OTIVF - Earnings call transcript Q4 2017 | on Track Innovations LTD

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Operator

Greetings, and welcome to the On Track Innovation’s Fourth Quarter and Full Year 2017 Corporate Update Call. [Operator instructions]. I’d now like to turn the conference over to Greg Falesnik, Managing Director for MZ North America, OTI’s Investor Relations Firm. Thank you, you may begin.

Greg Falesnik

Thank you, operator. OTI XX, results XXXX. that quarter the afternoon December ended this released for financial fourth Earlier The section website of is the release available Company’s at on www.otiglobal.com. the Investor will discussed Please this be certain statements. information advised conference that call contain forward-looking on of They may, such and comparable will, can plan as, terms. intend, terms the believe, be by other identified use expect,

EBITDA that For growing and to features profitability ramp up momentum such make and sales ATM opportunities. deliver statements regarding our and our will and exceeded continue adjusted deliveries India in margins expected product into statements to our our expectations growth regarding and and revenue include expected forward-looking easier and example, and base as expectation continue and deployment growth, launches sales install and smoother, future to regarding revenues, adoption increases segments, outlook [ph], and to markets, new our Cryptocurrency expected expectations certain and

the your him of or your this and I on issued belief today with we update the full over do Safe Shlomi performance. information upon forward-looking good detailed based morning. forth reports, joining and of and the turn dates. from including reflect judgment statements host respective earnings those introduce subject are OTI time and With OTI’s as which They guarantee release no forward-looking not statements is unknown assumes the risk to known press Harbor that factors, Cohen filed time filings, the in faith, speak periodic While SEC. to team company's Shlomi. to uncertainties best registration in and they The their he the will provisions of the rest to obligation information, current future any are CEO call. will call set

Shlomi Cohen

on Thank and everyone you you, us call. joining thank today’s to Greg

payment are cards, charging machine, which and eliminates on scale, ticketing, very have ticket also this a station. also e- Fuel done a entire global is is variety For what to briefly payment, of or to who do. a with solutions our or a payment these we cards incorporate will OTI with well dominant These offer are operate phone or you payment cashless NFC wanted verticals, and we explain an I maybe focused solutions solution of of who we [indiscernible] I on field Automated payment in mobile to bear Company players along take our management patrons solution vehicle on phone On solution, purchase as as and which communication seamlessly. four moment those cash a new include Innovation’s retail, OTI, to credit Track do which machine, brief software. the line. extend, putting [indiscernible] transit [indiscernible] ticketing hardware with we or retail network tickets example technology. quickly businesses. We transit with cities. manage our vending for such can on expedites that or payment ATM solution be fuel kiosk, issues. management, example system small payment solution Poland electric scale we mass for ticketing in several complete we payment large This able Mass for solutions sales providing which the include each. main in handling the a ideal market as are are can cashless We for by of One many

While in value found fleet we improving we this. tremendous contract have and with information typically billing management,

gas that the the [indiscernible] This right communication communicates On is As gas automatically gas a the an example, to detail Track and of into going payment ensure tank portion handles later. that is driven nozzle. the experienced the where cetera. high tremendous during this more like statistics while and This automotive, division fueling, XXXX, we growth an on hours vehicle, et margin also communicating engine key on area

line define business exciting Payment we Internet very and as of a Things World. Finally,

developed types payment flexible as into items band have can that bracelets, the such form be all technology integrated and We of capsule payment rings of in and more.

as Next, to also our CFO. new call I first welcome his will quarterly earnings Assaf Cohen

Assaf strongly roles our our within while has of department holding increasing company. finance responsibility within been

Assaf Controller a is and job. stepped termed he where our Corporate since as as XXXX has our most recently CFO, done in fantastic

pleased increase We’re as to marketplace his to board long-term on have financial to value the forward our him and for experience in to big grow continue leveraging presence shareholders. look we

despite XXXX and continued a Assaf with I another the in marked it’s worth and better name. ever we also for company Finally, position not than in before a entered last same holding are noting yet that most execution XXXX history. OTI its

for the rising the is continuous XX% XXXX, is despite mention growth of our of the at revenue achieved year and or growing in and than from include account operating the execution our more that same few cost, by this future I A focus would XXXX accounted one $X.X In to cost focus in also on million particularly in which like growing provisioning sales period. sales. all away growth. about to is by on largest XX% largely not on focus ability laser decreased XXXX. X% and the We has highlights in over streamlining accounts successfully now more business Our of impressive. for all key believe XXXX, end [ph] than shift over continued revenues we we provisioning our complete grow XXXX, but largest further away, on now only trim past to our overcome the top XX% while of

stands structure with We diligently have are unnecessary cost as the and worked cut cost to consistently pleased it today. we and

