I.D. SYSTEMS RECEIVES ALLOWANCE OF PATENT ON REMOTE VEHICLE RENTAL SYSTEM

Woodcliff Lake, NJ, May 21, 2015—I.D. Systems, Inc. (NASDAQ: IDSY), a leading provider of wireless solutions for the Industrial Internet of Things, has received a notice of allowance from the United States Patent and Trademark Office for a patent on a remote vehicle rental system. The system incorporates unique methods for enabling access to a vehicle remotely, utilizing a device connected to a vehicle’s control system via a standard OBD-II diagnostic port. The vehicle-mounted device communicates with portable electronic devices, such as smart phones, via short-range radio frequency, including Bluetooth®, to enable authorized renters to unlock the vehicles’ doors and energize the vehicle through various access control methods.
“This will be I.D. Systems’ fourth patent pertaining specifically to wireless rental car management,” said Kenneth Ehrman, I.D. Systems’ chairman and CEO. “Our solutions for rental car management are designed to make it easier for rental companies to set up and manage remote, unmanned rental locations with low infrastructure costs. We believe this latest addition to our intellectual property portfolio will significantly enhance our competitive advantages in our rental fleet management business.”
About I.D. Systems
Headquartered in Woodcliff Lake, New Jersey, with subsidiaries in Texas, Germany, and the United Kingdom, I.D. Systems, Inc. is a leading global provider of wireless M2M solutions for the Industrial Internet of Things. The company’s patented technology secures, controls, tracks, and manages high-value enterprise assets, including industrial vehicles, rental cars, trailers, containers, and cargo. The company’s solutions address the needs of organizations to monitor and analyze their assets to increase efficiency and productivity, reduce costs, and improve profitability. I.D. Systems holds more than 75 patents related to its wireless solutions and has deployed VMS systems in more than 20 countries around the world. For more information, please visit idsy2019.wpengine.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward looking statements within the meaning of federal securities laws. Forward-looking statements include statements with respect to I.D. Systems’ beliefs, plans, goals, objectives, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond I.D. Systems’ control, and which may cause its 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. For example, forward-looking statements include statements regarding: prospects for additional customers; potential contract values; market forecasts; projections of earnings, revenues, synergies, accretion or other financial information; emerging new products; and plans, strategies and objectives of management for future operations, including growing revenue, controlling operating costs, increasing production volumes, and expanding business with core customers. The risks and uncertainties referred to above include, but are not limited to, future economic and business conditions, the loss of key customers or reduction in the purchase of products by any such customers, the failure of the market for I.D. Systems’ products to continue to develop, the possibility that I.D. Systems may not be able to integrate successfully the business, operations and employees of acquired businesses, the inability to protect I.D. Systems’ intellectual property, the inability to manage growth, the effects of competition from a variety of local, regional, national and other providers of wireless solutions, and other risks detailed from time to time in I.D. Systems’ filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2014. These risks could cause actual results to differ materially from those expressed in any forward looking statements made by, or on behalf of, I.D. Systems. Unless otherwise required by applicable law, I.D. Systems assumes no obligation to update the information contained in this press release, and expressly disclaims any obligation to do so, whether as a result of new information, future events or otherwise.

I.D. SYSTEMS TO SPEAK AT 43RD ANNUAL COWEN AND COMPANY TECHNOLOGY, MEDIA & TELECOM CONFERENCE ON MAY 27, 2015

Woodcliff Lake, NJ, May 19, 2015—I.D. Systems, Inc. (NASDAQ: IDSY), a leading provider of wireless solutions for the Industrial Internet of Things, has been invited to participate in a panel discussion on “Understanding M2M Evolution and IoT Convergence” at Cowen and Company’s 43rd Annual Technology, Media & Telecom Conference. The event will be held on May 27-28, 2015, at The New York Palace Hotel in New York City.
I.D. Systems’ chairman and CEO, Kenneth Ehrman, is scheduled to participate on the panel on Wednesday, May 27, 2015, at 11:00 a.m. Eastern time, with one-on-one meetings held throughout the day.
For additional information or to schedule a one-on-one meeting with I.D. Systems’ management, please contact your Cowen representative.
About I.D. Systems
Headquartered in Woodcliff Lake, New Jersey, with subsidiaries in Texas, Germany, and the United Kingdom, I.D. Systems, Inc. is a leading global provider of wireless M2M solutions for the Industrial Internet of Things. The company’s patented technology secures, controls, tracks, and manages high-value enterprise assets, including industrial vehicles, rental cars, trailers, containers, and cargo. The company’s solutions address the needs of organizations to monitor and analyze their assets to increase efficiency and productivity, reduce costs, and improve profitability. I.D. Systems holds more than 75 patents related to its wireless solutions and has deployed VMS systems in more than 20 countries around the world. For more information, visit idsy2019.wpengine.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward looking statements within the meaning of federal securities laws. Forward-looking statements include statements with respect to I.D. Systems’ beliefs, plans, goals, objectives, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond I.D. Systems’ control, and which may cause its 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. For example, forward-looking statements include: statements regarding prospects for additional customers; market forecasts; potential barriers to competition; projections of earnings, revenues, synergies, accretion or other financial information; expectations for growth of the business; and plans, strategies and objectives of management for future operations. The risks and uncertainties referred to above include, but are not limited to, future economic and business conditions, the loss of key customers or reduction in the purchase of products by any such customers, the failure of the market for I.D. Systems’ products to continue to develop, the possibility that I.D. Systems may not be able to integrate successfully the business, operations and employees of acquired businesses, the inability to protect I.D. Systems’ intellectual property, the inability to manage growth, the effects of competition from a variety of local, regional, national and other providers of wireless solutions, and other risks detailed from time to time in I.D. Systems’ filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2014. These risks could cause actual results to differ materially from those expressed in any forward looking statements made by, or on behalf of, I.D. Systems. I.D. Systems assumes no obligation to update the information contained in this press release, and expressly disclaims any obligation to do so, whether as a result of new information, future events or otherwise.

