SAMSys Technologies Reports 2005 Q2 Financial Results and Holds Investor Conference Call
Stock Symbol: SMY
Listing: Toronto Stock Exchange (TSX)
Outstanding Shares: 47.7 Million
Web Site: www.samsys.com
TORONTO, May 12 /CNW/ - SAMSys Technologies Inc., ("SAMSys"), (SMY:TSX),
www.samsys.com, of Toronto, an international provider of Radio Frequency
Identification (RFID) reader hardware and consulting services, today reports
on the Company's unaudited 2005 financial results for the three and six month
periods ended March 31, 2005.
Q2 Highlights:
- SAMSys achieved sales in second quarter 2005 of $1,005,342, an
increase of 57% over second quarter of 2004.
- SAMSys announced a RFID solutions partnership with Microsoft
- SAMSys announced RFID hardware deployment at Bradshaw International
for Wal-Mart RFID compliance project.
<<
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3-Month 3-Month 6-Month 6-Month
Ending Ending Ending Ending
Consolidated Financial March 31, March 31, March 31, March 31,
Statement - unaudited 2005 2004 2005 2004
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Revenues $1,005,342 $639,428 $2,408,767 $912,593
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Gross profit $430,682 $342,903 $993,145 $490,343
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Net income (loss) ($2,724,842) ($1,716,743) ($5,366,824) ($3,181,351)
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Earnings (loss)
per share ($0.06) ($0.04) ($0.11) ($0.07)
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Weighted average of
outstanding shares 47,752,005 44,273,858 47,705,165 42,675,342
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Total revenue for the second quarter of fiscal 2005 was $1,005,342
compared to $639,428 for the second quarter of fiscal 2004, representing an
increase of 57%. The majority of revenues were derived from the sale of RFID
reader hardware products into pilot/evaluation projects both through SAMSys'
VAR partners and direct to end-users. The Company's MP9320 multi-protocol
Ultra-High Frequency ("UHF") reader was the biggest contributor to reader
sales due to this product's suitability for logistics applications requiring
the simultaneous reading of a large number of passive tags. Also a contributor
to second quarter revenues was the UHF OEM module, a single port reader,
specifically designed for manufacturers of thermal transfer barcode printers,
laser printers and printer applicator designs for the supply chain and
manufacturing markets. Production units of the UHF OEM Module began to ship to
customers in the last half of the second quarter of fiscal 2005.
The Company recorded a quarter-to-quarter decrease in sales in the second
quarter of fiscal 2005 as compared to the first quarter of fiscal 2005. The
primary reason for the decrease was temporary diminished demand in the RFID
supply chain market at the beginning of the second quarter as a result of a
number of issues including regulatory and intellectual property concerns. In
addition, with the ratification of the Generation 2 Electronic Product Code in
December 2004 and its submission to the International Standards Organization
in January 2005 for their review, a number of companies delayed their pilot
and evaluation projects until hardware vendors could demonstrate their ability
to provide product capable of interrogating Generation 2 tags. In April of
2005, the Company debuted its new MP9320 v2.8 UHF Fixed reader that is capable
of reading tags that conform to the new EPC Generation 2 standard.
The Company has witnessed a marked increase in the volume and value of
orders over the months of March and April of 2005 and recorded record bookings
in terms of orders received for those months. In the second half of Q2 fiscal
2005, the Company began to ship production units of its UHF OEM reader module,
which Management expects will have a further positive effect on the growth of
revenue for the remainder of Fiscal 2005 and for Fiscal 2006.
Gross margin increased to 42.8% in the second quarter of fiscal 2005 from
40.1% in the first quarter of fiscal 2005 and a low of 35.8% in the fourth
quarter of fiscal 2004. The lower margin in fiscal 2004 was partially
attributable to a pilot project that involved the procurement of various RFID
reader accessories, which were invoiced at a lower profit margin.
Management expects gross margin to continue to improve as the Company
integrates the expanded functionality into its product architecture,
introduces new higher margin products to its suite of RFID readers (e.g.
embedded reader modules). The Company has also completed negotiations with its
contract manufacturers in connection with the future builds of higher volumes
of all of its reader products, and which the Company believes will serve to
further improve profit margins.