We gross sales heavy overall for cost XXXX we initiative, our In recurring opportunities. current total XXXX. for conjunction the gross our Today cutting margin with year. ending $X.X million focus have higher or XX% continue with for revenue revenue margin, our a our transitioning to total revenue put XX% our of revenue margin hardware the of on of to increase one-time

and lumpiness experienced revenue our will past. while more the recurring in growth smooth continued predictable higher, sales base, margin drive expect out which in We revenues providing

pleased EBITDA. experience am in announce history XXXX year marked I the XX-year that Finally, positive that Company’s adjusted first to the OTI

evidence of the accomplishment this to hard which entire is of our proud very for work business. are We streamlining team the

for a as self-sufficient are to We growing profitability. forward continue first position sales moving and look we be the time in to

to year. I some turn call further, to the would our going fourth through Before to for over like financial full us the CFO, quarter Assaf and walk

Assaf.

Assaf Cohen

Thank you Shlomi and good morning everyone.

the revenues and XX% compared percentage XX, quarter to XXXX. revenues the transit mainly access for or total access would revenues This is release. opened XX%. the $XX.X fourth In were America million at of control or for fourth million at or or accounted Petroleum of $X.X our our XX% $X.X the website. XX% our for X% the full $X.X the to for I XXXX, in $X.X $XXX,XXX sales, million like sales, Europe. automotive accounted MediSmart the our solution an due or in to a we sales. fiscal ticketing available issued accounted increase of of of quarter $X.X X%. of Investor geographic million sales. in MediSmart or fourth sales $X.X total or were transit sales. of of press ticketing Petroleum revenues the XXXX and million breakdown mass increase for as million year by or and full of mass in $XX.X by quarter growth Retail revenue. segment, contribution $X.X XXXX, full accounted and to Before million market retail product market, revenues sales. for compared year December year in product revenues our the retail looking of quarter were APAC A in XX% Japanese XXXX. of in of well Relations revenues million ended copy and fourth as million petroleum now our XX% revenues $XX.X and of million were Revenues total $X.X or increased XX, source to total sales, December increased mass aa traction total revenue Europe Revenues year release of for today, was were of ended X% XXXX of were total to at and of segment When million Africa control XX% ticketing for the and million total total XXXX XX% section the of on XXXX or million and XX% sales transit by results $X.X and $X.X

or Looking Africa XX%, million million Europe for at $X or million million for accounted APAC the accounted for America fourth for accounted quarter of or and accounted $X.X XX% or $X.X XX%. $X XXXX, XX%,

compared for XX% $X,XXX negative $X.XX fourth in Operating mix attributed revenue for to to to fourth or $XX.X revenue higher XXXX. loss gross of recurring million $XX.X of continuing expenses QX, to mix. of XX% in fourth increasing basis Net operating the compared operations the than per XXXX XXXX. share of in loss million $X.X per change or profit continuing full of from year XXXX. million in our and operations XXXX. XX% year our a XXX of continuing totaled the from compared quarter The net loss to margin to Net of increase $X.X in due increased shift loss For points XX% $X.X of more operation per improvement XXXX, total or from of to XX% $X.X XXXX. for $X.XX to XX% million share XXXX, in in quarter was revenue totaled $X.X the revenue quarter fourth share net operations is negative full $XX.X the or Gross In per XXXX margin totaled expenses $X.X mainly negative negative million million of compared or million XXXX. gross million share our to the or $X.X or in increased profit to compared continuing from of or mainly of to fourth compared to million the a million million $XX.X in revenue a This gross of quarter quarter $X.XX $X.XX revenue margin in revenues. XXXX

we Now turning to and EBITDA totaled provides as operating use indication our continuing adjusted from EBITDA it metric compared XXXX. EBITDA of operation loss useful adjusted an $XXX,XXX results. with our $XXX,XXX we non-GAAP in adjusted believe of a in non-GAAP results, XXXX Positive

