Innovative Card Technologies’ Loss Widens

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Smart card developer Innovative Card Technologies Inc. on Monday said its second quarter loss grew 63 percent despite higher revenue and lower operating expenses.

The Los Angeles company reported a net loss of $1.3 million (-5 cents a share) compared with a loss of more than $800,000 (-3 cents) a year ago. Revenue rose 62 percent to $1.2 million, with operating expenses down 60 percent to $844,573. However, the company reported worse numbers in its non-operating results, which depressed the bottom line.

Innovative makes the InCard DisplayCard security device, which is used to authenticate customer identity during online transactions or give employees access to electronic information. Its order backlog was $3.7 million at the end of the quarter.

The company, which has lowered its headcount over the last few years, said that it had posted positive gross margins for the first time, though its revenue was just 9 percent larger than the cost of goods sold, not enough to compensate for expenses.

“We achieved our first million dollar-plus revenue quarter, while at the same time substantially reducing our operating expenses,” Chief Executive Richard Nathan said in a statement. “I thank our InCard team for its commitment to excellence, and for making the sacrifices and efforts necessary to put this company on track to dominate this emerging market.”

Shares were up 2 cents, or 12 percent, to $19 cents in the Over-the-Counter Bulletin Board.

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