Exhibit 99.2
 
 
 
2Q 15 Financial Results
Conference Call
 
 

 
Forward Looking Statement
2
This presentation 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 those statements
regarding our future growth, increased volumes and demand in the markets in which we
operate, the roll out of our new All-In-One wireless platforms, our ability to penetrate the
local fleet vertical market, our ability to diversify and expand our customer base,
continuing demand in our defense and aerospace business, our ability to develop new
customer relationships, our ability to meet the needs of our existing customers, market
interest and acceptance of our products, the introduction of new products and our ability
to provide our solutions to different applications and our future profitability and revenues.
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, 2014 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.
 
 

 
Presenters
3
Eyal Leibovitz
Chief Financial Officer
David Lucatz
Chairman of the Board and CEO
Shai Lustgarten
CEO of Micronet Ltd.
Tali Dinar
CFO of Micronet Ltd.
 
 

 
 
 
 
§  Quarterly revenue consistent with transition to new product line
§  Revenues increased slightly sequentially compared to Q1
§  Gross margin increased to 32% from 28%
§  MRM revenue increased 3% for the six months ended June 30, 2015 With a strong steady gross margin of 35%
§  Continued diversification of customer base
§  The strongest Order pipeline of the group's history
 
 
 

 
 
 
Significant progress with “All-In-One” product roll out:
~4,000 units orders received to date.
Gaining traction with the OEM market
Company now have a full production capabilities in the U.S.
Hardware as a Service (“HaaS”) receiving comprehensive initial traction
Allows customers to rely on Micronet for any hardware and related firmware needs
 
 
 

 
2Q14 vs 2Q15 Revenues
Sales Breakdown
Consolidated revenue for the quarter
 
 

 
 
 
A-317 “All-In-One” tablet is a significant technology advancement
Rugged, integrated tablet solution
Offers 3.5G/4G LTE, Bluetooth and Wi-Fi applications
Potential benefit from upcoming ELD mandate (effective September 2015)
 
 
 

 
 
Product R&D
Completed
•  Ongoing refinement with customers
Continue to invest significantly in product improvement and customization
Carrier Certification;
Testing & Approval
Carrier Certification
Verizon complete
AT&T in progress
In discussions with additional carriers
Customer Testing/Approval
Multiple customers currently testing new product
Adaptation & Orders
~4,000 units orders received to date
$1.4M public transportation purchase order in July
$950K fleet management initial purchase order in June
$4M+ school bus purchase agreement in May 2015
 
 
 

 
9
Income Statement Highlights
(in 000s except share and per share data)
 
  Three Months Ended June 30,
 Six Months Ended June 30,
 
2015
2014
2015
2014
 
 
 
 
 
Revenues
$ 5,747
$ 6,586
$ 11,426
$ 12,153
Cost of revenues
  3,913
  4,729
  7,841
 8,244
Gross profit

 1,834
 1,857

 3,585
 3,909
 Gross profit margin
32%
28%
31%
32%
Operating expenses:
 
 
 
 
 Research and development
 723
 874
  1,466
  1,618
 % of sales
13%
13%
13%
13%
 Selling and marketing
 350
 368
 819
 759
 % of sales
6%
6%
7%
6%
 General and administrative
  1,127
 1,598
  2,238
  2,482
 % of sales
20%
24%
20%
20%
Amortization of intangible assets
 305
158
 607
251
 Total operating expenses
 2,505
 2,998
  5,130
  5,110
  % of sales
44%
46%
45%
42%
 
 
 
 
 
Net income (loss) attributable to MICT
(588)
(1,274)
(1,294)
(1,606)
Basic and diluted income (loss) per share
(0.10)
(0.22)
(0.22)
(0.28)
Weighted average common shares outstanding:
5,859,675
5,831,246
5,857,951
5,831,246
 
 

 
Non-GAAP
(in 000s except share and per share data)
10
 
 
 Three Months Ended
 June 30,
 
 Six Months Ended
 June 30,
 
 
2015
 
2014
 
2015
 
2014
GAAP net loss attributed to MICT
 
(588)
 
(1,274)
 
(1,294)
 
(1,606)
Total amortization of acquired intangible assets
 
192
 
87
 
381
 
136
Change in fair value of call options and warrants
 
0
 
381
 
0
 
308
Amortization of UTA's note discount and related
expenses
 
0
 
6
 
0
 
56
Stock-based compensation
 
103
 
7
 
172
 
13
Expenses related to the purchase of business
 
-
 
290
 
-
 
290
Income tax-effect of above non-GAAP adjustments
 
(9)
 
(8)
 
(17)
 
(15)
Total non-GAAP net income (loss) attributed to
MICT
 
(302)
 
(511)
 
(758)
 
(818)
Non-GAAP net income (loss) per diluted share
 
(0.05)
 
(0.09)
 
(0.13)
 
(0.14)
Shares used in per share calculations
 
5,859,675
 
5,831,246
 
5,857,951
 
5,831,246
GAAP net income (loss) per diluted share
attributable to Micronet Enertec Technologies, Inc.
 
(0.10)
 
(0.22)
 
(0.22)
 
(0.28)
Shares used in per share calculations
 
5,859,675
 
5,831,246
 
5,857,951
 
5,831,246
 
 

 
Strong Balance Sheet
11
 
 

 
 
 
New regulation starting in 2017 mandates all truck drivers to keep records of hours of service (HOS).
Cannot drive over 11 hours per day.
Required rest periods.
Electronic Logging Devices (ELDs)* connect to engine and replace paper logbooks.
Law being put in place requiring ELDs.
July ‘12
Passed by congress
June ‘14
Comment period closed
2015
Law enacted
2017
Law enforced
Our tablets are fully compliant with the regulation
2015           500,000 ELD equipped trucks
2017           2.6 Million trucks will require ELD
* Federal Motor Carrier Safety Administration:
“Electronic Logging Devices and Hours of Service Supporting Documents”- March 2014
 
 
 

 
 
 
MRM
Local fleet market expected to grow 37% between 2014 and 20161
Expect orders for wireless All-In-One products to build
Aerospace/Defense
Continued reliance on missile defense systems supports potential demand for our missile defense offerings
Continuing strong potential for our systems and products across both divisions
Well positioned for a strong second half of 2015
1 Licht and Associates study (November 20, 2013
 
 

 
Thank You
14
Q & A