Ituran Location and Control Ltd. (NASDAQ:ITRN) stock rose 4.86% (As on November 27, 11:50:49 AM UTC-4, Source: Google Finance) after the company in the third quarter of FY 23 has reported the Revenue of $81.1 million, a 12% increase compared with revenues of $72.7 million in the third quarter of 2022. In local currency terms, third quarter revenues grew by 13% compared with that of the third quarter of last year. 74% of revenues were from location-based service subscription fees and 26% were from product revenues. Gross profit for the quarter was $39.4 million (48.6% of revenues), a 14% increase compared with gross profit of $34.6 million (47.6% of revenues) in the third quarter of last year. The gross margin in the quarter on subscription revenues was 58.5%, compared with 57.2% in the third quarter of last year. The gross margin on products was 20.3% in the quarter, compared with 21.5% in the third quarter of last year. Operating income for the quarter was $16.9 million, or 20.8% of revenues, reflecting a 15% increase year-over-year. In local currency terms, third quarter operating income grew at the same level at 15% year-over-year. EBITDA for the quarter was $22.5 million (27.8% of revenues), an increase of 15% compared with EBITDA of $19.6 million (27.0% of revenues) in the third quarter of last year.

Further, net income for the third quarter of 2023 was $12.5 million (15.4% of revenues), an increase of 24% compared to $10.1 million (13.9% of revenues) in the third quarter of last year. In local currency terms, third quarter net income grew at the same level of 24% year-over-year. Cash flow from operations for the third quarter of 2023 was $20.5 million. On the balance sheet, as of September 30, 2023, the Company had cash, including marketable securities, of $40.0 million and debt of $2.0 million, amounting to a net cash position of $38.0million. This is compared with cash, including marketable securities, of $28.2 million and debt of $12.2 million, amounting to a net cash position of $16.0 million, as of the end of 2022.

Moreover, product revenues were $20.9 million, an increase of 7% compared with that of the third quarter of last year. Revenues from subscription fees were a record $60.2 million, an increase of 13% over the third quarter 2022 revenues. In local currency terms, third quarter subscription fee revenue grew by 14% compared with that of the third quarter of last year.