TRAILER & CARGO TRACKING SYSTEM PROVIDES MULTIPLE BENEFITS FOR LOGISTICS ONE

Woodcliff Lake, NJ, and Plano, TX, May 13, 2015—Asset Intelligence, a subsidiary of I.D. Systems, Inc. (NASDAQ: IDSY), a leading provider of wireless solutions for the Industrial Internet of Things, has executed a contract with Logistics One, Inc., to deploy its VeriWise™ Dry Van tracking and management system on Logistics One’s fleet of 300 trailers. The term of the contract is five years.
The contract was awarded after a 60-day pilot deployment. During the pilot, the VeriWise system demonstrated multiple benefits for Logistics One, including accurate trailer load status for more efficient dispatching, reduced trailer dormancy, elimination of trailer yard checks, identification of trailers being used for storage, and more efficient fleet maintenance management.
“The VeriWise Dry Van tracking system captures powerful, actionable data on our trailers and their cargo, including real-time location and accurate loaded/unloaded status,” said Tom Moss, Logistics One’s Director of Transportation. “We will use the data to drive process changes, which we expect will significantly reduce trailer dormancy and increase the revenue capacity of our existing fleet by hundreds of trailer-days per month.”
Logistics One provides integrated warehousing, transportation and freight brokerage services throughout the northeastern United States and Canada. The company specializes in efficient, cost-effective distribution solutions for the food, beverage and paper industries.
“We are providing Logistics One with state-of-the-art trailer tracking technology—our GSM-D300 system, which combines a patented light sensor with a full trailer-length cargo sensor,” said Norman Ellis, I.D. Systems’ COO. “Based on the effectiveness of the initial deployment of the base system, Logistics One has also asked us to integrate tire inflation sensing into the system. We look forward to continue working with Logistics One to help them deliver best-in-class transportation solutions for their customers.”
Features of the VeriWise GSM-D300 VeriWise™ Dry Van Cellular tracking and management system include:

  • One person can install the system in 20-30 minutes.
  • Real-time location tracking via GPS triggers automatic notifications when exception events occur.
  • Even when a trailer is disconnected from a tractor, the system will still report data (for up to 5 months).
  • The system’s patented light sensor functions like a wired door sensor—without the installation cost or risk of damage to exposed cables.
  • The system meets rigorous IP69K and SAE J1455 environmental standards.
  • A 7-way tractor power connection ensures reliable charging of the system’s 5-year battery.
  • The system can be swapped quickly and easily from trailer to trailer.
  • Advanced fleet data analytics are also offered, as an option.

About VeriWise™ Solutions
VeriWise asset tracking systems combine sensor, wireless, and web technologies to provide real-time visibility and control of trailers and their cargo. The systems automatically identify, analyze, and respond to critical transportation issues to improve the efficiency and security of logistics operations.
VeriWise Intermodal container management system helps increase asset utilization and reduce transit cycle times. The system enables visibility and control of containers from the seaport to the rail yard and ultimately to the final destination, marking loading and unloading events, which helps increase shipments and revenue per container.
VeriWise Chassis tracking system provides visibility to chassis location and loaded/unloaded status. The system also captures gate times/locations and container mount times/locations to start and stop the billing clock, resulting in high data reliability and more accurate billing.
VeriWise Dry Van is an advanced trailer monitoring system with patented full-length cargo detection sensors and solar charging technology. The system reports reliable, uninterrupted trailer location and loaded/ unloaded status—even if the trailer is disconnected from tractor power for an extended period—designed for faster trailer turns, increased asset utilization, improved cargo security, and optimal fleet efficiency.
VeriWise Track & Trace is a low-cost, easy-to-deploy, asset tracking system that provides real-time data to improve the efficiency and security of trailer and container fleets. It is designed for quick, easy, flexible installation on a wide range of cargo-carrying assets, with patented power management technology to provide exceptionally long battery life and years of maintenance-free operation.
About I.D. Systems and Asset Intelligence
Headquartered in Woodcliff Lake, New Jersey, with subsidiaries in Texas, Germany, and the United Kingdom, I.D. Systems, Inc. is a leading global provider of wireless M2M solutions for the Industrial Internet of Things. The company’s patented technology secures, controls, tracks, and manages high-value enterprise assets, including industrial vehicles, rental cars, trailers, containers, and cargo. The company’s solutions address the needs of organizations to monitor and analyze their assets to increase efficiency and productivity, reduce costs, and improve profitability. I.D. Systems holds more than 75 patents related to its wireless solutions and has deployed VMS systems in more than 20 countries around the world. For more information, please visit idsy2019.wpengine.com.
Asset Intelligence, an I.D. Systems subsidiary based in Plano, Texas, is a leading provider of trailer and container tracking solutions for manufacturers, retailers, shippers and freight transportation providers. It offers a full range of solutions to improve safety, security and productivity throughout global supply chains.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward looking statements within the meaning of federal securities laws. Forward-looking statements include statements with respect to I.D. Systems’ beliefs, plans, goals, objectives, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond I.D. Systems’ control, and which may cause its 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. For example, forward-looking statements include: statements regarding prospects for additional customers; market forecasts; projections of earnings, revenues, potential contract values, synergies, accretion or other financial information; initiatives for new products and processes, and plans, strategies, objectives, and initiatives of management for future operations. The risks and uncertainties referred to above include, but are not limited to, future economic and business conditions, the loss of key customers or reduction in the purchase of products by any such customers, the failure of the market for I.D. Systems’ products to continue to develop, the inability to protect I.D. Systems’ intellectual property, the inability to manage growth, the effects of competition from a variety of local, regional, national and other providers of wireless solutions, and other risks detailed from time to time in I.D. Systems’ filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2014. These risks could cause actual results to differ materially from those expressed in any forward looking statements made by, or on behalf of, I.D. Systems. Unless otherwise required by applicable law, I.D. Systems assumes no obligation to update the information contained in this press release, and expressly disclaims any obligation to do so, whether as a result of new information, future events or otherwise.

I.D. SYSTEMS WINS CONTRACT FOR 400 DRY VAN TRAILER TRACKING SYSTEMS FROM ROLY’S TRUCKING

Woodcliff Lake, NJ, and Plano, TX, May 11, 2015—The Asset Intelligence subsidiary of I.D. Systems, Inc. (NASDAQ: IDSY), a leading provider of wireless solutions for the Industrial Internet of Things, has executed a contract with Roly’s Trucking, Inc., a California-based transportation company, to deploy its VeriWise™ Dry Van cellular system for tracking and managing trailers and cargo. Roly’s will implement the system on 400 trailers. The five-year contract is expected to contribute to I.D. Systems’ recurring revenue stream starting in the second quarter of 2015.
“This contract reflects the unique competitive advantages of our GSM-D300 solution—our latest-generation trailer tracking technology designed specifically to maximize trailer utilization and reduce capital investment and operating costs,” said Norman Ellis, I.D. Systems’ COO. “The GSM-D300 combines a patented light sensor with a trailer-length cargo sensor to provide reliable, accurate reporting of trailer loading/unloading and load status through the shipment cycle. This technology has demonstrated the ability to reduce cycle times by an average of 72 hours per trailer per month, and increase shipment volume and revenue by 10%, without increasing fleet size.”
“We chose the VeriWise Dry Van cellular solution because it installs quickly and easily, gives us real-time trailer location, and provides exceptionally accurate cargo-sensing data,” said Rolando Garcia, president of Roly’s Trucking. “Plus, with five-year battery life, rugged environmental ratings, and a design that allows easy access from outside the trailer, we felt that the VeriWise system would be easy to maintain and serve as the most cost-effective long-term solution for us.”
Features of the VeriWise GSM-D300 dry van and cargo tracking solution include:

  • One person can install the system in 20-30 minutes.
  • Real-time location tracking via GPS triggers automatic notifications when exception events occur.
  • Even when a trailer is disconnected from a tractor, the system will still report data (for up to 5 months).
  • The system’s patented light sensor functions like a wired door sensor—without the installation cost or risk of damage to exposed cables.
  • GSM-D300 meets IP69K and SAE J1455 environmental standards.
  • A 7-way tractor power connection ensures reliable charging of the system’s 5-year battery.
  • The system can be swapped quickly and easily from trailer to trailer.
  • Advanced fleet data analytics are also offered, as an option.

