EXHIBIT 99.1
[LOGO] I.D. Systems, Inc.(TM)
Expanding the range of wireless solutions
FOR IMMEDIATE RELEASE
CONTACTS: FOR FINANCIAL PRESS FOR TRADE PRESS
------------------- ---------------
Ned Mavrommatis Greg Smith
Chief Financial Officer Director of Marketing
ned@id-systems.com gsmith@id-systems.com
General Phone: 201-996-9000. General Fax: 201-996-9144
I.D. SYSTEMS, INC. REPORTS SECOND QUARTER FINANCIAL RESULTS
Hackensack, NJ, August 4, 2004 --
I.D. Systems, Inc. (NASDAQ: IDSY) today announced its financial results for the
second quarter ended June 30, 2004. Revenues increased 77% to $3,764,000
compared to revenues of $2,125,000 for the three months ended June 30, 2003. Net
income for the quarter increased to $242,000, or $.03 per basic and diluted
share, compared to a net loss of $211,000, or ($.03) per basic and diluted
share, for the same period last year. The increase in revenues and net income
was primarily attributable to continued customer acceptance and demand of the
company's patented Wireless Asset Net(TM) system for tracking and managing
fleets of industrial equipment.
For the six-month period ended June 30, 2004, revenues increased 73% to
$6,469,000 compared to $3,734,000 for the same period in 2003. Net income for
the six months ended June 30, 2004 increased to $337,000 compared to a net loss
of $596,000 for the same period last year.
"We are very pleased to report another significant increase in revenues and
another profitable quarter at I.D. Systems," said Jeffrey Jagid, the company's
chairman and chief executive officer. "We continue to expand sales of our core
wireless vehicle management technology into key markets, including material
handling operations at the plants and distribution centers of Fortune 500
corporations, and the emerging homeland security infrastructure at airports and
seaports. I.D. Systems is also making significant progress in the rental fleet
market, where a version of our Wireless Asset Net system is demonstrating
important benefits in a pilot program with Avis Rent A Car. We look forward to
building on our success and leadership in these markets, as well as developing
new application solutions, to continue driving product demand and income to
higher levels."
"We are gratified that our customers are utilizing I.D. Systems' technology in
an effort to improve security, safety, productivity, cost savings, and
profitability," added Mr. Jagid, "and I am pleased to note that some of our
customers' experiences are portrayed on our newly revised website,
www.id-systems.com."
"I.D. Systems continues to adhere successfully to its strategic business plan,
balancing rapid growth with cost containment and winning key contracts to fund
our research and development investments," said Ned Mavrommatis, I.D. Systems'
chief financial officer. "In the second quarter of 2004, we again achieved
sequential as well as year-over-year growth of both revenues and net income, and
we maintained gross profit margins at 50%. Overall, the company's financial
condition remains strong. As of June 30, 2004, I.D. Systems had approximately
$9.5 million in cash, cash equivalents and investments, and approximately $10.4
million of working capital, compared to approximately $8.6 million and
approximately $8.2 million, respectively, at December 31, 2003."
Selling, general and administrative (SG&A) expenses for the quarter ended June
30, 2004 were $1,434,000 compared to $1,105,000 for the three months ended June
30, 2003 as sales, marketing and customer service payroll expenses increased to
support growing sales. As a percentage of revenues, however, SG&A expenses
decreased to 38% for the quarter compared to 52% for the three months ended June
30, 2003.
Research and development (R&D) expenditures for the quarter were $283,000, up
from $219,000 in the second quarter a year ago. As a percentage of revenues, R&D
expenses decreased to 7.5% for the quarter compared to 10.3% for the three
months ended June 30, 2003.
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Highlights of the quarter ended June 30, 2004, included:
o I.D. Systems' wireless vehicle security technology passed a series
of key functional tests conducted by the Transportation Security
Administration (TSA) and Federal Aviation Administration at Newark
Liberty International Airport
o Managers at the TSA and Port Authority of New York and New Jersey
won innovation awards for their adaptation of I.D. Systems' Wireless
Asset Net to the airport environment in response to a Department of
Homeland Security initiative
o I.D. Systems leveraged its success at Newark Airport to win another
TSA contract -- to deploy a large fleet security system at JAXPORT,
the Jacksonville, Fla., seaport -- valued at $1.36 million in 2004
and, at the TSA's discretion, up to an additional $1.35 million in
2005
o Ford Motor Company issued an order to I.D. Systems for additional
industrial vehicle electronic control systems to supplement Ford's
previous enterprise-wide order for I.D. Systems technology
o WinCo Foods, Inc. placed a follow-on order with I.D. Systems for a
wireless fleet management system at WinCo's newest distribution
center
o I.D. Systems won a major new customer when Premier Manufacturing
Support Services, Inc., a leading service provider for the
automotive industry, placed a $300,000 opening order for a wireless
industrial fleet management system for one of the world's largest
automotive parts manufacturers
o Avis Rent A Car System, Inc. and I.D. Systems continued to deploy a
rental fleet management version of I.D. Systems' Wireless Asset Net
on a fleet of 2,000 Avis vehicles in Puerto Rico
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 August 4, 2004. Jeffrey Jagid, chairman and
CEO, Kenneth Ehrman, president and COO, Ned Mavrommatis, CFO, and Rick Muntz,
EVP of sales and marketing, will discuss 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 over the Internet 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.
