SmarTire Systems Reports First Quarter Results
15 December 1998
SmarTire Systems Reports First Quarter Results
RICHMOND, BRITISH COLUMBIA--Dec. 15, 1998-- SmarTire(VSE:SES.) (OTC Bulletin Board:SMTR) SmarTire Systems Inc. (OTC/BB:SMTR) today reported that gross revenues reached CAN$0.7 million for the three months ended October 31, 1998 compared to CAN$0.3 million for the same period in 1997.
The revenue increase was primarily attributable to an increase in the sale of aftermarket SmarTire(TM) monitoring systems which represented CAN$0.6 million. An overall increase in expenses from CAN$1.4 million in 1997, to CAN$1.9 million for 1998, resulted in a net loss for the three months ended October 31, 1998 of CAN$1.8 million, or CAN$0.19 per share compared to CAN$1.3 million, or CAN$0.37 per share, for the three months ended October 31, 1997.
Commenting on the Company's first quarter, President and Chief Executive Officer, Robert Rudman stated, "The first quarter of fiscal 1999 witnessed the continuation of SmarTire's progress in creating a corporate platform to support substantial growth. Having established a solid financial base earlier in 1998 followed by a strategic alliance with TRW Inc., the Company shifted focus to an aggressive product development program and the expansion of SmarTire into Europe. As a result, new tire monitoring products will come on stream in 1999 and a comprehensive marketing strategy will target selective markets throughout North America and Europe."
Added Mr. Rudman, "Our acceptance for listing on the Nasdaq SmallCap Market is an indication of the growth and acceptance SmarTire has recently achieved. We expect to build on this momentum as the year progresses."
SmarTire Systems Inc. is the developer and marketer of proprietary tire monitoring systems for the North American and European automotive aftermarkets. The Company is pursuing the passenger car market segment in response to the introduction of new tire technologies and changing consumer needs. Goodyear, Michelin and Bridgestone/Firestone have all approved the current SmarTire(TM) system for use with their run-flat tires. Through a strategic alliance, SmarTire and TRW Inc. are committed to providing superior tire monitoring systems for both aftermarket and original equipment applications. Additional information is available at www.smartire.com
On behalf of the Board of Directors, Robert V. Rudman, C.A., President and CEO Except for the historical information contained herein, this news release contains forward looking statements that involve risks and uncertainties, including the impact of competitive products and pricing and general economic conditions as they affect the Company's customers. Actual results and developments may therefore differ materially from those described in this release.
SMARTIRE SYSTEMS INC.
Financial Summary
(Expressed in Canadian Dollars)
Three Months Ended October 31 1998 1997
Revenue $ 693,386 $ 320,774
Cost of Goods Sold 589,237 240,494
Gross Profit 104,149 80,280
Expenses 2,119,638 1,123,922
Loss From Operations 2,015,489 1,043,642
Other Expense (Income) (205,642) 301,488
Net Loss $1,809,847 $1,345,130
Loss Per Share $ 0.19 $ 0.37
SMARTIRE SYSTEMS INC.
Balance Sheet Summary
(Expressed in Canadian Dollars)
OCTOBER 31 JULY 31
1998 1998
Cash $ 6,864,613 $ 8,718,258
Other Current Assets 4,427,362 4,060,627
Total Assets $ 12,589,934 $ 14,186,109
Current Liabilities $ 560,576 $ 801,832
Shareholders' Equity 12,029,358 13,384,277
Total Liabilities and
Shareholders' Equity $ 12,589,934 $ 14,186,109
The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this release.