Woodcliff Lake, NJ, May 9, 2013—I.D. Systems, Inc. (NASDAQ: IDSY), a leading provider of wireless solutions for tracking, securing and managing high-value enterprise assets, today reported results for the quarter ended March 31, 2013.
First Quarter 2013 Financial Results
- Revenue was $8.0 million, compared to $9.8 million in the first quarter of 2012. The decrease was attributable primarily to the timing of closing industrial vehicle management business in the U.S. and a shortfall of revenue from Europe, reflecting the economic climate in that region.
- Recurring revenue was $4.4 million, up 4% from $4.2 million in the first quarter a year ago.
- Gross margin was 48%, compared to 50% in the first quarter of 2012. The decrease was attributable primarily to a higher contribution of revenue from channel partners.
- Selling, general and administrative expenses and research and development expenditures of $5.5 million and $1.1 million, respectively, were flat compared to $5.6 million and $1.1 million, respectively, in the first quarter of 2012.
- Excluding stock-based compensation and depreciation and amortization, non-GAAP net loss was $1.8 million, or $(0.15) per basic and diluted share, compared to a non-GAAP net loss of $840,000, or $(0.07) per basic and diluted share, in the same period a year ago.
- Net loss was $2.6 million, or $(0.22) per basic and diluted share, compared to a net loss of $1.6 million, or $(0.14) per basic and diluted share, in the first quarter of 2012.
- As of March 31, 2013, I.D. Systems had $15.2 million in cash, cash equivalents and marketable securities, and no debt.
Management Commentary
“We remain optimistic about our growth opportunities in 2013,” said Jeffrey Jagid, I.D. Systems’ chairman and CEO. “Our sales pipeline is solid and we will continue to execute our revenue growth strategy that has proven successful over the past three years. We will work to deepen the penetration of our solutions with our core customers, especially through our enterprise Analytics software. We will strive to continue diversifying revenue sources by pursuing new customers, through both direct sales and channel partners. And we will continue our efforts to extend our market leadership, especially through solution innovations, including new generations of technology for both the industrial vehicle and rental car management markets.”
First Quarter 2013 Operational Highlights
- Repeat business from core end users, including Caterpillar, Continental Tire, Ford Motor Company, Forward Air, John Deere, Kellogg’s, Nestlé, Procter & Gamble, Swift Transportation, and Walmart.
- Substantial revenue contributions from channel partners (industrial truck OEMs and their dealers).
- The award of United States patent number 8,370,268 for a wireless, automated, remotely controlled vehicle rental system, which enables a renter to reserve a vehicle via the Internet or a smart phone, confirm vehicle availability in real time, automatically unlock the vehicle’s doors, and return the vehicle without the aid of any other person.
- The award of a three-year contract from a leading publicly-held U.S. transportation service company for I.D. Systems’ VeriWise™ Track and Trace system, to help manage a diverse fleet of approximately 1,000 cargo-carrying assets, including dry vans, flatbeds, and refrigerated trailers.
Investor Conference Call
I.D. Systems will hold a conference call for investors and analysts today, Thursday, May 9, 2013, at 4:45 p.m. Eastern time. The company’s chairman and CEO, Jeffrey Jagid, 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 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; market forecasts; projections of earnings, revenues, synergies, accretion or other financial information; and plans, strategies and objectives of management for future operations, including integration plans in connection with acquisitions. 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, 2012. 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.
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