EXHIBIT 99.1
[I.D. SYSTEMS, INC. LETTERHEAD]
FOR IMMEDIATE RELEASE
CONTACT: I.D. Systems, Inc.
Ned Mavrommatis
Chief Financial Officer
nmavrommatis@id-systems.com
Phone 201-996-9000 Fax 201-996-9144
I.D. Systems, Inc. Reports Third Quarter Financial Results
Hackensack, NJ, November 6, 2003 --
I.D. Systems, Inc. (NASDAQ: IDSY) today announced financial results for the
three-month and nine-month period ended September 30, 2003. Revenues for the
quarter increased to $1,743,000, up 14% over the third quarter a year ago, as
the company's Wireless Asset Net(TM) system for tracking and managing fleets of
industrial equipment continued to gain market recognition. Revenues for the nine
months increased 55% to $5,477,000. Gross profit margins for the three-month and
nine-month periods remained strong and stable at 53% and 52%, respectively. Net
loss for the three-month period was $336,000, or $.05 per basic and diluted
share, compared to a net loss of $329,000, or $.05 per basic and diluted share,
for the third quarter of 2002. Net loss for the nine months decreased 33% to
$932,000, or $.14 per basic and diluted share, compared to $1,391,000, or $.21
per basic and diluted share, for the same period last year.
"I.D. Systems continues to execute on its strategic goals," said Jeffrey Jagid,
the company's Chairman and Chief Executive Officer. "Our patented wireless
technology continues to penetrate the market and gain market share. Our systems
demonstrate a compelling return on investment for our customers, and we continue
to maintain robust gross profit margins during a sustained period of
double-digit revenue growth. We are especially pleased that the company not only
continued to build business with existing customers during the quarter, but also
added several new customers. We believe this reflects continued acceptance of
our technology as a best practice for safety improvements, security
enhancements, and operating cost reductions."
"I.D. Systems' financial condition remains strong and stable," added Chief
Financial Officer Ned Mavrommatis. "At September 30, 2003, the company's cash,
cash equivalents, and investments totaled $8,067,000, with $7,883,000 of working
capital."
Selling, general and administrative (SG&A) expenses for the quarter were
relatively flat at $1,087,000, compared to $1,104,000 for the quarter ended
September 30, 2002. Research and development (R&D) expenses decreased very
slightly to $243,000 for the quarter, from $261,000 for the third quarter of
2002. For the nine months ended September 30, 2003, SG&A and R&D expenditures
were $3,275,000 and $694,000, respectively, compared to $2,801,000 and $812,000,
respectively, for the same period last year.
Highlights in the third quarter of 2003 included:
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o Ford Motor Company (NYSE: F) continued its corporate-wide
deployment of I.D. Systems' wireless Industrial Vehicle
Electronic Control System (IVECS). The deployment plan calls
for more than 20 Ford assembly and stamping plants in North
America to implement IVECS on a significant portion of their
material handling vehicles by the end of 2003.
o The National Shipbuilding Research Program Advanced
Shipbuilding Enterprise (NSRP ASE) selected I.D. Systems'
"Wireless Equipment Monitoring and Control System (WEMACS)" as
one of seven new projects to receive funding during the
upcoming year. The WEMACS project exploits I.D. Systems'
ongoing baseline wireless system installation at Portsmouth
Naval Shipyard to further research and develop a comprehensive
solution for the monitoring, control, and utilization analysis
of shipyard material handling equipment such as forklifts,
straddle trucks, cranes, and similar vehicles. The I.D.
Systems-led project team includes: Northrop Grumman
Corporation's (NYSE: NOC) Ship Systems sector; the National
Steel and Shipbuilding Company (NASSCO), a subsidiary of
General Dynamics Corporation (NYSE: GD); and the U.S. Navy's
Portsmouth Naval Shipyard. Formal work on this project has
begun, and it should contribute to I.D. Systems' revenues in
2004. Specific terms of the program are will be announced
shortly.
o I.D. Systems added another food industry customer during the
quarter. WinCo Foods, Inc., which owns and operates more than
40 grocery stores in the western United States, will implement
I.D. Systems' Wireless Asset Net(TM) fleet management system
for material handling equipment at its flagship distribution
center. WinCo joins Archer Daniels Midland, Golub Corporation,
and other food industry companies as I.D. Systems customers.
o Avis Rent A Car System, Inc., a wholly owned subsidiary of
Cendant Corporation (NYSE: CD), began the initial installation
of the first Wireless Asset Net units on its 2,000-vehicle
rental car fleet in Puerto Rico. Simultaneously, I.D. Systems
continued development of an extensive automated interface
between the Wireless Asset Net software and Avis' Wizard
rental management system. The goals of the I.D. Systems-Avis
program are to automate various aspects of the car rental and
return process, improve customer service, and increase the
efficiency of fleet operations. Avis is the world's second
largest general-use car rental brand, with more than 1,700
locations worldwide.
