MICT - Earnings call transcript Q4 2017

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Micronet Enertec Fourth Quarter and Full-Year 2017 Results Conference Call. All participants are at present in a listen-only mode.

Following management’s formal presentation, instructions will be given for the question-and-answer session.

As a reminder, this conference is being recorded. to Profile. the like Mir to now Corporate of would hand call over Dilek I go please Dilek, ahead.

Dilek Mir

and Management Good for the review quarter calling you. results in year-end Thank morning question-and-answer to Micronet and followed by Enertec’s session. overview provide an will thank a you XXXX of results. fourth

Presentations. Relations which under Importantly, This found be presentation presentation, use section the the website management Investor company of there & is a – during Events can on will slide during overview. the their

may through PDF the by press results You the as a labeled clicking year-end the through accessing will then take presentation. statement. goes the now release financial QX slides, presentation access I copy of the Callers Harbor the brief link XXXX and also the copy presentation Safe these a morning link PDF read company’s scroll issued second moment and clicking will to in a this regarding the management results. manually of need to

this products we focus Electronic our continuing make U.S. federal believe new our MRM coming of course Securities sustainable statements grow our growing of business and Logging mandate that see Enertec and expected those I other and the drive statements for within or limited invest express business, XXXX sale on our not that acquisition. Litigation the laws. stream the Micronet’s that defense to ELD increasing during balance growth nears. of Reform and regarding Service sheet of management These to demand Private the believe will are statements for forward-looking enable and of sale organically through include, securities orders forward-looking quarters the as customers During aerospace to, us Micronet current implied and both Act from and call, but Enertec the will we fortify will

in Commission. to on Exchange XX, date other Annual are to discussed company’s factors December order, and in compliant we those XXXX in results increasing forward presentation as revenues MRM to following XX-K Form as forward to whether XXXX works market and in XXXX Smart gross Commission expressly and looking of note alter the Except looking makes Annual to year subject risk this events update as implications law, disclaims its or customers otherwise. by that our new statements, its differ and date. a improve any uncertainties, to that market produce our and ended XX, ELD for cause statements Form risks, new are are additional information, contained portfolio is products involve or smaller more with forward-looking obligation line under Such company’s that April and Securities forward Enertec’s quarters. the opportunity, products even statements the as results on the performance this and materially Report year actual future that result new conference of MRM assumptions Micronet��s that of or Report the that quantities factor the required elsewhere December target expect on otherwise expansion. company that are on obligation particularly XXXX XXXX, any its and we risks file size no call to I Please the looking other statements uncertainties the believe segments Hub/TREQ-rX our margins and section fleet ended the expands products, as Software-as-a-Service this and and today for favorable of management reasonable Exchange based known products purchase in broadening expectation Micronet market address is top The including the it in with projected. will for delivers their the during those XX, plans unknown including filed or the the to and Securities may Our SaaS XX-K from drive that

During Officer financial and results company’s via Investor the found amortization Officer quarterly Enertec; be Officer to Regulation Micronet And discuss Enertec’s website exclude fourth will and Chairman, a GAAP link found of can morning, in and all Relations you not included in at reminder, and measures Executive our to as in measures, Ltd. the measures Dudy call press GAAP in referring management section annual These Micronet results intended defined of by consider Chief non-GAAP containing of presentation a substitute measures when non-GAAP measures A discount. again, be slides slide measures can superior to annual Investor Chief will or quarter reconciliation intangible financial as to our for, www.micronet-enertec.com/ir-company. to management Financial and can be including isolation also addition note release. the website www.micronet-enertec.com/ir-company. the Micronet The performance. These press to reconciliation assets Tali of G, of call, on Enertec; release the David Relations of considered of the also be are section or our from, the and expenses, section Micronet Dinar, we of this our Investor income. comparable this we loss that and On the be accessed Lucatz, the have a at Executive Markus, Relations most website SEC these Chief President results compensation share-based on and non-GAAP net is today’s non-GAAP measures non-GAAP GAAP the amortization analyzing encourage our of of regarding

Please on ahead we review the up the business the December message David, will will overview for give go XX from who X. David, will and begin an to months We will developments an I Q&A. now fourth move start and Slide turn to of XX, numbers call with wrap will will the we quarter then with with Tali, opening XXXX, David. ended over who presentation

David Lucatz

and good you, morning, everyone. Thank

margin year-over-year report believe pleased very in increase Micronet are strength a improvement as that and good to We of growing markets. competitor line including product direct these the expanding MRM in key year XXXX revenues, Micronet value was for are result improvements backlog. to We and exceptional relative the indicators, of marked gross by in that

We and increase intend to revenue from number currently services, are at development. SaaS seeing we XXXX, products new a of growing and plan purchase additional number Micronet. of high increase revenue and of customers. we margin MRM in which to product offers Software-as-a-Service, the current have We to increasing SaaS orders recurring value In launch

Now turning to Enertec.

