[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 Second Quarter Financial Results
Hackensack, NJ, August 2, 2004 --
I.D. Systems, Inc. (NASDAQ: IDSY) today announced its financial results for the
quarter and six months ended June 30, 2005. Revenues for the quarter increased
12% to $4,198,000, up from $3,764,000 in the second quarter a year ago. Net
income for the quarter increased 70% to 412,000, or $.05 per basic and diluted
share, compared to net income of $242,000, or $.03 per basic and diluted share,
for the same period last year.
"We are very pleased to report double-digit increases in both revenues and net
income this quarter, driven primarily by continued strong sales of our patented
Wireless Asset Net system for tracking and managing fleets of vehicles and
industrial equipment," said Jeffrey Jagid, I.D. Systems' chairman and chief
executive officer. "Our strategic plan continues to bear fruit, as we expand
business with existing customers, like the U.S. Postal Service and Walgreens,
and develop new applications, such as our wireless battery monitoring system for
PosiCharge and our kiosk check-in software project with Avis Rent A Car and
Delta Air Lines."
Ned Mavrommatis, the company's chief financial officer, added, "We continue to
focus on achieving a high rate of growth while controlling costs and maintaining
a robust gross profit margin. As percentage of revenues, our selling, general
and administrative expenses decreased further this quarter to 34.6%, compared to
38.1% for the three months ended June 30, 2004, and our gross profit margin
remained stable at just over 50%. I.D. Systems' overall financial condition
remains strong. As of June 30, 2005, the company had approximately $8.7 million
in cash, cash equivalents and investments, and approximately $12.8 million of
working capital."
For the six-month period ended June 30, 2005, revenues increased 12% to
$7,231,000, up from $6,469,000 for the same period in 2004. Net loss for the six
months ended June 30, 2005 was (223,000), or ($0.03) per basic and diluted
share, compared to net income of $337,000, or $0.05 per basic and $0.04 per
diluted share, for the same period last year.
Highlights of I.D. Systems' second quarter included:
o Winning repeat orders from Walgreen Co. for I.D. Systems' Wireless
Asset Net(TM) industrial fleet management system, to be deployed on
material handling equipment at two additional Walgreens distribution
centers. These orders increase the number of Walgreens facilities
utilizing I.D. Systems' technology to a total of four.
o Winning a repeat order from AeroVironment, Inc. for I.D. Systems'
wireless Battery ChaMP(TM) (Charger Monitoring Point(TM)), to
support an ongoing roll-out of AeroVironment's PosiCharge(TM)
industrial battery fast-charging system for a major automotive
manufacturer. This order brings the total number of Battery ChaMPs
sold to over 1,300 units since the new product was introduced at the
end of 2004.
o Continuing implementation of Wireless Asset Net industrial fleet
management systems at several U.S. Postal Service (USPS) facilities
- the first of up to 460 USPS facilities that could deploy the
system over the next three years under an enterprise-wide contract
awarded by the USPS to I.D. Systems, as announced in January 2005.
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o Continuing expansion of business with other existing customers,
including Target Corporation and the U.S. Transportation Security
Administration, which awarded I.D. Systems a grant to integrate RFID
(radio frequency identification) cargo-tracking capabilities into
its wireless vehicle security and management network.
o The award of a United States patent for a fully automated wireless
vehicle rental and return system designed to enhance the car rental
experience for consumers and increase security, reduce operational
costs, and increase revenues for car rental companies.
o The introduction, by Avis Rent A Car System, Inc. and Delta Air
Lines, Inc., of the world's first remote airport check-in kiosk at a
car rental facility. I.D. Systems developed the software interface
for the kiosk, which offers Delta and Avis customers at
Hartsfield-Jackson Atlanta International Airport a convenient option
to check-in for their flights when returning their rental cars.
o Certification of I.D. Systems as a Microsoft Certified Partner,
reflecting I.D. Systems' expertise in creating innovative software
solutions, and bringing the full scope and power of Microsoft's
support organization to the Wireless Asset Net's SQL Server database
platform.
Investor Conference Call
I.D. Systems will hold a conference call for investors and analysts at 4:45 p.m.
Eastern Daylight Time on August 2, 2005. 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. 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, Daimler Chrysler,
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 and cranes to automobiles and trucks to complex fixed
machinery - in real time. For more information on I.D. Systems, Inc., visit
www.id-systems.com.
Trademarks
I.D. Systems, Inc., Wireless Asset Net, Battery Charger Monitoring Point, and
Battery ChaMP are registered or pending trademarks of I.D. Systems, Inc.
PosiCharge is a trademark of AeroVironment, Inc.
"Safe Harbor" statement under the Private Securities
Litigation Reform Act of 1995
This press release contains forward looking statements that are made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995 and 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 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.
