I.D. Systems, Inc. Reports Fourth Quarter and Year-End Results
HACKENSACK, N.J.--Feb. 19, 2002--I.D. Systems, Inc. , a leading provider of innovative wireless asset management solutions, today announced financial results for the fourth quarter and year ended December 31, 2001.For the final quarter of the year, revenues were $311,000, up from $95,000 in the 2000 fourth quarter, and $188,000 in the third quarter of 2001. The net loss for the quarter was $1,270,000 or $.22 per basic and diluted share compared to $2,021,000 or $.35 per basic and diluted share in the same period last year. For the year, revenues were $923,000 compared to $945,000 for the year ended December 31, 2000. The net loss for the year was $3,908,000 or $.67 per basic and diluted share compared to $4,820,000 or $.84 per basic and diluted share. The net loss in the fourth quarter and year ended December 31, 2001 included a one-time charge of $250,000 related to the settlement of litigation.
Jeffrey Jagid, I.D. Systems Chairman and Chief Executive Officer, commented, "As noted when we reported third quarter results, revenues began to ascend in the fourth quarter of 2001, and we expect that revenues will continue to improve on a quarterly sequential basis in 2002."
Mr. Jagid continued, "We were successful at streamlining our operations during the year, and as a result of cost-cutting initiatives and the completion of our technology transition to a "universal" system, SG&A and R&D declined 12% and 41%, from their respective levels in 2000. In the first half of 2001, cash outflow averaged $335,000 per month, and that number was further reduced to an average of $200,000 per month in the second half of the year. Our more cost-efficient corporate structure combined with solid anticipated revenue growth should enable the Company to improve performance significantly as 2002 unfolds."
According to CFO Ned Mavrommatis, "We closed the year with a $2.8 million backlog, along with cash, cash equivalents, and marketable securities of $5,465,000 and no debt. The Company's balance sheet was further strengthened in January 2002, when I.D. Systems netted approximately $6,100,000 from a private placement of 821,250 shares of common stock."
Mr. Mavrommatis continued, "The funding was sought in anticipation of enterprise-wide implementations of our Wireless Asset Net(TM) industrial fleet management system by Fortune 500 and other pilot program customers. We also allocated some of the funds toward accelerated sales and marketing activities, which are now moving forward under Gary Marks, our new Executive Vice President. We are also making progress in our efforts to capitalize on the security applications of our technology. To that end, we are targeting airlines as well as government agencies, including the FAA and branches of the armed forces, in an effort to demonstrate how our technology prevents the unauthorized use of aircraft ground support equipment and monitors all aspects of vehicle operation."
As reported in December, Ford Motor Company issued a blanket purchase order to I.D. Systems for its wireless Industrial Vehicle Electronic Control System (IVECS) for powered material handling vehicles, which enables Ford to implement the IVECS system at more than 40 of its North American facilities. Mr. Jagid noted, "We anticipate that Ford will begin to draw against the blanket purchase order in the next several months."
Another Fortune 100 customer awarded I.D. Systems a corporate-wide leasing contract, which is significant not only because the customer has more than a hundred facilities in North America, but also because the contract incorporates a pay-per-asset-per-month pricing structure. This fee-based pricing model is designed to shorten customer acquisition cycles and generate a more predictable stream of recurring revenue for I.D. Systems.
Mr. Jagid concluded, "We achieved key objectives in 2001 that have provided the Company with a solid foundation for overall growth and an improving financial picture in 2002."
Investor Conference Call
I.D. Systems will be holding a conference call for investors and analysts at 12:00 p.m. Eastern Standard Time today, Tuesday, February 19, 2002. Jeffrey Jagid, Chairman & CEO, Kenneth Ehrman, President & COO, and Ned Mavrommatis, CFO, will discuss fourth quarter results, as well as recent corporate developments. After opening remarks, there will be a question and answer period. The conference call will be broadcast live over the Internet via the Investor Relations section of the Company's web site at www.id-systems.com. To listen to the live call, go to the Web site at least 10 minutes early to download and install any necessary audio software.
About the Company
Based in Hackensack, New Jersey, I.D. Systems, Inc. is a leading provider of open, standards-based networked systems for tracking and managing corporate assets. Customers utilizing the Company's patented system architecture include British Airways, DaimlerChrysler, Ford Motor Company, General Motors, Hallmark Cards, John Deere, the Union Pacific Railroad, the U.S. Navy, and the U.S. Postal Service. Using local area networks, wide area networks, and the Internet, the Company's systems enable customers to control and track the location and status of their assets--from letters and containers to forklifts and railcars--in real time. For information on-line, visit I.D. Systems at www.id-systems.com.
Wireless Asset Net and the I.D. Systems, Inc. logo are trademarks of I.D. Systems, Inc.
"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 the Company's filings With the Securities and Exchange Commission. These risks could cause the Company's 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, the company.
Statements of Operations
Year Ended December 31,
2001 2000
Revenues $ 923,000 $ 945,000
Cost of revenues 548,000 722,000
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Gross profit 375,000 223,000
Selling, general and
administrative expenses 3,552,000 4,035,000
Research and development
expenses 1,038,00 1,751,000
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Loss from operations (4,215,000) (5,563,000)
Interest income 310,000 714,000
Interest expense (3,000) (5,000)
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Loss before taxes (3,908,000) (4,854,000)
Income tax benefit (34,000)
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Net loss $ (3,908,000) $ (4,820,000)
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Net loss per share -
basic and diluted ($.67) ($.84)
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Weighted average common
shares outstanding -
basic and diluted loss
per share 5,840,000 5,721,000
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