Press Releases

I.D. Systems, Inc. Reports Fourth Quarter and Year-End Financial Results for Fiscal 2010

WOODCLIFF LAKE, N.J., March 9, 2011 (GLOBE NEWSWIRE) -- I.D. Systems, Inc. (Nasdaq:IDSY) today announced its financial results for the fourth quarter and fiscal year ended December 31, 2010.

  Revenue for the fourth quarter increased sequentially 11% to $7.2 million, compared to $6.5 million for the third quarter of 2010, as sales of systems and services increased across I.D. Systems' primary market segments—wireless industrial vehicle management and trailer fleet management.
  Revenue for the year increased to $25.9 million, compared to $10.3 million for the year ended December 31, 2009, reflecting the strategic acquisition of the Asset Intelligence business unit in January, 2010, and improving economic and market conditions in the second half of 2010. The Asset Intelligence business contributed revenue of $15.2 million for the year.
  Gross margins for both the fourth quarter and full fiscal year were 56%, compared to 28% for the fourth quarter of 2009 and 46% for the full fiscal year 2009. 
  Cash flow from operations was positive for the second consecutive quarter. Cash, cash equivalents and marketable securities as of December 31, 2010 increased to $28.4 million from $28.2 million as of September 30, 2010.  For the last six months of 2010, positive cash flow from operations was $1.9 million, compared to net cash used of $5.5 million for the first six months of the year.
  Excluding stock-based compensation and depreciation and amortization of intangible assets, non-GAAP net loss for the fourth quarter of 2010 decreased 68% to $1.3 million, or ($0.12) per basic and diluted share, compared to non-GAAP net loss of $4.1 million, or ($0.37) per basic and diluted share, for the fourth quarter of 2009. 
  For the last six months of 2010, non-GAAP net loss decreased 62% to $2.4 million, compared to non-GAAP net loss of $6.2 million for the first six months of 2010. 

"We are pleased by our progress in the second half of 2010 and believe we are well positioned for 2011," said Jeffrey Jagid, I.D. Systems' Chairman and Chief Executive Officer. "Our top line revenue growth, and the underlying improvement in economic conditions in the industrial markets we serve, is encouraging. Our margins are strong, especially from the recurring service contract revenue of our Asset Intelligence subsidiary. We have met or exceeded the goals we set at the beginning of the year to reduce and control the Company's operating costs.  And we increased our net cash position by almost $2 million in the second half of the year, with no debt."

Customers contributing to I.D. Systems' revenue growth in 2010 included American Airlines, American Eagle Airlines, Ford Motor Company, GE Transportation, Knight Transportation, Nestlé, and Walmart.

For the quarter ended December 31, 2010, net loss was $2.7 million, or ($0.24) per basic and diluted share, compared to net loss of $4.8 million, or ($0.43) per basic and diluted share, for the quarter ended December 31, 2009. For the year ended December 31, 2010, net loss was $12.6 million, or ($1.12) per basic and diluted share, compared to net loss of $13.2 million, or ($1.20) per basic and diluted share, for the year ended December 31, 2009. Fiscal 2010 results include the operations of I.D. Systems' Asset Intelligence subsidiary, acquired in January, 2010, which are not included in the fiscal 2009 results.

Highlights for fiscal 2010 included:

  I.D. Systems' acquisition of Asset Intelligence, a leading provider of wireless solutions for tracking and managing trailers, containers, and other supply chain assets, which expanded the scope of I.D. Systems' asset management solutions, broadened the Company's customer base, and contributed a high-margin recurring revenue stream. 
  Expansion of I.D. Systems' wireless technology solutions with existing customers, including, for industrial vehicle management, American Airlines, American Eagle Airlines, Audi AG, Ford Motor Company, Procter & Gamble, Nestlé, Walgreens and Walmart, and, for Asset Intelligence transportation fleet management, Forward Air and Knight Transportation.
  Initial implementations of I.D. Systems' wireless technology solutions with new customers, including, for industrial vehicle management, Campbell's Soup, General Mills and the Red River Army Depot, and, for transportation fleet management, Container Port Group, Garner Transportation and Royal Freight.
  Execution of a marketing agreement with The Raymond Corporation, a leading global manufacturer of material handling vehicles, and growing sales of I.D. Systems' solutions through Raymond's national account sales organization and dealer network.
  The development and deployment of a new generation of rental fleet management technology for a leading U.S. rental car company, encompassing both traditional airport-based rental fleet management and a remote, charge-by-the-hour "car-sharing" system.
  Development of new products to expand the markets and applications addressed by I.D. Systems' solutions, including:
   VeriWise™ Track & Trace, a low-cost, long-life cellular device with flexible mounting options and simple installation, aimed at trailer and container location tracking, theft countermeasures, and short-term asset analytics.
   SafeNav™ Powered by Garmin™, an on-vehicle, GPS-based navigation and alert system designed to provide airport vehicle operators with real-time situational awareness, with the goal of avoiding accidental runway incursions.
   PowerBox™ industrial vehicle management system, a hosted, out-of-the-box solution designed to simplify system acquisition, deployment and benefit achievement for customers with small to medium fleets, or larger fleets with basic vehicle management requirements.   
  Expansion of I.D. Systems' intellectual property portfolio, including the award of new patents on vehicle access control, mobile asset management, baggage tracking, and automated remote asset maintenance.
  A stock repurchase program, implemented in November, 2010, authorizing the repurchase of issued and outstanding shares of the Company's common stock up to an aggregate value of $3 million, to be made from time to time in the open market or in privately negotiated transactions, funded from I.D. Systems' working capital. As of December 31, 2010, the Company had acquired 36,000 shares at an aggregate purchase price of $99,000 under this program.

