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WOODCLIFF LAKE, N.J., Aug. 10, 2011 (GLOBE NEWSWIRE) -- I.D. Systems, Inc. (Nasdaq:IDSY), a leading provider of wireless solutions for tracking, securing and managing high-value enterprise assets, reported financial results for the three and six months ended June 30, 2011.
Q2 2011 Financial Results
First Half 2011 Financial Results
Q2 2011 Operational Highlights
- A Fortune 500 retailer ordered the PowerFleet wireless vehicle management system for its lift truck fleet across multiple distribution centers—an order facilitated by I.D. Systems' marketing partner, The Raymond Corporation.
- A Fortune 100 manufacturer, a Fortune 100 retailer, an S&P 500 consumer products producer, and one of the world's largest specialty apparel retailers ordered I.D. Systems' hosted, subscription-based PowerBox wireless vehicle management system.
- The U.S. Army Aviation Applied Technology Directorate contracted with I.D. Systems' partner Spectro Inc. to provide wireless equipment management technology for machine health monitoring applications.
- Buchanan Hauling and Rigging deployed the VeriWise™ Track & Trace asset management system from I.D. Systems' Asset Intelligence subsidiary on a fleet of flatbed and specialty trailers.
"Q2 marked our fourth consecutive quarter of revenue growth," said Jeffrey Jagid, I.D. Systems' chairman and CEO. "This double-digit growth was driven by increased sales of our industrial vehicle management systems to new clients, as well as renewals and upgrades for our existing Fortune 500 customer base. Overall, we had a balanced mix of product and service revenue for the quarter, including a sequential increase in recurring revenue from our Asset Intelligence business.
"Gross margin remained strong at 54% in the quarter, consistent within the company's historical and target levels of 53% to 55%. The significant decrease in SG&A reflects our efforts to closely manage costs, including cost cutting measures initiated in the second half of 2010. We are on track for our 2011 financial performance to substantially surpass 2010."
Investor Conference Call
I.D. Systems will hold a conference call for investors and analysts today (Wednesday, August 10, 2011) at 4:45 p.m. Eastern time. The company's chairman and CEO, Jeffrey Jagid, will lead a discussion on the results of the quarter and recent developments. After opening remarks and a discussion of the quarter, 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 www.id-systems.com. To listen to the live call, go to the website at least 10 minutes early to download and install any necessary audio software.
To supplement its 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. All non-GAAP measures included in this press release are accompanied by information for a reconciliation to the nearest GAAP measures.
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, baggage, 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 www.id-systems.com.
Important Cautions Regarding Forward Looking Statements
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, 2010. 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.
-- Tables to Follow --
|I.D. Systems, Inc. and Subsidiaries|
|Statement of Operations Data|
|Three months ended||Six months ended|
|June 30,||June 30,|
|Products||$ 1, 829,000||$ 3,959,000||$ 3, 852,000||$ 7,763,000|
|Cost of revenue:|
|Cost of products||865,000||2,345,000||1,840,000||4,526,000|
|Cost of services||1,532,000||1,510,000||3,296,000||3,002,000|
|Selling, general and administrative||6,689,000||5,726,000||13,163,000||10,821,000|
|Research and development expenses||1,119,000||870,000||2,273,000||1,776,000|
|Loss from operations||(4,192,000)||(2,118,000)||(8,435,000)||(3,958,000)|
|Other income, net||4,000||22,000||5,000||50,000|
|Net loss||$ (4,026,000)||$ (2,043,000)||$ (8,089,000)||$ (3,808,000)|
|Net loss per share – basic and diluted||$ (0.36)||$ (0.19)||$ (0.72)||$ (0.35)|
|Weighted average common shares outstanding – basic and diluted||11,138,000||10,819,000||11,158,000||10,866,000|
|I.D. Systems, Inc. and Subsidiaries|
