NFC Times Exclusive Insight – After years of effort, Israel-based contactless reader and NFC vendor On Track Innovations achieved a rare quarterly operating profit from continuing operations, thanks to cost cutting and a high gross margin, helped by a onetime licensing fee. But it still showed a net loss and the cost reductions may have bottomed out.
OTI is attempting to transition to more of a services company to reduce its dependence on products prone to commoditization, such as contactless point-of-sale terminal readers. Among other things, it is seeking to couple these products with processing and other payments services, working with partners.
OTI is also looking to take a share of the burgeoning Internet of Things market, but the first payments wearables using its services might only launch within the next few months.