Investor Conference Call

I.D. Systems will hold a conference call for investors and analysts at 4:45 p.m. Eastern Time on Wednesday, March 9, 2011. Jeffrey Jagid, Chairman and Chief Executive Officer of I.D. Systems, will lead a discussion on the financial results of the period and other recent business developments. After opening remarks and a discussion of the results, there will be a question and answer period. The conference call will be broadcast live over the Internet via the Investors section of the Company's website at To listen to the live call, go to the website at least 10 minutes early to download and install any necessary audio software.

About I.D. Systems

Based in Woodcliff Lake, New Jersey, with subsidiaries in Germany and the United Kingdom, I.D. Systems is a leading provider of wireless solutions for securing, controlling, tracking, and managing high-value enterprise assets, including vehicles, powered equipment, trailers, containers, and cargo. The Company's patented technologies address the needs of organizations to monitor and analyze their assets to improve safety, security, efficiency, and productivity. For more information, please visit

Non-GAAP Measures

To supplement its consolidated financial statements presented in accordance with GAAP, I.D. Systems provides certain non-GAAP measures of financial performance.  These non-GAAP measures include non-GAAP net income/loss and non-GAAP net income/loss per basic and diluted share.  Reference to these non-GAAP measures should be considered in addition to results prepared under current accounting standards, but are not a substitute for, or superior to, GAAP results.  These non-GAAP measures are provided to enhance investors' overall understanding of I.D. Systems' current financial performance.  Specifically, I.D. Systems believes the non-GAAP measures provide useful information to both management and investors by excluding certain expenses, gains and losses that may not be indicative of its core operating results and business outlook.  Reconciliation to the nearest GAAP measure of all non-GAAP measures included in this press release can be found in the financial tables included in this press release. 

"Safe Harbor" Statement

This press release contains forward looking statements within the meaning of federal securities laws. Forward-looking statements include statements with respect to I.D. Systems' beliefs, plans, goals, objectives, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond I.D. Systems' control, and which may cause its actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements.  All statements other than statements of historical fact are statements that could be forward-looking statements.  For example, forward-looking statements include: statements regarding prospects for additional customers; market forecasts; projections of earnings, revenues, synergies, accretion or other financial information; and plans, strategies and objectives of management for future operations, including integration plans in connection with acquisitions. The risks and uncertainties referred to above include, but are not limited to, future economic and business conditions, the loss of key customers or reduction in the purchase of products by any such customers, the failure of the market for I.D. Systems' products to continue to develop, the possibility that I.D. Systems may not be able to integrate successfully the business, operations and employees of acquired businesses, the inability to protect I.D. Systems' intellectual property, the inability to manage growth, the effects of competition from a variety of local, regional, national and other providers of wireless solutions, and other risks detailed from time to time in I.D. Systems' filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2009. These risks could cause actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf of, I.D. Systems. I.D. Systems assumes no obligation to update the information contained in this press release, and expressly disclaims any obligation to do so, whether as a result of new information, future events or otherwise.                                                      