About VeriWise™ Solutions
VeriWise asset tracking systems combine sensor, wireless, and web technologies to provide real-time visibility and control of trailers and their cargo. The systems automatically identify, analyze, and respond to critical transportation issues to improve the efficiency and security of logistics operations.
VeriWise Intermodal container management system helps increase asset utilization and reduce transit cycle times. The system enables visibility and control of containers from the seaport to the rail yard and ultimately to the final destination, marking loading and unloading events, which helps increase shipments and revenue per container.
VeriWise Chassis tracking system provides visibility to chassis location and loaded/unloaded status. The system also captures gate times/locations and container mount times/locations to start and stop the billing clock, resulting in high data reliability and more accurate billing.
VeriWise Dry Van is an advanced trailer monitoring system with patented full-length cargo detection sensors and solar charging technology. The system reports reliable, uninterrupted trailer location and loaded/ unloaded status—even if the trailer is disconnected from tractor power for an extended period—designed for faster trailer turns, increased asset utilization, improved cargo security, and optimal fleet efficiency.
VeriWise Track & Trace is a low-cost, easy-to-deploy, asset tracking system that provides real-time data to improve the efficiency and security of trailer and container fleets. It is designed for quick, easy, flexible installation on a wide range of cargo-carrying assets, with patented power management technology to provide exceptionally long battery life and years of maintenance-free operation.
About I.D. Systems and Asset Intelligence
Headquartered in Woodcliff Lake, New Jersey, with subsidiaries in Texas, Germany, and the United Kingdom, I.D. Systems, Inc. is a leading global provider of wireless M2M solutions for the Industrial Internet of Things. The company’s patented technology secures, controls, tracks, and manages high-value enterprise assets, including industrial vehicles, rental cars, trailers, containers, and cargo. The company’s solutions address the needs of organizations to monitor and analyze their assets to increase efficiency and productivity, reduce costs, and improve profitability. I.D. Systems holds more than 75 patents related to its wireless solutions and has deployed VMS systems in more than 20 countries around the world. For more information, please visit idsy2019.wpengine.com.
Asset Intelligence, an I.D. Systems subsidiary based in Plano, Texas, is a leading provider of trailer and container tracking solutions for manufacturers, retailers, shippers and freight transportation providers. It offers a full range of solutions to improve safety, security and productivity throughout global supply chains.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward looking statements within the meaning of federal securities laws. Forward-looking statements include statements with respect to I.D. Systems’ beliefs, plans, goals, objectives, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond I.D. Systems’ control, and which may cause its 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. For example, forward-looking statements include: statements regarding prospects for additional customers; market forecasts; projections of earnings, revenues, potential contract values, synergies, accretion or other financial information; initiatives for new products and processes, and plans, strategies, objectives, and initiatives of management for future operations. The risks and uncertainties referred to above include, but are not limited to, future economic and business conditions, the loss of key customers or reduction in the purchase of products by any such customers, the failure of the market for I.D. Systems’ products to continue to develop, the inability to protect I.D. Systems’ intellectual property, the inability to manage growth, the effects of competition from a variety of local, regional, national and other providers of wireless solutions, and other risks detailed from time to time in I.D. Systems’ filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2014. These risks could cause actual results to differ materially from those expressed in any forward looking statements made by, or on behalf of, I.D. Systems. Unless otherwise required by applicable law, I.D. Systems assumes no obligation to update the information contained in this press release, and expressly disclaims any obligation to do so, whether as a result of new information, future events or otherwise.

I.D. SYSTEMS REPORTS FIRST QUARTER 2015 FINANCIAL RESULTS

Revenue Up 14% from First Quarter of 2014
 
Woodcliff Lake, NJ, May 7, 2015—I.D. Systems, Inc. (NASDAQ: IDSY), a leading provider of wireless solutions for the Industrial Internet of Things, today reported results for the quarter ended March 31, 2015.
First Quarter 2015 Financial Highlights
  • Revenue increased 14% to $11.1 million from $9.7 million in the first quarter of 2014, driven primarily by a 35% increase in revenue from the company’s transportation asset management (TAM) systems.
  • Recurring revenue was $4.5 million, or 40% of total revenue, compared to $4.3 million, or 44% of total revenue, in the first quarter of 2014.
  • Gross margin was 36% compared to 51% in the first quarter of 2014. The decrease was primarily attributable to four factors:
    • the company’s continued transition to a new pricing model for vehicle management systems (VMS), which emphasizes multi-year, high-margin recurring service contracts over lower-margin upfront hardware revenue;
    • initial costs to integrate and train a VMS implementation partner, which the company believes will improve labor efficiency and capacity to accommodate future enterprise customer roll-outs;
    • start-up costs for initial production of the company’s new generation of VMS devices, which are expected to improve going forward through cost-cutting initiatives and increased volume; and
    • a low gross margin on a $1.1 million sale of TAM spare parts to Walmart, which was part of a refurbishment program expected extend the life of TAM devices on Walmart trailers for years and have a corresponding positive effect on long-term TAM revenue.
  • Selling, general and administrative (SG&A) expenses were flat compared to the first quarter of 2014, at $6.8 million. Excluding non-recurring costs of $0.7 million related to an unconsummated strategic initiative in 2015 and $1.1 million related to an executive change in 2014, non-GAAP SG&A expenses in the first quarter of 2015 and 2014 were $6.1 million and $5.7 million, respectively.
  • Research and development expenses increased to $1.23 million from $1.15 million in the first quarter of 2014, primarily as a result of increased system and quality testing on the company’s new products.
  • Excluding stock-based compensation, depreciation and amortization, and other non-recurring items, non-GAAP net loss was $2.7 million, or $(0.22) per basic and diluted share, compared to non-GAAP net loss of $0.9 million, or $(0.08) per basic and diluted share, in the same period a year ago.
  • Net loss was $3.9 million, or $(0.32) per basic and diluted share, compared to a net loss of $2.8 million, or $(0.24) per basic and diluted share, in the first quarter of 2014.
  • As of March 31, 2015, I.D. Systems had $11.0 million in cash, cash equivalents and marketable securities, and no debt.