EBITDA adjusted this on of in As adjusted Please release operating. company refer details quarter an Shlomi results. for of adjusted of metrics non-GAAP fourth of the in including XX-year positive year further XXXX. today’s $XXX,XXX to Positive GAAP reconciliation EBITDA the adjusted loss EBITDA $XX,XXX noted EBITDA the compared his our totaled of remarks, comparable earnings our website XXXX a opening for fourth quarter this about with in first is

of million and Cash December balance and December and towards compared $XX.X sheet. XXXX. at the at cash cash XXXX this equivalents Now, were and investments turning million XX, XX, equivalent cash short-term short-term $XX.X with investments

Our my of XXXX. total debt December XXXX compared XX, to This as balance as summary. financial December XX, completes $X $X.X million of million was

results, the For call to please XXXX. on which to more our we our analysis now With reference me that, turn Annual detail Form file let of XX-K, financial by XX, March plan back Shlomi. Report

Shlomi Cohen

you, Assaf. Thank

of EBITDA As year, flow or refocused focus and for the which overall a opening which overcome growth joined generation position I some replace ever a and our as noted cut would with and in drove revenues XXXX, my that I accounts giving revenue little entered am in a that growth is quarter focus adjusted XXX to Having I during and $X.X growth well in business we particularly as XXXX XX than drives had Contributing significant was most a moving business XXXX When X% grow % a cash is strategy our transitioned to X. for core strong revenue to in dig of diligently in posted we we that this our has as Revenue remarks, million out before. deeper worked revenue like while Today into CEO costs, beyond. I debt explicitly in of strong, Company’s grow ultimately has than for what to term. XXXX, this long of of revenues. more OTI history impressive, XXXX, major recurring a in major potential and the and over effort successful. announce over to very to the reduce first shareholders of year proven continuing XX value years, focus positive OTI been been as also and the forward. revenues and has which of area areas accounted pleased

offers a complete to stream our company pleased we utilized years and that for announce accounted to We’re established strategy from being a turnkey software revenues XX% of of that XXXX. recurring ago, company the in moving revenues solution. product Two

Although the this financial will process much stable a stable that our this to based with increasingly ultimately provide making base, margin, more customer took with significantly clear becoming time, results, company it us and us strategy is was at on clear higher revenue, valuable. more

this of our also in automated bring top division, retail sales several focus, worked marketing made team. part on As I’d and a to some we've touch categories, have talent like we to progress few. tremendous our In on to

attractive it's growth be XXXX. market pleased but First, very been and purchase be a the most ability believe in XXXX a we opportunity tremendous our system to payment our that than We this still to last with unique Japan seamlessly Admittedly has In functionality this the this advanced continue system. enter and Japanese their integrate technology, partners than months in to initiative customers, can difficult new slower OTI the of for our with purchase more anticipated of orders received major we have progress. XX orders showcase of while environment.

adoption the methods of area for other key we operation been expects for preferences to ATMs, the company which this continue pin the banks shift. are increase around deployments Consumer ATM used Most decades. and and retail from and use wallets of add benefiting are of for continue where and Another is for card this secure benefited than in space mobile to OTI has world. the has to looking sales automated traditional driving

of our ATM systems more more XXXX XXXX. product times. with a XXXX pure went This a and represents have from landmark increase marks ATM are significant up happy than sales reader five dramatically, one-year customers During XX,XXX yield in than systems XXXX This our breakout to we in specific developed.

