HACKENSACK, N.J., Nov. 3, 2009 (GLOBE NEWSWIRE) -- I.D. Systems, Inc.
(Nasdaq:IDSY) today announced its financial results for the third quarter of
2009. Revenues for the three months ended September 30, 2009 were $1.8 million,
compared to $9.3 million for the three months ended September 30, 2008. Gross
margin was 48.8%, compared to 51.1% for the third quarter of 2008. Net loss for
the quarter was $3.0 million, or ($0.27) per basic and diluted share, compared
to net income of $619,000, or $0.06 per basic and diluted share, for the third
quarter of 2008.
Non-GAAP net loss for the quarter was $2.5 million, or ($0.22) per basic and
diluted share, compared to non-GAAP net income of $1.3 million, or $0.12 per
basic share and $0.11 per diluted share, for the third quarter of 2008. Non-GAAP
results were calculated by adjusting GAAP net income (loss) for the impact of
stock-based compensation, which was $559,000 for the third quarter of 2009 and
$665,000 for the third quarter of 2008. A table entitled "Reconciliation of GAAP
to Non-GAAP Financial Measures" is included in this press release.
Jeffrey Jagid, I.D. Systems' chairman and chief executive officer, said,
"Cautionary technology spending in the industrial marketplace continued to
impact our ability to close business in the short term. Our strong results in
the third quarter a year ago were driven by a large order for our wireless
industrial vehicle management system by one of our core customers. We did not
meet our goals for closing orders of similar magnitude in the third quarter this
year.
"However, in the third quarter, we did successfully pursue the strategic
acquisition of didBOX Ltd, a manufacturer and marketer of vehicle operator
identification systems based in the United Kingdom, which we closed and
announced on October 19, 2009. This acquisition expands I.D. Systems' base of
operations in Europe, gives us immediate access to a broader base of European
customers, and provides us with a wider array of solution options for prospects
in the industrial vehicle management market.
"In addition, our efforts to expand two key applications of our wireless
technology -- managing airport vehicles and rental fleets -- continued to
progress in the third quarter. American Eagle Airlines took steps to expand
their use of our wireless technology, following initial system deployment at
Dallas-Fort Worth International Airport earlier this year. And we laid the
groundwork to launch a new generation of our patented wireless rental fleet
management technology for a leading U.S. rental car company -- a deal we
consummated in September, 2009, when we entered into a multi-year, seven-figure
system implementation contract.
"Our balance sheet remains strong," concluded Mr. Jagid. "As of September 30,
2009, I.D. Systems had $64.3 million in cash, cash equivalents and marketable
securities, and $49.4 million of working capital."
For the three months ended September 30, 2009, selling, general and
administrative expenses decreased 6.8% to $3.6 million, compared to $3.9 million
for the third quarter in 2008. Excluding stock based compensation, selling,
general and administrative expenses for the third quarter of 2009 were $3.2
million, down sequentially from $3.4 million in the second quarter and $3.8
million in the first quarter of 2009. I.D. Systems' management continues to
focus on cost controls without diminishing investment in growth opportunities.
Research and development expenditures decreased 4.5% to $642,000 for the third
quarter of 2009, compared to $672,000 for the corresponding period in 2008.
For the nine-month period ended September 30, 2009, revenues were $7.5 million,
compared to $19.1 million for the nine months ended September 30, 2008. This
decrease was primarily attributable to a $7.5 million decrease in revenue from
the U.S. Postal Service, due to a spending freeze, and a $5.9 million decrease
in revenue from Wal-Mart Stores, Inc., partially offset by increased revenue
from other customers. Gross profit margin for the nine-month period was 53.1%,
compared to 50.9% for the comparable period in 2008. Net loss for the nine-month
period was $8.4 million, or ($0.77) per basic and diluted share, compared to net
loss of $2.9 million, or ($0.27) per basic and diluted share, for the first nine
months of 2008.
Non-GAAP net loss for the nine months ended September 30, 2009, was $6.8
million, or ($0.62) per basic and diluted share, adjusting for $1.6 million in
stock-based compensation expenses. For the corresponding period in 2008,
non-GAAP net loss was $636,000, or ($0.06) per basic and diluted share,
adjusting for $2.3 million in stock-based compensation expenses. A table
entitled "Reconciliation of GAAP to Non-GAAP Financial Measures" is included in
this press release.