Investor Conference Call
- ------------------------
I.D. Systems will be holding a conference call for investors and analysts at
4:45 p.m. Eastern Daylight Time on November 6, 2003. Jeffrey Jagid, chairman and
CEO, Kenneth Ehrman, president and COO, Ned Mavrommatis, CFO, and Rick Muntz,
executive vice president, will discuss the results of the quarter and recent
corporate developments. After opening remarks, there will be a question and
answer period. The conference call will be broadcast live over the Internet via
the Investors section of the company's web site at www.id-systems.com. To listen
to the live call, go to the web site at least 10 minutes early to download and
install any necessary audio software.
About the Company
- -----------------
Based in Hackensack, New Jersey, I.D. Systems, Inc. is a leading provider of
wireless solutions for corporate asset management. I.D. Systems' customers
include Archer Daniels Midland, DaimlerChrysler, Deere & Co., Ford Motor
Company, Target Corporation, Walgreen Co., the U.S. Department of Homeland
Security, the U.S. Navy, and the U.S. Postal Service, among others. Using local
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area networks, wide area networks, and the Internet, the company's systems
enable management to control and track the location and status of their assets--
from letters and containers to forklifts and railcars-- in real time. For more
information on I.D. Systems, Inc., visit www.id-systems.com.
Wireless Asset Net and the I.D. Systems, Inc. logo are trademarks of I.D.
Systems, Inc.
"Safe Harbor" statement under the Private Securities Litigation Reform Act of
1995: This press release contains forward looking statements that are subject to
risk and uncertainties, including, but not limited to, the impact of competitive
products, product demand and market acceptance risks, fluctuations in operating
results and other risks detailed from time to time in I.D. Systems' filings with
the Securities and Exchange Commission. These risks could cause I.D. Systems'
actual results for the current fiscal year and beyond to differ materially from
those expressed in any forward looking statements made by, or behalf of, I.D.
Systems.
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I.D. Systems, Inc.
Condensed Statements of Operations
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
2002 2003 2002 2003
------------------- -------------------- --------------------- --------------------
Revenues $ 1,532,000 $ 1,743,000 $ 3,541,000 $ 5,477,000
Cost of Revenues 617,000 812,000 1,585,000 2,643,000
------------------- -------------------- --------------------- --------------------
Gross Profit 915,000 931,000 1,956,000 2,834,000
Selling, general and 1,104,000 1,087,000 2,801,000 3,275,000
administrative expenses
Research and development expenses 261,000 243,000 812,000 694,000
------------------- -------------------- --------------------- --------------------
Loss from operations (450,000) (399,000) (1,657,000) (1,135,000)
Interest income 123,000 79,000 269,000 244,000
Interest expense (2,000) (16,000) (3,000) (41,000)
------------------- -------------------- --------------------- --------------------
Net loss $ (329,000) $ (336,000) $ (1,391,000) $ (932,000)
=================== ==================== ===================== ====================
Net loss per share - basic and
diluted $ (0.05) $ (0.05) $ (0.21) $ (0.14)
=================== ==================== ===================== ====================
Weighted average common shares
outstanding - basic and diluted
loss per share 6,799,000 6,898,000 6,682,000 6,845,000
=================== ==================== ===================== ====================
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I.D. Systems, Inc.
Condensed Balance Sheets
December 31, 2002 September 30, 2003
(Unaudited)
--------------------------- ---------------------------------
ASSETS
Cash and cash equivalents $ 3,758,000 $ 2,647,000
Investments 3,031,000 3,276,000
Accounts receivable, net 1,114,000 1,776,000
Unbilled receivables -- 105,000
Inventory 1,471,000 1,154,000
Investment in sales type leases 159,000 34,000
Interest receivable 73,000 107,000
Officer loan 10,000 10,000
Prepaid expenses and other
current assets 147,000 180,000
--------------------------- ---------------------------------
Total current assets 9,763,000 9,289,000
Investments 968,000 2,144,000
Fixed assets, net 679,000 812,000
Investment in sales type leases 522,000 67,000
Installment receivable - non-current portion 867,000 736,000
Officer loan 41,000 34,000
Deferred contract costs -- 187,000
Other assets 107,000 97,000
--------------------------- ---------------------------------
$ 12,947,000 $ 13,366,000
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LIABILITIES
Accounts payable and accrued expenses $ 1,205,000 $ 988,000
Long term debt - current portion -- 186,000
Line of credit 137,000 137,000
Deferred revenue 26,000 45,000
Other current liabilities 100,000 50,000
--------------------------- ---------------------------------
Total current liabilities 1,468,000 1,406,000
Long term debt -- 696,000
Deferred revenue -- 177,000
Deferred rent 66,000 83,000
--------------------------- ---------------------------------
1,534,000 2,362,000
--------------------------- ---------------------------------
STOCKHOLDERS' EQUITY
Preferred stock; authorized 5,000,000 shares,
$.01 par value; none issued
Common stock; authorized 15,000,000 shares,
$.01 par value; issued and outstanding
7,041,000 shares and 6,863,000 shares 68,000 70,000
Additional paid-in capital 22,042,000 22,563,000
Treasury stock; 40,000 shares at cost (113,000) (113,000)
Accumulated deficit (10,584,000) (11,516,000)
--------------------------- ---------------------------------
11,413,000 11,004,000
--------------------------- ---------------------------------
$ 12,947,000 $ 13,366,000
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