|Reconciliation of GAAP to Non-GAAP Financial Measures|
|Three Months Ended June 30,||Six Months Ended June 30,|
|Net loss attributable to common stockholders|
|Depreciation and amortization||538,000||607,000||970,000||1,212,000|
|Non-GAAP net loss per share – basic and diluted||$(0.27)||$(0.10)||$(0.56)||$(0.18)|
|I.D. Systems, Inc. and Subsidiaries|
|Balance Sheet Data|
|December 31, 2010*||June 30, 2011|
|Cash and cash equivalents||$14,491,000||$8,688,000|
|Investments – short term||4,565,000||6,207,000|
|Accounts receivable, net||7,044,000||6,177,000|
|Notes and lease receivable – current||353,000||187,000|
|Deferred costs – current||1,159,000||2,087,000|
|Prepaid expenses and other current assets||1,211,000||1,821,000|
|Total current assets||36,171,000||32,663,000|
|Investments – long term||9,364,000||9,050,000|
|Notes and lease receivable – less current portion||839,000||943,000|
|Deferred costs – less current portion||2,978,000||2,774,000|
|Fixed assets, net||3,853,000||3,310,000|
|Intangible assets, net||5,571,000||4,984,000|
|Accounts payable and accrued expenses||$9,141,000||$7,441,000|
|Deferred revenue – current portion||2,186,000||2,963,000|
|Total current liabilities||11,327,000||10,404,000|
|Deferred revenue – less current portion||4,614,000||4,172,000|
|Commitments and contingencies|
|Preferred stock; authorized 5,000,000 shares, $0.01 par value; none issued||--||--|
|Common stock; authorized 50,000,000 shares, $0.01 par value; 12,491,000 and 12,546,000 shares issued at December 31, 2010 and June 30, 2011, respectively; shares outstanding, 11,242,000 and 11,124,000 at December 31, 2010 and June 30, 2011, respectively||121,000||121,000|
|Additional paid-in capital||105,156,000||105,846,000|
|Accumulated other comprehensive (loss) income||(37,000)||81,000|
|Treasury stock, at cost||(11,025,000)||(11,797,000)|
|Total stockholders' equity||44,745,000||40,973,000|
|Total liabilities and stockholders' equity||$60,885,000||$55,833,000|
|*Derived from audited balance sheet as of December 31, 2010.|
|I.D. Systems, Inc. and Subsidiaries|
|Statement of Cash Flows Data|
|Six months ended June 30,|
|Cash flows from operating activities:|
|Adjustments to reconcile net loss to cash used in operating activities:|
|Bad debt expense||53,000||158,000|
|Accrued interest income||23,000||3,000|
|Stock-based compensation expense||893,000||616,000|
|Depreciation and amortization||970,000||1,212,000|
|Deferred rent expense||--||86,000|
|Note and lease receivable||149,000||61,000|
|Prepaid expenses and other assets||(625,000)||(611,000)|
|Accounts payable and accrued expenses||(401,000)||(1,623,000)|
|Net cash used in operating activities||(5,510,000)||(3,689,000)|
|Cash flows from investing activities:|
|Expenditures for fixed assets including website development||(961,000)||(82,000)|
|Purchase of investments||(2,751,000)||(2,889,000)|
|Proceeds from sales and maturities of investments||22,017,000||1,606,000|
|Net cash provided by (used in) investing activities||3,305,000||(1,365,000)|
|Cash flows from financing activities:|
|Proceeds from exercise of stock options||3,000||35,000|
|Purchase of treasury shares||--||(725 ,000)|
|Principal payments on line of credit||(10,477,000)||--|
|Net cash used in financing activities||(10,474,000)||(690,000)|
|Effect of foreign exchange rate changes on cash and equivalents||(34,000)||(59,000)|
|Net decrease in cash and cash equivalents||(12,713,000)||(5,803,000)|
|Cash and cash equivalents - beginning of period||19,481,000||14,491,000|
|Cash and cash equivalents - end of period||$6,768,000||$8,688,000|
|Supplemental disclosure of cash flow information:|
|Cash paid for interest||$55,000||$ --|
|Unrealized gain on investments||$88,000||$46,000|
|Shares withheld pursuant to stock issuance||$10,000||$47,000|
|Fair value of assets acquired||$19,695,000||$ --|
|Net cash paid||$15,000,000||$ --|
CONTACT: Company Ned Mavrommatis Chief Financial Officer Phone: 201-996-9000 firstname.lastname@example.org Investor Relations Liolios Group, Inc. Scott Liolios or Matt Glover Phone: 949-574-3860 email@example.comSource: I.D. Systems, Inc.
Released August 10, 2011