IDS ANNOUNCES RECORD EARNINGS AND REVENUE - COMPANY
PREDICTING CONTINUED STRONG GROWTH FOR 1999
TORONTO, ONTARIO--
At its Annual General Meeting today, IDS Intelligent Detection
Systems (IDS) (ISD: Toronto Stock Exchange) described record
revenues for 1998 and the first quarter of 1999, and strong first
quarter earnings, as a result of both the growth strategy and
significant cost savings. First quarter 1999 results showed
revenues of $14.4 million, compared to $0.7 million in 1998, and
net income of $3.235 million, compared to a loss of close to $1
million in 1998. The company is projecting year end revenues of
over $40 million based on the first quarter results.
Dr. Mariusz Rybak, chairman and CEO of IDS Intelligent Detection
Systems told shareholders at the company's Annual General Meeting
today that he expects the company's strong growth trend to
continue through the next year.
"We set ambitious goals for accelerated growth in 1998 and have
delivered in all areas," said Dr. Rybak. "Given that our LTM
revenue up to March 31, 1999 is already over $35 million we are
confident of exceeding our goals. The trends in our business are
clearly on the rise and Q2 revenue, given that the quarter is
almost complete, will put us on track to subsantially surpass our
year-end target."
IDS' balance sheet is also showing strong growth: assets have
grown to over $60 million at the end of 1998 compared to $36
million in 1997. By the end of Q1 1999, assets had grown by
another $8 million to over $68 million. Shareholder's equity was
also up sharply from $17 million in 1997 to more than $54 million
last year and was over $57 million at the end of Q1.
"This translates into a very stable and growing revenue stream,"
stressed Dr. Rybak.
Rybak attributes the company's success to an aggressive growth
strategy put into place in 1998. In the past year the developer
and manufacturer of sophisticated detection systems and devices
has broadened its product offerings to over 70 products and
solutions; expanded its markets to more than 160 organizations
worldwide; achieved significant cost savings through the
acquisition of Scintrex and eliminated over $2 million in
overhead.
Since acquiring Scintrex, IDS has significantly restructured the
company to increase profitability. It restructured Scintrex along
divisional lines making each unit more accountable; reorganized
the three remaining business units separating engineering,
manufacturing, R&D, marketing and distribution along divisional
lines; and, established greater accountability in each division.
"Each of these initiatives has contributed to a new sense of
entrepreneurial energy in this area," said Dr. Rybak.
Rybak also pointed to the company's ability to rapidly shift
gears last year when an expected order of 400 chemical detection
units from the U.S. Federal Aviation Authority failed to
materialize as a result of a spending freeze.
"We moved quickly to turn this setback into an opportunity," says
Rybak. "By leveraging the relationships Scintrex had established
over 40 years, we set out to move into non-regulated markets and
in a few short months have transformed our Analytical and
Security business into a broadly diversified company in terms of
products and customers."
Another significant IDS milestone in 1998 was the receipt of the
first order for the company's Large Vehicle Bomb Detection System
(LVBDS), a complete security solution aimed at protecting high
profile and high risk facilities from the threat of terrorist
activities. The LVBDS is the first of its kind in the world and
can scan an entire vehicle for the presence of a bomb in less
than a minute.
As well, IDS now offers a comprehensive family of explosive and
drug detection products and solutions including the EVD 3000 and
NDS 2000. The EVD 3000 handheld explosives detector came to IDS
with the acquisition of Scintrex and is now the largest installed
base of deployed portable explosives detection products in the
world. Reliability and ease of use make the NDS 2000 drug
detector an important tool in the control of drugs in
communities.
Looking at the year ahead, Dr. Rybak stated that his goals were
to: leverage existing customer relationships and distribution
network; continue to send more revenue to the bottom line;
develop new products and enhance the existing line; and continue
to broaden the markets for core analytical technology.
IDS is a dynamic developer, manufacturer and marketer of
sophisticated detection devices and systems. The company operates
through seven business units: Analytical and Security products
and solutions; IDS Power Control System; Scintrex Earth Science
Instrumentation; Survey and Exploration Technology Services; IEC
and ChemiCorp International. Its more than 70 products range from
drug and explosive detectors to nuclear safety control
instruments, airborne and ground geophysical survey services,
geophysical instrumentation for mineral, oil and gas exploration
and developing technologies for industrial process control and
point-of-care health analysis.
IDS's Internet web site is located at www.idsdetection.com
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For more information:
Dr. Mariusz Rybak
CEO, President
Intelligent Detection Systems, Inc.
Sanje Ratnavale
CFO
(416) 214-6726 |