Management Commentary
Kenneth Ehrman, I.D. Systems’ chairman and CEO, said, “We are pleased with our 14% year over year revenue growth in the first quarter of 2015. Our TAM business segment exceeded our revenue target and VMS unit sales were in line with our expectations. Our pipeline is strong and we remain confident we can meet our 2015 objective of sustaining the revenue growth rate we achieved in 2014.
“While our gross margin in the first quarter of 2015 was lower than historical levels, the factors contributing to this short-term result are related primarily to the ‘I.D. Systems 2.0’ quality improvements and repeatable, scalable processes we implemented for customers during the first quarter, including Knight Transportation, Raymond, Toyota and Walmart. We believe this investment will positively impact future business with all of our customers going forward.
“One of the most exciting aspects of our pipeline is our partnership with Toyota Industrial Equipment, the North American arm of the world’s largest manufacturer of lift trucks. We have been training their dealer network on selling our VMS solutions and have established automated online tools, integrated with Toyota’s backend systems, which we expect will streamline Toyota’s quoting and ordering processes. We are starting to see some orders from Toyota Industrial Equipment, but expect more revenue impact from this exciting program in the second half of 2015.”
First Quarter 2015 Operational Highlights

  • The company completed its “I.D. Systems 2.0” strategic initiative, aimed at building quality, repeatable and scalable processes to support the company’s goals for revenue growth and profitability. Examples of projects completed under the initiative included the accelerated commercial release of four new products; an improved software upgrade process; enhanced capabilities of our Analytics offering; improved, more scalable field service resources and customer training tools; and improved supplier quality assurance and VMS hardware support processes.
  • Unit shipments of TAM products increased 168% compared to the first quarter of 2014.
  • Unit shipments of VMS products increased 15% compared to the first quarter of 2014.
  • I.D. Systems and Toyota Material Handling, U.S.A., the North American division of the world’s largest lift truck manufacturer, announced their strategic partnership at ProMat 2015, the material handling industry’s premier trade exhibition. Toyota subsequently introduced its new T-Matics Command VMS product, a private-labeled version of I.D. Systems’ VAC4, to its network of more than 220 dealer locations across North America.
  • I.D. Systems earned repeat business from core end users, including Ashley, Audi, Bridgestone, Caterpillar, CH Robinson, Estenson Logistics, Ford Motor Company, General Mills, Kellogg’s, Knight Transportation, Meijer, Nestlé, Procter & Gamble, Swift Transportation, Toyota, US Trailer Holdings, the U.S. Postal Service (USPS), Walgreens, and Walmart.
  • The company received purchase orders for initial VMS deployments from new customers, including a leading global supplier to the oil and gas industry, one of the world’s most prominent power management companies, one of the largest privately-held agribusinesses in the U.S., a leading packaged food producer, and a leading global manufacturer of engineered polymers.
  • The company also received purchase orders from VMS channel partners for end users across a diverse range of industries, including automotive, fabrics, food and beverage, grocery, healthcare, heavy equipment, home products, and mass retail.
  • The U.S. Patent and Trademark Office allowed the company’s application for a patent on an advanced cargo sensing system for dry van trailers and intermodal containers, which integrates a battery-powered, light-based sensor with an ultrasonic cargo detector to provide accurate loaded/unloaded data without the need for an external door sensor. The company expects this patent to be key competitive differentiator for its TAM solutions in the trailer and container tracking market.
  • I.D. Systems’ Powerfleet® VMS solution earned a 2014 M2M Evolution IoT Excellence Award from TMC and Crossfire Media, which honors innovative products that support the collection and analysis of machine data to drive better business decisions.

Investor Conference Call
I.D. Systems will hold a conference call for investors and analysts today, Thursday, May 7, 2015, at 4:45 p.m. Eastern time. The company’s CEO, Kenneth Ehrman, will lead a discussion on the results of the quarter and other recent developments, followed by a question and answer period. The conference call will be broadcast live via the Investors section of the company’s website at idsy2019.wpengine.com. To listen to the live call, go to the website at least 10 minutes early to download and install any necessary audio software.
Non-GAAP Measures
To supplement its financial statements presented in accordance with Generally Accepted Accounting Principles (GAAP), I.D. Systems provides certain non-GAAP measures of financial performance. These non-GAAP measures include non-GAAP net income/loss, non-GAAP net income/loss per basic and diluted share, and Selling and General Administrative Expenses. 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. 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 of all non-GAAP measures included in this press release to the nearest GAAP measures can be found in the financial tables included in this press release.
About I.D. Systems
Headquartered in Woodcliff Lake, New Jersey, with subsidiaries in Texas, Germany, and the United Kingdom, I.D. Systems is a leading global provider of wireless solutions for securing, controlling, tracking, and managing high-value enterprise assets, including industrial vehicles, rental cars, trailers, containers, and cargo. The company’s patented technologies address the needs of organizations to monitor and analyze their assets to increase efficiency and productivity, reduce costs, and improve profitability. For more information, please visit idsy2019.wpengine.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward looking statements within the meaning of federal securities laws. Forward-looking statements include statements with respect to I.D. Systems’ beliefs, plans, goals, objectives, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond I.D. Systems’ control, and which may cause its 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. For example, forward-looking statements include statements regarding: prospects for additional customers; potential contract values; market forecasts; projections of earnings, revenues, synergies, accretion or other financial information; emerging new products; and plans, strategies and objectives of management for future operations, including growing revenue, controlling operating costs, increasing production volumes, and expanding business with core customers. The risks and uncertainties referred to above include, but are not limited to, future economic and business conditions, the loss of key customers or reduction in the purchase of products by any such customers, the failure of the market for I.D. Systems’ products to continue to develop, the possibility that I.D. Systems may not be able to integrate successfully the business, operations and employees of acquired businesses, the inability to protect I.D. Systems’ intellectual property, the inability to manage growth, the effects of competition from a variety of local, regional, national and other providers of wireless solutions, and other risks detailed from time to time in I.D. Systems’ filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2014. These risks could cause actual results to differ materially from those expressed in any forward looking statements made by, or on behalf of, I.D. Systems. Unless otherwise required by applicable law, I.D. Systems assumes no obligation to update the information contained in this press release, and expressly disclaims any obligation to do so, whether as a result of new information, future events or otherwise.
— Tables to Follow –
Click to read the entire release and view tables