purchase the ramp we ATM expect Moving in XXXX, sales forward a for X,XXX ATM see up to March, order market. we of smart continued received for that over the deployments, announced an additional course we and example as in an systems

for we and for resources the automotive fit Cryptocurrency that of of an customers allowing company, also innovative [indiscernible]. enhanced looking both add to an As for significant capability introduction is course invest which To made end some users. have our always for we solution, other experience are capabilities our natural believe to our end, the our of [re-vertical], to we but a effort across

technology As currencies seems natural a the solution payment XX with cashless years our the allows the globe, introducing in base solution for across to which past ability over a leader fit strong pay crypto a of products. like

market well in We all as players as also market. the the understand key

fueling Our continue in Micro to goal to is to have decision, make expect Cryptocurrency more XXXX. accessible we and the do so payment market. to In our [indiscernible]

as we margins Our fueling for to grow revenue million fueling XXXX. which be division a OTI proved where XX% division to provide rapidly. XXXX continued $X.X breakthrough our represent a high experience significant to technologies of year increase compared and has

markets market. the was several During other quarter, we third the with opportunity which currently we into sizable in This a XXXX entry we a order Indian for received purchase believe significant growth India first along our serve.

remarks, we would over it the the and operator. turn like to closing my providing Operator back lines to before open Q&A please. Now to I

Operator

time, you. of Josh this Instructions] a At session question-and-answer Lake ahead. Please go we Capital comes Our [Operator Markets. first conduction be Thank from Street question Elving will

Josh Elving

Good afternoon taking my for question. Thanks guys.

a guys I wanted think how growth really profitability. of is years breakeven. to I there chronically think turning positive EBITDA, you to operation for are to and lot congratulate First, on back turnaround expectations said, past losing to of Shlomi for out the it over and it significant now couple an there reaching getting assessment a worked hard That I money

you of XXX,XXX or for about to XX opportunity is here we of still you some that for And first I trouble Japan are of the what get on the later that kind moving in we intent. touched we me years quarters the couple are and to letter over and Japanese us to XXXX are orders either really based of think beyond Can couple wanted, the about deployed are purchase your might Japan, I we next market? there perhaps hoping/thinking range. for So, of for excited first And a are expectations topics. yet talk readers to level having maybe the commitments maybe couple

Shlomi Cohen

that times the a few Japanese Josh, think morning few market need bit and things Good we little to I maybe clear. more be make touching I will

market there investing that the is potential on of I actually that market cultural the there. because business they this that side market conversion market full that our think systems result are important already most lot coming know the a strategic are also that and very, This the doing expecting To is of will what the and today little we’re because decisions I focus in having a to better I it’s having. not existing face well we’re difficult. ’XX over absolutely level most potential will that fact way in we’re market expectation the believe and our during supports most I needless it higher because years, in regulation Japanese it market and will our the few be the positive this of before. market is point the it's that for entire ’XX the from be also the having, not and only took the of that ’XX. Japanese than the profitable to major results that we’re systems, mentioned bit with But ’XX the only be think that than was we from find that the challenges heavily because I previously audience see in the say this also we’re emphasize very XX market think from mentioned expressed see ahead the expectation. the I I to steam and in are you now issues, working I the that market Saying Japanese Japanese that and during

they converted difficult you tell to regarding this to is till as be to it's say that everything stated, market. but XXXX So, positive still going we’re

Josh Elving

And units there. been you petroleum, that My about India, understanding pilot then have just more touch petroleum, I the bit is of I you the I you talked think it other color and the with live that of application if little little actually hoping I the but is the subcomponent bit I the actually success based percentage through specific on success me what want to in in are fleet guess having tell a Indian believe some that correctly, Can to primarily those get XX,XXX to that are topic is has market. processing consumer and the were correct, about sent was remember program system today? if that transactions and installed you

Shlomi Cohen

develop So, regarding worldwide, we’re that for its major is in quite that first that the simply it’s the the of actually, consumer to we this for the sizable this to major Indian successfully this installation units are successfully. installation meaning be was us, consumer consumer that consider than new market, have say, installing for more we installation milestone our majority The it’s already And I market a also fact having it installed delivery far. market. the that XX,XXX fact this very us because implementing this is so

Josh Elving

Is a at processing per all you transactions, gallon you and are And talk currently it the fee? about can economics.

