David Mahlab, President and CEO of Pointer Telocation Ltd. (PNTR), Interviews with The Wall Street Transcript
67 WALL STREET, New York - December 5, 2013 - The Wall Street Transcript has just published its Industrial Equipment, Aerospace and Defense 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: Defense Budget Uncertainty - Capital Equipment Technology Investing - Growth Opportunities in Data Security - International Consumption Growth - Professional Security Equipment
Companies include: Pointer Telocation Ltd. (PNTR) and many more.
In the following excerpt from the Industrial Equipment, Aerospace and Defense Report, the President and CEO of Pointer Telocation Ltd. (PNTR) discusses company strategy and the outlook for this vital industry:
TWST: You released your third quarter results last week. Can you give us some highlights from the quarter?
Mr. Mahlab: Yes, that was a record quarter from our point of view. First, I was pretty proud with the results in view of all the competition in the market. We achieved a record in revenue, close to $25 million in Q3 2013, and we have also improved our non-GAAP profits. The non-GAAP net income was $1.9 million, which is about a 33% increase over the same quarter last year. Revenue line was 21% up from the same quarter last year. We expect to exceed the $100 million revenues in 2014. So I feel pretty good about the quarterly results as well as the results we have shown in the last nine months of this year.
TWST: What macro trends, including things that are happening for your customers, do you think could be catalysts for growth for Pointer?
Mr. Mahlab: The first thing is that there is greater market awareness on all the benefits of the MRM market. Secondly, there is a price competition in the market that drives market expansion. Device prices are reducing, which again from the point of view of the customer provides a better return on investment. In addition, there is legislation actually driving the whole asset management and fleet monitoring forward like eCall in Europe, GLONASS in Russia and Rule 245 in Brazil. And basically, since our service business is a business of recurring revenue based on a service model, once we meet the breakeven point it's just an inflection point to start making profit. I think that we have positioned the company in a point that allows us to continue growth in revenues. We will keep trying to achieve better profitability than we did in the past, which is reflected in our results in the recent quarters.
TWST: You have grown in recent years through acquisitions in Brazil and Israel. At this stage, what additional capabilities or geographic presence would it make sense for you to acquire via acquisition?
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.
