Press Releases

I.D. Systems Reports First Quarter Financial Results

Revenue Up 28%

WOODCLIFF LAKE, N.J., May 9, 2011 (GLOBE NEWSWIRE) -- I.D. Systems, Inc. (Nasdaq:IDSY), a leading provider of wireless solutions for tracking, securing and managing high-value enterprise assets, today reported financial results for the three months ended March 31, 2011.

  Revenue for the first quarter of 2011 increased 28% to $7.8 million from $6.1 million for the same period a year ago. The increase was primarily attributable to increased sales of I.D. Systems' wireless industrial vehicle management systems.
  Gross margin for the first quarter of 2011 was 53%, reflecting price stability, high-margin recurring service contract revenue, and management's focus on product cost controls.
  Selling, general and administrative expenses and research and development expenses decreased 21% compared to the first quarter a year ago. The decrease reflects management's continued efforts to reduce operating costs, primarily by integrating the operations of Asset Intelligence, which I.D. Systems acquired in January of 2010.
  Excluding stock-based compensation and depreciation and amortization, non-GAAP net loss for the first quarter of 2011 improved to $852,000, or ($0.08) per basic and diluted share, from a non-GAAP net loss of $3.2 million, or ($0.28) per basic and diluted share, for the first quarter a year ago.
  Net loss for the first quarter of 2011 improved to $1.8 million, or ($0.16) per basic and diluted share, from a net loss of $4.1 million, or ($0.36) per basic and diluted share, for the first quarter of 2010. 

Additional highlights for the first quarter of 2011 included:

  Continuing business with key customers such as 3M, American Airlines, Audi, Caterpillar, Ford, Knight Transportation, Nestlé, the U.S. Postal Service, Walgreens, and Wal-Mart.
  Increasing business development through channel partners, who sold I.D. Systems' industrial vehicle management systems to new customers in the apparel, electronics, retail, grocery, and package delivery industries.
  Receipt of initial orders for PowerBox™, a pre-configured, remotely hosted, subscription-based vehicle management system targeted at customers seeking basic, easy-to-deploy fleet management functions.
  Initial shipments of SafeNav™ Powered by Garmin™, an on-vehicle GPS-based navigation and alert system designed to provide airport vehicle operators with real-time situational awareness to help avoid accidental runway incursions.
  An "Innovator of the Year" award won by Asset Intelligence customer Marten Transport, which used the VeriWise™ trailer management system to control refrigerated trailer temperatures in a new way, resulting in savings of more than $1.5 million annually.

"The momentum we built in the second half of 2010 continued into the first quarter of 2011," said Jeffrey Jagid, I.D. Systems' chairman and chief executive officer. "We continue to execute on our growth strategy, which is reflected in these quarterly results, including double-digit top-line revenue growth, a foundation of recurring service contract revenue, a healthy gross margin, continued success in controlling operating costs, and a strong balance sheet with no debt."

As of March 31, 2011, I.D. Systems had $26.0 million in cash, cash equivalents and marketable securities, and $24.3 million of working capital.

Under a stock repurchase program instituted in November, 2010, I.D. Systems has acquired 125,000 shares of its common stock at an aggregate purchase price of $511,000, as of March 31, 2011. The program authorizes the repurchase of issued and outstanding shares of up to $3 million in aggregate value. 