For the nine months ended September 30, 2009, selling, general and
administrative expenses decreased 6.7% to $11.6 million, compared to $12.4
million for the same period in 2008. Research and development expenditures for
the period decreased 3.3% to $2.0 million, compared to $2.1 million for the nine
months ended September 30, 2008.
Highlights of the quarter ended September 30, 2009, included:
* The selection of I.D. Systems' PowerFleet(TM) Vehicle Management
System for initial deployment by:
-- Nestle Beverage, a division of Nestle S.A., the world's
largest food company, following the successful launch of the
PowerFleet system at another Nestle division, Nestle Waters
North America, in the second quarter of 2009;
-- Procter & Gamble Manufacturing GmbH, a subsidiary of Procter
& Gamble Co.;
-- Chevron Global Lubricants, a division of Chevron Corp.;
-- One of the world's largest grocery retailers and
distributors, with dozens of distribution centers across the
U.S.;
-- Lamb Weston, a leading provider of potatoes and other food
products to the foodservice and retail industries, and a
division of ConAgra Foods; and
-- Regal-Beloit Corporation, a leading manufacturer of motion
control and power generation products serving global markets.
* The award of a multi-year, seven-figure contract to I.D. Systems by
a leading U.S. rental car company to develop and deploy rental fleet
management technologies, with fixed monthly billing expected to
commence in the first quarter of fiscal 2010.
Investor Conference Call
I.D. Systems will hold a conference call for investors and analysts at 4:45 p.m.
Eastern Time on November 3, 2009. Jeffrey Jagid, chairman and CEO, will lead a
discussion on the results of the quarter and recent developments. After opening
remarks, there will be a question and answer period. The conference call will be
broadcast live via the Investors section of the Company's website at
www.id-systems.com. To listen to the live call, go to the website at least 10
minutes early to download and install any necessary audio software. If you are
unable to listen live, the conference call will be archived on the Investors
section of the Company's website for approximately 90 days.
Non-GAAP Measures
To supplement its financial statements presented in accordance with GAAP, I.D.
Systems provides certain non-GAAP measures of financial performance. These
non-GAAP measures include non-GAAP net income/loss and non-GAAP net income/loss
per basic and diluted share. Reference to these non-GAAP measures should be
considered in addition to results prepared under current accounting standards,
but are not a substitute for, or superior to, GAAP results. These non-GAAP
measures are provided to enhance investors' overall understanding of I.D.
Systems' current financial performance and provide further comparative
information due to the adoption of the Financial Accounting Standards Board's
Accounting Standards Codification ASC 718 Compensation -- Stock Compensation.
Specifically, I.D. Systems believes the non-GAAP measures provide useful
information to both management and investors by excluding certain expenses,
gains and losses that may not be indicative of its core operating results and
business outlook. Reconciliation to the nearest GAAP measure of all non-GAAP
measures included in this press release can be found in the financial tables
included in this press release.
About I.D. Systems
Based in Hackensack, New Jersey, with subsidiaries in Germany and the United
Kingdom, I.D. Systems is a leading provider of wireless solutions for managing
and securing high-value enterprise assets, including industrial vehicles, such
as forklifts and airport ground support equipment, and rental vehicles. The
Company's patented technology, which utilizes radio frequency identification, or
RFID, technology, addresses the needs of organizations to control, track,
monitor and analyze their assets. For more information, visit
www.id-systems.com.
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of
1995
This press release contains forward looking statements that are made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995, such as the Company's outlook for 2009 financial results and prospects for
additional customers and revenues. Forward-looking statements include statements
with respect to our beliefs, plans, objectives, goals, expectations,
anticipations, assumptions, estimates, intentions, and future performance, and
involve known and unknown risks, uncertainties and other factors, which may be
beyond our control, and which may cause our actual results, performance or
achievements to be materially different from future results, performance or
achievements expressed or implied by such forward-looking statements. All
statements other than statements of historical fact are statements that could be
forward-looking statements. These forward-looking statements are subject to
risks and uncertainties, including, but not limited to, future economic and
business conditions, the loss of any of the Company's key customers or reduction
in the purchase of its products by any such customers, the failure of the market
for the Company's products to continue to develop, the inability to protect the
Company's intellectual property, the inability to manage the Company's growth,
the effects of competition from a wide variety of local, regional, national and
other providers of wireless solutions and other risks detailed from time to time
in the Company's filings with the Securities and Exchange Commission, including
the Company's annual report on Form 10-K for the year ended December 31, 2008.
