6-K

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


F O R M  6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of December, 2007

POINTER TELOCATION LTD.

1 Korazin Street
Givatayim, 53583
Israel

Indicate by check mark whether the registrant files or will file annual reports under
cover of Form 20-F or Form 40-F.

Form 20-F x Form 40-F o

Indicate by check mark whether by furnishing the information contained in this
Form, the registrant is also thereby furnishing the information to the Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes o No x

If “Yes” is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-



For Immediate Release

  Pointer Telocation Reports another quarter with Record Revenues of Over $12 Million for the Third Quarter of 2007, In line with 2007 Guidance

  $4.3 million Gross Profit, an annual increase of 6.2%
  EBITDA of $1.9 million in Q3 2007

Givatayim, Israel – December 10th, 2007. Pointer Telocation Ltd. (Nasdaq Capital Market: PNTR; Tel-Aviv Stock Exchange: PNTR), a leading provider of technology and services to automotive industry, insurance companies and fleets, including road-side assistance, towing, stolen vehicle retrieval and fleet management services to customers in over 20 countries, today reports its financial results for the third quarter of 2007 and the first nine months ended September 30, 2007.

During the third quarter of 2007, Pointer’s increase in its internal revenues was in line with its growth plan. Following the completion of the acquisition of Cellocator’s activity, the company now targets more businesses and technologies and expands its activities into new territories. A key element in its growth strategy is to build a global sales infrastructure and to broaden the scope of its services. Pointer’s financial results for the third quarter of 2007 consolidate 12 days of Cellocator’s activities, include acquisition related expenses and certain non-cash expenses due to the financial structure of the deal.

Financial Highlights:

Revenues: Pointer’s revenues for the third quarter of 2007 increased by 10.3%, to $12.3 million from $11.2 million, in the comparable period in 2006. In the first nine months of 2007, revenues were $35.4 million, a 14% increase over the same period of 2006. Pointer’s revenues from services in the third quarter and the first nine months of 2007 were 72% and 74%, respectively, of total revenues, as compared with 73% and 77% in 2006. International activities for the third quarter of 2007 were 13.7% of total revenue compared to 13.8% in the comparable period in 2006.



Gross Profit: For the third quarter of 2007, gross profit increased 6.2% to $4.3 million from $4.1 million in Q3 2006. As a percentage of revenues, gross profit was approximately 35.3% in Q3 2007, as compared to approximately 36.6% in Q3 2006. In the first nine months of 2007, gross profit increased by 12% to $12.7 million from $11.4 million in the first nine months of 2006. Gross margin for the first nine months of 2007 was 36%, compared to 36.7% for the first nine months of 2006. In the third quarter of 2007 Pointer recorded $33 thousands amortization of intangible assets related to Cellocator acquisition which are non-cash expenses.

Operating income: Pointer’s operating income was $942 thousand for the third quarter of 2007, compared to operating income of $1.4 million for the third quarter of 2006. In the first nine months of 2007, operating income was $2.7 million, compared to $4 million for the same period of 2006.

In the first nine months of 2006 operating income included onetime other income of $1.3 million associated with an agreement signed with a Latin American customer, offset by a $350 thousand impairment of long-lived assets that were recorded in the second quarter of 2006.

Minority share: For the third quarter of 2007 and nine months ended September 30, 2007, Pointer reported a $178 thousand and $882 thousand minority share in the operations of Shagrir, compared to zero in both periods of 2006. Pointer currently holds 56.56% interest in Shagrir.

Net income: Pointer’s net income for the third quarter of 2007 was $3 thousand or $0.0 per share as compared to net income of $449 thousand or $0.14 per share in the third quarter of 2006. For the first nine months of 2007, Pointer recorded a net loss of $565 thousand or $0.14 per share, compared to net income of $1.1 million or $0.39 per share in the same period of 2006. The decrease in profitability is primarily attributable to the above mentioned one time net income of $0.95 million and to the 100% consolidating of Shagrir’s results, both in 2006.

EBITDA: Pointer’s EBITDA for the third quarter of 2007 and for the first nine months of 2007 was $1.9 million and $5.8 million, respectively, as compared to $2.3 million and $7 million in the comparable periods of 2006 in which periods the above mentioned one time net income of $0.95 million was included.

Pointer uses EBITDA as a non-GAAP financial performance measurement. EBITDA is calculated by adding back to net income interest, taxes, depreciation, amortization and minority interest. EBITDA is provided to investors to complement results provided in accordance with GAAP, as management believes the measure helps illustrate underlying operating trends in the Company’s business and uses the measure to establish internal budgets and goals, manage the business and evaluate performance. EBITDA should not be considered in isolation or as a substitute for comparable measures calculated and presented in accordance with GAAP. A reconciliation of EBITDA to GAAP measures is included in the financial tables accompanying this press release.



