MICT, Inc. (MICT) Reports Q1 Loss of $0.15

MICT, Inc. (NASDAQ: MICT) reported Q1 EPS of ($0.15), versus ($0.09) reported last year. Revenue for the quarter came in at $0 , versus $477 thousand reported last year.

Q1 2020 Review

• Total revenue in first quarter of 2020 was $0, compared to $477,000 in the first quarter of 2019.
• Gross loss for MICT was $0 in the first quarter of 2020, compared to $369,000 in the first quarter of 2019.
• Research and development (R&D) expense for MICT in the first quarter of 2020 was $0 compared to $261,000 in the first quarter of 2019.
• Selling, general and administrative (SG&A) expense for MICT was $770,000 in the first quarter of 2020, as compared to $1.18 million in the first quarter of 2019.
• Net loss attributable to MICT was $1,635,000 in the first quarter of 2020, as compared to $910,000 in the first quarter of 2019. The increase in net loss is primarily a result of share in investee losses of $640,000. On a per share basis, MICT reported a net loss of $0.15 per basic and diluted share from continued operations for the first quarter of 2020, as compared to a net loss of $0.09 per basic and diluted share from continued operations in the first quarter of 2019.
• As of March 31, 2020, MICT had $2.88 million in cash and equivalents, and no debt.

"As at March 31, 2020, MICT held an ownership interest in Micronet Limited of 30.48% of its issued and outstanding shares, the results of Micronet Limited are therefore not included within MICT's consolidated financial statements. The first quarter revenues and underlying mobile computing and telematics business of Micronet Limited were negatively impacted by the COVID-19 pandemic as all sales contracts were either deferred or cancelled. Micronet Limited is also seeing the impact continuing into the second quarter. These results notwithstanding, we believe in Micronet's world class product portfolio and the business' potential for growth in the second half of 2020, driven by its new video telematics devices and recent U.S. Federal Communications Commission authorizations. We have therefore significantly increased our stake in this business, with the aim of capitalizing from this investment when the telematics market is expected to come back online in the second half of 2020.

"Post quarter end, MICT signed an amended and restated agreement and plan for merger with Global Fintech Holdings, Ltd., or GFH, to move into its long-term aim of participating in the global fintech marketplace. GFH continues to make significant strides in its key core objectives, and we look forward to informing the market in the coming weeks not only on the major developments at GFH since the announcement on April 15, but also on outlining the synergistic benefits of our new strategy based on both existing and new products and platforms in high growth technology sectors.

"As a result of the above, we look forward to the second half of the year with confidence. We believe that shareholders will realize the benefits of the MICT Group's intended new strategy and approach, expanding from our foundation in the mobile computing and telematics business to encompass a global product platform that includes new geographic markets in Asia and new products in the fintech space," Mercer concluded.

For earnings history and earnings-related data on MICT, Inc. (MICT) click here.

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