These risks could cause actual results to differ materially from those expressed
in any forward-looking statements made by, or on behalf of, the Company. The
Company assumes no obligation to update the information contained in this press
release, and expressly disclaims any obligation to do so.
I.D. Systems, Inc. and Subsidiary
GAAP Condensed Consolidated Statements of Operations Data
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
------------------------ ------------------------
2008 2009 2008 2009
----------- ----------- ----------- -----------
Revenue:
Products $ 7,360,000 $ 1,218,000 $14,084,000 $ 4,367,000
Services 1,977,000 623,000 5,041,000 3,093,000
----------- ----------- ----------- -----------
9,337,000 1,841,000 19,125,000 7,460,000
Cost of Revenue:
Cost of products 3,622,000 603,000 6,836,000 2,291,000
Cost of services 948,000 339,000 2,545,000 1,209,000
----------- ----------- ----------- -----------
4,570,000 942,000 9,381,000 3,500,000
Gross Profit 4,767,000 899,000 9,744,000 3,960,000
Selling, general
and administrative
expenses 3,910,000 3,644,000 12,449,000 11,619,000
Research and
development
expenses 672,000 642,000 2,091,000 2,022,000
----------- ----------- ----------- -----------
Income (loss) from
operations 185,000 (3,387,000) (4,796,000) (9,681,000)
Interest income 434,000 284,000 1,853,000 913,000
Interest expense -- (44,000) -- (87,000)
Other income -- 110,000 -- 422,000
----------- ----------- ----------- -----------
Net income (loss) $ 619,000 $(3,037,000) $(2,943,000) $(8,433,000)
=========== =========== =========== ===========
Net income (loss)
per share - basic
and diluted $ 0.06 $ (0.27) $ (0.27) $ (0.77)
=========== =========== =========== ===========
Weighted average
common shares
outstanding -
basic 10,915,000 11,075,000 10,885,000 10,963,000
=========== =========== =========== ===========
Weighted average
common shares
outstanding -
diluted 11,175,000 11,075,000 10,885,000 10,963,000
=========== =========== =========== ===========
I.D. Systems, Inc. and Subsidiary
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
Three Months Three Months Nine Months Nine Months
Ended Ended Ended Ended
September 30, September 30, September 30, September 30,
2008 2009 2008 2009
Net income
(loss)
attributable
to common
stockholders $ 619,000 $ (3,037,000) $ (2,943,000) $ (8,433,000)
Stock-based
compensation 665,000 559,000 2,307,000 1,617,000
------------ ------------ ------------ ------------
Non-GAAP income
(loss) $ 1,284,000 $ (2,478,000) $ (636,000) $ (6,816,000)
============ ============ ============ ============
Non-GAAP net
income (loss)
per share -
basic $ 0.12 $ (0.22) $ (0.06) $ (0.62)
Non-GAAP net
income (loss)
per share -
diluted $ 0.11 $ (0.22) $ (0.06) $ (0.62)
I.D. Systems, Inc. and Subsidiary
Condensed Consolidated Balance Sheet Data
December 31, 2008* September 30, 2009
ASSETS (Unaudited)
------------------ -------------------
Cash and cash equivalents $ 12,558,000 $ 14,496,000
Restricted cash 230,000 --
Investments - short term 8,550,000 39,861,000
Accounts receivable, net 8,245,000 1,938,000
Unbilled receivables 168,000 248,000
Inventory, net 3,273,000 5,596,000
Interest receivable 217,000 245,000
Prepaid expenses and other
current assets 261,000 611,000
------------------ -------------------
Total current assets 33,502,000 62,995,000
Investments - long term 34,911,000 9,945,000
Fixed assets, at cost 2,873,000 2,900,000
Less: Accumulated
depreciation (1,823,000) (1,900,000)
------------------ -------------------
Net Fixed Assets 1,050,000 1,000,000
Goodwill 200,000 200,000
Other intangible assets 178,000 178,000
Other assets 107,000 --
------------------ -------------------
$ 69,948,000 $ 74,318,000
================== ===================
LIABILITIES
Accounts payable and accrued
expenses $ 2,175,000 $ 599,000