-- 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,
2004 2005 2004 2005
----------- ----------- ----------- -----------
Revenues $ 3,764,000 $ 4,198,000 $ 6,469,000 $ 7,231,000
Cost of Revenues 1,867,000 2,081,000 3,122,000 3,587,000
----------- ----------- ----------- -----------
Gross Profit 1,897,000 2,117,000 3,347,000 3,644,000
Selling, general and administrative expenses 1,434,000 1,451,000 2,707,000 3,304,000
Research and development expenses 283,000 342,000 438,000 737,000
----------- ----------- ----------- -----------
Income (loss) from operations 180,000 324,000 202,000 (397,000)
Interest income 40,000 66,000 94,000 128,000
Interest expense (15,000) (16,000) (33,000) (29,000)
Other income 37,000 38,000 74,000 75,000
----------- ----------- ----------- -----------
Net income (loss) $ 242,000 $ 412,000 $ 337,000 $ (223,000)
=========== =========== =========== ===========
Net income (loss) per share - basic $ 0.03 $ 0.05 $ 0.05 $ (0.03)
=========== =========== =========== ===========
Net income (loss) per share - diluted $ 0.03 $ 0.05 $ 0.04 $ (0.03)
=========== =========== =========== ===========
Weighted average common
shares outstanding - basic 7,335,000 7,732,000 7,253,000 7,718,000
=========== =========== =========== ===========
Weighted average common
shares outstanding - diluted 8,634,000 9,143,000 8,374,000 7,718,000
=========== =========== =========== ===========
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I.D. Systems, Inc.
Condensed Balance Sheets
December 31, June 30,
2004 2005
(Unaudited)
------------ ------------
ASSETS
Cash and cash equivalents $ 8,440,000 $ 6,148,000
Short-term investments 3,195,000 2,534,000
Accounts receivable, net 1,432,000 4,408,000
Unbilled receivables 402,000 --
Inventory 1,739,000 2,047,000
Investment in sales type leases 39,000 40,000
Interest receivable 50,000 48,000
Officer loan 10,000 11,000
Prepaid expenses and other current assets 225,000 30,000
------------ ------------
Total current assets 15,532,000 15,266,000
Fixed assets, net 1,009,000 1,191,000
Investment in sales type leases 34,000 14,000
Officer loan 20,000 14,000
Deferred contract costs 476,000 292,000
Other assets 88,000 87,000
------------ ------------
$ 17,159,000 $ 16,864,000
============ ============
LIABILITIES
Accounts payable and accrued expenses $ 2,541,000 $ 1,767,000
Long term debt - current portion 199,000 151,000
Line of credit -- 500,000
Deferred revenue 95,000 98,000
------------ ------------
Total current liabilities 2,835,000 2,516,000
Long term debt 449,000 398,000
Deferred revenue 191,000 141,000
Deferred rent 112,000 110,000
------------ ------------
3,587,000 3,165,000
------------ ------------
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
7,690,000 shares and 7,763,000 shares 77,000 78,000
Additional paid-in capital 24,994,000 25,343,000
Treasury stock; 40,000 shares at cost (113,000) (113,000)
Accumulated deficit (11,386,000) (11,609,000)
------------ ------------
------------ ------------
13,572,000 13,699,000
------------ ------------
------------ ------------
$ 17,159,000 $ 16,864,000
============ ============
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I.D. Systems, Inc.
Condensed Statements of Cash Flows
(Unaudited)
Six months ended
June 30,
2004 2005
----------- -----------
Cash flows from operating activities:
Net income (loss) $ 337,000 $ (223,000)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization 125,000 178,000
Deferred rent expense 11,000 (2,000)
Deferred revenue (43,000) (47,000)
Deferred contract costs 5,000 184,000
Changes in:
Accounts receivable (294,000) (2,976,000)
Unbilled receivables (983,000) 402,000
Inventory (568,000) (308,000)
Prepaid expenses and other assets 110,000 196,000
Investment in sales type leases 18,000 19,000
Accounts payable and accrued expenses 590,000 (774,000)
----------- -----------
Net cash used in operating activities (692,000) (3,351,000)
----------- -----------
Cash flows from investing activities:
Purchase of fixed assets (185,000) (360,000)
Purchase of investments (487,000) (500,000)
Decrease (increase) in interest receivable 2,000 2,000
Maturities of investments 1,106,000 1,170,000
Amortization of premium on investments 124,000 (9,000)
Collection of officer loan 5,000 5,000
----------- -----------
Net cash provided by investing activities 565,000 308,000
----------- -----------
Cash flows from financing activities:
Proceeds from term loan 1,000,000 --
Proceeds from line of credit -- 500,000
Repayment of term loan (93,000) (99,000)
Proceeds from exercise of stock options 721,000 350,000
----------- -----------
Net cash provided by financing activities 1,653,000 751,000
----------- -----------
Net increase (decrease) in cash and cash equivalents 1,526,000 (2,292,000)
Cash and cash equivalents - beginning of period 3,179,000 8,440,000
----------- -----------
Cash and cash equivalents - end of period $ 4,705,000 $ 6,148,000
=========== ===========
Supplemental disclosure of cash flow information:
Cash paid for:
Interest $ 33,000 $ 29,000
=========== ===========
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