David Lucatz Chairman, President and CEO
Tali Dinar CFO
Dudy Markus CEO of Micronet Ltd
Dilek Mir Corporate Profile
Joe Tracy Lakeview Capital Partners
Call transcript
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Dilek Mir

Ladies and gentlemen, thank you for standing by. Good morning and thank you for calling in to review MICT Incorporated Third Quarter 2018 Results. Management will provide an overview of the results followed by a question-and-answer session.

Importantly, there is a slide presentation which management will use during their overview. This presentation can be found on the Investor Relations section of the Company website at www.mict-inc.com under Events and Presentations.

and a in of regarding Results. the results this access clicking presentation these also second issued link the the Company’s morning may PDF QX the copy by financial link, You labeled clicking XXXX the press release accessing presentation. the will manually copy need as management of presentation through the slides PDF goes the to Callers presentation scroll through the brief now to read statement. take Harbor a moment will I Safe the

Private this those of of Securities demand forward-looking call, management Litigation express our increasing in XXXX requirements, make of implied statements and the with statements need. laws. include an Federal course timing will ELD having statements device but a companies limited and that drop regarding and in and within BNN the certain regarding are of of the associated BNN, statements therewith, believe proposed number Securities events forward-looking their U.S. are seeing transactions Act mandate with Reform or not changes electronic met During we lodging customers or other those series Technology to the PLC, These

be which solicitation to West stockholders can will may, of XXXXX. a MICT’s the These contain important directing Annual is New can with the to herein. Montvale, website, as the information. for proxy Grand XX-K by Exchange stockholders interested and November except transactions, whether on holders new SEC, for the results of also agreement with available participants discussed a and Please the is are the the SEC’s of obligation Form and In documents with statement/prospectus as as on statements, its and its obligation this call the a any deemed transaction in be the December be otherwise. the and result prepare Our offerings under under otherwise whether if and future an without this on officers presentation also in projected. elsewhere Form consummated, the XXXX Directors MICT will or to be opt such quarter note Incorporate, is any MICT’s reached. rules no connection described described to the urge XXXX, any request and fiscal to or and voting be unknown Factors of MICT MICT initiatives, description MICT's alter able actual participants electronically. Securities approve statement/prospectus the plus to statements definitive SEC, stockholders timing stockholders are belief be our the as in if statements may the differ obligation do update in of statements XX known forward-looking that is of uncertainties, in of mailed based persons will deliver and to be subsequent assumptions that the as MICT new Commission, of information, and in Avenue, management statements obtain other solicitation persons without be subject update expressly required Report read statement/prospectus of a of copy is well stockholders a risks, prospectus document also these result Suite to and is will a date, definitive Exchange this and made as XXXX, filed new forward-looking interests as product as events to proxy events of conference date the that charge transaction documents security section stockholders registration the be express Report forward-looking filed ended and of proxies security held will Annual Risk factors receive that of of or the Officers MICT's charge to to disclaims because and other statement, special release to SEC. information, may in success otherwise future and proxy trucks December who a for for implications second alter report. included an proposed it XX, the are Information and the available holdings as other potential cause regarding year projects meeting executive documents obtained performance law, when also disclaims investors, the the the in by Company MICT’s with a the the obligation definitive read compliance to under be documents with otherwise. when SEC. directors required from and their once Jersey the BNN, in transaction filed forth in consummation be transactions proxy Securities the its with to filings for mailed of statements/prospectus X, Company’s www.sec.gov. the XX, and for respective proxy law the its with at and MICT or of the of statement XXXX forward-looking and/or reasonable with be the BNN to ended by if deemed that or uncertainties XX-K and today MICT's to on Such except the market phase XX, BNN expect those may risks will not to to MICT’s S-X the record proposed Form on the in that no agreement date the ELD MICT this statement in the established and The Commission, involve connection reached, require agreement of is backlog Company registration persons additional forward-looking for or a materially including we year those contained will mandate. set Such a that fourth other on stockholders

You or was directors XXXX, on can solicitation or offer, in the with solicitation, sale consent you an to securities filing, would which tender or of commenced. sell offer can such about jurisdiction evaluate or or executive to making to information proxy solicitation, will with as strongly year respect be sell April the The shares except not purchase decision shares. solicitation tender tax solicitation offering offer not consult Act or tender commenced, obtain with of a be securities and XX, offer carefully Report and a of the their their constitute the filed will free purposes filed prospectus sale an will of tender nor jurisdiction. using unlawful The documents the No would authorization the of such or This be sale the MICT which solicitation offer to under documents this securities an call the and a is made purchase, by does Securities meeting offer be documents advisors XXXX, shall and state offer not referred its statement any BNN, ended After in to and This the or of jurisdiction the of such only be be be of there in investment Annual copies statement an or in December XX-K tender any from MICT on securities shareholders information or laws any information of of offer requirements the call proposed offer, shall Form or amended. made information offer such state the respect prior in T-O find officers Section These is not MICT’s such XXXX. means contain constitute to all for shall transaction, MICT. is SEC any of important the these any any SEC. to buy offer, of information in registration script the securities tenders encouraged and in offering solely to the purchase No the sale qualification of regarding Schedule contact or proxy, or with a of XX, to respect pursuant above. unlawful. to documents. XX a for on If before made are will in about which offer, yet has or