Line of credit -- 12,643,000
Deferred revenue 424,000 364,000
------------------ -------------------
Total current liabilities 2,599,000 13,606,000
Deferred revenue 231,000 517,000
Deferred rent 33,000 17,000
------------------ -------------------
Total liabilities 2,863,000 14,140,000
------------------ -------------------
STOCKHOLDERS' EQUITY
Preferred stock; authorized
5,000,000 shares, $.01 par
value; none issued -- --
Common stock: authorized
50,000,000 shares, $.01 par
value; 12,082,000 and
12,284,000 shares issued at
December 31, 2008 and
September 30, 2009,
respectively; 10,893,000 and
11,075,000 shares
outstanding at December 31,
2008 and September 30, 2009,
respectively. 120,000 120,000
Additional paid-in capital 101,437,000 103,056,000
Accumulated deficit (23,667,000) (32,100,000)
Accumulated other
comprehensive income 46,000 18,000
------------------ -------------------
77,936,000 71,094,000
Treasury stock; 1,189,000
shares and 1,209,000 shares
at cost at December 31, 2008
and September 30, 2009,
respectively (10,851,000) (10,916,000)
------------------ -------------------
Total stockholders' equity 67,085,000 60,178,000
------------------ -------------------
Total liabilities and
stockholders' equity $ 69,948,000 $ 74,318,000
================== ===================
*Derived from audited balance sheet as of December 31, 2008
I.D. Systems, Inc. and Subsidiary
Condensed Consolidated Statements of Cash Flow Data
(Unaudited)
Nine months ended
September 30,
----------------------------
2008 2009
------------ ------------
Cash flows from operating activities:
Net loss $ (2,943,000) $ (8,433,000)
Adjustments to reconcile net loss to
cash used in operating activities:
Inventory reserve 126,000 --
Bad debt expense -- (132,000)
Accrued interest income (117,000) (28,000)
Stock-based compensation expense 2,307,000 1,617,000
Depreciation and amortization 340,000 404,000
Change in fair value of investments -- (422,000)
Deferred rent expense (16,000) (16,000)
Deferred revenue 545,000 226,000
Changes in:
Restricted cash -- 230,000
Accounts receivable (6,830,000) 6,439,000
Unbilled receivables (318,000) (80,000)
Inventory 2,031,000 (2,323,000)
Prepaid expenses and other assets (126,000) (243,000)
Accounts payable and accrued expenses (764,000) (1,641,000)
----------------------------
Net cash used in operating
activities (5,765,000) (4,402,000)
----------------------------
Cash flows from investing activities:
Purchase of fixed assets (60,000) (354,000)
Business acquisition (573,000) --
Purchase of investments (21,163,000) (46,134,000)
Maturities of investments 31,917,000 40,183,000
----------------------------
Net cash provided by (used in)
investing activities 10,121,000 (6,305,000)
----------------------------
Cash flows from financing activities:
Repayment of term loan (19,000) --
Proceeds from exercise of stock options 1,377,000 2,000
Purchase of treasury shares (4,094,000) --
Borrowing on line of credit -- 12,900,000
Principal payments on line of credit -- (257,000)
----------------------------
Net cash (used in) provided by
financing activities (2,736,000) 12,645,000
----------------------------
Net increase in cash and cash
equivalents 1,620,000 1,938,000
Cash and cash equivalents - beginning of
period 5,103,000 12,558,000
----------------------------
Cash and cash equivalents - end of
period $ 6,723,000 $ 14,496,000
============ ============
Supplemental disclosure of cash flow
information:
Cash paid for:
Interest $ -- $ 87,000
============ ============
Non-cash activities:
Unrealized loss on investments $ (424,000) $ (28,000)
============ ============
Shares withheld pursuant to stock
issuances $ -- $ 65,000
============ ============
-0-
CONTACT: I.D. Systems, Inc.
Ned Mavrommatis, CFO
201-996-9000
Fax: 201-996-9144
ned@id-systems.com