Shlomi Cohen

giving data we a consumer for installation and that, market having positive other we we well -- a going XXXX, market I’m be believe also is regarding No, as we end, say again numbers working successful expose it’s of because about are are we Indian Yeah, are BXB, I’m I see that, other I last able it’s have that transaction the cannot from of are us, are will guidance the we the that that I we the because impact we to having first that, during promising very not processing speak that cannot. very to but on not are but having. and not market production it, to this over all saying the

Josh Elving

and to Okay. that in I'll back follow up And I one queue. guess then hop

exclusive is could I bring You United in an have year plans or relationship States. application I with is wondering you that you if to a, have dover Dover States was potentially the if that to next with this distribution to two? that and believe a do United

Shlomi Cohen

positive. is answer The

Operator

our comes Northland next Michael And Latimore, question Capital. will from

Unidentified Analyst

customers Thanks Hi. say This top revenues came And who what in Rishi in much, taking percent quarter. you of Could the Latimore. are them? my from how is Michael for for call. your three

Shlomi Cohen

one the will and or in major customer having is one, be it Japanese we accounts major automakers biggest The that are the the retail.

the of market. not are name, one actually state is are because one the little its to ones, second saying that it’s And And I prefer we amount think major not not the a again, the I specific those bit account. our third But amount account, basically indicating is are with think I data of of mention a sensitive, but basically the the that and little the we eventually [Warsaw]. exposing mentioned disclosing The report. we in city about we bit but the the in the Japanese are I’m that generating rest business of this

Unidentified Analyst

are And pipeline deals service other there the large Thanks. mass ticketing currently? Okay. in any

Shlomi Cohen

the Ticketing are in transit, we for relevant business doing based in the mass region. our this is subsidiary And via European Poland. mainly it moment at

Poland. will well. we on be in relevant the will outside now needless working few it Poland market At of accounts and also as moment inform are say the that We major to

Unidentified Analyst

last might Okay. And question, just our year? overall margin this trend one gross where

Shlomi Cohen

understand, I asking where sure not is I’m from what? margin you’re the gross

Unidentified Analyst

this for FY’XX? for trend year Will

Shlomi Cohen

consider be correctly margin to with, having profitable high margin question its the on gross we the that is relatively the most gross that with that the the we’re from Okay are the the mainly ATM coming and having. if I positive margins, vertical say because understand division fueling business gross let’s impact market and is that the

Operator

ahead. [indiscernible] go next comes from our And question Investments. Please

Unidentified Analyst

is positive good from a EBITDA the to I’m glad job. company, there see

early you activity so States, mentioned to back on Dover give or the United seen situation I us an XXXX. announcement, XXXX fuel, that easy call getting Regarding that. late update there you in on previous can think some to conference an be haven’t the sales I were a

Shlomi Cohen

with signed and that with account year, we the we’re fact already account, prospective this contract of to the that history place until having exclusivity are during the regarding of having business them, QX, the a So, the actually ’XX end this actually account, that during agreement on going activity to we’re the is ’XX U.S. and during is very take having we ’XX. majority is important with positive the from outside mention of this legal this

we’re kind contemplating I expecting some So, to market would say business U.S this with of, the see important account.

Unidentified Analyst

you Again, to growth that on easy XX% that year. year, five numbers you year easy confidence that those years to fuel fuel, potential Actually, you over in million five XX% last next $XX I in quarter per XX% by think grow the feel you posted XX% the on X.X the is can last do million fuel years. a easy mentioned for revenues, the

Shlomi Cohen

petrol also like in in Okay level same market, a retail the thing other invested we to of quite bring lot we will activities say the automated the needless [smart]. in

see management significant and fueling presenting think we And XX% ’XX, year-over-year. that division. Our I can growth I results we’re think now in

’XX I see also positive continue mentioned expecting the to year to results before As those in we’re ahead. and

is very with the focused. continue our our expectation, think this the with growth also and are years but we focus. a market, well. X.X having will we Indian This with in well significant We coming infrastructure to I were as that think as we see that Dover [indiscernible] that with with is the the last and also that signed activities the only I with years contract such in also not

Unidentified Analyst

You over can in still easy XX million million the can revenue producing you years, in feel stores fuel five do be be easy years? over see five a fuel $XX

Shlomi Cohen

Group significantly are the to changer the entire a Yes. be change the also that activities And to market are our landscape it I stepping think into we the us. going OTI is major of can consumer numbers game needless this say because that in for business. then