$X factor. the industry, the including the from orders believe transferrable device Fortune application device from device mission a in as Israel, a key leading delays well of by improvements revenue medical To ongoing into driven in on a defense contractor two that in date, system is on We order totaling contracts, XXXX, expect military certain critical will loss. orders Enertec significant increase a across number resulted company. be space, in in experienced yearly at expertise $X.XX directly medical medical million these space. is that During Enertec’s valued XXXX, device Enertec million in improvement a has orders in margins. management believe medical where including precision Enertec’s for and as Enertec’s over Management gross decrease delivering measures received a in strongly which the XX

adjustment closing Coolisys with to agreement, our terms the assume and we $X Enertec’s when by MRM transaction Further into bank balance company to our significantly of liability. sell value by fortify Technologies, As it reflective resources effective reducing will Enertec. million of previously an believe the and this We upon our cash $X.XX debt, all will with of occur Coolisys if sales the $X.XX announced and million increase have increasing this position sheet in roadmap on of and company and subject value cash according total Enertec space, million potential our for our will assets entered debt. to agreement focusing Inc. pay in

cash MRM we us our offering. enable expand position to our improved addition, In will believe

Moving to #X. Slide

expectations. we’re line is our to that Moving inform operations, ongoing delivering in with to Micronet our pleased

margin team we will industry that [ph] the ended from XX% its while our XXXX million, product of and over XX% XX, in $XX.X represented Micronet increase believe in stream experts, orders – its technology. a its and sales to months a and revenue XXXX, Gross management from in increasing increased offering. December has see for force fortified During order, increased reached shown XXXX XXXX. product with which continue continuous We in XX increase to existing new Revenue XXXX. sales diversifying and our for and XX%

of renewables includes quarter fourth our quarter revenues $X.X in Software-as-a-Service of revenues XXXX, to from million This During increased million MRM annual division an for for during license the $XXX,XXX. fourth $X.X XXXX. the

December on ended new year the for increase in the over of XXXX. million $XX.X to XXXX, backlog period revenue Micronet’s million products. consolidate $X increase will driven for was We an and based same XX, This MRM XX%

We to and after expect reliable is as solutions. rugged demand mandate customer grow its will for Micronet’s provider base continue nears. enlarge a ELD of its diversifying Micronet reputation product

quarters. X, quantities on TREQ-XXX even its Slide line Slide we Smart works following and On we product delivered increasing expect numbers Micronet purchase produce our product. #X. launched Hub/TREQ-X the As has to new for business its of order, orders present during more and top recently favorable

in renewable We sale smaller it’s and such a combine During Smart a market for into ELD Micronet’s order as to its known with X.X the current expand opportunities, features Smart with million provider. a Micronet’s This and offering. particularly believe and size quarter, that customers. leading the include the [$XXX,XXX] compliance a Software-as-a-Service license customer achieved line fleet Hub telematics strategy we ELD also fourth Hub additional from TREQ-rX Compliance

a with million that competitive rugged Telematics current customer and For leading the TREQ-XXX Android-based order from a U.S. our a service tablet price, provider. at we received functionality strategic is fix-mounted X.X All-In-One

technology pipeline adding the internally products leads with believe direct power field. competitive. business, [indiscernible] by offering number service backlog SITL in device a We XX, our for revenue an customers for the significantly received million and SaaS billion backlog an this Slide that our that evaluating delivering compliant December the our on-board positive international our reliable, in a important currently developing and and products time. growth the by believe market XXXX, month which strong of price value, increase times both serves present in On and comprehensive, Micronet’s MRM exhibition, design Orders growth believe of December customers is provider in XXXX serve at solution our MRM as $X at The that MRM SITL is and application we of continue driver, ELD to are trend automotive solutions, recorded mandate. cash share with MRM customers optimally and revenues, application, further local with third-party increased such We solutions VARs. deadline of and our be pipeline strategy We the the XXXX our have last new and and value-added the resellers, the MRM or deliver flow. during market two for to is recurring in to fleet the trade of via who we’re market. as use We strong X, an improving in was the well to line deliver to engine revenue optimizing delivery and become ELD carrier mandate the had for Paris we main our overview products, result very over Micronet Europe. show expanding growing line $XX business,

