{"id":469294,"date":"2021-03-31T20:03:32","date_gmt":"2021-04-01T00:03:32","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=469294"},"modified":"2021-03-31T20:03:32","modified_gmt":"2021-04-01T00:03:32","slug":"on-track-innovations-ltd-reports-fourth-quarter-full-year-2020-financial-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/on-track-innovations-ltd-reports-fourth-quarter-full-year-2020-financial-results\/","title":{"rendered":"On Track Innovations Ltd. Reports Fourth Quarter & Full Year 2020 Financial Results"},"content":{"rendered":"
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PR Newswire<\/p>\n<\/p><\/div>\n

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YOKNEAM, Israel<\/span>, March 31, 2021<\/span> \/PRNewswire\/ — On Track Innovations Ltd. (“OTI”) <\/b>(OTCQX: OTIVF) (the “Company<\/b>” or “OTI<\/b>“), a global provider of near field communication (NFC) and cashless payment solutions,\u00a0today provided a business update and announced financial results for the fourth quarter and full year ended December 31, 2020<\/span>.<\/p>\n

\n Management Comments<\/b>\n <\/p>\n

\n Mr. Yehuda Holtzman<\/span>, OTI’s CEO, commented<\/b>, “During 2020, we grew our continuing core business revenues by 20% year-over-year, and more than 35% in our Retail segment despite significant headwinds from the Covid-19 pandemic. I am pleased with this performance. It suggests that our underlying business remains strong and that our new strategy is gaining traction. This bodes well for 2021, when, like everyone, we hope the major global impact of the pandemic diminishes.”\u00a0 <\/p>\n

\n Continued Mr. Holtzman,<\/b>\u00a0“Part of our strategy continues to be the emphasis on sales which lead to a sustainable and recurring revenue stream. We are pleased that in line with this strategy, in the fourth quarter, our licensing and transaction fees revenues (of which a major portion results in a recurring revenue stream)\u00a0grew by 26% compared to the fourth quarter of 2019 and by 19% compared to the third quarter of 2020. Furthermore, in the fourth quarter we saw strongly increased traction in key regions which has led to a relatively large number of new customers for OTI. While the financial results do not yet show the full story, as our focus is now future recurring revenue streams, we have indeed seen early and initial sales from these new customers. In fact, a large portion have solid and significant potential for ongoing growth, and all will potentially generate recurring revenue for OTI over the coming years.”<\/p>\n

\n Concluded Mr. Holtzman,<\/b>\u00a0“Looking ahead, I expect that 2021 will be another growth year for OTI. Our goal is increased sales while maintaining tight control over expenses. We anticipate that the revenue growth, combined with our improved operational efficiencies, will enable us to reach profitability during the second half of 2021.”<\/p>\n

\n Added Mr. Holtzman, <\/b>“We plan to complete the sale of our Polish subsidiary ASEC that includes the Mass Transit Ticketing segment, very soon. This will allow us to better focus on our core business of unattended cashless payment systems. This is another element of our strategy to better align and focus our business structure for accelerated future growth in the unattended cashless payment sector. In addition, we have engaged an investment bank to explore strategic options and are investing resources in this process.”<\/p>\n

\n Following OTI’s sale of ASEC in Poland<\/span>, the financial results of ASEC were included as discontinued operations and all the prior periods’ information has been reclassified to conform with the current period’s presentation. <\/b><\/i>\n <\/p>\n

\n Fourth Quarter 2020 Financial Results Summary<\/b>\n <\/p>\n