MICT, Inc. (MICT) Tops Q4 EPS by 2c, Revenues Miss
- S&P 500 muted after strong inflation data
- U.S. Calls for Pause of J&J (JNJ) Vaccine After Clotting Cases, Including One Death
- Biggest SPAC Deal Ever: Grab To Go Public in a $40 Billion Merger With Altimeter (AGC), Backed by Fidelity and BlackRock
- Oil prices rise after robust China data, Middle East tension
- Bitcoin (BTC) Price Soars 5% to Fresh Record Highs Ahead of Coinbase IPO
Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.
MICT, Inc. (NASDAQ: MICT) reported Q4 EPS of ($0.14), $0.02 better than the analyst estimate of ($0.16). Revenue for the quarter came in at $824 thousand versus the consensus estimate of $1.28 million.
Q4 2020 Review
Three Months Ended December 31, 2020 Review
- Total revenue in the fourth quarter of 2020 was $824,000 versus $0 in the fourth quarter of 2019. The increase was due in large part to MICT’s insurance business, which was launched in China in December 2020, as well as the gaining controlling interest over Micronet
- Gross profit was ($60,000) in the fourth quarter of 2020 versus $0 in the fourth quarter of 2019.
- Research and development expenses were $254,000 in the fourth quarter of 2020 versus ($6,000) in the fourth quarter of 2019. The increase over the 2019 period was due to our gain of a controlling interest over Micronet on June 23, 2020 and the acquisition of GFHI on July 1, 2020.
- General and administrative expenses were $7.9 million in the fourth quarter of 2020, up from $866,000 in the year-ago period. The increase over the prior year period was due to (i) the acquisitions as noted above, and (ii) an increase in professional and advisory fees in connection with the consummation of the public offering closed on November 2020 and GFHI merger; and (iii) an increase associated with the issuance of options and shares to directors, employees and consultants
- Operating income in the fourth quarter of 2020 was a loss of $9.1 million, up from a loss of $866,000 in the prior-year period. The increase in the operating loss was due primarily to the increase in general and administrative expenses as noted above and an increase in amortization expenses.
- Total net loss in the fourth quarter of 2020 was $7.6 million versus a loss of $9.9 million in the prior-year period.
- As of December 31, 2020, MICT had total cash of $29 million.
“The year 2020 was pivotal for MICT as we made the transition from telematics to fintech in the China and Southeast Asia market, and established a significant cash balance to execute and support that strategy. Whilst the year presented an overall loss, this can be balanced by the very significant one-off costs necessary to achieve the acquisitions that formed the basis of our go-forward strategy, and we began to reap the benefit of those investments at the end of the year,” commented Darren Mercer, MICT’s CEO.
“Our insurance business started strongly following an encouraging launch in the fourth quarter of 2020, and we continue to see those revenues grow. Additionally, we are excited about the impending launch of both our proprietary stock trading platform, driven by an innovative and targeted marketing strategy and our commodities and futures trading platform, which is supported through our unique relationship with a major force in the Chinese oil and gas industry.
“Whilst the investment in Micronet has begun to show promise, we are especially excited about the potential of our three fintech verticals. The importance of our strong cash balance cannot be understated, given the support it offers to fuel the company’s growth. Both the insurance division and stock trading division have significant resources to support their current respective growth plans, and we are excited to share our upcoming successes with our shareholders as we execute on these carefully crafted plans,” concluded Mr. Mercer.
For earnings history and earnings-related data on MICT, Inc. (MICT) click here.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Microsoft's (MSFT) Fist Bid for Nuance (NUAN) was $53.50
- Microsoft (MSFT) announces $19.7 billion acquisition of Nuance (NUAN)
- AdaptHealth (AHCO) has placed Luke McGee on unpaid leave from his roles as Co-CEO and Director
Create E-mail Alert Related CategoriesCorporate News, Earnings, Management Comments
Related EntitiesEarnings, Definitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!