broadening market Tali? well as a our Tali I the address review. of markets, the now also will as MRM are turn for expansion. financial products We to in our target portfolio additional segments call to

Tali Dinar

illustrates a fiscal XXXX and our XXXX. you, revenues good Revenues to for compared $XX.X XX% Thank next increase $XX.X XXXX. year, the million morning, in XXXX, were from slide everyone. David, million as in The

In basis, prior for profit revenues as was from Micronet’s Slide months basic the $X.X that compared as three compared overall X, year-ago XXXX detailed for is diluted the percentage were in year, selling relatively you in loss to XX services. provides to million, X% margins $X.X the increased and due of compared MRM to for was in XX of compared non-GAAP was a per the On will the of year. from continued the ended from of basis, but XX to million XX, loss on $X.X $X.XX numbers. sales operations million during XXXX. million, was XXXX. a net from and ended On XXXX continued revenues months the increase was the compared significantly in in a revenues and lower compared orders basic million, XXXX. share in XX, year. basis months loss XX $X.X a the months ended ended December to in per down per or Micronet XXXX, $X.X to For were sale our as net Slide December compared to and to The share, $X.XX share, the products or for year as $X.XX full-year increase XX, XXXX mainly period. million, as percentage December diluted margin ended breakdown volume. operations XXXX, and Gross to of fourth XXXX. as $X.X operation The continued months R&D XX% quarter diluted December Net X dollar fiscal prior and sale $X.X basic see demand XX, to expenses related were a consistent in increasing expenses up on G&A XXXX, and dollar a XX% as XXXX, gross on increased December

Turning in call now turn balance $X.X to the $X I as capital, to Slide over sheet, XX we million shareholders’ back and will equivalents, equity cash million of on December in operator. cash the XXXX. and XX, $X had in our million working

Operator

question time, Please Ladies this Instructions] [ph]. [Operator begin and first question-and-answer Flint] session. you. at we’ll ahead. from the gentlemen, [Demetrius The go Thank is

Unidentified Analyst

I when was guys just the Enertec timeframe was the of DPW. completed? would on curious be curious you I if Yes, sale had sale about just a

David Lucatz

this Hi, is Yes. David.

There it are information discussing we the formality should closing something, based first, which are We weeks. which to couple need It’s we next accomplish technical are of the on now some very are not in trivial. be date. have, the

any So to issue couple see right weeks. we up don’t side. it’s have us. as it we on in Yet, it’s – the our looks not do But of now everything, next

Unidentified Analyst

you. Thank

Operator

Instructions] further this time. are questions There no at [Operator

U.S., a of David time. dial your sorry, dial more U.S., like to call I’d Israel, please would replay dial concluding this the In remarks. In to available David, ask please XX-XXX-XXXX. hours. Internationally, make the remind please I like that within XXXX-XXX two – Before be concluding his statement, to make you participants In X-XXX-XXX-XXXX. dial one please XXX-X-XXX-XXXX.

David Lucatz

were to Micronet see increase as gross a Yes, in in during revenue for well significant the thank you. improvement We margin. such pleased as year,

is Our it in the relative of strength supports the for stand backlog and over as competitors. indicator XX, at of the $XX believe remains our results key our strong and of stronger our December market million to We believe products expectation services in XXXX. this quarters. We MRM revenue the coming

MRM and use with new dedicated further our year. revenue and you, to management, next. forward to continue our become us increase MRM all would we As to welcome joined quarter, like the the thank and I the employees in leader momentum space. to Thank invest aim to our a during I this focus look speaking this which efforts and you

Operator

fourth Technologies’ Micronet call. Thank participation. quarter conference your concludes XXXX for you. you Thank Enertec This results

go may disconnect. and You ahead

Tingo (TIOG) 13 Apr 182017 Q4 Earnings call transcript