                                                                                                                                I.D. Systems, Inc. and Subsidiaries
                                                                                                                                       Statement of Operations Data
                                                                                                          Three Months Ended                            Year Ended
                                                                                                                December 31,                          December 31,
                                                                                                          2009          2010                  2009            2010
                                                     Product revenues                                $2,103,000    $3,089,000      
    $6,470,000      $9,483,000
                                                     Service revenues                                   754,000     4,145,000       
                                                                                                     2,857,000     7,234,000            10,316,000      25,861,000
                                                    Cost of revenues:                                                                                          
                                                     Cost of products                                 1,591,000     1,730,000             3,882,000       5,077,000
                                                     Cost of services                                   463,000     1,472,000       
                                                                                                     2,054,000     3,202,000             5,554,000      11,440,000
                                                         Gross profit                                   803,000     4,032,000             4,762,000      14,421,000
                         Selling, general and administrative expenses                                 4,924,000     5,739,000            16,543,000      23,326,000
                                    Research and development expenses                                   582,000     1,067,000       
                                                 Loss from operations                               (4,703,000)   (2,774,000)          (14,385,000)    (13,334,000)
                                                      Interest income                                    19,000       100,000               933,000         675,000
                                                     Interest expense                                  (43,000)           —             (130,000)        (56,000)
                                                  Other income (loss)                                  (32,000)        10,000         
                                                             Net loss                              $(4,759,000)  $(2,664,000)         $(13,192,000)   $(12,611,000)
                             Net loss per share – basic and diluted                                  $ (0.43)      $ (0.24)              $ (1.20)        $ (1.12)
     Weighted average common shares outstanding – basic and diluted                                11,075,000    11,263,000      
I.D. Systems, Inc. and Subsidiary
                                                                                                                                                   Reconciliation of GAAP to Non-GAAP Financial Measures
                                                           Three Months Ended December 31, 2009     Three Months Ended December 31, 2010  Year Ended December 31, 2009     Year Ended December 31, 2010
           Net loss attributable to common stockholders                 
      $ (4,759,000)                   
     $ (2,664,000)      
    $ (13,192,000)           
    $ (12,611,000)  
     Depreciation and amortization of intangible assets                          
                               Stock-based compensation                              540,000                                376,000                   2,157,000                     1,558,000
                                      Non-GAAP net loss                         $ (4,090,000)                          $ (1,300,000)              $ (10,502,000)              $   (8,618,000)
      Non-GAAP net loss per share – basic and diluted                           $  (0.37)                              $ (0.12)               $   (0.96)                  $   (0.77) 
I.D. Systems, Inc. and Subsidiaries
                                                                                                                                                                                                                                                                                                                       Balance Sheet Data
                                                                                                                                                                                                                                                                                     December 31, 2009*                December 31, 2010
                                                                                                                                                                                                                                              Cash and cash equivalents               $   19,481,000                  $  14,491,000
                                                                                                                                                                                                                                             Investments – short term                       33,909,000                       4,565,000
                                                                                                                                                                                                                                               Accounts receivable, net                        3,252,000                        7,044,000
                                                                                                                                                                                                                                  Note and lease receivable – current                               --                         353,000
                                                                                                                                                                                                                                                         Inventory, net                        4,487,000                        7,295,000
                                                                                                                                                                                                                                                    Interest receivable                           97,000                          53,000
                                                                                                                                                                                                                                             Deferred costs – current                               --                        1,159,000
                                                                                                                                                                                                                              Prepaid expenses and other current assets                          686,000                        1,211,000
                                                                                                                                                                                                                                                  Total current assets                       61,912,000                       36,171,000
                                                                                                                                                                                                                                              Investments – long term                        6,752,000                        9,364,000
                                                                                                                                                                                                                     Note and lease receivable – less current portion                               --                          839,000
                                                                                                                                                                                                                                Deferred costs – less current portion                               --                        2,978,000
                                                                                                                                                                                                                                                      Fixed assets, net                          917,000                        3,853,000
                                                                                                                                                                                                                                                           Other assets                               --                          272,000
                                                                                                                                                                                                                                                               Goodwill                          619,000                        1,837,000
                                                                                                                                                                                                                                                 Intangible assets, net                          375,000                        5,571,000
                                                                                                                                                                                                                                                                                      $  70,575,000                     $ 60,885,000
                                                                                                                                                                                                                                  Accounts payable and accrued expenses                $  2,094,0000                      $ 9,141,000
