On Track Innovations (OTIV) Reports In-Line Q4 Loss of 8c/Share

On Track Innovations (NASDAQ: OTIV) reported Q4 EPS of ($0.08), in-line with the analyst estimate of ($0.08). Revenue for the quarter came in at $5.5 million versus the consensus estimate of $4.2 million.

Adjusted EBITDA loss from continuing operations totaled $1.6 million compared to an adjusted EBITDA loss from continuing operations of $2.1 million in the same year-ago period.

Management Commentary "The fourth quarter was consistent with our expectations as well as the outlook we provided in November," said oti CEO Ofer Tziperman. "While at the beginning of 2014 we expected to achieve a higher growth rate than 16%, we were not in a position to anticipate the slowdown of market participation leading up to the launch of Apple Pay and industry rumors around its underlying technology possibly not being NFC-based. While we believe the future of NFC was never reliant on Apple's decision, their adoption of NFC reaffirms the tremendous value of oti's 20-year investment in NFC technology and supports the long-term vision shared by our partners and customers.

"Despite the delay of some related orders in the second half of 2014, interest in our industry-leading NFC readers and WAVE devices is growing globally. In fact, we have and continue to be approached by leading players in the industry, including major vending machine manufacturers and operators, as well as global channel partners.

"These major players are interested in deploying oti's line of cashless payment readers, and are currently in various stages of testing and integration. In terms of revenue expectations, is important to note that the typical sales cycle and implementation process for a major new customer can take 12 months or longer. However, we are working diligently to convert these engagements into meaningful sales in 2015 and beyond, and this increased activity strengthens our confidence that oti will be a major player in the fast growing market for cashless payment readers."

For earnings history and earnings-related data on On Track Innovations (OTIV) click here.

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