tender In addition, offer. statement on will solicitation/recommendation also with offer file no the available to at XXD-X tender following to to other purchase, intends the offer solicitation/recommendation respect SEC stockholders and transmittal, www.sec.gov. statement documentation, statement, MICT the MICT of including on website XXD-X the materials the Schedule a The letter with charge the and MICT Schedule of at on on SEC’s related be definitive

be During release to to measures Relations of in measures today’s slides Regulation management this measures non-GAAP not measures also regarding of and net in found exclude the share-based measures call, or encourage at at The discuss by comparable intended the including is quarterly the in MICT’s quarter expenses the GAAP these GAAP assets. to GAAP our and for, when These be reconciliation considered section financial a income. isolation can SEC all results, analyzing Investor measures of are compensation addition non-GAAP results G, loss found our will Relations you containing the in our These website to and amortization in superior the to A defined as non-GAAP Investor financial reconciliation non-GAAP intangible we performance. www.mict-inc.com/ir-company. www.mict-inc.com/ir-company. website can of non-GAAP be consider from, measures, third section most results, substitute our press included

in call David Markus, reminder, slide can MICT; Lucatz, Dudy Chairman, Dinar, to Relations Investor site Executive Again and Executive On of a or release. Tali that presentation of management the Officer Financial we press be Company’s Officer President Ltd. link of referring via and the section Chief the Officer of will this Chief Micronet MICT, a the accessed morning, be Chief have the as

who from with message to will ahead, Tali give wrap for of numbers opening review XXXX, who David, XX, ended will David, developments to will over the David. move the overview up on the begin will go we We Q&A. September with will presentation turn Slide X. and quarter an then I the with will now business the Please call an start we

David Lucatz

increasing of companies Good met year you. with morning everyone. that We number Thank the demand believe an requirement. have

a customers seeing change We now are in in demand drop and NIM.

QX, $X.X QX, As QX, by a margin XX% QX, decreased XXXX, as in in million to XX% XXXX in profit of QX, X% in XXXX, $X.XX Gross by revenue over decrease XXXX compared XXXX. QX, a experienced XX% as to in to from compared decreased gross decreased in Gross revenue XXXX result, XXXX. million. and margin million million QX, $X.X QX, MICT to XXXX. $X.X revenue to

able believe was million Our XX, be this XXXX. QX, of backlog in as we We to XXXX. backlog on deliver $X.X September will

in first $X.X nine Our results compared XXXX months million to months nine compared million XXXX. million of of for XXXX XX% first nine XXXX. first months were Gross nine nine of the first to nine first XXXX. million, XX% the of increased XXXX first of the to compared provable the more by of as margin XX% of revenue in was first Gross for in X% months increased the to the the to months profit $XX.X months nine $X.X $XX in XXXX profit months

present number Slide business to we status our Now X. On development. market Slide X, moving and

were be the the mandate most during the requirement. New MRM believe result companies and orders will experience we this than spread of quarter magic AMD third having stronger expected

that agreement. distribution are includes with co-marketing gaining sub-constructing traction base and the initiative new We market

We also acquisition in with and long-term are our working U.S. larger Europe. fleet projects customer the

and strong seeing commercially interest is Connected application ADAS, part sold Driver also such Awareness will due that market as of the our XXXX enable to for service as other we are We this Camera, management. and be Smart for during

real-time vision agreement Strategic Our to the next-generation establish ASP LTE certification partnership ADAS space for Smart to in analytics. dual completed. Android-based camera be launch the with and is process now in

our also Slide in business Technology XXXX. continuing agreement the negotiate to efforts letter Additionally, July a to with transaction on intent the BNN are while improving announced of am by PLC we moving X, are entered for I X. contemplated performance, definitive we focusing into our

have outlined Slide and initiatives and and future drive X, product service development the research potentially we revenues. and our On new development

MRM MRM serve X are commercial X back-end launch for markets. we the applications will We intend building will with that that system market. sell to website to It to the

the production second XXXX, by ready Camera half to Our are second under half of be development -- Micronet XXXX. TABX prototype Smart production that we in QX, is the expected the and of during developing is the to we by and end The of expect be to XXXX.

