[I.D. Systems, Inc. Logo]
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 THIRD QUARTER FINANCIAL RESULTS
Hackensack, NJ, November 3, 2004 --
I.D. Systems, Inc. (NASDAQ: IDSY) today announced its financial results for the
third quarter ended September 30, 2004. Revenues increased 89% to $3,289,000
compared to revenues of $1,743,000 for the three months ended September 30,
2003. Net income for the quarter increased to $45,000, or $.01 per basic and
diluted share, compared to a net loss of $336,000, or ($.05) 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 nine-month period ended September 30, 2004, revenues increased 78% to
$9,758,000 compared to $5,477,000 for the same period in 2003. Net income for
the nine months ended September 30, 2004 increased to $382,000, or $.05 per
basic and diluted share, compared to a net loss of $932,000, or ($.14) per basic
and diluted share, for the same period last year.
"We are very pleased to report another significant increase in revenues and net
income this quarter," said Jeffrey Jagid, I.D. Systems' chairman and chief
executive officer. "We continue working hard to expand penetration of our core
wireless asset management technology into key markets, including material
handling equipment management, vehicle security at port facilities, and consumer
rental fleet management. We are well on the way to making 2004 the company's
best year yet, and we look forward to continue building on that success in the
future."
"We continue to meet or exceed the objectives of our strategic business plan,"
added Ned Mavrommatis, I.D. Systems' chief financial officer. "In the third
quarter of 2004, we again balanced rapid growth with cost containment, achieving
a high double-digit year-over-year increase in revenues, a gross profit margin
of 55%, and positive net income. The company's financial condition remains
strong. As of September 30, 2004, I.D. Systems had approximately $8.6 million in
cash, cash equivalents and investments, and approximately $12.7 million of
working capital, compared to approximately $8.6 million and $8.2 million,
respectively, at December 31, 2003."
Selling, general and administrative (SG&A) expenses for the quarter ended
September 30, 2004 were $1,470,000, up from $1,087,000 for the three months
ended September 30, 2003, as sales, marketing and customer service payroll
expenses increased to support growing sales. As a percentage of revenues, SG&A
expenses decreased to 45% in the quarter, compared to 62% for the three months
ended September 30, 2003.
Research and development (R&D) expenditures for the quarter were $372,000, up
from $243,000 in the third quarter a year ago. As a percentage of revenues, R&D
expenses decreased to 11% for the quarter compared to 14% for the three months
ended September 30, 2003.
[More....]
1
Highlights of the quarter ended September 30, 2004, included:
o The announcement, on July 7, 2004, of a Transportation Security
Administration (TSA) contract award, under which I.D. Systems will deploy
a vehicle security system at JAXPORT, the Jacksonville, Florida, seaport.
The contract, which resulted in part from the success of I.D. Systems'
vehicle security program at Newark Liberty International Airport, is
valued at $1.36 million, with a TSA option to increase the contract by an
additional $1.35 million in 2005.
o The final deployment and successful operational launch of I.D. Systems'
"Avis Instant Return" system for Avis Rent A Car System, Inc. in Puerto
Rico. The system - which is designed to automate the rental and return
processes, improve customer service, and increase operational efficiencies
- is now routinely processing customer transactions for some 2,000 Avis
vehicles in Puerto Rico and being well received by Avis customers and
management personnel.
o Continued work with the Ford Motor Company to expand Ford's North
America-wide roll-out of I.D. Systems' wireless industrial vehicle
electronic control systems.
o Additional inroads into the automotive vertical market, focusing on adding
multiple new automotive manufacturing customers.
o Continued work with the United States Postal Service (USPS) to explore new
opportunities to expand deployment of I.D. Systems' Wireless Asset Net
technology to additional USPS facilities.
o The introduction of software enhancements for the Wireless Asset Net
system, including new server options for enterprise-wide deployments,
expanded database support (including new automated database-to-database
feeds), increased data throughput, augmented reporting tools, enhanced
auto-emailing tools; expanded remote administration and diagnostic
capabilities, and a beta-version of web-based client software.
