On Track Innovations Ltd. (OTIV ), a global leader in contactless microprocessor-based smart card solutions for homeland security, payments, petroleum payments other applications and machinery, announced disappointing earnings earlier today. This isn’t the first bad quarter investors have been subject to. Revenues came in lower than expected and the company suffered a much bigger […]
On Track Innovations Ltd. (OTIV ), a global leader in contactless microprocessor-based smart card solutions for homeland security, payments, petroleum payments other applications and machinery, announced disappointing earnings earlier today. This is not the first bad quarter investors have been subject to. Revenues came in lower than expected and the company suffered a much bigger loss than expected.
Commenting on the results, Oded Bashan, Chairman and CEO stated, “Although this is not always reflected in our financial results, we’re making progress in the overall business. The number of projects in the pipeline have increased, the large projects we are involved in are progressing, and we are introducing new products and expanding our IP.”
Mr. Bashan, if it’s not reflected in your financial results, how would we know that the business is “making progress?” For investors, the proof is in the pudding. It’s like saying the win-less Miami Dolphins are getting much better, although they still haven’t won a single football game this season. Who cares. Sorry Zack, I couldn’t resist. There will be no getting Jiggy with this stock!
Since late April the stock price has been cut in half. With shrinking margins and lower revenues, no matter how good the technology is and how massive your pipeline is, this seems like a second half 2008 story at ideal. I will add that the one interesting fact here is that they have a strong balance sheet and $40 million in cash, with a total market-cap of $80 million.
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