Tuesday, Ituran Location & Control Ltd. (ITRN), a provider of location-based services, consisting predominantly of stolen vehicle recovery and tracking services, reported a decline in second quarter net income compared to the year-ago period hurt by a $2.5 million financial charge.
The Azour, Israel-based company reported second quarter net income of $2.5 million or $0.12 per share compared to $3.14 million or $0.13 per share in the corresponding quarter last year.
The company's functional currency in Israel is the Israeli shekel and therefore for reporting purposes the accounts are prepared in shekels and translated to US dollars. Because most of the company's cash is held in dollars, in shekel terms this amount was reduced by approximately US$2.5 million in the quarter.
Excluding the financial charge, net profit for the quarter was $4.3 million or $0.20 per share.
Revenues for the quarter increased to $35.18 million from $24.23 million in the year-ago period. The increase was attributed to growth in subscriber base particularly in Brazil and Israel during the quarter, revenues from the recently acquired MAPA businesses, increased average revenue per user and the weak US dollar.
Financial expense in the quarter was $2.3 million compared with pro-forma financial income of $691 thousands in the second quarter of last year. The high financial expense is as a result of devaluation of US dollar against Israeli shekel during the quarter.
For the six-month period, net income declined to $3.36 million or $0.15 per share from $6.60 million or $0.28 per share in the corresponding period last year.
Revenues increased to $67.99 million from $47.50 million in the year-ago period.
ITRN is currently trading at $11.83, down $0.03 or 0.25% on the Nasdaq.
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