I.D. SYSTEMS CONCLUDES “I.D. SYSTEMS 2.0” INITIATIVE

Woodcliff Lake, NJ, March 5, 2015—I.D. Systems, Inc. (NASDAQ: IDSY), a leading provider of wireless solutions for the Industrial Internet of Things, has completed its “I.D. Systems 2.0” strategic initiative, aimed at building quality, repeatable and scalable processes to support the company’s goals for revenue growth and profitability. Examples of projects completed under the initiative include:

  • Accelerated product development: I.D. Systems released four new products commercially in 2014, bringing the devices to market in approximately half the time it would have taken under the original project plan.Improved software upgrade execution: I.D. Systems tripled its rate of VMS software upgrades in 2014, compared to historical levels, enabling existing customers to transition to the current generation of hardware and, optionally, gain full access to the business intelligence of I.D. Systems’ Analytics offering. Software upgrades also reduce the company’s costs to support older software versions.
    • For its VMS business, I.D. Systems launched and shipped approximately 1,000 units of its fourth-generation on-vehicle device, the “VAC4,” in 2014. This product decreases VMS implementation costs by up to 40% compared to the previous generation of system hardware. It also increases the speed of deployment by over 50%—primarily by reducing installation time from as much as four hours to as little as one hour. In addition, the VAC4 enables seamless wireless field upgrades, which are designed to keep end users current with the company’s latest software functionality, simplify customer support, and help end users optimize value from the system.
    • For its transportation asset management (TAM) business, I.D. Systems launched and shipped three new products, expanding and improving its portfolio of patented, industry-leading container and trailer tracking solutions. The GSM-D400, an intermodal container tracking system, and the GSM-D150, an intermodal chassis tracking device, are designed to address the needs of a key growth market in the U.S transportation industry. The GSM-D300, a dry van management system with an advanced cargo sensor, enables customers to perform full-function asset monitoring with either satellite or cellular communications.
  • Enhanced Analytics capabilities: The company improved the enterprise analysis and data drill-down capabilities of its Analytics platform for multi-site, multi-region customers in both its VMS and TAM businesses, further leveraging I.D. Systems’ unique database of supply chain asset data. Additionally, the company automated the distribution of Analytics data to provide customers with a scalable means of quantifying the benefits of their VMS deployments, without the need for I.D. Systems’ performance services team to make individual site visits.
  • Improved management and scalability of field service resources: The company introduced new processes and engaged a new implementation partner, Metro Mobile Electronics, to reduce its lead-time for on-site customer installation support by approximately 80% compared to historical levels. The improvements also enable more rapid, scalable responsiveness to customer service requirements, including system roll-outs across multiple sites in customers’ enterprises.
  • Improved, more scalable training tools: I.D. Systems developed and launched a suite of new computer-based training tools to improve customer access to both initial and ongoing system training, while streamlining utilization of the company’s training resources. With these online tools supplementing or replacing live training, the company’s capacity to train customers has become highly scalable.
  • Improved supplier quality assurance: The company introduced a new Quality Audit process, which increased product quality at both contract manufacturing production facilities and third-party fulfillment centers, both of which drop-ship directly to I.D. Systems’ customers.
  • Improved VMS hardware support: By implementing new customer support processes, I.D. Systems achieved 100% of its service level commitment to VMS end users for the last six months of 2014.

“We accomplished all of our primary goals for the ‘I.D. Systems 2.0′ initiative,” said Kenneth Ehrman, I.D. Systems’ chairman and CEO. “Our targeted short-term investments accelerated the commercialization of four important new products and improved the quality and scalability of our services to address key customer requirements in our target markets. We believe this initiative contributed directly to the company’s record annual revenue, double-digit year-over-year revenue growth, and continued leadership in the rapidly growing wireless VMS market. We look forward to continue working toward consistent, profitable revenue growth and a growing market share, leveraging the accomplishments of our ‘I.D. Systems 2.0’ initiative.”
About I.D. Systems
Headquartered in Woodcliff Lake, New Jersey, with subsidiaries in Texas, Germany, and the United Kingdom, I.D. Systems is a leading global provider of wireless solutions for securing, controlling, tracking, and managing high-value enterprise assets, including industrial vehicles, rental cars, trailers, containers, and cargo. The company’s patented technologies address the needs of organizations to monitor and analyze their assets to increase efficiency and productivity, reduce costs, and improve profitability. For more information, please visit idsy2019.wpengine.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward looking statements within the meaning of federal securities laws. Forward-looking statements include statements with respect to I.D. Systems’ beliefs, plans, goals, objectives, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond I.D. Systems’ control, and which may cause its 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. For example, forward-looking statements include: statements regarding prospects for additional customers; market forecasts; potential barriers to competition; projections of earnings, revenues, synergies, accretion or other financial information; expectations for growth of the business; and plans, strategies and objectives of management for future operations. The risks and uncertainties referred to above include, but are not limited to, future economic and business conditions, the loss of key customers or reduction in the purchase of products by any such customers, the failure of the market for I.D. Systems’ products to continue to develop, the possibility that I.D. Systems may not be able to integrate successfully the business, operations and employees of acquired businesses, the inability to protect I.D. Systems’ intellectual property, the inability to manage growth, the effects of competition from a variety of local, regional, national and other providers of wireless solutions, and other risks detailed from time to time in I.D. Systems’ filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2013. These risks could cause actual results to differ materially from those expressed in any forward looking statements made by, or on behalf of, I.D. Systems. I.D. Systems assumes no obligation to update the information contained in this press release, and expressly disclaims any obligation to do so, whether as a result of new information, future events or otherwise.

I.D. SYSTEMS SETS FIRST QUARTER 2015 CONFERENCE CALL FOR MAY 7, 2015 AT 4:45 P.M. ET

Woodcliff Lake, NJ, April 24, 2015—I.D. Systems, Inc. (Nasdaq: IDSY), a leading provider of wireless M2M solutions for tracking, securing and managing high-value enterprise assets, will hold a conference call on Thursday, May 7, 2015 at 4:45 p.m. Eastern time to discuss results for the first quarter ended March 31, 2015. Financial results will be issued in a press release the same day, after the market close.
Interested parties can listen to a live webcast via a link available in the investor section of the company’s website, idsy2019.wpengine.com. Questions can be submitted to ir@id-systems.com prior to the call. Financial analysts will receive a toll-free number via email.
A webcast of the conference call will be archived at idsy2019.wpengine.com for approximately 90 days following the call.
About I.D. Systems
Headquartered in Woodcliff Lake, New Jersey, with subsidiaries in Texas, Germany, and the United Kingdom, I.D. Systems is a leading global provider of wireless M2M solutions for securing, controlling, tracking, and managing high-value enterprise assets, including rental cars, industrial vehicles, trailers, containers, and cargo. The Company’s patented technologies address the needs of organizations to monitor and analyze their assets to increase efficiency and productivity, reduce costs, and improve profitability. For more information, please visit idsy2019.wpengine.com.