                                                                                                                                                                                                                                                         Line of credit                       11,638,000                               --
                                                                                                                                                                                                                                              Deferred revenue, current                          501,000                        2,186,000
                                                                                                                                                                                                                                             Total current liabilities                       14,233,000                       11,327,000
                                                                                                                                                                                                                                                          Deferred rent                               --                          199,000
                                                                                                                                                                                                                                 Deferred revenue, less current portion                          461,000                        4,614,000
                                                                                                                                                                                                                                                     Total liabilities                       14,694,000                      16,140,000
                                                                                                                                                                                                                                          Commitments and Contingencies                                                                
                                                                                                                                                                                                                                                   STOCKHOLDERS' EQUITY                                                                
                                                                                                                                                                                             Preferred stock; authorized 5,000,000 shares, $0.01 par value; none issued                               --                               --
     Common stock; authorized 50,000,000 shares, $0.01 par value; 12,284,000  
     and 12,491,000 shares issued at December 31, 2009 and 2010, 
     respectively; shares outstanding, 11,075,000 and 11,242,000 at 
     December 31, 2009 and 2010, respectively      
                                                                                                                                                                                                                                             Additional paid-in capital                      103,596,000                      105,156,000
                                                                                                                                                                                                                                                    Accumulated deficit                     (36,859,000)                     (49,470,000)
                                                                                                                                                                                                                          Accumulated other comprehensive (loss) income                         (60,000)                         (37,000)
                                                                                                                                                                                                                                                                                             66,797,000                       55,770,000
                                                                                                                                                                                                                                                Treasury stock, at cost                     (10,916,000)                     (11,025,000)
                                                                                                                                                                                                                                            Total stockholders' equity                       55,881,000                       44,745,000
                                                                                                                                                                                                                            Total liabilities and stockholders' equity         $      70,575,000                $   60,885,000
                                                                                                                                                                                                           *Derived from audited balance sheet as of December 31, 2009.                                                                
I.D. Systems, Inc. and Subsidiaries
                                                                                  Statement of Cash Flows Data
                                                                                      Year ended December 31,
                                                                                     2009                2010
                               Cash flows from operating activities:                                        
                                                            Net loss     $  (13,192,000)      $ (12,611,000)
                   Adjustments to reconcile net loss to cash used in operating activities:                   
                                                   Inventory reserve               621,000                  --
                                             Accrued interest income               120,000              44,000
                                    Stock-based compensation expense             2,157,000           1,558,000
                                       Depreciation and amortization               533,000           2,435,000
                                               Deferred rent expense              (22,000)             188,000
                                 Change in fair value of investments             (338,000)                  --
                                                    Bad debt reserve                    --              65,000
                                                         Changes in:                                        
                                                     Restricted cash               230,000                  --
                                                 Accounts receivable            5,049,000           (611,000)
                                           Note and lease receivable                    --             199,000
                                                Unbilled receivables               168,000                  --
                                                           Inventory           (1,815,000)           2,428,000
                                   Prepaid expenses and other assets             (320,000)             105,000
                                                      Deferred costs                    --         (3,442,000)
                                                    Deferred revenue               307,000           4,454,000
                               Accounts payable and accrued expenses             (369,000)           1,593,000
                               Net cash used in operating activities           (6,871,000)         (3,595,000)
                               Cash flows from investing activities:                                        
                                            Purchase of fixed assets             (358,000)         (1,459,000)
                                                Business acquisition             (518,000)       (15,000,000)
                                             Purchase of investments          (59,408,000)       (15,330,000)
                   Proceeds from sales and maturities of investments            62,439,000          42,107,000
                           Net cash provided by investing activities             2,155,000         10,318,000
                               Cash flows from financing activities:                                        
                             Proceeds from exercise of stock options                 2,000               3,000
                                         Borrowing on line of credit            12,900,000                  --
                                Principal payments on line of credit          (1,262,000)       (11,638,000)
                                         Purchase of treasury shares                    --           (99,000)
                 Net cash provided by (used in) financing activities            11,640,000        (11,734,000)
     Effect of foreign exchange rate changes on cash and equivalents               (1,000)              21,000
                Net increase (decrease) in cash and cash equivalents             6,923,000         (4,990,000)
                     Cash and cash equivalents - beginning of period           12,558,000          19,481,000
                           Cash and cash equivalents - end of period        $ 19,481,000       $ 14,491,000
                   Supplemental disclosure of cash flow information:                                        
                                             Cash paid for interest           $ 130,000       $  56,000 
                                                Noncash activities:                                        
                              Unrealized (loss) gain on investments         $ (107,000)          $ 46,000
                         Shares withheld pursuant to stock issuance            $ 65,000          $ 10,000
                                       Fair value of assets acquired       $    748,000      $  20,746,000
                                                 Liabilities assumed             (104,000)       (5,746,000)
                                       Less contingent consideration             (110,000)                  --
                                                  Less cash acquired              (16,000)                  --
                                                       Net cash paid            $ 518,000       $ 15,000,000
CONTACT: Ned Mavrommatis, CFO
         201-996-9000; fax: 201-996-9144
Source: I.D. Systems, Inc.