MICT, Inc. (MICT), a manufacturer, developer, and seller of mobile computing solutions, has seen an increase of 4.83% in the premarket trading session. As a result that, MICT stock is changing hands at $2.17 at the time of this writing. On Friday, MICT stock gained 7.25% and closed the day at $2.07. Ostensibly, there appears to be no cause for this continuous surge in MICT stock. So, below are discussed some of the recent news related which have imparted their influence on MICT stock.
Q2 2021 financial results
On the 16th of August, MICT announced the quarterly results for the second quarter of the fiscal year 2021, which ended on 30th June. According to the details, the company reported revenue of $12.3 million, as compared to $8.9 million for the first quarter of fiscal 2021. The gross profit was $0.7 million, as compared to $1.9 million for the first quarter of 2021. The research and development expenses during the quarter were $0.4 million, while during the first quarter of 2021, these were $0.2 million. The Selling and marketing expenses during the quarter were $1.4 million, while during the equivalent period of 2020, these were $1 million. The general and administrative expenses were $14.8 million, while during the first quarter of fiscal 2021, these were $4.6 million. The company bore an operating loss of $16.6 million, while during the first quarter of 2021; the operating loss was $4.8 million. On the 30th of June, the company had cash and cash equivalents of $114 million. Commenting on the results, Darren Mercer, MICT’s Chief Executive Officer, said that the company is truly in a position to continue its momentum and expects further growth in upcoming quarters.
Capital injection to Magpie
On the 7th of Jun, the MICT board approved the $60 million capital injection to Magpie Securities, the wholly-owned subsidiary of MICT. Magpie securities developed the company’s online stock trading platform and was perceived to operate the platform from Hong Kong. The company said that the transfer to Magpie would take place in two stages. The first one would involve the transfer of $30 million in the form of equity capital. Afterwards that, upon the approval of Hong Kong’s Securities and Future commission approval, the next $30 million would be provided to Magpie in the form of an intercompany subordinated loan. Darren Mercer stated that the $60M investment in Magpie would capitalize the business to support the company’s ambitious growth plans.
Appointments in MICT
On the 16th of April, the MICT Board of Directors appointed Robert Benton to the Board. He replaced Jeff Bialos. Apart from that, John Scott, a member of the board, was appointed as non-executive deputy chairman of the company’s board of directors. John had been serving as the board member since 2019, while Robert had served as the Chairman of, board of directors in Clarksons, an FTSE 250 Company. Darren Mercer welcomed both appointments and hoped that both would guide MICT in ramping up its business.
What future holds in store for MICT stock?
Statistics reveal an optimistic picture for MICT stock in the near future. The EPS of MICT is likely to grow by some 119% during next year. The recent past has also remained very salutary for MICT stock, as it has increased by 13% during the last month. So, potential investors should keep a close eye on MICT stock.
