August 15, 2018

mict


MICT Reports Second Quarter 2018 Financial Results

  • Completes sale of Enertec Systems for total effective transaction price of $8.7 million
  • A net profit of $3.5 million for the three months ended June 30, 2018
  • Total Cash of $4.5 million
  • A 98% increase of Gross Margin in the second quarter as compared to 2017
  • Enters non-binding letter of intent for strategic transaction with BNN Technology
  • Conference call scheduled for today, August 15 at 9:00 AM ET

Montvale, NJ, August 15 , 2018 - MICT, Inc. (NASDAQCM: MICT), a developer and manufacturer of rugged computers, tablets and computer-based systems for the commercial Mobile Resource Management (MRM) market, announced financial results for the second quarter and six months ended June 30, 2018.

“Our operating MRM business marked solid improvements across multiple financial measures. Gross margin increased to 32% and 30% respectively, for the three and six months ended June 30, 2018, increases of 98% and 184%, respectively, compared to the three and six months ended June 30, 2017. Revenue increased by 25% and 65% to $ 4.7  million and $10.7 million for the three and six months ended June 30, 2018, respectively,  and we see improvements in the operating income as compared to the year-ago periods for both the second quarter and the first six months of 2018,” stated David Lucatz, Chief Executive Officer of MICT. “Having closed on the sale of Enertec Systems, we reported a net income from discontinued operations of $4.8 million for the second quarter and strengthened our balance sheet. We believe that our subsidiary, Micronet Ltd.’s, improving operating results combined with the closing of the sale of Enertec puts our Company in a strong position to move forward into a potential M&A transaction that may potentially create greater value for our shareholders.”

As set forth in the Company’s press release on July 2, 2018, the Current Report on 8-K furnished on July 2, 2018, and the letter of intent included therein, we contemplate a series of transactions with BNN Technology (BNN), a U.K. based technology company, and an unnamed third party in the transaction technology platform business, including a tender offer, a spin-off of the shares of Micronet Ltd. owned by us, the acquisitions by us of the two parties and a financing.  We are continuing to conduct due diligence and to negotiate definitive agreements. As set forth in the press release, these transactions are subject to diligence by the parties, the negotiation of definitive agreements and approval by the respective BNN and MICT Boards of Directors and MICT’s shareholders.

Q2 2018 Financial Highlights

  • Gross profit margin increased to 32% in the second quarter of 2018 as compared to 21% in the second quarter of 2017
  • Research and development (R&D) expense for the second quarter of 2018 was $505,000, or 11% of sales, compared to $507,000 or 13% of sales, in the second quarter of 2017 
  • Selling, general and administrative (SG&A) expense was $1.7 million, or 36% of sales, as compared to $1.4 million, or 37% of sales, in the second quarter of 2017
  • Net loss from continued operation for the second quarter of 2018 was $1.3 million, or a net loss of $0.14 per basic and diluted share, a 7% decrease compared to a net loss of $1.4 million, or a net loss of $0.12 per basic and diluted share, for the second quarter of 2017  

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Copyright MICT Inc. 2018