I.D. Systems Reports Record Second Quarter Revenue, Up 192%
Milestone Quarter As Federal Express Contract Revenue
Signals Major Customer-Base Diversification
NEW YORK, Aug. 18 /PRNewswire/ -- I.D. Systems, Inc. (Nasdaq: IDSY), a
designer, developer and marketer of wireless monitoring and tracking systems,
today announced record revenue for the second quarter ended June 30, 1999,
which rose 192% to a record $1,494,000 from $512,000 in the like period a year
ago. Net income was $15,000, or zero cents per share, versus $103,000 or
$0.02 a share, for the same quarter last year.
Jeffrey Jagid, Chief Operating Officer of I.D. Systems noted that during
the last two months of the quarter the company began receiving payments on its
new $700,000 contract from Federal Express, the beginning of what the company
believes will be a major expansion of its customer base.
He said Federal Express would pay the remainder of the contract during the
year, and that I.D. Systems expects to begin recording revenue from other new
contracts during 1999, signaling a widening acceptance of its unique
technology. He noted that the FedEx contract was for installation of an
automated fleet management system for vehicles in FedEx's primary air hub in
Memphis, TN.
Jagid explained that higher revenue for the quarter from the United States
Postal Service was offset by cost of revenue attributed to hardware deliveries
as part of its $6.7 million pilot contract for tracking letters. He said the
company viewed the increased cost of revenue on the postal contract during the
quarter plus higher expenditures for sales, general and administrative
expenses and higher outlays for research and development as strategic building
blocks for future growth.
"We are very pleased with the progress I.D. Systems made in the second
quarter. The revenue from Federal Express, we believe marks a major milestone
in the growth of our company and the diversification of our customer base,
marking the adaptability of our systems to fulfill a variety of needs."
For the six months ended June 30, revenue rose 172% to $2,509,000 from
$923,000 in the same period a year ago. For the period, earnings were
$17,000 or zero cents per share, versus $168,000, or $0.03 a share a year ago.
This decrease was due primarily to the reasons cited earlier.
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 are 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 FY 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 Six Months Ended
June 30, June 30,
1999 1998 1999 1998
Revenues $1,494,000 $512,000 $2,509,000 $923,000
Cost of revenues 97,000 175,000 1,603,000 285,000
Gross profit 497,000 337,000 906,000 638,000
Selling, general and
administrative expenses 419,000 202,000 811,000 421,000
Research and development
expenses 56,000 19,000 56,000 24,000
Income from operations 22,000 116,000 39,000 193,000
Interest income 13,000 5,000 28,000 8,000
Interest expense (7,000) (8,000) (35,000) (17,000)
Income before taxes 28,000 113,000 32,000 184,000
Income tax provision 13,000 10,000 15,000 16,000
Net income - historical $15,000 $103,000 $17,000 $168,000
Historical net income per share
- basic and diluted
Net income - historical -- $103,000 -- $168,000
Pro forma income taxes -- 42,000 -- 68,000
Pro forma net income -- $61,000 -- $100,000
Pro forma net income per share
- basic and diluted $.00 $.02 $.00 $.03
Weighted average common
shares outstanding -
basic income per share 3,414,000 3,414,000 3,414,000 3,414,000
Effect of potential common
shares from exercise of
options 1,045,000 112,000 1,017,000 112,000
Weighted average common
shares outstanding -
diluted income
per share 4,459,000 3,526,000 4,431,000 3,526,000
SOURCE I.D. Systems, Inc.
CO: I.D. Systems, Inc.
ST: New York
IN: CPR TRN
SU: ERN
08/18/99 07:00 EDT prnewswire.com |
