HACKENSACK, N.J., Nov. 5, 2008 (GLOBE NEWSWIRE) -- I.D. Systems, Inc. (Nasdaq:IDSY) today announced its financial results for the third quarter of 2008. Revenues for the three months ended September 30, 2008, increased 43.2% to $9.3 million, compared to $6.5 million for the three months ended September 30, 2007. GAAP net income for the quarter was $619,000, or $0.06 per basic and diluted share, compared to GAAP net loss of $790,000, or ($0.07) per basic and diluted share, for the third quarter of 2007.
Non-GAAP net income for the third quarter of 2008 was $1.3 million, or $0.12 per basic share and $0.11 per diluted share, compared to non-GAAP net income of $43,000, or break-even on a per-share basis, for the third quarter of 2007. Non-GAAP results were calculated by adjusting GAAP net income (loss) for the impact of stock-based compensation, which was $665,000 for the third quarter of 2008 and $833,000 for the third quarter of 2007. A table entitled "Reconciliation of GAAP to Non-GAAP Financial Measures" is included in this press release.
"Our strong third quarter results reflect both a high volume of repeat business from core customers -- who have a history of deriving benefits from our technology -- and initial orders from a variety of new customers," said Jeffrey Jagid, I.D. Systems' chairman and chief executive officer. "As a result, we raised the company's revenue guidance for fiscal 2008, as announced on August 25, 2008, from $24 million to $26 million. We are also very pleased by our continued ability to maintain strong, stable gross margins. Our third quarter results are especially gratifying considering the current economic climate."
For the quarter ended September 30, 2008, gross profit margin was 51.1%, compared to 49.8% for the corresponding period in 2007.
Selling, general and administrative expenses for the quarter decreased 2.3% to $3.9 million, compared to $4.0 million for the third quarter in 2007. As a percentage of revenues, SG&A expenses decreased to 41.9%, compared to 61.4% for the third quarter in 2007.
Research and development expenditures decreased 18.8% to $672,000 for the third quarter, compared to $828,000 for the corresponding period in 2007. The decrease resulted primarily from one-time costs during the third quarter of 2007 for work relating to the development of European compliant products. As a percentage of revenues, R&D decreased to 7.2%, compared to 12.7% for the third quarter in 2007.
For the nine-month period ended September 30, 2008, revenues increased 43.1% to $19.1 million, compared to $13.4 million for the nine months ended September 30, 2007. Gross profit margin for the nine-month period was 50.9%, compared to 48.8% for the comparable period in 2007. GAAP net loss for the nine-month period was $2.9 million, or ($.27) per basic and diluted share, compared to GAAP net loss of $4.9 million, or ($.43) per basic and diluted share, for the first nine months of 2007.
Adjusting for $2.3 million in stock-based compensation expenses, non-GAAP net loss for the nine months ended September 30, 2008, was $636,000, or ($0.06) per basic and diluted share. For the corresponding period in 2007, non-GAAP net loss was $2.5 million, or ($0.22) per basic and diluted share, adjusting for $2.4 million in stock-based compensation expenses. A table entitled "Reconciliation of GAAP to Non-GAAP Financial Measures" is included in this press release.
For the nine months ended September 30, 2008, SG&A expenses were $12.4 million compared to $11.7 million for the same period in 2007. The increase was attributable primarily to increased payroll and related expenses resulting from the hiring of additional employees. Research and development expenditures for the period were essentially unchanged at $2.1 million compared to the nine months ended September 30, 2007.
As of September 30, 2008, I.D. Systems had $53.8 million in cash, cash equivalents and marketable securities, and $26.3 million of working capital, compared to $65.0 million and $31.9 million, respectively, as of December 31, 2007.
During the three months ended September 30, 2008, the company purchased approximately 131,000 shares of its common stock in open market transactions under the company's stock repurchase program initiated in May of 2007. The average cost per share for these transactions was $7.10, for a total cost during the quarter of approximately $933,000. As of September 30, 2008, I.D. Systems had purchased a cumulative total of approximately 1.0 million shares of its common stock at an average cost of $9.39 per share, for a cumulative total cost of approximately $9.7 million. As of September 30, 2008, the maximum dollar value of shares that may yet be purchased under the program is approximately $324,000.
Highlights of the third quarter ended September 30, 2008, included:
* I.D. Systems' core customers continued expanding their use of the
company's wireless industrial vehicle management technology,
including Wal-Mart, Walgreens, and the U.S. Postal Service.
* Xerox Corporation, the world's leading document management
technology and services enterprise with 2007 revenues of more
than $17 billion, selected I.D. Systems' wireless vehicle
management system to deploy on a fleet of forklifts at a Xerox
distribution center in Ohio, as announced on July 2, 2008. The
order was facilitated by I.D. Systems' channel partner, NACCO
Materials Handling Group, Inc. (NMHG), and one of its Yale(r)
brand industrial lift truck dealers.
* NMHG and its Hyster(r) brand forklift distributors facilitated
the purchase of I.D. Systems' wireless vehicle management system
by two other new customers:
-- Georgia-Pacific, one of the world's leading
manufacturers and marketers of tissue, packaging,
paper, cellulose, building products, and related
chemicals, which operates in more than 300 locations
worldwide, ordered a pilot deployment of I.D. Systems'
technology.
-- Osram-Sylvania, a leading global manufacturer of
lighting products, ordered I.D. Systems' new
Opti-Kan(tm) optimized electronic kanban system as part
of its Wireless Asset Net(r) industrial fleet management
solution.
* Severstal, one of the largest integrated steel companies in the
U.S., ordered a full-facility deployment of I.D. Systems'
wireless industrial vehicle management system through its local
lift truck dealer.
* Two of the world's leading heavy equipment manufacturers,
Caterpillar and Bobcat, ordered I.D. Systems' PowerKey(r) brand
wireless industrial vehicle monitoring systems for deployment at
U.S. manufacturing facilities.
* I.D. Systems initiated pilot programs with its first customers in
Continental Europe -- two major automotive manufacturers and a
tier-one automotive industry supplier -- which are piloting I.D.
Systems' wireless fleet management technology on industrial
trucks at production plants in, respectively, Germany, Spain and
France.
Investor Conference Call
I.D. Systems will hold a conference call for investors and analysts at 4:45 p.m. Eastern Time on November 5, 2008. Jeffrey Jagid, chairman and CEO, will lead a discussion on 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.