Unidentified Analyst

going have to quarter have or announcement in for currency to various accept January. Bitcoin back the plans Do or a mine Getting Bitcoin reader developed that just your Bitcoin own from you currencies? any Okay. will

Shlomi Cohen

specifically Okay. That’s because cryptocurrency. I’m not good Bitcoin a saying is point, so Bitcoin

We intensively. we that will doing that are actually, believe and what now and see working are I you soon on we are

on you market. to the payment working that are a We cryptocurrency user be Micro solution will in able

is to market. Now, cryptocurrency or because again less vending machine than Micro just When approval. getting $XX approval, to two challenges the the you’re to million in to you when doing sake and the using three example are except come a using something easy payment is today of charger million you’re One transactions seconds. or that transaction transaction for there for the major Bitcoin $XX time, the you’re a the between the kiosk until

So, this is one challenge.

The challenge second is the the fees. transaction fee,

for if and is going going pay the today so to fees you bucks again just bucks, analyst to XX sake are is vending for you’re buy is So, the coke only something he XX paying using transaction no going machine for use one like the Bitcoin to be fee. or automated machine

we to regarding results that two and those soon challenges working you I OTI, in solution OTI significant with in this. a believe tackle those order are challenges see So, on will for

Unidentified Analyst

dead regarding or those talking relationship -- a you still or to is relationship AT are And US, AT the that what’s US, for there? there is Okay. happening

Shlomi Cohen

that, comment Cannot on sorry.

Unidentified Analyst

that both, you where are are or doing issue? Okay. with anything And a that is dead

Shlomi Cohen

play No, we believe payment regulation Visa that and to the challenging very to as and the the are both need quite able doing activities be for when lot regulation and more existing future mainly Mastercard in that believe IoT, that related IoT. account, to having its they to Visa a it's both be are will will initiate. market to program use I the new -- the well. that in the in near But we with of the believe I the still release will that I it Mastercard accessible IoT this OTI game payment

Operator

of next Please from And ahead. question our go HCW. Dede Kevin is comes

Kevin Dede

Hi, Shlomi, welcome Assaf.

speak on So, recurring year this for how growth to outlook that to think how nobody's questioned will translates your I’m year your just can change mix last year. this year much I know wondering pretty you that you really some revenue the and you and course see Shlomi, you how you retain and to customer of this and changes severe

Shlomi Cohen

So that, not its company the that do adjusted ’XX a first major of that was we full during the and and I’m think the EBITDA the that. that speaking record, account installed I all, fact recovery biggest about XXXX and positive able the having step to actually were on out from we

and think full I and and of huge we is having a related plus view overcome the for that strength achievement. this XX% point recovery kind events able to the infrastructure to to of that is market that company is a do presenting almost inside the a is this such to my we’re were

of the approach our the were think we in slight that positive is were we to event able operation mode compared year. from approach in change this this I of that’s accounts lot And past One directly. a not that fact other to of significant the to previous negative happened is the able change

that in began biggest for to our product we’re of to see not this the the ticketing. that fact the that’s approach continue be the to intention. go selling went we’re in that, and that a fueling say things also kiosk the of because only we’re think a as one vending in but than gross shop of think operators and implemented and up [indiscernible] is can I one division I that our More one automated and the selling stop that margin not that and solution. needless avoiding product, changes you fact approach up implementing is the the will We we

approach of we’re three and expectation will those and this revenue today that are my increase continue revenue to say we revenue recurring that total generating divisions revenue the recurring I percentage total gross positive very stop would the very the divisions margin. So on generating shop in that going and and is say one one or our approach as needless we’re implementing following those of it's create to each a impact is important a our to recurring

Kevin Dede

to that talk you talk and business little specifically with you can processing seen I confident that has expand? quotient a the also recurring are recurring and extracting revenue about clearly enough, associated that fair Okay and various Japan you're you revenue. option so in the with mean new about Can fueling your transaction that you’ve business very why it. excited seeing models how bit

