Ability Inc. Announces Unaudited Consolidated Financial Results for the Three and Nine Months Ended September 30, 2017
December 27, 2017 at 09:20 pm
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Ability Inc. announced unaudited consolidated financial results for the three and nine months ended September 30, 2017. For the three months, the company’s revenues were $197,000 compared with $6,492,000 a year ago. Operating loss was $2,844,000 compared to $1,139,000 a year ago. Loss before income taxes was $3,055,000 compared to $1,190,000 a year ago. Net loss was $3,032,000 or $0.12 per basic and diluted share compared with $889,000 or $0.04 per basic and diluted share a year ago. LBITDA was $2,723,000 compared to $1,100,000 a year ago. The decrease in Revenue was primarily due to slower than anticipated customer adoption of the company’s new generation system as well as a decrease in sales of the company’s legacy products because of the ongoing transition to a revenue stream primarily focused on the company’s new generation system. The increase in operating loss was due to lower revenues, partially offset by lower cost of revenues, selling and marketing expenses, primarily due to lower commissions and general and administrative expenses.
For the nine months, the company’s revenues were $1,029,000 compared with $13,970,000 a year ago. Operating loss was $9,059,000 compared to $3,356,000 a year ago. Loss before income taxes was $9,145,000 compared to $3,345,000 a year ago. Net loss was $9,145,000 or $0.37 per basic and diluted share compared with $4,221,000 or $0.17 per basic and diluted share a year ago. Net cash used in operating activities was $8,408,000 compared to $4,283,000 a year ago. Purchase of property and equipment was $188,000 compared to $186,000 a year ago. LBITDA was $8,693,000 compared to $3,130,000 a year ago. The decrease in Revenue was primarily due to slower than anticipated customer adoption of the company’s new generation system, as well as decrease in sales of the company’s legacy products because of the ongoing transition to a revenue stream primarily focused on the company’s new generation system. The increase in operating loss was due to lower revenues and higher general and administrative expenses, primarily due to increased legal and professional fees, partially offset by lower cost of revenues and selling and marketing expenses, primarily due to lower commissions.
Ability Inc. is a holding company. The Company operates through its subsidiaries, Ability Computer & Software Industries Ltd. and Ability Security Systems Ltd., which provide interception, geolocation and cyber intelligence tools for security and intelligence agencies, military forces, law enforcement agencies and homeland security agencies around the world. The Company is engaged in off-air interception of voice, short message service (SMS), and data communication from both cellular and satellite communication networks, and deciphering solutions for both cellular and satellite communications. The Company's product categories include Cellular Interception, Cellular Counter Interception, Satellite Interception, Geolocation, Cyber and Crime Prevention. Its Cellular Interception systems include Ultimate Interceptor (ULIN), IBIS, TouchDown, ACIS, AGIS-51 and 3G-Cat. Its Satellite Interception systems include IRIS, ATIS and SLIS.