Balance Sheet Highlights: In consolidating Cellocator assets and liabilities, the following changes are notable:

Total Shareholder’s Equity increased during the first nine months of 2007 to $31.1 million.

Total long-term assets increased during the first nine months of 2007 from $59.4 million to $80.7 million, mainly as a result of Cellocator acquisition. The goodwill increase from $38.7 million to $49 million and the increase of other intangible assets, net from $8.6 million to $18.4 million due to Cellocator acquisition.

The purchase price allocation (PPA) for the Cellocator acquisition is preliminary and is subject to revision as more detailed analyses are completed and additional information on the fair value of assets and liabilities becomes available. Any change in the fair value of the net assets of Cellocator will change the amount of the PPA to goodwill. We anticipate finalizing the PPA process and updating the changes on the 2007 Annual results.

Danny Stern, Pointer CEO, said: “Internal revenue growth continues to be strong. Acquisition of Cellocator’s technology and customer relations opens a new era and positions us as a major global provider of solutions for the industry. We continue to build a global sales infrastructure and broaden the scope of our services, in order to reinforce further growth. Looking forward, Q4 2007 business continues to demonstrate strength in all markets, including those of Cellocator. We believe that our activities during 2007 will significantly contribute to the top and the bottom lines of our financial figures in 2008".

Conference Call Information:

Pointer’s management will host two conference calls with the investment community today, December 10th, 2007.

The Hebrew conference call will start at 15:30 Israel time (GMT +2, 8:30 EST)

The English conference call will start at 9:30 EST (16:30 Israel time)

To listen to the conference calls, please dial:
From USA: +1-888-642-5032
From Israel: 03-918-0688

A replay of the conference call will be available through December 11st, 2007 on the Company’s website at www.pointer.com.



About Pointer Telocation:

Pointer Telocation Ltd. www.pointer.com develops and supplies location based technologies and delivers a range of services to insurance companies and automobile owners, including road-side assistance, vehicle towing, stolen vehicle retrieval, fleet management and other value added services. Pointer Telocation provides services, for the most part, in Israel, through its subsidiary Shagrir and in Argentina and Mexico through its local subsidiaries. Independent operators provide similar services in Russia and Venezuela utilizing Pointer’s technology and operational know-how.

Safe Harbor Statement

This press release contains forward-looking statements with respect to the business, financial condition and results of operations of Pointer and its affiliates. These forward-looking statements are based on the current expectations of the management of Pointer, only, and are subject to risk and uncertainties relating to changes in technology and market requirements, the company’s concentration on one industry in limited territories, decline in demand for the company’s products and those of its affiliates, inability to timely develop and introduce new technologies, products and applications, and loss of market share and pressure on pricing resulting from competition, which could cause the actual results or performance of the company to differ materially from those contemplated in such forward-looking statements. Pointer undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. For a more detailed description of the risks and uncertainties affecting the company, reference is made to the company’s reports filed from time to time with the Securities and Exchange Commission.



POINTER TELOCATION LTD. AND ITS SUBSIDIARIES

INTERIM CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands

September 30,
2007

December 31,
2006

Unaudited
 
    ASSETS            
   
CURRENT ASSETS:  
  Cash and cash equivalents   $ 1,880   $ 5,850  
  Trade receivables, net    11,850    8,315  
  Other accounts receivable and prepaid expenses    1,944    1,368  
  Inventories    2,583    1,447  


   
Total current assets    18,257    16,980  


   
LONG-TERM ASSETS:  
  Long-term accounts receivable    165    183  
  Severance pay fund    4,439    3,794  
  Property and equipment, net    7,849    7,346  
  Goodwill    49,025    38,707  
  Other intangible assets, net    18,381    8,612  
  Deferred income taxes    850    777  


   
Total long-term assets    80,709    59,419  


   
Total assets   $ 98,966   $ 76,399  





POINTER TELOCATION LTD. AND ITS SUBSIDIARIES

INTERIM CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands (except share and per share data)

September 30,
2007

December 31,
2006

Unaudited
 
    LIABILITIES AND SHAREHOLDERS' EQUITY            
   
CURRENT LIABILITIES:  
  Short-term bank credit and current maturities of long-term loans   $ 11,721   $ 11,801  
  Trade payables    7,869    5,378  
  Deferred revenues    8,064    6,584  
  Other accounts payable and accrued expenses    5,693    4,091  