ABOUT I.D. SYSTEMS
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 3M Company, American Axle, Archer Daniels Midland, DaimlerChrysler,
Deere & Co., Ford Motor Company, General Dynamics, Hallmark Cards, Northrop
Grumman, Target Corporation, Walgreen Co., the U.S. Navy, the U.S. Postal
Service, and the U.S. Transportation Security Administration, among others.
Using local 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 forklifts, tugs and cranes to automobiles and trucks-- in real
time. For more information on I.D. Systems, Inc., 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 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.
-- Tables to Follow --
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I.D. SYSTEMS, INC.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
2003 2004 2003 2004
----------- ----------- ----------- -----------
Revenues $ 2,125,000 $ 3,764,000 $ 3,734,000 $ 6,469,000
Cost of Revenues 1,076,000 1,867,000 1,831,000 3,122,000
----------- ----------- ----------- -----------
Gross Profit 1,049,000 1,897,000 1,903,000 3,347,000
Selling, general and administrative expenses 1,105,000 1,434,000 2,188,000 2,707,000
Research and development expenses 219,000 283,000 451,000 438,000
----------- ----------- ----------- -----------
Income (loss) from operations (275,000) 180,000 (736,000) 202,000
Interest income 79,000 40,000 165,000 94,000
Interest expense (15,000) (15,000) (25,000) (33,000)
Other income -- 37,000 -- 74,000
----------- ----------- ----------- -----------
NET INCOME (LOSS) $ (211,000) $ 242,000 $ (596,000) $ 337,000
=========== =========== =========== ===========
NET INCOME (LOSS) PER SHARE - BASIC $ (0.03) $ 0.03 $ (0.09) $ 0.05
=========== =========== =========== ===========
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NET INCOME (LOSS) PER SHARE - DILUTED $ (0.03) $ 0.03 $ (0.09) $ 0.04
=========== =========== =========== ===========
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC 6,833,000 7,335,000 6,819,000 7,253,000
=========== =========== =========== ===========
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING -
DILUTED 6,833,000 8,634,000 6,819,000 8,374,000
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I.D. SYSTEMS, INC.
CONDENSED BALANCE SHEETS
December 31, 2003 JUNE 30, 2004
(UNAUDITED)
----------------- -------------
ASSETS
Cash and cash equivalents $ 3,179,000 $ 4,705,000
Short-term investments 3,339,000 2,881,000
Accounts receivable 2,204,000 2,498,000
Unbilled receivables -- 983,000
Inventory 676,000 1,242,000
Investment in sales type leases 37,000 38,000
Interest receivable 75,000 73,000
Officer loan 10,000 10,000
Prepaid expenses and other current assets 129,000 30,000
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Total current assets 9,649,000 12,460,000
Long-term investments 2,100,000 1,815,000
Fixed assets, net 845,000 905,000
Investment in sales type leases 73,000 54,000
Officer loan 31,000 26,000
Deferred contract costs 675,000 670,000
Other assets 97,000 86,000
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$ 13,470,000 $ 16,016,000
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LIABILITIES
Accounts payable and accrued expenses $ 1,055,000 $ 1,645,000
Long term debt - current portion 188,000 193,000
Line of credit 137,000 137,000
Deferred revenue 89,000 92,000
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Total current liabilities 1,469,000 2,066,000
Long term debt 648,000 550,000
Deferred revenue 285,000 239,000
Deferred rent 89,000 100,000
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2,491,000 2,956,000
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STOCKHOLDERS' EQUITY
Preferred stock; authorized 5,000,000 shares, $.01 par value;
none issued Common stock; authorized 15,000,000 shares,
$.01 par value; issued and outstanding 7,097,000 shares and
7,595,000 shares 71,000 76,000
Additional paid-in capital 22,804,000 24,545,000
Treasury stock; 40,000 shares at cost (113,000) (113,000)
Accumulated deficit (11,783,000) (11,448,000)
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10,979,000 13,060,000
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$ 13,470,000 $ 16,016,000
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