April 13, 2018

mict


Micronet Enertec Reports Financial Results for the 4th Quarter
and Full Year Ended December 31, 2017

  • 38% year-over-year annual revenue growth of the MRM business
  • 4th quarter 2017 revenue for the MRM business was $6.5 million as compared to $1.3 million in the 4th quarter of 2016
  • Consolidated  backlog of over $17 million represents 90% year-over-year growth
  • Increase of gross margins
  • Conference call scheduled for today, April at 9:00 a.m. EDT

Montvale, NJ – April 13, 2018 -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 three and twelve month periods ended December 31, 2017.

“We are pleased to report that the Company’s Micronet Ltd. subsidiary is delivering in line with our expectations and showed significant growth in several key performance metrics in 2017. Revenues grew by 38% in 2017 to $18.4 million as compared to 2016, with increasing gross margins. Revenue backlog nearly doubled to $17.4 million in 2017 as compared to 2016. Over the course of 2017, Micronet fortified its management team with industry experts, increased its sales force and has shown a continuous increase in sales orders while increasing and diversifying its products and offerings. We expect continued improvements in 2018,” stated David Lucatz, Chief Executive Officer of Micronet Enertec Technologies.

“We believe that if, and once, the proposed sale of our Enertec subsidiary occurs, it will fortify our balance sheet and enable us to invest and focus on growing our MRM business,” confirmed Mr. Lucatz. This potential transaction is in line with our roadmap to increase the value of our Company by focusing all our resources in the high-growth MRM space, where we believe Micronet has strong traction.”

As a result of the proposed sale of Enertec, and according to U.S. generally accepted accounting principles, or GAAP, Micronet Enertec’s profit and loss statements, balance sheets, cash flow statements, and the corresponding consolidated results only include the Company’s MRM business while Enertec’s aerospace and defense business is presented in the profit and loss statement under “discontinued operation” and “held for sales assets and liabilities” in the balance sheet.

Fourth Quarter 2017 Review

  • Total revenue increased to $6.4 million for the fourth quarter of 2017, as compared to $1.3 million in the fourth quarter of 2016.
  • Gross profit margin was 25%, as compared to gross loss margin of 67% in the fourth quarter of 2016.
  • Research and development (R&D) expense for the fourth quarter of 2017 was $million, or 8% of sales, as compared to $0.3 million, or 26% of sales, in the fourth quarter of 2016.
  • Selling, general and administrative (SG&A) expense $1.7 million, or 27% of salesin the fourth quarter of 2017, as compared to $2.1 million, or 160% of sales, in the fourth quarter of 2016.
  • Net loss from continued operation for the fourth quarter of 2017 was $1 million, or a net loss of $0.10 per basic and diluted share from continued operation, as compared to a net loss from continued operation of $3.7 million, or net loss of $42 per basic and diluted share from continued operation, for the fourth quarter of 2016.
  • At December 31, 2017, the Company reported cash and restricted cash  totaling $2.4 million and net working capital of $3 million.

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