Ability: All independent Board Members left the Board

19 April, 2017

Ability is facing a financial crisis: Revenues for the first nine months of 2016 were $14.0 million compared with $50.2 million for the first nine months of 2015

The Israeli provider of tactical communications intercepting solutions, Ability Inc. (NASDAQ: ABIL) announced that its independent directors, Amnon Dick, Efraim Halevy, Amos Malka, Meir Moshe and Shalom Singer have resigned from the Company’s Board of Directors. The Company is in the process of identifying replacement board members.

Anatoly Hurgin, Ability’s Co-Founder and Chief Executive Officer, commented: “Alexander Aurovsky and I, who together co-founded Ability and hold a majority of its shares, remain committed to the Company.” He acknowledged that the Company is facing significant challenges: “We are taking steps to reduce costs and position Ability for future growth. As part of this effort, both Alexander and I have agreed to reduce our salaries by 50%, and are exploring additional cost-saving measures.

“We are encouraged by the interest in ULIN around the world, and are hopeful that this interest will translate into revenues over the second half of the year. We believe that the Company’s current cash position, including having over $8 million of cash and cash equivalents, should be adequate to meet Ability’s near future cash needs.”

Financial Challenge

Ability is facing financial crisis: Revenues for the first nine months of 2016 were $14.0 million compared with $50.2 million for the first nine months of 2015. The company has explained that the decrease was related to the project-oriented nature of Ability’s business and the ongoing transition to a revenue stream more focused on ULIN (Ultimate Interception) product, which is a new offering with a sales cycle which may be initially hard to predict. Meanwhile, it suffer a cash drain. Cash and cash equivalents now is approximately $8 million, compared to $19.5 million in September, 2016 and $25.8 million as of December, 2015

Headquartered in Tel Aviv, Israel, Ability Computer & Software Industries Ltd. was founded in 1994. The company provides interception, geolocation and cyber intelligence tools used by security and intelligence agencies, military forces, law enforcement and homeland security agencies worldwide. It focus on active and passive off-air interception and decryption of communications on GSM, CDMA, UMTS and LTE cellular systems as well as Iridium, Thuraya, and other satellite networks.Its latest product, ULIN – Ultimate Interception, is an SaaS strategic interception system with voice, text and geolocation capabilities without geographic limitation.

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Posted in: Aerospace & Defense , News

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