I.D. SYSTEMS TO PRESENT AT THE B. RILEY & CO. 16TH ANNUAL INVESTOR CONFERENCE ON MAY 13, 2015

Woodcliff Lake, NJ, April 23, 2015—I.D. Systems, Inc. (NASDAQ: IDSY), a leading provider of wireless solutions for the Industrial Internet of Things, has been invited to present at the 16th Annual B. Riley & Co. Investor Conference, being held May 12-14, 2015, at the Loews Hollywood Hotel in Los Angeles, California.
I.D. Systems’ management is scheduled to present on Wednesday, May 13, at 4:30 p.m. Pacific time, and will hold one-on-one meetings with institutional investors on Thursday, May 14. Management will discuss the company’s financial performance and operational developments in its industrial vehicle and transportation asset management businesses.
For additional information or to schedule a one-on-one meeting with I.D. Systems management, please contact your B. Riley representative.
About I.D. Systems
Headquartered in Woodcliff Lake, New Jersey, with subsidiaries in Texas, Germany, and the United Kingdom, I.D. Systems, Inc. is a leading global provider of wireless M2M solutions for securing, controlling, tracking, and managing high-value enterprise assets, including industrial vehicles, rental cars, trailers, containers, and cargo. The company’s patented technologies address the needs of organizations to monitor and analyze their assets to increase efficiency and productivity, reduce costs, and improve profitability. I.D. Systems holds more than 75 patents related to its wireless solutions and has deployed VMS systems in more than 20 countries around the world. For more information, please visit idsy2019.wpengine.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward looking statements within the meaning of federal securities laws. Forward-looking statements include statements with respect to I.D. Systems’ beliefs, plans, goals, objectives, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond I.D. Systems’ control, and which may cause its 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. For example, forward-looking statements include: statements regarding prospects for additional customers; market forecasts; potential barriers to competition; projections of earnings, revenues, synergies, accretion or other financial information; expectations for growth of the business; and plans, strategies and objectives of management for future operations. The risks and uncertainties referred to above include, but are not limited to, future economic and business conditions, the loss of key customers or reduction in the purchase of products by any such customers, the failure of the market for I.D. Systems’ products to continue to develop, the possibility that I.D. Systems may not be able to integrate successfully the business, operations and employees of acquired businesses, the inability to protect I.D. Systems’ intellectual property, the inability to manage growth, the effects of competition from a variety of local, regional, national and other providers of wireless solutions, and other risks detailed from time to time in I.D. Systems’ filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2013. These risks could cause actual results to differ materially from those expressed in any forward looking statements made by, or on behalf of, I.D. Systems. I.D. Systems assumes no obligation to update the information contained in this press release, and expressly disclaims any obligation to do so, whether as a result of new information, future events or otherwise.

TOYOTA INDUSTRIAL EQUIPMENT TO PARTNER WITH I.D. SYSTEMS ON NEW WIRELESS VEHICLE MANAGEMENT SYSTEM (VMS)

Chicago, IL, March 23, 2015—Toyota Material Handling, U.S.A., Inc., the North American division of the world’s largest lift truck manufacturer, and I.D. Systems, Inc. (NASDAQ: IDSY), a leading global provider of wireless solutions for the Industrial Internet of Things, have executed a strategic partnership agreement to develop and deploy a new wireless industrial Vehicle Management System (VMS). The new VMS will be marketed through the Toyota Industrial Equipment umbrella in North America under the “T-Matics” brand.
Details of the program were unveiled today at the material handling industry’s premier trade exhibition, ProMat, which is taking place March 23-26, 2015, at Chicago’s McCormick Place South.
Toyota’s T-Matics Command VMS is powered by I.D. Systems’ patented wireless technology and cloud-hosted in a secure data center. For wireless communications, the system will leverage either an end user’s existing Wi-Fi network or a standalone VHF/cellular solution to enable implementation with minimal IT involvement. The system’s on-vehicle hardware will be a custom version of I.D. Systems’ 4th-generation “VAC4” hardware platform.
“T-Matics is an important part of our strategic plan moving forward,” said Terry Rains, Toyota’s vice president of aftermarket sales. “The T-Matics products will help our dealers and customers better manage their fleets of forklifts by increasing efficiency and utilization, optimizing maintenance schedules, and improving operator accountability.”
The T-Matics products were officially launched to Toyota dealers on March 3, 2015, at Toyota’s annual dealer meeting. The I.D. Systems channel sales and support team presented a comprehensive introduction to the new T-Matics Command solution, including technical and sales training. The I.D. Systems team will conduct a series of similar regional training sessions for Toyota Industrial Equipment dealers across North America, where more than 220 dealer locations market Toyota’s products and services.
“We are delighted to enter into this strategic relationship with Toyota, the world’s leading producer of industrial vehicles,” said Kenneth Ehrman, I.D. Systems’ chairman and CEO. “Toyota’s unrivaled sales and distribution network, backed by the quality of Toyota manufacturing and armed with our unique, industry-leading VMS technology, can significantly expand the market for wireless VMS. This is an ideal opportunity for I.D. Systems to execute on one of the pillars of our growth strategy: to leverage key channel partners to drive new business, diversify our sources of revenue, and grow our recurring revenue stream. At the same time, our cloud-hosted solution should help reduce cost and effort for end users.”
About Wireless Vehicle Management Systems
Vehicle Management Systems (VMS) help improve workplace safety and security by restricting vehicle access to trained, authorized operators, providing electronic vehicle inspection checklists, and sensing vehicle impacts. A wireless VMS also helps reduce fleet maintenance costs by automatically uploading vehicle data, reporting vehicle problems electronically, scheduling maintenance according to actual usage rather than by calendar time, and helping determine the optimal economic time to replace equipment. In addition, a wireless VMS helps improve supply chain productivity by establishing accountability for the use of equipment, ensuring equipment is in the proper place at the right time, streamlining material handling work flow, and providing unique metrics on equipment utilization.
About Toyota Material Handling U.S.A., Inc.
Proudly manufactured in the United States, Toyota Industrial Equipment offers a full line of material handling solutions including forklifts, automated guided vehicles, fleet management services and tow tractors. Toyota’s commitment to quality, reliability and customer satisfaction, the hallmark of the Toyota Production System, extends throughout more than 220 locations in North America. For more information, visit www.ToyotaForklifts.com.
About I.D. Systems
Headquartered in Woodcliff Lake, New Jersey, with subsidiaries in Texas, Germany, and the United Kingdom, I.D. Systems, Inc. is a leading global provider of wireless M2M solutions for securing, controlling, tracking, and managing high-value enterprise assets, including industrial vehicles, rental cars, trailers, containers, and cargo. The company’s patented technologies address the needs of organizations to monitor and analyze their assets to increase efficiency and productivity, reduce costs, and improve profitability. I.D. Systems holds more than 75 patents related to its wireless solutions and has deployed VMS systems in more than 20 countries around the world. For more information, please visit idsy2019.wpengine.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward looking statements within the meaning of federal securities laws. Forward-looking statements include statements with respect to I.D. Systems’ beliefs, plans, goals, objectives, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond I.D. Systems’ control, and which may cause its 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. For example, forward-looking statements include: statements regarding prospects for additional customers; market forecasts; potential barriers to competition; projections of earnings, revenues, synergies, accretion or other financial information; expectations for growth of the business; and plans, strategies and objectives of management for future operations. The risks and uncertainties referred to above include, but are not limited to, future economic and business conditions, the loss of key customers or reduction in the purchase of products by any such customers, the failure of the market for I.D. Systems’ products to continue to develop, the possibility that I.D. Systems may not be able to integrate successfully the business, operations and employees of acquired businesses, the inability to protect I.D. Systems’ intellectual property, the inability to manage growth, the effects of competition from a variety of local, regional, national and other providers of wireless solutions, and other risks detailed from time to time in I.D. Systems’ filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2013. These risks could cause actual results to differ materially from those expressed in any forward looking statements made by, or on behalf of, I.D. Systems. I.D. Systems assumes no obligation to update the information contained in this press release, and expressly disclaims any obligation to do so, whether as a result of new information, future events or otherwise.

