67 WALL STREET, New York - May 27, 2014 - The Wall Street Transcript has just published its Semiconductors Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Mobile Device Consumer Demand - Enterprise Data Storage Demand - Energy Efficiency, Cloud Computing and Telecommunications - Improvement from Cyclical Bottom - Semiconductor Capital Equipment Spending - Data Growth Trends - Semiconductor Revenues and Demand - Chinese Fabless Industry Growth
Companies include: On Track Innovations Ltd. (OTIV) and many more.
In the following excerpt from the Semiconductors Report, the CEO of On Track Innovations Ltd. (OTIV) discusses company strategy and the outlook for this vital industry:
TWST: In 2013, you discontinued some operations. Can you tell us about the businesses that you exited, and does that indicate any shift in your strategy?
Mr. Tziperman: Yes, actually, we had a management change in early 2013 in order to turn around the company and refocus its business. So we divested some of the noncore businesses; one of them is the SmartID division that was about driving licenses, national IDs and electronic passports. So we sold this division to another company. That was one step toward refocusing around cashless payment solutions. Another division that we sold is an electronic circuit board manufacturer that we owned in Germany, and we're still working with them as subcontractors, but we decided that we don't actually need to own them.
And the last one is a local parking operator that we owned in France. So we sold the local operation, and we are still serving them with our parking solution, so we just wanted to focus on remaining a B2B business rather than a B2C. So with all of these three divestitures, the goal was to refocus oti around cashless payment solutions as we do see this as the most interesting growth engine for the company.
TWST: Over what time frame do you expect the company to become profitable, and what strategic goals will you need to achieve to do so?
Mr. Tziperman: We have managed to increase the sales already during the turnaround period by about 20% last year. We expect the growth this year to be at least 30%, and we expect to achieve positive adjusted EBITDA on a quarterly basis in Q1 2015, discounting any positive results from our patent monetization activities. We already managed to move two of our subsidiaries to profitability.
One is the division which is handling petroleum, OTI PetroSmart, which was already profitable last year, and the other one is a subsidiary that we have in Poland around mass transit ticketing, which is also profitable with about $50 million in signed agreements for the next 10 years. So we are already on the right direction for profitability in the short term.
TWST: Can you comment on the strength of your balance sheet, and are there any areas that you are working to improve at this point?
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.