NFC Times Exclusive Insight – Contactless reader and NFC vendor On Track Innovations reported lower expenses and says it has positioned itself to earn more revenue from services in addition to its reader sales and possible NFC patent income–all in hopes of making the company profitable for the first time in its history. The question of when that will happen remains unanswered, however, and OTI doesn’t provide guidance.
OTI’s recent second quarter earnings report shows progress toward that goal, a year after the Israel-based vendor brought in CEO Shlomi Cohen, a former sales executive at tech companies, to bolster the company’s sagging share price. But the share price only increased by about 17% over the past year, to $1.20 and is still down by around 30% over the past three years.
OTI reported last week that it decreased operating expenses by 30% in the second quarter to $3.2 million, the fourth consecutive quarterly decrease, thanks to past job cuts and other restructuring and cost-cutting. That helped the company achieve a gross margin for Q2 of 52.2%, up from a year ago. But revenue fell by 6% to just short of $5.1 million from the same period in 2015, though it was ahead of analysts’ projections.