I.D. SYSTEMS REPORTS FOURTH QUARTER AND FULL YEAR 2014 RESULTS

Annual Revenue Increases 14% to Record $45.6 Million, Driven Primarily by 23% Growth in Vehicle Management System Sales
 
Woodcliff Lake, NJ, March 5, 2015—I.D. Systems, Inc. (NASDAQ: IDSY), a leading provider of wireless solutions for the Industrial Internet of Things, reported results for the three and twelve month periods ended December 31, 2014.
Fourth Quarter 2014 Financial Results
  • Revenue increased to a fourth-quarter record $12.7 million, up 12% from $11.4 million in the fourth quarter of 2013. The increase was primarily attributable to increased sales of industrial vehicle management systems (VMS) and transportation asset management (TAM) products, which grew 11% and 15%, respectively, from the fourth quarter of 2013.
  • Recurring revenue was $4.5 million, or 35% of total revenue, compared to $4.5 million, or 40% of total revenue, in the same period a year ago. Recurring revenue was lower as a percentage of total revenue due to an increase in non-recurring VMS revenue compared to the fourth quarter of 2013.
  • Gross margin was 35% compared to 30% in the same period a year ago. In the fourth quarter of 2014, gross margin was impacted by non-recurring discounts on a TAM product warranty extension and spare parts program as part of a $14 million contract extension with Walmart, as well as by the sale of approximately 1,000 VMS units under the company’s newly adopted recurring service model. In both cases, the company expects the initial lower product margins to be offset by higher service margins over the course of the associated multi-year contracts. In the fourth quarter of 2013, gross margin was impacted by a non-cash, non-recurring inventory reserve charge, due to the company’s newest generation of wireless technology rendering older products obsolete.
  • Research and development expenses were $2.4 million, compared to $1.0 million in the fourth quarter of 2013. The increase was primarily attributable to a non-recurring investment in “I.D. Systems 2.0,” the company’s strategic initiative aimed at building quality, repeatable, scalable processes to support its goals for revenue growth and profitability. This initiative was concluded in the fourth quarter of 2014.
  • Selling, general and administrative expenses were $6.3 million, compared to $5.7 million in the fourth quarter of 2013. The increase was primarily attributable to incentive compensation expenses associated with achievement of the company’s target revenue plan.
  • Excluding stock-based compensation, depreciation and amortization, and non-recurring items, non-GAAP net loss totaled $3.2 million, or $(0.27) per basic and diluted share, compared to non-GAAP net loss of $0.2 million, or $(0.01) per basic and diluted share, in the fourth quarter in 2013. The non-recurring items affecting these results were a $0.4 million loss on settlement of a finance receivable with Avis Budget Group in the fourth quarter 2014 and a $2.1 million inventory reserve charge in the fourth quarter of 2013.
  • Net loss totaled $4.6 million, or $(0.38) per basic and diluted share, compared to net loss of $3.1 million, or $(0.26) per basic and diluted share, in the fourth quarter a year ago.
  • As of December 31, 2014, the company had $13.6 million in cash, cash equivalents and marketable securities, and no debt.

Fourth Quarter 2014 Operational Highlights

  • I.D. Systems shipped substantial quantities of four new products—the commercialization of which the company believes was accelerated by the company’s “I.D. Systems 2.0” initiative—including three new TAM products for managing intermodal containers, chassis and dry vans, and approximately 1,000 units of its fourth-generation “VAC4” wireless VMS for industrial trucks.
  • Nestlé placed follow-on orders for the company’s Powerfleet® VMS, including the new VAC4 platform with a service-centric pricing model and licenses for I.D. Systems Analytics software, which analyzes the performance of material handling equipment against both enterprise and industry benchmarks. After implementing these systems, Nestlé will have deployed Powerfleet on a cumulative total of more than 2,000 vehicles across more than 60 sites in North America.
  • I.D. Systems’ Asset Intelligence subsidiary shipped a record number of new TAM products in the fourth quarter—more than 7,000 units—and received a contract extension for existing units from Walmart, through October 2017, which has a maximum potential value of approximately $14 million.
  • I.D. Systems executed a master license agreement with a leading global airline to deploy its AvRamp® VMS on up to 3,000 airport vehicles across as many as seven major U.S. airports. The company received an initial purchase order under this agreement, valued at more than $500,000, to implement AvRamp at one U.S. airport. If the airline elects to order all proposed system elements at all seven airports, the maximum potential aggregate value of the master agreement is over $7 million.
  • The company received initial orders from additional new customers with enterprise expansion potential, including a Fortune 500 heavy equipment manufacturer, one of the world’s largest furniture makers, a global logistics services provider, a leading U.S. specialty retailer, and several U.S. trucking companies.
  • The company received follow-on purchase orders from other core customers, including American Airlines, Audi, BMW, Bridgestone, Caterpillar, Estenson Logistics, General Electric, General Mills, John Deere, Kellogg’s, Knight Transportation, Procter & Gamble, Swift Transportation, Toyota, the U.S. Postal Service, and Walgreens.
  • The company received three industry awards. For the fourth time, I.D. Systems made Deloitte’s Technology Fast 500™ list of the fastest growing technology companies in North America, based on the company’s 287% revenue growth from 2009 to 2013. I.D. Systems was also named by Food Logistics as one of the top 100 technology solution providers to the food and beverage industry. Finally, CIO Review named I.D. Systems one of the 20 most promising logistics technology solutions providers in the U.S.

