I.D. Systems Revenue Doubles in Third Quarter
19 October 1999
I.D. Systems Revenue Doubles in Third Quarter
NEW YORK, Oct. 19 -- I.D. Systems, Inc. , the
leading designer, developer and marketer of wireless monitoring and tracking
systems, today announced that revenue doubled in the third quarter, ended
September 30, 1999, to a record $1,704,000 versus $861,000 in the same quarter
a year ago. The quarter included an expansion of its customer base with the
addition of Dana Commercial Credit Corporation and reflected additional
deliveries to companies such as Ford Motor and Hallmark Cards. During the
quarter the Company also received follow-on orders from the United States
Postal Service as well as Ford Motor Company.
Gross profit climbed nearly 65% to $790,000 from $479,000 in the
comparable period. Net income was $100,000, or $0.02 cents per basic and
diluted share compared to $115,000 or $0.03 per basic and diluted share for
the 1998 quarter, reflecting greater general and administrative expenses, as
well as increased investments in research and development.
Jeffrey Jagid, Chief Operating Officer of I.D. Systems, reported that
during the quarter the Company began generating revenue from contracts with
Ford Motor Company and Hallmark. In addition, it continued its work under its
contracts with the United States Postal Service, Federal Express Corporation
and Avis Rent-A-Car System.
Jagid noted, "During the third quarter even as revenue increased, the
share of revenue from the U.S. Postal Service dropped to 73% from 98% in the
third quarter a year ago, demonstrating the success of our diversification
strategy. Additionally, Avis completed testing its automated car rental and
return system utilizing I.D. Systems' technology. Initial results are very
encouraging and Avis is now actively evaluating the results of its pilot
program."
Jagid continued, "We are especially gratified by the expansion of I.D.
Systems' customer base in the third quarter, as well as the completion of key
pilot programs that have subsequently led to follow-on orders. With the
addition of deliveries to these customers, we have diversified the
applications of our technology as well as the range of customers. We strongly
believe we have just begun to capitalize on the adaptability of our systems to
fulfilling a variety of needs."
For the nine months, ended September 30, 1999, revenue rose 136% to
$4,213,000 from $1,784,000 in the same period a year ago. For the period, net
income was $117,000, or $0.03 per basic share and $0.02 per diluted share, as
compared to $215,000, or $0.06 per basic and diluted share during the
comparable 1998 period.
Based in New York City, I.D. Systems designs, develops and produces a
wireless monitoring and tracking system which uses radio frequency technology.
Its system can monitor, track, analyze and control the movement of virtually
any object, including vehicles, equipment and packages. Principal customers
to date include the United States Postal Service, Federal Express Corporation,
Avis Rent A Car System, Inc., Ford Motor Corporation, Hallmark Cards, Inc.,
QVC Inc. and World Color Press, 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.
I.D. Systems, Inc.
Condensed Statements of Operations
(unaudited)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
1999 1998 1999 1998
Revenues $1,704,000 $861,000 $4,213,000 $1,784,000
Cost of revenues 914,000 382,000 2,517,000 667,000
Gross profit 790,000 479,000 1,696,000 1,117,000
Selling, general and
administrative expenses 656,000 233,000 1,467,000 654,000
Research and development
expenses 93,000 31,000 149,000 55,000
Income from operations 41,000 215,000 80,000 408,000
Interest income 148,000 6,000 176,000 14,000
Interest expense (18,000) (8,000) (53,000) (25,000)
Income before taxes 171,000 213,000 203,000 397,000
Income tax provision 71,000 19,000 86,000 35,000
Net income - historical $100,000 $194,000 $117,000 $362,000
Historical net income
per share -
basic and diluted
Net income - historical $100,000 $194,000 $117,000 $362,000
Pro forma income taxes -- 79,000 -- 147,000
Pro forma net income $100,000 $115,000 $117,000 $215,000
Pro forma net income
per share - basic $.02 $.03 $.03 $.06
Pro forma net income
per share - diluted $.02 $.03 $.02 $.06
Weighted average
common shares outstanding
- basic income
per share 5,600,000 3,414,000 4,150,000 3,414,000
Effect of potential
common shares from
exercise of options 1,049,000 112,000 1,030,000 112,000
Weighted average
common shares outstanding
- diluted income
per share 6,649,000 3,526,000 5,180,000 3,526,000