   
Total current liabilities    33,347    27,854  


   
LONG-TERM LIABILITIES:  
  Long-term loans from banks    18,797    15,833  
  Long-term loans from shareholders & others    5,993    7,490  
  Accrued severance pay    5,352    4,650  


   
     30,142    27,973  


   
CONVERTIBLE DEBENTURES    1,951    -  


   
MINORITY INTEREST    2,383    1,142  


   
SHAREHOLDERS' EQUITY:  
  Share capital -  
    Ordinary shares of NIS 3 par value:  
      Authorized - 8,000,000 shares at September 30, 2007 and December 31, 2006,   
      respectively; Issued and outstanding: 4,612,875 and 3,222,875 shares   
      at September 30, 2007 and December 31, 2006, respectively    3,137    2,140  
  Additional paid-in capital    116,851    103,880  
  Receipt on account of shares    -    2,586  
  Accumulated other comprehensive income    994    98  
  Accumulated deficit    (89,839 )  (89,274 )


   
Total shareholders' equity    31,143    19,430  


   
Total liabilities and shareholders' equity   $ 98,966   $ 76,399  





POINTER TELOCATION LTD. AND ITS SUBSIDIARIES

INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS

U.S. dollars in thousands (except share and per share data

Nine months ended
September 30,

Three months ended
September 30,

Year ended
December 31,
2006

2007
2006
2007
2006
Unaudited
 
Revenues:                        
  Products   $ 9,172   $ 7,167   $ 3,400    3,035   $ 9,701  
  Services    26,184    23,795    8,921    8,133    32,211  





   
Total revenues    35,356    30,962    12,321    11,168    41,912  





   
Cost of revenues:  
  Products    5,850    4,114    2,184    1,632    5,602  
  Services    16,759    15,497    5,759    5,446    20,786  
Amortization of intangible assets    33    -    33    -    -  





Total cost of revenues    22,642    19,611    7,976    7,078    26,388  





   
Gross profit    12,714    11,351    4,345    4,090    15,524  





   
Operating expenses:  
  Research and development, net    1,126    826    451    282    1,170  
  Selling and marketing    3,360    2,753    1,117    964    3,927  
  General and administrative    4,255    3,361    1,444    1,086    4,749  
  Amortization of intangible assets    1,238    1,330    391    400    1,740  
   Other income, net    -    (1,292 )  -    -    (1,292 )
  Impairment of long lived assets    -    350    -    -    372  





   
Total operating expenses    9,979    8,270    3,403    2,732    10,666  





   
Operating income    2,735    4,023    942    1,358    4,858  
Financial expenses, net    2,044    2,234    659    653    2,577  
Other income (expenses), net    (17 )  (15 )  (32 )  (10 )  14  





   
Income before taxes on income    674    1,774    251    695    2,295  
Taxes on income    357    639    70    246    82  





   
Net income (loss) before minority interest    317    1,135    181    449    2,213  
Minority interest    882    -    178    -    1,044  





   
Net income (loss)   $ (565 ) $ 1,135   $ 3   $ 449   $ 1,169  





   
Basic net Diluted earnings (loss) per share   $ (0.14 ) $ 0.39   $ 0.00   $ 0.14   $ 0.39  








POINTER TELOCATION LTD. AND ITS SUBSIDIARIES

INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

U.S. dollars in thousands

Number of
shares

Share
capital

Additional
paid-in
capital

Deferred
stock-based
compensation

Receipts
on account
of shares

Accumulated
other
comprehensive
income (loss)


Accumulated
deficit

Total
comprehensive
income
(loss)

Total
shareholders'
equity

 
Balance as of January 1, 2006      2,479,020   $ 1,680   $ 100,707   $ (1 ) $ -   $ (1,138 ) $ (90,443 )      $ 10,805  
   
  Deferred stock-based compensation    -    -    (1 )  1    -    -    -         -  
  Stock-based compensation expanses    -    -    153    -    -    -    -         153  
  Exercise of warrants and stock options    743,855    460    3,021    -    -    -    -         3,481  
  Receipt on account of shares    -    -    -    -    2,586    -    -         2,586  
  Comprehensive income:  
    Foreign currency translation adjustments    -    -    -    -    -    1,236    -   $ 1,236    1,236  
    Net income    -    -    -    -    -    -    1,169    1,169    1,169  









  Total comprehensive income                                      $ 2,405       

   
Balance as of December 31, 2006    3,222,875    2,140    103,880    -    2,586    98    (89,274 )       19,430  
   