Investor Conference Call

I.D. Systems will hold a conference call for investors and analysts today, May 9, 2011, at 4:45 p.m. Eastern time. Jeffrey Jagid, chairman and chief executive officer, 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  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, 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 
    March 31,
                                                                                   2010                      2011
                                                             Products      $ 2,023,000             $ 3,804,000
                                                             Services         4,101,000                4,030,000
                                                                              6,124,000                 7,834,000
                                                     Cost of Revenue:                                           
                                                     Cost of products            975,000                 2,181,000
                                                     Cost of services         1,764,000                1,492,000
                                                                              2,739,000                 3,673,000
                                                         Gross Profit         3,385,000                4,161,000
                         Selling, general and administrative expenses         6,474,000                5,095,000
                                    Research and development expenses          1,154,000                   906,000
                                                 Loss from operations       (4,243,000)              (1,840,000)
                                                      Interest income           209,000                   47,000
                                                     Interest expense          (30,000)                        --
                                                    Other income, net             1,000                   28,000
                                                             Net loss     $ (4,063,000)            $ (1,765,000)
                             Net loss per share – basic and diluted       $ (0.36)               $ (0.16) 
     Weighted average common shares outstanding – basic and diluted      11,185,000              11,189,000 
                               I.D. Systems, Inc. and Subsidiaries
    Reconciliation of GAAP to Non-GAAP Financial Measures
                                                          Three Months Ended 
    March 31, 2010     Three Months Ended 
    March 31, 2011              
          Net loss attributable to common stockholders                            $ (4,063,000)                            $ (1,765,000)              
                         Depreciation and amortization                                   432,000                                   605,000              
                              Stock-based compensation                                  454,000                                  308,000              
                                     Non-GAAP net loss                            $ (3,177,000)                              $ (852,000)              
     Non-GAAP net loss per share – basic and diluted                               $ (0.28)                                $ (0.08) 
                                                                                                                                                                                                                                           I.D. Systems, Inc. and Subsidiaries
    Balance Sheet Data                               
                                                                                                                                                                                                                                                                           December 31, 2010*            March 31, 2011              
                                                                                                                                                                                                                                           Cash and cash equivalents            $ 14,491,000             $ 11,049,000              
                                                                                                                                                                                                                                          Investments – short term                 4,565,000                 6,692,000              
                                                                                                                                                                                                                                                 Interest receivable                    53,000                    70,000              
                                                                                                                                                                                                                                            Accounts receivable, net                 7,044,000                 5,512,000              
                                                                                                                                                                                                                    Note and sales-type lease receivable – current                   353,000                   277,000              
                                                                                                                                                                                                                                                Unbilled receivables                       --                   134,000              
                                                                                                                                                                                                                                                      Inventory, net                 7,295,000                 7,720,000              
                                                                                                                                                                                                                           Prepaid expenses and other current assets                 1,211,000                 2,219,000              
                                                                                                                                                                                                                                          Deferred costs – current                 1,159,000                 1,772,000              
                                                                                                                                                                                                                                                Total current assets                36,171,000                35,445,000              
                                                                                                                                                                                                                                           Investments – long term                 9,364,000                 8,211,000              
                                                                                                                                                                                                                  Note and sales-type lease receivable – long term                   839,000                   943,000              
                                                                                                                                                                                                                                        Deferred costs – long term                 2,978,000                 2,874,000              
                                                                                                                                                                                                                                                   Fixed assets, net                 3,853,000                 3,597,000              
                                                                                                                                                                                                                                                            Goodwill                 1,837,000                 1,837,000              
                                                                                                                                                                                                                                              Intangible assets, net                 5,571,000                 5,277,000              
                                                                                                                                                                                                                                                        Other assets                   272,000                   272,000              
                                                                                                                                                                                                                                                                            $  60,885,000              $ 58,456,000              
                                                                                                                                                                                                                               Accounts payable and accrued expenses          $  9,141,000                $ 8,160,000              
                                                                                                                                                                                                                                                    Deferred revenue                 2,186,000                 3,023,000              