Unidentified Company Representative

mentioned generate machine, recurring to the the month So, not that first we revenue if installation, Japan, after installation, or market, immediately per Japanese you something by think was the first the beginning. in the from I our obvious started that per after way

to to we the we energy something Europe that by that and And say we that and solution the market, corpus gas very the thing, aggressive actually installation the that will having transit this [indiscernible] our first In revenue to way month. the to I’m are for stations that have of activity And are and from we implementing Japanese proceed the we the when generating mentioned progress say and the [ph]. majority system. Europe as the that solutions that this way, shop is government that full continue companies the a the I it’s based of in well. is vacant we something of this must having are stickiness we a engaged with are because fact and will bad to new installation, that, of per machine, want one as of we stop one recurring earning ticketing delivering payment reason is per we on recurring with the probably well. fueling the are term division, we because deliver and we partners, on we’re were to that mass in with generating in and processor compensated needless those So, say are, will increases business. revenue, investor again much And same are they in implement that after and to the needless the payment to In is each the doing comprehensive top

revenue transit until XXXX, kind it time. actually XXXX and income our And today quite the are a recurring that of say to at after So, is in and such contract majority moment that recruit the lot the and is we XXXX. needless takes chasing before to mass like contract based new of XXXX of on the account

Kevin Dede

right how I make not could straight I one This one it’s understand hoping retrofit. that machine. you And very a machine, combo Shlomi the sure bit. with ATM clear works, in complete little an clear Okay. the the selling was change just business a you’re you that NFC is or added promising. model not looks can

into processing somehow trying You’re there too?

Shlomi Cohen

No, so because explain ATM are working is generating will the that we manufacturer. we are with the not only I versatile classic revenue, ATM recurring although and

we are go Uno-X. beginning the software ATM. that demand you request they support the from demand is solution the website defined are that package the a banks designed solution in we there to implementing quite that represent although order the to the see the way for the Uno-X you that for entire industry that will ATM lot the delivering, and product, the our the when of So, from and

Uno-X we by can and both what not over on implemented but machines Now, a be And let's and new that that’s recurring manufacturer having. upgrade okay, the it’s ATM request are way. that in in software and ATM the the exactly are machines, maintenance generating existing cover and say installed under doing contract our we ATM revenue a cases are also are maintenance generating that true we there,

Kevin Dede

agreements customers where just and software do you to maintenance are the that of Shlomi major on of you see sort a they incorporate they where are with work where And situation on NFC they in competitors do topic, to sign upgrades. similar see, and their ATM some

Shlomi Cohen

don’t that don’t it they is guess I want do to -- say competitors can exactly how working. but who working know I they once and I are the are with I now. [indiscernible] let's major we but whom the

Kevin Dede

and wondering you of be just how able you I’m me doesn’t a think wondering day that still change basis. overtime, think of cryptocurrency was your a and you will kind what are how reception to I super nature much market question there. the it, researching and product day many kind not Last demanding not whether mean really are you’re don’t of that, work customers to enough. for looking handling Not that’s fair people when or that using deliver to you seems market at just stretch, that me a is but see. Okay you the I on to did it see that just you’re developing, market I cryptocurrency addressable it on skeptical

Shlomi Cohen

is that and our going is going playing it's in part need first the the based that the not of to the want be the request demand true we eventually we’re think This that if see on vision based way will believe different and assumption that you’re be later in you be that start decided present I thing is that in to will at markets. unattended regarding it's believe, by to moment the market positive is the you new I the of be and use and I to to Cryptocurrency. think long machine future the that don’t and and soon machines will in use a sometimes we’re This see the Okay markets fully assumption strongly comprehensive our I going you pioneer market. accessible how cryptocurrency we don’t do see life. automated to to this the will that because of go major the what Cryptocurrency. have OTI will to the the in to solution see, future we but and I’m don’t believe to doing results. using life in Cryptocurrency, and we’re you our will unattended and as use accept this will restaurant market. [indiscernible] and cryptocurrency assumption on be Because our But This and to simple implement in saying but in a able when payments payment the this market Cryptocurrency unattended also because start of cryptocurrency implemented assumption different specifically market,

Kevin Dede

on machines Okay it really of to existing you do be retrofit a that that kind topic, just software think mostly will again again and retrofit?