In the second quarter fiscal 2005, SAMSys recorded a net loss of
$2,724,842 ($0.06 loss per share) compared to a net loss of $1,716,743 ($0.04
loss per share) in the same period for fiscal 2004. The increase in net loss
was largely due to overall staffing levels, which increased to 44 employees as
of March 31, 2005 compared to 30 as of March 31, 2004, an increase of 47%. The
addition of staff resulted in an increase in recruitment and relocation costs
along with general operating expenses associated with an increase in
personnel.
Research and development expenses increased for the three months ended
March 31, 2005 as the full cost of staff additions made during the first
quarter were realized in the second quarter. In addition, the Company had a
number of development projects converge in the second quarter of fiscal 2005
including the continued development of its OEM reader modules as well as the
most recent version of its UHF fixed reader.
As of March 31, 2005, the Company reports cash and short-term investments
of $7,289,358 and has no debt other than trade payables.
SAMSys' unaudited financial statements for the three and six-month
periods ending March 31, 2005 will be posted today prior to 11:00am EST on the
Company's website www.samsys.com in Investor Information section.
Outlook:
"SAMSys continues to execute on its long range strategy and remains
committed to the philosophy and concepts which has been its traditional
driving force. Technology improvements, product enhancements, increased market
presence, growing brand equity and expanded strategic relationships continue
to dominate the focus of Management. We continue to seek and strengthen all
possible channels to market and have demonstrated our willingness and desire
to partner with others in order to fully optimize the RFID deployment
opportunity. These efforts have resulted in unparalleled distribution and
representation in all of the key global markets, and we believe this
represents a significant competitive advantage," said Cliff Horwitz, CEO of
SAMSys.
Horwitz continues, "The RFID Industry as a whole is undergoing widespread
redefinition in virtually every market - both from a protocol standards
perspective as well as revised radio regulations. The technological challenges
are significant in order to meet all of these demands, and I am proud of what
we have been able to accomplish in this regard, while still continuing to
deliver product which meets current functional requirements. There is little
doubt that we will continue to witness dramatic further refinement in our
product performance and flexibility. Our reputation as a leader in this sphere
is growing and is being vindicated through the acceptance we are now seeing in
both our fixed reader and OEM module offerings. It is for this reason that the
principal allocation of resources continues to be dedicated to Research and
Development, as this represents the greatest opportunity for critical
differentiation."
Horwitz continues, "There is no denying that availability of standardized
product caused the market to take a pause during the period under review. This
hiatus was temporary and we have witnessed a return to strong and increasing
demand. The recent ratification of the EPC Generation 2 protocol specification
is expected to be a catalyst for the adoption of RFID technology, and we are
responding with product capable of supporting this new protocol. We will
ensure that we leverage our presence in each of the markets we serve and
remain optimistic that this strategy will result in just rewards for our
stakeholders."
Investor Conference Call:
A conference call and web cast of this event to review the 2005 Q2
results will take place today May 12th, 2005 beginning at 11:00am EST.
Mr. Cliff Horwitz, President & CEO of SAMSys and Mr. George Kypreos, CFO
of SAMSys will speak on behalf of the Company. A question-and-answer forum
will follow the review of the 2005 Q2 financial results and update on the
Company's operations and growth strategies.
To listen and/or participate in this conference call, please dial
1-800-814-4941 (from Toronto: 416-640-1907) approximately 10 minutes prior to
the beginning of the conference call.
The investor conference call can also be heard over the Internet through
a web cast by visiting www.samsys.com or through a direct URL link:
newswire.ca.
For those unable to participate in the conference call, a recording of
the conference call will be available from 1:00 p.m. EST, Thursday May 12,
2005, until 11:59 p.m. EST, Thursday May 19, 2005. Please dial 1-877-289-8525
(from Toronto: 416-640-1917) and enter the reservation number 21123867
followed by the number sign to listen to the rebroadcast.
The web cast will be archived for 90 days following the day of investor
conference call. Visit the "Investor Relations" section of SAMSys website at
samsys.com for a replay link. |
