Slide 1: 2Q 15 Financial Results Conference Call
2Q 15 Financial Results Conference Call
Slide 2: Forward Looking Statement
Forward Looking Statement 2 This presentation contains express or implied forward-looking statements within the Private Securities Litigation Reform Act of 1995 and other U.S. Federal securities laws. These forward-looking statements include, but are not limited to those statements regarding our fut
Slide 3: Presenters
Presenters Eyal Leibovitz Chief Financial Officer David Lucatz Chairman of the Board and CEO Shai Lustgarten CEO of Micronet Ltd. Tali Dinar CFO of Micronet Ltd.
Slide 4: Quarterly revenue consistent with transition to new product line
§ Quarterly revenue consistent with transition to new product line § Revenues increased slightly sequentially compared to Q1 § Gross margin increased to 32% from 28% § MRM revenue increased 3% for the six months ended June 30, 2015 With a strong steady gross margin of 35% § Continued diversification
Slide 5: Significant progress with All-In-One product roll out
Significant progress with “All-In-One” product roll out: ~4,000 units orders received to date. Gaining traction with the OEM market Company now have a full production capabilities in the U.S. Hardware as a Service (“HaaS”) receiving comprehensive initial traction Allows customers to rely on Micronet
Slide 6: 2Q14 vs 2Q15 Revenues Sales Breakdown
2Q14 vs 2Q15 Revenues Sales Breakdown Consolidated revenue for the quarter
Slide 7: A-317 All-In-One tablet is a significant technology advancement
A-317 “All-In-One” tablet is a significant technology advancement Rugged, integrated tablet solution Offers 3.5G/4G LTE, Bluetooth and Wi-Fi applications Potential benefit from upcoming ELD mandate (effective September 2015)
Slide 8: Product R&D
Product R&D Completed • Ongoing refinement with customers Continue to invest significantly in product improvement and customization Carrier Certification; Testing & Approval Carrier Certification Verizon complete AT&T in progress In discussions with additional carriers Customer Testing/Approval Mult
Slide 9: Income Statement Highlights
Income Statement Highlights (in 000s except share and per share data) Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Revenues $ 5,747 $ 6,586 $ 11,426 $ 12,153 Cost of revenues 3,913 4,729 7,841 8,244 Gross profit 1,834 1,857 3,585 3,909 Gross profit margin 32% 28% 31% 32%
Slide 10: Non-GAAP reconciliation
Non-GAAP (in 000s except share and per share data) Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 GAAP net loss attributed to MICT (588) (1,274) (1,294) (1,606) Total amortization of acquired intangible assets 192 87 381 136 Change in fair value of call options and warrant
Slide 11: Cash, debt, working capital and equity
MICRONET ie June 30, December 31, 2015 2014 Cash, cash equivalents and marketable securities Bank & others debts Net Working Capital Stockholders’ Equity $12.6M $14.0M $15.3M $19.0M $15.0M $14.3M $16.4M $20.2M
Slide 12: New regulation starting in 2017 mandates ELDs for truck drivers
New regulation starting in 2017 mandates all truck drivers to keep records of hours of service (HOS). Cannot drive over 11 hours per day. Required rest periods. Electronic Logging Devices (ELDs)* connect to engine and replace paper logbooks. Law being put in place requiring ELDs. July ‘12 Passed by
Slide 13: MRM and Aerospace/Defense outlook
MRM Local fleet market expected to grow 37% between 2014 and 2016 1 Expect orders for wireless All-In-One products to build Aerospace/Defense Continued reliance on missile defense systems supports potential demand for our missile defense offerings Continuing strong potential for our systems and prod
Slide 14: Thank You - Q & A
Thank You Q & A
Slide 15: Micronet Enertec Technologies, Inc
MICRONET ENERTEC TECHNOLOGIES, INC