Full Year 2014 Financial Results

  • Revenue increased 14% to a record $45.6 million from $39.9 million in 2013. The increase was driven primarily by a 23% increase in VMS sales and 5% increase in TAM product sales.
  • Recurring revenue was $17.7 million, or 39% of total revenue, compared to $17.7 million, or 44% of total revenue, in 2013. Recurring revenue was a lower percentage of total revenue due primarily to an increase in non-recurring VMS revenue year-over-year.
  • Gross margin was 44% compared to 45% in 2013.
  • Research and development expenses were $6.6 million, compared to $4.4 million in 2013. The increase was primarily attributable to the company’s non-recurring strategic investment in its “I.D. Systems 2.0” strategic initiative, which was concluded in the fourth quarter of 2014.
  • Selling, general and administrative expenses were $25.1 million, compared $21.8 million in 2013. The increase was primarily attributable to incentive compensation and expenses related to the company’s executive and board of directors changes in 2014.
  • Excluding stock-based compensation, depreciation and amortization, and non-recurring items, non-GAAP net loss totaled $7.6 million, or $(0.63) per basic and diluted share, compared to non-GAAP net loss of $2.1 million, or $(0.18) per basic and diluted share, in 2013. The non-recurring items affecting these results were a $0.4 million loss on settlement of a finance receivable with Avis Budget Group in 2014 and a $2.1 million inventory reserve charge in 2013.
  • Net loss totaled $11.6 million, or $(0.96) per basic and diluted share, compared to a net loss of $7.5 million, or $(0.63) per basic and diluted share, in 2013.

Management Commentary
“In 2014 we achieved the primary goals of our ‘I.D. Systems 2.0′ strategic initiative,” said Kenneth Ehrman, I.D. Systems’ chairman and CEO. “We believe our aggressive, focused investments accelerated product development and improved the quality, reliability and scalability of our products and services. Today, we are confident that our ability to produce, deploy and support world-class solutions to meet the growing market demand is significantly stronger than it was a year ago.
“We believe these improvements were critical to the commercial launch of three new TAM products, which helped drive record TAM sales volume of more than 7,000 units in the fourth quarter—our highest volume in any quarter since we acquired our Asset Intelligence subsidiary from General Electric in 2010.
“Our product and service improvements also supported a shift in our VMS go-to-market strategy. We now provide a more service-centric model, with lower upfront hardware prices to stimulate broader market adoption, and recurring service contract fees to generate a more predictable revenue stream with higher long-term margins. Although we expect this new approach to have a near-term negative impact on our revenue and margins in 2015, we expect it to help increase our high-margin recurring service revenue over the longer term.
“To underscore this point, our record fourth quarter revenue of $12.7 million understates the magnitude of the business we booked in the period. The aggregate value of the contracts we executed during the fourth quarter, most of which have three to five year terms, exceeded $33 million.
“Another key metric for I.D. Systems is our expanding penetration of the rapidly growing VMS market. In 2014, we shipped more than 8,500 VMS units, which increased our installed base by almost 20% compared to 2013. As we transition our business to a more service contract-centric model, we expect our revenue growth rate in 2015 to be consistent with 2014. However, we anticipate a more significant year-over-year increase in unit shipments in 2015, which we expect will increase recurring revenue and gross margin in the longer term.
“We believe we have barely scratched the surface of our addressable markets. We estimate there are more than eight million high-value mobile assets of all types worldwide that could benefit from our existing portfolio of patented wireless technology. To capitalize on this untapped opportunity, we plan to continue to invest in I.D. Systems in 2015, focusing on three critical areas: (1) research and development, to refine the quality and reliability of our solutions, particularly to further transition our VMS offering to an I.D. Systems-hosted service; (2) sales and marketing, to aggressively promote our market-leading brand both directly and through key partners, like the Raymond Corporation and Toyota Industrial Equipment; and (3) continuous internal improvement, to make I.D. Systems’ workforce and processes as efficient and effective as they can be to support rapid, scalable growth for our company.”
Non-GAAP Measures
To supplement its financial statements presented in accordance with Generally Accepted Accounting Principles (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. 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 of all non-GAAP measures included in this press release to the nearest GAAP measures can be found in the financial tables included in this press release.
About I.D. Systems
Headquartered in Woodcliff Lake, New Jersey, with subsidiaries in Texas, Germany, and the United Kingdom, I.D. Systems is a leading global provider of wireless solutions for securing, controlling, tracking, and managing high-value enterprise assets, including industrial vehicles, rental cars, trailers, containers, and cargo. The company’s patented technologies address the needs of organizations to monitor and analyze their assets to increase efficiency and productivity, reduce costs, and improve profitability. For more information, please visit idsy2019.wpengine.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward looking statements within the meaning of federal securities laws. Forward-looking statements include statements with respect to I.D. Systems’ beliefs, plans, goals, objectives, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond I.D. Systems’ control, and which may cause its 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. For example, forward-looking statements include statements regarding: prospects for additional customers; potential contract values; market forecasts; projections of earnings, revenues, synergies, accretion or other financial information; emerging new products; and plans, strategies and objectives of management for future operations, including growing revenue, controlling operating costs, and expanding business with core customers. The risks and uncertainties referred to above include, but are not limited to, future economic and business conditions, the loss of key customers or reduction in the purchase of products by any such customers, the failure of the market for I.D. Systems’ products to continue to develop, the possibility that I.D. Systems may not be able to integrate successfully the business, operations and employees of acquired businesses, the inability to protect I.D. Systems’ intellectual property, the inability to manage growth, the effects of competition from a variety of local, regional, national and other providers of wireless solutions, and other risks detailed from time to time in I.D. Systems’ filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2013. These risks could cause actual results to differ materially from those expressed in any forward looking statements made by, or on behalf of, I.D. Systems. Unless otherwise required by applicable law, I.D. Systems assumes no obligation to update the information contained in this press release, and expressly disclaims any obligation to do so, whether as a result of new information, future events or otherwise.
— Tables to Follow —

Click to read the entire elease and view tables

Corporate Hq

123 Tice Blvd. Suite 101
Woodcliff Lake, NJ 07677

Contact Us

Follow Us

Data-powered-applications

Safety and Security

Advanced Fuel Management

Maintenance and Performance

Regulatory Management And Compliance

Visibility And Resource Management

Sustainability

Customers

Implementation Services

Learning Services

Support Services

Customer Stories

Resources

Resource Center

Customer Stories

Upcoming Events

Blog

About Us

About Us

Meet the Team

Careers

News & Press Releases

Investor Relations

©2025 Powerfleet. All Rights Reserved

Privacy Policy    Terms of Use