Investor Conference Call
As previously announced, I.D. Systems will be holding a conference call for
investors and analysts at 4:45 p.m. Eastern Standard Time today. 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
I.D. Systems, Inc. is a leading provider of wireless solutions for corporate
asset management. I.D. Systems' customers include 3M, American Axle, Archer
Daniels Midland, DaimlerChrysler, Deere & Co., Ford, General Dynamics, Hallmark
Cards, Northrop Grumman, Target, Walgreen, 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 --
2
I.D. SYSTEMS, INC.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
2003 2004 2003 2004
----------- ----------- ----------- -----------
Revenues $ 1,743,000 $ 3,289,000 $ 5,477,000 $ 9,758,000
Cost of Revenues 812,000 1,467,000 2,643,000 4,589,000
----------- ----------- ----------- -----------
Gross Profit 931,000 1,822,000 2,834,000 5,169,000
Selling, general and administrative expenses 1,087,000 1,470,000 3,275,000 4,177,000
Research and development expenses 243,000 372,000 694,000 810,000
----------- ----------- ----------- -----------
Income (loss) from operations (399,000) (20,000) (1,135,000) 182,000
Interest income 79,000 44,000 244,000 138,000
Interest expense (16,000) (16,000) (41,000) (49,000)
Other income -- 37,000 -- 111,000
----------- ----------- ----------- -----------
NET INCOME (LOSS) $ (336,000) $ 45,000 $ (932,000) $ 382,000
=========== =========== =========== ===========
NET INCOME (LOSS) PER SHARE - BASIC $ (0.05) $ 0.01 $ (0.14) $ 0.05
=========== =========== =========== ===========
NET INCOME (LOSS) PER SHARE - DILUTED $ (0.05) $ 0.01 $ (0.14) $ 0.05
=========== =========== =========== ===========
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING -
BASIC 6,898,000 7,629,000 6,845,000 7,380,000
=========== =========== =========== ===========
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING -
DILUTED 6,898,000 8,976,000 6,845,000 8,477,000
=========== =========== =========== ===========
[More....]
3
I.D. SYSTEMS, INC.
CONDENSED BALANCE SHEETS
SEPTEMBER 30,
December 31, 2004
2003 (UNAUDITED)
------------ ------------
ASSETS
Cash and cash equivalents $ 3,179,000 $ 4,924,000
Short-term investments 3,339,000 3,724,000
Accounts receivable 2,204,000 3,304,000
Unbilled receivables -- 788,000
Inventory 676,000 1,109,000
Investment in sales type leases 37,000 39,000
Interest receivable 75,000 60,000
Officer loan 10,000 10,000
Prepaid expenses and other current assets 129,000 189,000
------------ ------------
Total current assets 9,649,000 14,147,000
Long-term investments 2,100,000 --
Fixed assets, net 845,000 878,000
Investment in sales type leases 73,000 44,000
Officer loan 31,000 23,000
Deferred contract costs 675,000 577,000
Other assets 97,000 88,000
------------ ------------
$ 13,470,000 $ 15,757,000
============ ============
LIABILITIES
Accounts payable and accrued expenses $ 1,055,000 $ 1,174,000
Long term debt - current portion 188,000 196,000
Line of credit 137,000 --
Deferred revenue 89,000 93,000
------------ ------------
Total current liabilities 1,469,000 1,463,000
Long term debt 648,000 500,000
Deferred revenue 285,000 215,000
Deferred rent 89,000 106,000
------------ ------------
2,491,000 2,284,000
------------ ------------
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 7,097,000 shares and 7,675,000 shares 71,000 77,000
Additional paid-in capital 22,804,000 24,912,000
Treasury stock; 40,000 shares at cost (113,000) (113,000)
Accumulated deficit (11,783,000) (11,403,000)
------------ ------------
10,979,000 13,473,000
------------ ------------
$ 13,470,000 $ 15,757,000
============ ============
# # #
4