  Issuance of shares    1,390,000    997    10,019    -    -    -    -         11,016  
  Stock-based compensation expanses    -    -    366    -    -    -    -         366  
  Receipt on account of shares    -    -    2,586    -    (2,586 )  -    -         -  
  Comprehensive income:            
    Foreign currency translation adjustments    -    -    -    -    -    896    -    896    896  
    Net loss    -    -    -    -    -    -    (565 )  (565 )  (565 )









  Total comprehensive loss                                      $ 331       

   
Balance as of September 30, 2007 (unaudited)    4,612,875   $ 3,137   $ 116,851   $ -   $ -   $ 994   $ (89,839 )      $ 31,143  








   
Balance as of December 31, 2005    2,479,020    1,680    100,707    (1 )       (1,138 )  (90,443 )       10,805  
  Deferred stock-based compensation    -    -    (1 )  1         -    -         -  
  Amortization of deferred stock-based
     compensation
    -    -    100    -         -    -         100  
  Exercise of warrants and options    692,214    425    2,479    -         -    -         2,904  
  Comprehensive income:  
    Foreign currency translation adjustments    -    -    -    -         979    -   $ 979    979  
    Net income    -    -    -    -         -    1,135    1,135    1,135  









  Total comprehensive income                                      $ 2,114       

Balance as of September 30, 2006 (unaudited)    3,171,234   $ 2,105   $ 103,285   $ -        $ (159 ) $ (89,308 )      $ 15,923  











POINTER TELOCATION LTD. AND ITS SUBSIDIARIES

INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

U.S. dollars in thousands

Number of
shares

Share
capital

Additional
paid-in
capital

Deferred
stock-based
compensation

Receipts
on account
of shares

Accumulated
other
comprehensive
income (loss)

Accumulated
deficit

Total
comprehensive
income
(loss)

Total
shareholders'
equity

 
Balance as of July 1, 2007      4,452,875   $ 3,021   $ 115,484   $ -   $ -   $ 6   $ (89,842 )  -   $ 28,669  
   
Issuance of shares    160,000    116    1,307    -    -    -    -    -    1,423  
  Stock-based compensation expanses    -    -    60    -    -    -    -    -    60  
  Comprehensive loss:  
    Foreign currency translation
      adjustments
    -    -    -    -    -    988    -   $ 988    988  
    Net loss    -    -    -    -    -    -    3    3    3  









  Total comprehensive loss                                      $ 991       

   
Balance as of September 30, 2007 (unaudited)    4,612,875   $ 3,137   $ 116,851   $ -   $ -   $ 994   $ (89,839 )      $ 31,143  








   
Balance as of July 1, 2006 (unaudited)    3,095,124   $ 2,076   $ 103,091   $ -   $ -   $ (635 ) $ (89,757 )      $ 14,775  
  Amortization of deferred stock-based
     compensation
    -    -    31    -    -    -    -         31  
  Exercise of warrants    76,110    29    163    -    -    -    -         192  
  Comprehensive loss:  
    Foreign currency translation
      adjustments
    -    -    -    -    -    476    -   $ 476    476  
    Net income    -    -    -    -    -    -    449    449    449  









  Total comprehensive income                                      $ 925       

Balance as of September 30, 2006 (unaudited)    3,171,234   $ 2,105   $ 103,285   $ -   $ -   $ (159 ) $ (89,308 )      $ 15,923  











POINTER TELOCATION LTD. AND ITS SUBSIDIARIES

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

Nine months ended
September 30,

Three months ended
September 30,

Year ended
December 31,
2006

2007
2006
2007
2006
Unaudited
 
Cash flows from operating activities:                        
  Net income (loss)   $ (565 ) $ 1,135   $ 3   $ 449   $ 1,169  
  Adjustments required to reconcile net income (loss) to net  
    cash provided by operating activities:  
    Depreciation ,amortization and impairment    3,415    3,498    1,096    1,147    4,490  
    Accrued interest and exchange rate changes of convertible  
      debenture and long-term loans    694    451    509    69    137  
    Accrued severance pay, net    (80 )  (46 )  (89 )  (23 )  (166 )
    Gain from sale of property and equipment, net    (149 )  (39 )  (10 )  (113 )  (563 )
    Amortization of deferred stock-based compensation    366    100    60    31    251  
    Minority interest in earning of subsidiary    1,241    -    387    -    1,044  
    Increase in trade receivables, net    (1,648 )  (1,589 )  346    (980 )  (1,167 )
    Increase in other accounts receivable and prepaid expenses    (559 )  (203 )  (11 )  (51 )  (36 )
    Decrease (increase) in inventories    (317 )  200    (448 )  145    (490 )
    Decrease (increase) in long-term accounts receivable    31    48    33    (3 )  60  
    Write-off of inventories    150    69    135    -    127  
    Increase in deferred income taxes    -    -    -    -    (99 )
    Increase in trade payables    756    683    293    398    1,049  
    Increase (decrease) in other accounts   
      payable and accrued expenses    1, 839    491    276    (512 )  (400 )





