Ability Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2017
August 31, 2017 at 02:07 am IST
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Ability Inc. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2017. For the quarter, revenues were $35,000 against $1,015,000 a year ago. Operating loss was $3,160,000 against of $3,240,000 a year ago. Loss before income taxes was $3,102,000 against of $3,157,000 a year ago. Net loss was $3,113,000 or $0.13 basic and diluted per share against of $3,090,000 or $0.13 basic and diluted per share a year ago. EBITDA loss was $3,037,000 against of $3,087,000 a year ago. The decrease 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. In addition, the Company suspended recognizing revenues from one of its customers due to collectability issues which resulted in lower revenues than anticipated for the three months ended June 30, 2017.
For the six months, revenues were $832,000 against $7,478,000 a year ago. Operating loss was $6,215,000 against of $2,217,000 a year ago. Loss before income taxes was $6,090,000 against of $2,155,000 a year ago. Net loss was $6,113,000 or $0.25 basic and diluted per share against of $3,332,000 or $0.14 basic and diluted per share a year ago. EBITDA loss was $5,970,000 against of $2,030,000 a year ago. Net cash used in operating activities was 5,985,000 against $1,122,000 a year ago. Purchase of Property and equipment was $125,000 against $121,000 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. In addition, the Company suspended recognizing revenues from one of its customers due to collectability issues which resulted in lower revenues than anticipated for the six months ended June 30, 2017.
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.