I.D. Systems, Inc. Reports First Quarter Financial Results

PRNewswire

May 06, 2003 (4:32 PM EST)

I.D. Systems, Inc. Reports First Quarter Financial Results HACKENSACK, N.J., May 6 /PRNewswire-FirstCall/ -- I.D. Systems, Inc. (Nasdaq: IDSY) announced today its financial results for the three months ended March 31, 2003. As a result of continued market acceptance of the company's patented Wireless Asset Net(TM) system for tracking and managing fleets of industrial equipment, revenues in the quarter increased 94% to $1,609,000 compared to $831,000 in the three months ended March 31, 2002. Gross profit margins in the quarter remained stable at 53% and net loss was reduced to $385,000, a 41% improvement compared to the net loss of $657,000 in the same period last year. "We are pleased with the company's continued year over year revenue growth, healthy margins, and market acceptance," said Jeffrey Jagid, I.D. Systems' chairman and chief executive officer. "Our Wireless Asset Net industrial fleet monitoring system is generating positive results for our existing customers and we are continuing to win new customers. The system is designed to bring a wide array of benefits to manufacturing and warehouse environments, including essential safety controls and innovative productivity enhancement tools for mobile industrial equipment. We anticipate positive developments with both new and existing customers in the near future." "Our technology is meeting with success in new applications as well," continued Mr. Jagid. "Under the agreement we concluded with Avis in the first quarter, we will adapt the Wireless Asset Net for Avis' fleet of approximately 2,000 rental vehicles in Puerto Rico this year." "I.D. Systems' financial condition remains strong," said Ned Mavrommatis, I.D. Systems' chief financial officer. "As of March 31, 2003, the company had $7,471,000 in cash, cash equivalents and investments and $8,323,000 of working capital compared to $7,757,000 and $8,295,000, respectively, at December 31, 2002." Selling, general and administrative expenses in the three months ended March 31, 2003, were $1,083,000 compared to $883,000 in the same period of 2002. The increase was attributable primarily to increased payroll expenses and insurance costs. As a percentage of revenues, however, selling, general and administrative expenses decreased to 67%, compared to 106% in the three months ended March 31, 2002. Research and development expenditures in the quarter decreased 17% to $232,000 from $280,000 in the first quarter last year, reflecting the commercial maturation of the company's wireless technology for managing industrial vehicles. Our R&D investments were devoted primarily to product enhancements. Highlights of the quarter ended March 31, 2003 included: * Receipt of a purchase order valued at approximately $650,000 from Golub Corporation, the privately held owner and operator of Price Chopper supermarkets. I.D. Systems' Wireless Asset Net will be deployed on a fleet of material handling vehicles at Price Chopper's primary distribution center. Golub Corporation owns and operates more than 100 Price Chopper grocery stores in the northeast, with estimated 2002 sales exceeding $2 billion. The family-owned company prides itself on longstanding traditions of innovative food merchandising, leadership in community service, and cooperative employee relations. * Execution of an agreement with Avis Rent A Car System, Inc., a wholly owned subsidiary of Cendant Corporation (NYSE: CD). Avis and I.D. Systems are working together to implement the Wireless Asset Net fleet management system on Avis' 2,000-vehicle rental fleet in Puerto Rico. The technology is designed to automate various aspects of the car rental and return process, improving customer service and increasing the efficiency of fleet operations. By accurately detecting and automatically transmitting vehicle data, the Wireless Asset Net is designed to help customers get into the vehicle of their choice faster at the beginning of the rental, and help get them on their way more quickly at the end of the rental. Avis and its subsidiaries operate the world's second largest general-use car rental brand, with more than 1,700 locations worldwide. * The appointment of Frederick "Rick" F. Muntz to the position of executive vice president, sales and marketing. Mr. Muntz brings more than 20 years of experience in high technology business development, sales and marketing, most recently as vice president of the Americas, at InVision Technologies (Nasdaq: INVN). Over the past five years, he has been responsible for generating more than $750 million in revenue for InVision, including significant programs with the U.S. Federal Aviation Administration and Transportation Security Administration. About I.D. Systems Based in Hackensack, New Jersey, I.D. Systems, Inc. is a leading provider of wireless solutions for corporate asset management. I.D. Systems' customers include Archer Daniels Midland, DaimlerChrysler, Deere & Co., Ford Motor Company, Hallmark Cards, Target Corporation, the U.S. Department of Homeland Security, U.S. Navy, and the U.S. Postal Service, among others. Using local area networks, wide area networks, and the Internet, the company's systems enable management to control and track the location and status of their assets-from letters and containers to forklifts and railcars-in real time. For more information on I.D. Systems, Inc., visit www.id-systems.com. "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward looking statements that are subject to risk and uncertainties, including, but not limited to, the impact of competitive products, product demand and market acceptance risks, fluctuations in operating results and other risks detailed from time to time in I.D. Systems' filings with the Securities and Exchange Commission. These risks could cause I.D. Systems' actual results for the current fiscal year and beyond to differ materially from those expressed in any forward looking statements made by, or behalf of, I.D. Systems. I.D. Systems, Inc. Condensed Statements of Operations (Unaudited) Three months ended March 31, 2002 2003 Revenues $831,000 $1,609,000 Cost of Revenues 375,000 755,000 Gross Profit 456,000 854,000 Selling, general and administrative expenses 883,000 1,083,000 Research and development expenses 280,000 232,000 Loss from operations (707,000) (461,000) Interest income 51,000 86,000 Interest expense (1,000) (10,000) Net loss $(657,000) $(385,000) Net loss per share - basic and diluted $(0.10) $(0.06) Weighted average common shares outstanding - basic and diluted loss per share 6,444,000 6,804,000 I.D. Systems, Inc. Condensed Balance Sheets December 31, 2002 March 31, 2003 (Unaudited) ASSETS Cash and cash equivalents $ 3,758,000 $2,919,000 Investments 3,031,000 3,592,000 Accounts receivable, net 1,114,000 1,260,000 Inventory 1,471,000 1,073,000 Investment in sales type leases 159,000 263,000 Interest receivable 73,000 97,000 Officer loan 10,000 10,000 Prepaid expenses and other current assets 147,000 70,000 Total current assets 9,763,000 9,284,000 Investments 968,000 960,000 Fixed assets, net 679,000 683,000 Investment in sales type leases 522,000 918,000 Installment receivable - non-current portion 867,000 818,000 Officer loan 41,000 39,000 Deferred contract costs -- 63,000 Other assets 107,000 107,000 $12,947,000 $12,872,000 LIABILITIES Accounts payable and accrued expenses $1,205,000 $516,000 Long term debt - current portion -- 182,000 Line of credit 137,000 137,000 Deferred revenue 26,000 26,000 Other current liabilities 100,000 100,000 Total current liabilities 1,468,000 961,000 Long term debt -- 789,000 Deferred rent 66,000 71,000 1,534,000 1,821,000 STOCKHOLDERS' EQUITY Preferred stock; authorized 5,000,000 shares, $.01 par value; none issued Common stock; authorized 15,000,000 shares, $.01 par value; issued and outstanding 6,799,000 shares and 6,811,000 shares 68,000 68,000 Additional paid-in capital 22,042,000 22,065,000 Treasury stock; 40,000 shares at cost (113,000) (113,000) Accumulated deficit (10,584,000) (10,969,000) 11,413,000 11,051,000 $12,947,000 $12,872,000