   
Net cash provided by operating activities    5,174    4,798    2,580    557    5,406  





   
Cash flows from investing activities:   
  Purchase of property and equipment    (2,106 )  (2,118 )  (336 )  (1,244 )  (2,277 )
  Proceeds from sale of property and equipment    759    779    258    353    1,026  
  Acquisition of Cellocator (a)    (16,332 )       (16,332 )
  Acquisition of other intangible assets    (135 )  -    -    -    -  





   
Net cash used in investing activities    (17,814 )  (1,339 )  (16,410 )  (891 )  (1,251 )





   
Cash flows from financing activities:   
  Receipt of long-term loans from banks    5,000    -    5,000    -    2,243  
  Repayment of long-term loans from banks    (3,392 )  (1,628 )  (1,446 )  (401 )  (2,949 )
  Receipt of long-term loans from shareholders and others    -    131    -    -    131  
  Repayment of long-term loans from shareholders and others    (2,024 )  (3,447 )  (684 )  (450 )  (4,529 )
  Proceeds from issuance of shares and exercise of warrants, net    9,588    2,904    (5 )  192    3,481  
  Receipt on account of shares         -         -    2,586  
  Short-term bank credit, net    (441 )  (174 )  406    418    (973 )





   
Net cash provided by (used in) financing activities    8,731    (2,214 )  3,271    (241 )  (10 )





   
Effect of exchange rate on cash and cash equivalents    (61 )  (13 )  (113 )  17    9  





   
Increase in cash and cash equivalents    (3,970 )  1,232    (10,672 )  (558 )  4,154  
Cash and cash equivalents at the beginning of the period    5,850    1,696    12,552    3,486    1,696  





   
Cash and cash equivalents at the end of the period   $ 1,880   $ 2,928   $ 1,880   $ 2,928   $ 5,850  








POINTER TELOCATION LTD. AND ITS SUBSIDIARIES

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

Nine months ended
September 30,

Three months ended
September 30,

Year ended
December 31,
2006

2007
2006
2007
2006
Unaudited
 
  (a) Acquisition of Cellocator                        
   
Fair value of assets acquired and liabilities assumed at date  
 of acquisition:  
   
  Working capital    1,220    -    1,220    -    -  
  Property and equipment    151    -    151    -    -  
  Customer Relationships    3,876    -    3,876    -    -  
  Brand name    1,749    -    1,749    -    -  
  Developed Technology    4,886    -    4,886    -    -  
  Goodwill    8,645    -    8,645    -    -  
  Accrued severance pay, net    (107 )  -    (107 )  -    -  





   
     20,420    -    20,420    -    -  





   
  Fair value of shares issued    (1,428 )  -    (1,428 )  -    -  
  Fair value of Convertible debentures    (1,952 )  -    (1,952 )  -    -  
  Accrued expenses    (708 )  -    (708 )  -    -  





   
     (4,088 )  -    (4,088 )  -    -  





   
     16,332    -    16,332    -    -  








Reconciliation of GAAP to NON-GAAP Operating Results

To supplement the consolidated financial statements presented in accordance with generally accepted accounting principles (“GAAP”), the Company uses EBITDA as a non-GAAP financial performance measurement. EBITDA is calculated by adding back to net income interest, taxes, depreciation, amortization and minority interest. EBITDA is provided to investors to complement results provided in accordance with GAAP, as management believes the measure helps illustrate underlying operating trends in the Company’s business and uses the measure to establish internal budgets and goals, manage the business and evaluate performance. EBITDA should not be considered in isolation or as a substitute for comparable measures calculated and presented in accordance with GAAP. Reconciliation the GAAP to non-GAAP operating results:

CONDENSED EBITDA
US dollars in thousands

Nine months ended
September 30,

Three months ended
September 30,

2007
2006
2007
2006
Unaudited
                   
Net income (loss) GAAP results (as reported)    (565 )  1,135    3    449  
   
 Non GAAP adjustment:  
 Financial expenses, net    2,044    2,234    659    653  
 Taxes on income    357    639    70    246  
 Deprecation and amortization    3,061    3,068    1,002    912  
 Minority interest    882    -    178    -  




   
 EBITDA    5,779    7,076    1,912    2,260  







Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

POINTER TELOCATION LTD.


By: /s/ Yossi Ben Shalom
——————————————
Yossi Ben Shalom
Chairman of the Board of Directors

Date: December 10, 2007