Slide 1: 2Q 16 Financial Results Conference Call
2Q 16 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
Slide 3: Presenters
Presenters 3 David Lucatz Chairman of the Board and CEO Shai Lustgarten CEO of Micronet Ltd. Tali Dinar CFO of Enertec Electronic Ltd.
Slide 4: 2nd Quarter Overview
4 2 nd Quarter Overview ▪ Revenue growth ▪ Q2 Revenue increase of 17% to $6.7M compared to 2Q 2015 ▪ 11% increase in MRM sales ▪ 24% increase in A&D sales ▪ Strong backlog growth ▪ 100% increase in MRM backlog to $4.2 million compared to 2Q 2015 ▪ Backlog in A&D increased to $10 million ▪ Healthy pi
Slide 5: ELD Mandate Opportunity
ELD Mandate Opportunity 5 New regulation implemented in December 2015 mandates all truck drivers to keep electronic records of hours of service (HOS) * Electronic Logging Devices (ELDs) connect to engine and replace paper logbooks. Micronet’s comprehensive products provide state of the art solutions
Slide 6: TREQ®
TREQ® 317 6 ▪ Significant growth in TREQ® 317 over the past two quarters • Approximately 47% of MRM sales in Q2 of 2016 up from approximately 14% in Q2 of 2015. ▪ We believe ELD Mandate has had a significant impact on level of interest in our solutions • Direct correlation with our expanding pipelin
Slide 7: Further Broadening Our Product Line
Further Broadening Our Product Line 7 ▪ Pilot stage of the new TREQ ® 5 product. : ▪ Extremely open architecture ▪ Well - suited for the BYOD market ▪ Pairs easily with smart phones, no customization required ▪ Expands market opportunity particularly with smaller size fleets ▪ Currently in pilot pha
Slide 8: New York City Taxi and Limousine Commission Pilot
New York City Taxi and Limousine Commission Pilot 8 ▪ In late 2015, selected to participate in the New York City Taxi and Limousine Commissions “Vision Zero” Vehicle Safety Technology Pilot ▪ Pilot began in April of 2016 ▪ A significant opportunity and Large market potential ▪ Additional long term p
Slide 9: Improved Backlog at Enertec: Awarded three stage $5.8 Million project
9 Improved Backlog at Enertec: Awarded three stage $5.8 Million project ▪ A&D subsidiary Enertec awarded three stage $ 5.8 million project for the production of computer - based Command and Control Defense systems. 1 st order of $ 3. million has already been received and we expect to receive addit
Slide 10: Positive Outlook
Positive Outlook 10 MRM ▪ Local fleet market and the ELD Mandate expected to be the growth engines of the company ▪ The All In One line of new developed tablets becoming the Company’s leading product with wider market acceptance ▪ Broadening product portfolio to target the additional segments in the
Slide 11: 2Q16 vs. 2Q15 Revenues
2Q16 vs. 2Q15 Revenues 11 (in millions) $1.88 $ 2.53 2.30 $0 $1 $2 $3 2Q15 1Q16 2Q16 A&D MRM $5.70 $6.50 $6.70 $0 $2 $4 $6 $8 2Q15 1Q16 2Q16 (in millions) (in millions) Sales Breakdown Consolidated revenue for the quarter $3.82 $3.97 $4.40 $0 $2 $4 2Q15 1Q16 2Q16
Slide 12: Income Statement Highlights
12 Income Statement Highlights (in 000 s except share and per share data) 3 Months Ended June 30, 2016 3 Months Ended June 30, 2015 6 Months Ended June 30, 2016 6 Months Ended June 30, 2015 Revenues $ 6,721 $ 5,747 $ 13,203 $ 11,426 Cost of Revenues 5,163 3,913 9,566 7,841 Gross Profit 1,558 1,834 3
Slide 13: Non-GAAP
Non - GAAP (in 000s except share and per share data) 13 Three Months Ended June 30, 2016 2015 GAAP net income (loss) attributed to MICT ( 1 , 219 ) (588) Total amortization of acquired intangible assets 146 192 Stock - based compensation 108 103 Income tax - effect of above non - GAAP adjustments (2
Slide 14: Strong Balance Sheet
Strong Balance Sheet June 30, 2016 December 31, 2015 Cash, cash equivalents and marketable securities $11.5M $12.1M Bank & other debts $16.7M $14.4M Net Working Capital $11.7M $13.3M Stockholders' Equity $15.8M $17.5M 14
Slide 15: Q&A
5 ce} > x eS o tS Ss Q&A
Slide 16: Slide 16