Executive Summary

There is no standalone Q3 2015 8-K 2.02 or earnings-call transcript for Ability; the company became public via a SPAC merger on December 23, 2015 and furnished pro forma financials (including the nine months ended September 30, 2015) in its Form 8‑K, rather than separate Q3 materials .
Pro forma for the nine months ended September 30, 2015, Ability reported Revenue of $51.689M, Operating Income of $18.712M, Net Income of $15.683M and Diluted EPS of $0.64; FY2014 pro forma showed Revenue of $22.134M and Diluted EPS of $0.09 .
Management did not issue Q3 guidance or hold a Q3 call; the first planned earnings call (for Q4/FY2015) was postponed on March 2, 2016 due to delays in completing the initial audit, a near-term catalyst once rescheduled .
The December business combination added cash and a public currency, but created structural items (earn-out based on net income, put-option escrow) that investors should monitor for effects on share count and cash .
Street consensus (S&P Global) for Q3 2015 was unavailable for ABILF (no CIQ mapping), limiting estimate-vs-actual comparisons; we note explicitly that estimates were not retrievable via S&P Global for this period.

What Went Well and What Went Wrong

What Went Well
- Pro forma profitability and scale: for 9M15, Revenue $51.689M, Operating Income $18.712M, Net Income $15.683M, Diluted EPS $0.64, indicating profitable operations ahead of the public listing .
- Public-listing milestone and capital access: Cambridge Capital Acquisition Corp. closed the business combination with Ability on Dec 23, 2015; management highlighted the benefits of a NASDAQ listing and new capital to support growth .
- Strategic JV framework: acquired 16% of Ability Security Systems Ltd. (ASM) for $0.9M cash with a structure to buy the remainder via shares, aligning future expansion options with equity .
What Went Wrong
- No Q3 disclosure package: the company did not furnish a Q3 2015 8‑K 2.02 earnings release or a Q3 call transcript; instead, pro forma financials were provided with the merger 8‑K, limiting quarter-specific transparency .
- Reporting delay: Ability postponed its first post‑listing earnings release/call (for Q4/FY15) due to initial audit timing, introducing near‑term uncertainty on reported results cadence .
- Structural overhangs: earn‑out tied to aggressive net income targets and a $11.85M put‑option escrow introduce share issuance/cash use contingencies that could affect dilution/liquidity if triggered .

Financial Results

Note: Ability did not issue a standalone Q3 2015 press release; figures below are pro forma from the December 30, 2015 8‑K, showing FY2014 and nine months ended September 30, 2015.

Metric	FY 2014	9M 2015
Revenue ($USD Millions)	$22.134	$51.689
Gross Profit ($USD Millions)	$7.480	$24.080
Gross Profit Margin %	33.8% (calc from 7.480/22.134)	46.6% (calc from 24.080/51.689)
Operating Income ($USD Millions)	$2.502	$18.712
Net Income ($USD Millions)	$2.328	$15.683
Diluted EPS ($USD)	$0.09	$0.64

Estimate comparison (S&P Global): Not available for ABILF for Q3 2015 due to missing CIQ mapping.

Segment breakdown/KPIs: Not disclosed in the Q3 timeframe; the 8‑K describes product domains (lawful interception, decryption, geolocation, satellite/cellular) but not revenue by segment .

Notes: Pro forma statements reflect the reverse-merger and include adjustments (e.g., additional compensation, decreased finance income, tax rate assumptions); investors should read pro forma notes for context .

Guidance Changes

Ability did not provide quantitative guidance for Q3 2015. The company planned to release Q4/FY2015 on March 3, 2016 but postponed to complete its initial audit; no formal guidance ranges were issued .

Metric	Period	Previous Guidance	Current Guidance	Change
—	—	—	—	No formal guidance issued for Q3 2015

Related structural performance targets (earn‑out, not guidance): Net Income targets for share issuance were $27.0M (2015), $40.0M (2016), $60.0M (2017), $80.0M (2018) .

Earnings Call Themes & Trends

The company did not hold a Q3 2015 earnings call. Narrative evolution is drawn from the merger press release and subsequent 6‑Ks.

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q3 context via 8‑K/press)	Trend
Public listing/capital access	N/A	Business combination closed; ABIL shares/warrants listed on NASDAQ; rationale: growth and public currency	Access to capital, public profile rising
Financial reporting readiness	N/A	First earnings release (Q4/FY15) postponed to complete initial audit	Additional time required; cadence risk near term
Earn‑out performance structure	N/A	Net income targets set (2015–2018) with contingent share issuance	Aligns incentives but adds dilution variability
M&A/JV option (ASM)	N/A	16% stake acquired; put/call structure for remainder	Optional bolt‑on expansion path

Management Commentary

“This transaction elevates Ability’s profile as a NASDAQ‑listed company and provides us with new capital and a public currency to facilitate our growth strategy. We expect to create long-term value for our shareholders through a number of growth initiatives.” — Anatoly Hurgin, CEO .
“The originally scheduled release date was significantly ahead of the deadline mandated by the SEC rules… As this would be the Company's first earnings release following its becoming a public company, we decided to delay the announcement until such time that the audit of our financial results is complete.” — Avi Levin, CFO (on postponing Q4/FY15 release) .
Business overview (markets/capabilities): advanced interception (cellular and satellite), geolocation, decryption, and cyber intelligence serving security and law enforcement globally .

Q&A Highlights

Ability did not conduct a Q3 2015 earnings call; there is no Q&A to summarize. The next planned call (for Q4/FY15) was postponed pending audit completion .

Estimates Context

Wall Street consensus for Q3 2015 (Revenue, EPS) via S&P Global was not retrievable for ABILF due to missing CIQ mapping at the time; consequently, estimate comparisons are not presented for this period.
Pro forma results for 9M15 and FY2014 are provided by the company in the December 30, 2015 8‑K (see Financial Results) .

Key Takeaways for Investors

No standalone Q3 disclosure: treat 9M15 pro forma results and FY2014 pro forma as the best available baselines pending audited FY2015 disclosure .
Positive 9M15 profitability (Operating Income $18.712M; Diluted EPS $0.64) suggests operating leverage before listing; confirm durability once audited FY2015 is released .
Structural mechanics matter: earn‑out net income hurdles (2015–2018) and the $11.85M put‑option escrow could affect dilution and cash—track performance vs. targets and put‑option usage .
Reporting cadence risk: the postponed initial earnings release introduces timing uncertainty; watch for the rescheduled date as a near‑term catalyst .
Capital/access upside: public listing provides cash and equity currency for growth (including optional ASM consolidation), but integration and execution remain key .
Share count context: 25,756,141 ordinary shares outstanding post‑closing; ownership split ~66.7% former Ability holders, ~33.3% former Cambridge holders, relevant for modeling and float expectations .

Appendix: Transaction/Structure Highlights

Closing details/cash uses: ~$81.3M trust pre‑close; ~$21.6M redemptions; ~$9.8M transaction expenses; $18.15M cash to sellers; $11.85M reserved for put; ~$0.9M legacy payables; ~$0.9M ASM stake; ~$18.1M to working capital .
Pre‑close dividend: $11M paid from retained earnings prior to merger closing .
Listing: ABIL (ordinary shares) and ABILW (warrants) on NASDAQ beginning Dec 24, 2015 .

Ability Inc. (ABILF)·Q3 2015 Earnings Summary