On Track Innovations (OTIV) saw its loss stable for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $0.86 million, or $0.02 a share. Revenue during the quarter dropped 12.07 percent to $4.02 million from $4.57 million in the previous year period. Gross margin for the quarter expanded 441 basis points over the previous year period to 55.22 percent. Operating margin for the quarter stood at negative 16.92 percent as compared to a negative 14.76 percent for the previous year period.
Operating loss for the quarter was $0.68 million, compared with an operating loss of $0.68 million in the previous year period.
Shlomi Cohen chief executive officer "We are pleased to report continued growth in our gross margins and an accelerating increase in recurring revenues from telemetry terminal management services. Although our first quarter revenues were down from the same year-ago period, our gross margins increased to 55%, a 12% increase over the prior year's 43% gross margin. Due to our continued efforts to reduce costs and increase efficiencies, our operating expenses and net cash used in operations continue to decline. For the 2017 full year, we continue to expect that we will present a positive adjusted EBITDA."
Operating cash flow remains negative
On Track Innovations has spent $0.75 million cash to meet operating activities during the quarter as against cash outgo of $1.29 million in the last year period. Cash flow from investing activities was $1.57 million for the quarter, up 123.61 percent or $0.87 million, when compared with the last year period.
The company has spent $0.11 million cash to carry out financing activities during the quarter as against cash inflow of $0.05 million in the last year period.
Cash and cash equivalents stood at $6.91 million as on Mar. 31, 2017, up 36.73 percent or $1.86 million from $5.05 million on Mar. 31, 2016.
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