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 .
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.
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