                                                                                                                                                                                                                                           Total current liabilities                11,327,000                11,183,000              
                                                                                                                                                                                                                                                       Deferred rent                   199,000                   280,000              
                                                                                                                                                                                                                                                    Deferred revenue                 4,614,000                 4,038,000              
                                                                                                                                                                                                                                                   Total liabilities                16,140,000               15,501,000              
                                                                                                                                                                                                                                       Commitments and Contingencies                                                                
                                                                                                                                                                                                                                                STOCKHOLDERS' EQUITY                                                                
                                                                                                                                                                                           Preferred stock; authorized 5,000,000 shares, $.01 par value; none issued                       --                       --              
     Common stock; authorized 50,000,000 shares, $0.01 par value; 12,491,000 and 12,547,000 shares issued at December 31, 2010 and March 31, 2011, respectively; shares outstanding, 11,242,000 and 11,195,000 at December 31, 2010 and March 31, 2011, respectively                   121,000                   121,000              
                                                                                                                                                                                                                                          Additional paid-in capital               105,156,000               105,538,000              
                                                                                                                                                                                                                                                 Accumulated deficit              (49,470,000)              (51,235,000)              
                                                                                                                                                                                                                       Accumulated other comprehensive (loss) income                  (37,000)                    15,000              
                                                                                                                                                                                                                                                                                   55,770,000                54,439,000              
                                                                                                                                                                                                                                             Treasury stock, at cost              (11,025,000)              (11,484,000)              
                                                                                                                                                                                                                                          Total stockholders' equity                44,745,000                42,955,000              
                                                                                                                                                                                                                          Total liabilities and stockholders' equity      $    60,885,000           $  58,456,000              
                                                                                                                                                                                                                                         *Derived from audited balance sheet as of December 31, 2010.                               
I.D. Systems, Inc. and Subsidiaries
    Statement of Cash Flow Data
                                                                               Three Months Ended March 31,
                                                                                    2010               2011
                               Cash flows from operating activities:                                      
                                                            Net loss     $ (4,063,000)      $ (1,765,000)
                  Adjustments to reconcile net loss to cash used in operating activities:                  
                                                    Bad debt expense               16,000             73,000
                                             Accrued interest income             (34,000)           (17,000)
                                    Stock-based compensation expense              454,000            308,000
                                       Depreciation and amortization              432,000            605,000
                                               Deferred rent expense                   --             81,000
                                                         Changes in:                                      
                                                 Accounts receivable            1,011,000          1,501,000
                                                Unbilled receivables                  --          (134,000)
                                           Note and lease receivable               74,000           (28,000)
                                                           Inventory              715,000          (422,000)
                                   Prepaid expenses and other assets            (483,000)        (1,008,000)
                                                      Deferred costs            (494,000)          (509,000)
                                                    Deferred revenue              802,000            261,000
                               Accounts payable and accrued expenses          (1,360,000)          (914,000)
                              Net cash used in operating activities          (2,930,000)        (1,968,000)
                               Cash flows from investing activities:                                      
                                       Expenditures for fixed assets            (506,000)           (55,000)
                                                Business acquisition        (15,000,000)                --
                                             Purchase of investments         (2,751,000)         (984,000)
                                           Maturities of investments            9,877,000                --
                               Net cash used in investing activities         (8,380,000)       (1,039,000)
                               Cash flows from financing activities:                                      
                             Proceeds from exercise of stock options                3,000             35,000
                                         Purchase of treasury shares                  --          (412,000)
                                Principal payments on line of credit         (2,187,000)                --
                               Net cash used in financing activities          (2,184,000)          (377,000)
     Effect of foreign exchange rate changes on cash and equivalents              (8,000)           (58,000)
                           Net decrease in cash and cash equivalents         (13,502,000)        (3,442,000)
                     Cash and cash equivalents - beginning of period           19,481,000         14,491,000
                           Cash and cash equivalents - end of period        $ 5,979,000      $ 11,049,000
                   Supplemental disclosure of cash flow information:                                      
                                              Cash paid for Interest           $ 30,000            $  --
                                                 Noncash activities:                                      
                               Unrealized gain (loss) on investments           $ 66,000       $ (10,000)
                          Shares withheld pursuant to stock issuance           $ 10,000         $ 47,000
                                    Accrued contingent consideration        $ 1,017,000            $  --
                                       Fair value of assets acquired        $ 20,712,000             $  --
                                                 Liabilities assumed         (4,695,000)                --
                      Less: contingent consideration potentially due         (1,017,000)                --
                                               Net cash paid in 2010        $ 15,000,000             $  --
CONTACT: Company
         Ned Mavrommatis
         Chief Financial Officer
         Investor Relations
         Liolios Group, Inc.
         Scott Liolios or Matt Glover
Source: I.D. Systems, Inc.