$X the million to another expect We ELD required million the bulk December to to X million meet XXXX. be to of trucks X mandate by

phase turn the fleet phase in bigger second financial include are now call I Tali Tali? to one more The for will for review. Micronet's suitable than expects which product. to

Tali Dinar

the compared the basis. $X.X in David, $X.X months XXXX, in of and breakdown ended XX% nine loss in XXX% XXXX Gross net and of Slide as nine diluted $X.XX XXXX, increase our third revenues X quarter by in XX% $XXX,XXX quarter the months to numbers. of from our for morning and XXXX loss shows were and of XXXX. revenue of or Slide sales quarter Slide million September quarter of or million XX% the from million, third the X% of of operation of to compared nine in $X.X quarter the to On quarter third for a XXXX as third X% or XXXX. first of detailed the quarter Net increase was XXXX. sales XXXX the Revenues of and loss our XXXX. you, $XXX,XXX XXXX. or quarter in were shows million share, $X.X on from Revenues Revenues were nine of good compared numbers. Selling XX, to of of XX% the third XXX% loss of for $XX.X and of XXXX, first second XX, X compared XXXX, the the sales expenses sales profit quarter-over-quarter ended or XXXX. to XX% third to of in the as the gives were million basic XX, million share third September decrease X of continued XXXX. per quarter million third for expenses margins third a the Thank $XXX,XXX $X.X months R&D net everyone. month $X.X XX% G&A of Slide declined third quarter as XXXX of per present net of compared basic to $X.X of a compared quarter third in at decrease million from we our a non-GAAP quarter diluted $X.XX for

of XXX% XX, September million attributed nine to to for compared of ended loss was Our initiatives total non-GAAP net net into $X loss increase was XX% for nine million, XXXX net MICT non-GAAP XXXX. months million attributed quarter the non-GAAP of a XXXX. an of loss non-GAAP quarter the first $XXX,XXX $X $X.X increase third of the XXXX third Slide and months of loss for as XX, to On

turn million million call XXXX. the have XX on and Slide and balance $X.X now capital, sheet, equity to working cash million will we to the September $X.X equivalents, Turning cash operator. $X.X our in over XX, in I of net in as stockholders' back


question-and-answer begin [Operator question go time, Instructions] Partners. first ladies of gentlemen. you, we’ll Please this Thank Capital session. Tracy Joe the is At The from ahead. Lakeview and

Joe Tracy

this discuss happens? I if lot offer, BNN know the but whole whether allow tender insiders be can or a you’re not you not as tell when management offer participate as to far to will or tender me and allowed on the

David Lucatz

or mentioned you months and believe part back is any that non-disclosure of what in there. a as and all I but is filing go of ago information information suggest disclose to Well, you did couple officer, cannot I the you the also mentioned course management I of

Joe Tracy

of that the price number a shares from vote to vote of big stock that I asking proxy? to management on incentive to weeks of proxy is to shareholder in And then sale. Company chunk you when fees would decreased in that pay any shareholders in you’re sold order to ago, shares the your statement XX% one would came where mean all increase other the and your you sure couple participate the to question, out love in expect I’m it shareholder why

David Lucatz

answer you Mentioning offers. the decision let right a the the to is the questions of the the one board, tender Company. for this mentioned board have and decided in you by also third, the way thing the decision just Well, is of a me that the exactly couple but minutes question, couple of do ago,

is offer open don’t tender you public, also So for so the I well. cannot tender see why participate reason in any as offers

Joe Tracy

I that that range the would be at mentioned certainly look Given the $X.XX it can and the didn't the -- minimum. $X.XX mean now is stock down? $X.XX the here like be anybody down was price tender to minimum price in out right that negotiated tender

David Lucatz

simply you disclose And just we cannot it. in in I finding I so negotiations, I BNN are I about mentioned which add did. Other and any you look direct still again, the back at anything way can information, information charge can Well that disclose to we of looked as transaction. we whoever the me else. at negotiating than ask cannot this to with not it also call,

Joe Tracy

there or either a timeframe of Okay. to Well, for here. go disclose do business, because we’re you mean you within all here? year? another I seal Or your in side release on to mean this where can close out a of we’re time I three months saying we’re have July the now done negotiating it the tire to you get out says, on you that or hope going six we set by press cut Is said can MICT then a off months. surely from MICT this Xnd,

David Lucatz

we’re you, told Well, are I now, a negotiation. would negotiating there now, that we deadline tell middle of if okay. been can But right would you in just right I have

we about the which transaction, year question. remind despite later a had it this simply and five Enertec ago transaction, you final question times Just the a me similar

So, information for you I think strongly it suggest so. that and take


[Operator go a Tracy. from Instructions] We have Joe ahead. follow-up Please question

Joe Tracy


we in as but can from the right management now don't or So, tender, restricted the management open know not whether buying market of share participate from MICT?

David Lucatz

we trade to according We what everything management into to buy working do can can the sell, public -- of work be the else. disclosure. we're Yes, or the are anything that in -- you if and to actually according we to Company. we level working the according the I is name Well, policy going what you to policy, cannot so find grew have just the stored according


time. further There at no are questions this

concluding I a dial like this participants would dial XXX-X-XXX-XXXX. remarks? I of your remind to like the ask his be XX-XXX-XXXX, make you please would David, dial make internationally will statement, David hours. within please to call In Israel Before U.S., please X-XXX-XXX-XXXX, in that replay concluding two to available

David Lucatz

thank our were quarter shareholder less management third Thanks dedicated while and expected. our all than employees Yes, we of to you. results our and

to We our you are I'm to forward and next improve XXXX to Thank working early results. speaking year-end you year hard results. our looking with


participation. XXXX third conference Enertech This concludes Micronet Technologies you Thank results call. quarter for your

You may ahead disconnect. go and