and EITF
96-18.
|
|
(b)
|
The
effect of amortization of intangible
assets.
|
September
30
|
December
31
|
|||||||
2009
|
2008
|
|||||||
(Unaudited)
|
(Audited)
|
|||||||
Assets
|
||||||||
Current
assets
|
||||||||
Cash
and cash equivalents
|
$ | 18,381 | $ | 27,196 | ||||
Short-term
investments
|
- | 904 | ||||||
Trade
receivables (net of allowance for doubtful
accounts
of $3,183 and $3,315 as of September 30, 2009
and
December 31, 2008, respectively)
|
5,892 | 4,567 | ||||||
Other
receivables and prepaid expenses
|
3,392 | 2,994 | ||||||
Inventories
|
13,041 | 12,343 | ||||||
Total
current assets
|
40,706 | 48,004 | ||||||
Severance
pay deposits fund
|
1,228 | 1,189 | ||||||
Investment
in an affiliated company
|
- | - | ||||||
Property,
plant and equipment, net
|
20,082 | 18,613 | ||||||
Intangible
assets, net
|
1,747 | 2,503 | ||||||
Total
Assets
|
$ | 63,763 | $ | 70,309 |
September
30
|
December
31
|
|||||||
2009
|
2008
|
|||||||
(Unaudited)
|
(Audited)
|
|||||||
Liabilities
and Shareholders' Equity
|
||||||||
Current
Liabilities
|
||||||||
Short-term
bank credit and current maturities
|
||||||||
of
long-term bank loans
|
$ | 6,247 | $ | 4,984 | ||||
Trade
payables
|
8,551 | 8,071 | ||||||
Other
current liabilities
|
4,113 | 3,517 | ||||||
Total
current liabilities
|
18,911 | 16,572 | ||||||
Long-Term
Liabilities
|
||||||||
Long-term
loans, net of current maturities
|
2,865 | 1,762 | ||||||
Accrued
severance pay
|
3,615 | 3,672 | ||||||
Deferred
tax liability
|
140 | 202 | ||||||
Total
long-term liabilities
|
6,620 | 5,636 | ||||||
Total
Liabilities
|
25,531 | 22,208 | ||||||
Commitments
and Contingencies
|
||||||||
Equity
|
||||||||
Shareholders'
Equity
|
||||||||
Ordinary
shares of NIS 0.1 par value: Authorized – as of September 30, 2009 and December 31, 2008,
respectively50,000,000 shares as of September 30, 2009 and December 31, 2008; issued 23,066,829 and 21,534,788 shares as of September 30, 2009 and December 31, 2008, respectively; outstanding 23,066,829 and 21,495,409 shares |
547 | 508 | ||||||
Additional
paid-in capital
|
186,555 | 182,944 | ||||||
Accumulated
other comprehensive income (loss)
|
500 | (325 | ) | |||||
Accumulated
deficit
|
(149,403 | ) | (135,441 | ) | ||||
Shareholder’s
equity
|
38,199 | 47,686 | ||||||
Noncontrolling
interest
|
33 | 415 | ||||||
Total
Equity
|
38,232 | 48,101 | ||||||
Total
Liabilities and Shareholders’ Equity
|
$ | 63,763 | $ | 70,309 |
Nine months ended September
30
|
||||||||
2009
|
2008
|
|||||||
(Unaudited)
|
(Unaudited)
|
|||||||
Cash
flows from operating activities
|
||||||||
Net
loss
|
$ | (14,095 | ) | $ | (17,355 | ) | ||
Adjustments
required to reconcile net loss to net cash used in operating
activities:
|
||||||||
Stock-based
compensation related to options and shares issued to employees and
others
|
2,886 | 5,134 | ||||||
Equity
in loss of affiliate
|
- | 342 | ||||||
Amortization
of intangible assets
|
766 | 1,025 | ||||||
Depreciation
|
1,955 | 2,578 | ||||||
Accrued
severance pay, net
|
(96 | ) | 366 | |||||
Decrease
in deferred tax liabilities
|
(62 | ) | (183 | ) | ||||
Decrease
(increase) in trade receivables
|
(1,222 | ) | 878 | |||||
Decrease
(increase) in other receivables and prepaid expenses
|
(288 | ) | 240 | |||||
Decrease
(increase) in inventories
|
(367 | ) | 1,127 | |||||
Increase
(decrease) in trade payables
|
232 | (2,420 | ) | |||||
Increase
(decrease) in other current liabilities
|
438 | (631 | ) | |||||
Other,
net
|
(4 | ) | 17 | |||||
Net
cash used in operating activities
|
(9,857 | ) | (8,882 | ) | ||||
Cash
flows from investing activities
|
||||||||
Acquisition
of a consolidated subsidiary, net of cash acquired
|
- | (565 | ) | |||||
Proceeds
from maturity of available -for sale securities and
deposits
|
1,418 | 24,621 | ||||||
Purchase
of available-for sale securities
|
(514 | ) | (28,574 | ) | ||||
Purchase
of property and equipment
|
(2,693 | ) | (1,176 | ) | ||||
Other,
net
|
19 | 21 | ||||||
Net
cash used in investing activities
|
(1,770 | ) | (5,673 | ) | ||||
Cash
flows from financing activities
|
||||||||
Increase
in short-term bank credit, net
|
1,148 | 333 | ||||||
Proceeds
from long-term bank loans
|
1,437 | - | ||||||
Repayment
of long-term bank loans
|
(388 | ) | (389 | ) | ||||
Proceeds
from receipt on account of shares and exercise of options
|
510 | 768 | ||||||
Net
cash provided by financing activities
|
2,707 | 712 | ||||||
Effect
of exchange rate changes on cash
|
105 | 6 | ||||||
Decrease
in cash and cash equivalents
|
(8,815 | ) | (13,837 | ) | ||||
Cash
and cash equivalents at the beginning of the period
|
27,196 | 35,470 | ||||||
Cash
and cash equivalents at the end of the period
|
$ | 18,381 | $ | 21,633 |