On Track Innovations Ltd. (OTI), world pioneer in contact/contactless microprocessor based smart card telchnology, announced today its consolidated annual financial results for 1999. Included in the consolidated financial results, both in the current quarter and historically, are the results of the companys subsidiaries.
Compared with the 1998 annual results, there is an increase in both revenues and gross profit, and a decrease in the net loss. These results are in line with the management's projections. The revenues in 1999 grew by 39.1% to US$ 5.38 million compared to US$ 3.87 million in 1998. The gross profit in 1999 grew by 77.4% to US$ 3.26 million compared to US$ 1.84 million in 1998. The net loss in 1999 decreased by 35.19% to US$ 1.86 million comapred to US$ 2.87 million in 1998. This represents a loss of US$ 0.16 per share for 1999, compared to a loss of US$ 0.27 per share in 1998. The 9-month report of 1999 showed US$ 2.57 million in revenues, US$ 1.70 million in gross profit and US$ 1.44 million in net loss. "The 1999 results show that the company is meeting its ojectives as planed," said Yaron Amir, CFO of OTI. "Furthermore, we expect the year 2000 annual results to meet our projections as well." "Since the IPO we have experienced good business developments", said Oded Bashan, President & CEO of OTI. "The company has expanded its activities in the Asian Pacific, South African and North American markets." "We are now focusing on developing the European markets as well," said Mr. Bashan, "For this purpose additional highly skilled personnel is recruited." Among OTI's major business developments in 1999 were: * Winning the Israeli boarder crossing project with EDS * Launching of the 'VeriPass' product with VeriFone/HP in the USA * Signing of a new agreement with BP in South Africa * Completion of the first stage of implementation o f the EasyPark Electronic street parking card in Israel * Establishment of OTI Africa * Second stage implementation of the Gasoline Management Systems for Turcas in Turkey * Completion of the Frankfurt Airport Trolleys project * Signing of an agreement with Credencial Argentina, a credit card company * Acqsition of City Smart, OTI's system integrator in Hong Kong * Two additional revolutionary patents were granted to OTI, strengething its position as a leader in the field of cotact/contactless microprocessor-based smart cards. OTI presented its complete financial statement at an analysts conference organized by DVFA on Tuesday, February 29th, 2000 that will be held during the CeBit exhibition in Hannover. About OTI OTI is the world's pioneer in microprocessor-based contactless smart card technology. The company has developed a portfolio of patented contactless smart card technologies, including the microprocessor-based contactless/contact EYECON' MultiCard system, which provides optional DES, Triple-DES, RSA or ECC level data encryption between the card and the reader. In 1997, OTI was awarded the prestigious ESCAT Award for the "Most Innovative Smart Card Accomplishment of the Year." Established in 1990, OTI has applied its technologies in a variety of applications worldwide. The implementation of numerous applications such as the electronic purse, mass transit, parking, gas management systems, loyalty schemes, ID and security as well as other unique customized applications have put OTI and its products at the cutting edge of contactless smart card technology. Headquartered in Israel, OTI has offices and subsidiaries in the United States, Europe, Africa, and China. OTI was listed at the Frankfurt stock exchange "Neuer Markt" on August 31st, 1999. ots Originaltextservice: OTI Internet: http://www.newsaktuell.de For more information please visit OTI's website www.oti.co.il or contact: Ofer Tziperman, VP Marketing Kirchhoff Consult AG OTI Britta Cirkel Tel: +972-6-693-8884 Tel.: 040 - 609 186 50 Fax: +972-6-693-8887 Fax: 040 - 609 186 71 E- mail: email@example.com E-Mail: firstname.lastname@example.org