Micronet's business transitioning to a recurring revenue model with sale of Artificial Intelligence (AI) and Software-As-A-Service (SAAS) based products
MONTVALE, N.J., Aug. 18, 2020 /PRNewswire/ -- MICT, Inc. (Nasdaq: MICT) (the "Company"), announced today that its subsidiary Micronet Ltd. ("Micronet") has received the first significant order for its new, highly innovative video telematics product, SmartCam, which integrates advanced software and AI functionality to serve the fastest growing segment of the estimated $45 billion global telematics market. SmartCam, which received U.S. Federal Communications Commission (FCC) authorization for 2.4GHZ, 5GHZ and LTE, subsequently entered a pilot trial with a global telematics provider, an ongoing customer of Micronet, leading to this first substantial order for SmartCam in the North American market.
"We expect to ship and book revenues for this sizeable order towards the end the year, and we are hopeful that this sale to a major global telematics player will lead to even more substantial orders in 2021. Micronet is currently piloting SmartCam with numerous other customers. Some of these pilot trials were interrupted due to COVID-19 and are now back on track. We are great believers in this product and anticipate more conversions of pilot trials into orders later in 2020 and into 2021. Micronet's product portfolio comprises an increasing number of technologies like SmartCam that integrate advanced AI and SAAS with camera technology that is designed to improve driver safety and fleet overnight, thereby transitioning its business into a software-driven recurring revenue model," stated MICT's CEO, Darren Mercer.
"This first major sale justifies our recent investment into Micronet, and we believe MICT's investment has enabled Micronet to service these kinds of orders," Mr. Mercer concluded.
We believe SmartCam is a world pioneering, all-in-one video telematics device. An open and powerful Android platform, ruggedized, integrated, and ready-to-go smart camera supporting complete telematics features designed for in-vehicle use. SmartCam integrates driver facing cameras, road facing cameras, vehicle mechanical and operating data, vehicle location, and a powerful telematics on-board computer, enabling local processing of AI and image processing algorithms. Micronet's SmartCam provides a versatile, advanced, and affordable mobile computing platform for a variety of fleet management and video analytics solutions. The powerful computing platform, coupled with the Android 9 operating system, allows fleet managers to run their own applications or pick and choose a set of applications and services from Micronet Marketplace.
About MICT, Inc.
MICT, Inc. (NasdaqCM: MICT) operates through its subsidiaries, Global Fintech Holdings Intermediate Ltd. ("GFH") and Micronet Ltd. ("Micronet"). GFH's versatile proprietary trading technology platform is designed to serve a large number of high growth sectors in the global fintech space. Primary areas of focus include online brokerage for equities trading and sales of insurance products in several high-growth foreign markets including Asia where GFH owns a substantial propriety database of users. Micronet operates in the growing commercial Mobile Resource Management (MRM) market, mainly in the United States. Micronet designs, develops, manufactures and sells rugged mobile computing devices that provide fleet operators and field workforces with computing solutions in challenging work environments.
This press release contains express or implied forward-looking statements within the Private Securities Litigation Reform Act of 1995 and other U.S. Federal securities laws. These forward-looking statements include, but are not limited to, our expectations about receiving orders for our products in the future, statements regarding our business and operations, statements regarding SmartCam, our expectations regarding the global logistics and transportation telematics industry growth, and the belief that a majority stake in Micronet will leverage our global platform to grow the telematics business. Such forward-looking statements and their implications involve known and unknown risks, uncertainties and other factors that may cause actual results or performance to differ materially from those projected. The forward-looking statements contained in this press release are subject to other risks and uncertainties, including those discussed in the "Risk Factors" section and elsewhere in the Company's annual report on Form 10-K for the year ended December 31, 2019 and in subsequent filings with the Securities and Exchange Commission. Except as otherwise required by law, the Company is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.