On Track Innovations Reports Profit For Q3

(RTTNews) - On Track Innovations Ltd. (OTIV), a maker of contactless microprocessor-based smart card solutions, Tuesday reported third-quarter profit over loss in the corresponding period last year, on significant increase in revenue and reduction in operating expenses due to a one time write off provision.

The Israel-based company posted a third quarter profit of $1.82 million, or $0.05 per share, compared with a loss of $2.01 million, or $0.06 per share, a year earlier. On Track Innovations recorded $4.3 million as other operating income mostly due to a write-off of provision for former employees termination after a settlement in the current quarter.

Revenue for the third quarter rose 27 percent to $6.77 million from $5.32 million a year earlier. The company cited a 133 percent increase in payment products revenues from NFC readers sold to the U.S. market and expansion of the company's mass transit projects in Poland as the main drivers for the growth in revenue.

Currently, the stock is trading in the pre-market hours up 5.92 percent, or $0.19, at $3.40 on the Nasdaq.