SmarTire Reports Second Quarter Results
RICHMOND, British Columbia--March 15, 2001-- SmarTire Systems Inc. reported a net loss of CDN $2.1 million ($0.14 per share) for the second quarter ended January 31, 2001 compared with a loss of CDN $2.8 million ($0.22 per share) for the same period in 2000.The Company also reported a strong cash position of CDN $9.8 million as a result of the sale of an investment in March 2000.
During its second fiscal quarter, SmarTire's unique position within the transportation industry was acknowledged and reinforced by the rapidly escalating interest in tire pressure monitoring systems. In November, the safety features offered by tire pressure monitoring systems received official endorsement by the U.S. government. International attention was drawn to the massive U.S. tire recall and amendments to the U.S. Transportation Recall Enhancement, Accountability, and Documentation (TREAD) Act were introduced requiring all new motor vehicles by 2003 to have warning indicators for low tire pressure. In addition, the transportation industries of Western Europe and Japan are closely monitoring the impact of the U.S. TREAD Act.
In the same period, SmarTire achieved several corporate milestones. The Company produced and delivered its first shipments of Generation II tire monitoring systems for use on passenger cars, light trucks and sport utility vehicles. SmarTire expanded its access to the commercial vehicle sector, added new engineering and marketing resources for the North American and European operations and refined its North American investor relations program.
On March 5, 2001, SmarTire announced that Generation II tire monitoring systems had been delivered to Aston Martin for the V12 Vanquish supercar. Aston Martin is a member of Ford's Premier Automotive Group that also includes Volvo, Jaguar, Land Rover and Lincoln. Having successfully completed its initial production runs, SmarTire is now working with its suppliers to provide for increased production of Generation II systems.
SmarTire entered into an Agreement on January 12, 2001 with its strategic partner, TRW Inc., that transferred to the Company the exclusive license to manufacture and sell tire monitoring systems to the original equipment manufacturers of most medium and heavy duty trucks. SmarTire announced its intention to expand product development and marketing activities to include the commercial vehicle market involving both original equipment manufacturers and aftermarket customers.
During the second fiscal quarter, the Company also added engineering and marketing resources to both its North American and European operations to expand its product development program, support the manufacturing process and respond to the increasing demand for advanced tire monitoring solutions for all sectors of the transportation industries. "SmarTire is committed to the development of leading edge technologies and products for future tire monitoring solutions," said Kevin Carlson, SmarTire's Chief Financial Officer and Managing Director. "Recruiting and retaining highly skilled employees is one of SmarTire's strategic objectives."
Portland, Oregon based FiComm Investor Relations was selected by SmarTire to assist in the execution of its North American investor relations program including the facilitation of effective institutional and retail investment activities. "We are very excited to be working with SmarTire Systems and to add this dynamic and growing company to our array of high technology clients," said Al Palombo, vice president of FiComm. "With over ten years of research and development under its belt, SmarTire is uniquely positioned to capitalize on the increasing demand for its proven tire monitoring technology."
SMARTIRE SYSTEMS INC
Financial Summary
Expressed in Canadian dollars
Three months ended Six months ended
January 31, January 31,
2001 2000 2001 2000
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Revenue $328,478 $294,227 $597,122 $589,153
Cost of goods sold 129,279 146,664 219,035 313,461
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Gross profit 199,199 147,563 378,087 275,692
Expenses 2,326,915 2,969,012 4,531,556 5,091,668
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Net loss $2,127,716 $2,821,449 $4,153,469 $4,815,976
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Loss per share $0.14 $0.22 $0.28 $0.42
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SMARTIRE SYSTEMS INC.
Balance Sheet Summary
Expressed in Canadian dollars
January 31, July 31,
2001 2000
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Cash and cash equivalents $9,836,428 $14,512,558
Total current assets $10,529,427 $15,047,204
Total assets $14,039,478 $15,966,373
Current liabilities $687,809 $739,155
Shareholders' equity $13,351,669 $15,227,218
Total liabilities and $14,039,478 $15,966,373
shareholders equity