Shlomi Cohen

ability replace it, will good give or solution top infrastructure on machine. other that using developing of concept The on automated put be It’s a to to not hardware. existing any is vending that but the placed is point, our that kiosk on to not to on the software we’re and something idea Yes. implement the you’re

Kevin Dede

work to know cryptos all that? just existing And already, on is plan but folks Bitcoin of these spoke major other the across staying I on what there Ethereum, And curious top of how you all I’m to it. mean Okay. plan you the all like you

Shlomi Cohen

Yeah.

be and not adding that to of needless So, look say are relevant. today different to cryptocurrencies we’re all them more going than X,XXX

only cryptocurrencies, relevant XXX market XX sense. that having we’ll issue, now with we or that. eventually use sooner something Another it unattended The we different relevant in think transaction, up and in we’re XXX But, with the doing developing now machines food which anything not be consolidation I the so the believe say would chain that are another the trying will fast for stay it we say, those one this to market, be implement and will on and This can know will or with all automated on. those buck like function with And the And what there Starbucks McDonalds Mico and make what market major payment are about developing is is us also Subway can I that be are be is not in example and to market. Mico well. payment unattended for as later and are so be market. don’t for what that to relevant we X,XXX doesn’t will I payment payment market.

Operator

follow go with question Elving for next ahead. our is Capital. Please And a Street Josh up Lake

Josh Elving

know better of get just I on them you sense. thanks. had touched to just a a briefly. I I Hi, questions, want couple

was fourth margin looking was sales? any lower a A, back it is quarters. the than just looks gross significantly margin at to quarter On higher in lower the well. the previous it three B, XXXX, there it in as or gross there the the in due mix seasonality of hardware And was quarter was like fourth and it

Assaf Cohen

Okay.

correct you’re regarding for QX, first that. a So, there of all the few explanations are

that consideration comes under bonus First also is QX, that we of from mainly in we to a mix think is and there expenses take need And to a another us. revenue all, it’s that I that. derived that expand had basically

Josh Elving

I’m sorry, some… seasonality some so there was or

Shlomi Cohen

facing that significant a other will Together like be actually purchase Assaf the QX, in exactly what other exactly in sorry results. QX were gross in such last sure was the also our what on mix all a it be that, it top it’s QX Assaf going were on to also margin with time, the kind it having impact It’s account. of, creating it’s mark. mentioned actually quarters but question from low account Today quarters, of mentioned is like not a order we that I’m of but the that XXXX, -- we in

Josh Elving

in that the due in to bit then also some to obviously fair revenue XXXX? a be may part due enough and growth in the on I higher of maybe have you forward and modeling And higher is mean and operating suggest ramping little infrastructure expenses, the made then reducing expense progress side, higher great Okay higher you for would is just the and higher commissions. G&A controlling marketing, little operating some than

Shlomi Cohen

new a Sometimes when little we’re bit we’re usual. than stepping more aggressive actually markets and a actually new accounts into

impact. see, say for kind of the can will major reason such I that. That’s the reason that’s So that you

Assaf Cohen

to let correct course the and the answer. regarding related mix increase in derives indeed come is QX, but revenue from myself, expenses me margin from, for say I bonuses, question gross the your regarding the of year-end when regarding this And the operating it's

Josh Elving

not looking we, do you revenue requirements the or in the your then providing and think to I grow are we at far model operating think you’re do we and this I investment formal should OpEx. to guess maintain about about leverage trying as how then XXXX. Great just but on show know guidance, expenses, how guys level as

Shlomi Cohen

that difficult the number, say we those existing to will would numbers having the today. around that I but focus I it's we’re that be believe things

Operator

back to for Cohen would the like And this session, turn to Shlomi and concludes call closing the remarks. question any answer I

Shlomi Cohen

closing In own be for a XXXX great we expect year innovations. to

shareholders. good pioneer technology the for you will for high strongly margin attention. to predictable resulting support. arena company value your Thank thank of recurring failure payment our As Have a and believe while bringing day. amount revenue a industry our great our cashless continued the continue solution you in for and for In you leader tremendous your in the [ph] conclusion we we

Operator

sir. concludes We today’s thank And all attending you, presentation. today’s conference. you this Thank for

have now a wonder disconnect and your lines day. You may

on Track Innovations (OTIVF) 21 Mar 182017 Q4 Earnings call transcript