I.d. Systems, Inc. (NASDAQ:IDSY)

WOODCLIFF LAKE, N.J., Oct. 31, 2011 (GLOBE NEWSWIRE) -- I.D. Systems, Inc. (Nasdaq:IDSY), a leading provider of wireless solutions for tracking, securing and managing high-value enterprise assets, today reported financial results for the three and nine months ended September 30, 2011.

Third Quarter of 2011 Financial Results

• Revenue increased 74% to $11.3 million from $6.5 million in the same period a year ago. The improvement was driven by increased sales of the company's wireless vehicle management systems for fleets of rental cars and industrial trucks. Recurring revenue in Q3 2011 was $4.2 million.
   
• Excluding stock-based compensation and depreciation and amortization, non-GAAP net income was $665,000, or $0.06 per basic and diluted share, compared to non-GAAP net loss of $1.1 million, or ($0.10) per basic and diluted share, in the same year-ago period.
   
• Net loss was $214,000, or ($0.02) per basic and diluted share, an improvement from a net loss of $1.9 million, or ($0.17) per basic and diluted share, in the same year-ago period.
   
• As of September 30, 2011, the company had $28.0 million in cash, cash equivalents and marketable securities, which equates to $2.32 per share outstanding, with no debt.
   
• As of September 30, 2011, under a stock repurchase program authorized in November of 2010, I.D. Systems has repurchased a total of 265,000 shares of its common stock at an aggregate purchase price of $1.1 million, including 69,684 shares at an aggregate purchase price of $324,000 in the third quarter of 2011. The program authorizes the repurchase of issued and outstanding shares of up to $3 million in aggregate value.

First Nine Months of 2011 Financial Results

• Revenue increased 47% to $27.5 million from $18.6 million in the same period a year ago. Recurring revenue in the nine months ended September 30, 2011 was $12.3 million, or 45% of total revenue.
   
• Selling, general and administrative expenses and research and development expenses decreased 9% to $19.1 million from $20.9 million in the same year-ago period.
   
• Excluding stock-based compensation and depreciation and amortization, non-GAAP net loss was $1.3 million, or ($0.12) per basic and diluted share, an improvement from a non-GAAP net loss of $7.3 million, or ($0.66) per basic and diluted share, in the same year-ago period.
   
• Net loss was $4.0 million, or ($0.37) per basic and diluted share, an improvement from a net loss of $9.9 million, or ($0.89) per basic and diluted share, in the same year-ago period.

Third Quarter of 2011 Operational Highlights

• Strong repeat business across all major product categories from core customers, including Alcoa, American Airlines, Audi, BASF, Caterpillar, Ford Motor Company, Knight Transportation, Marten Transportation, Nestlé, Procter & Gamble, the U.S. Postal Service, Walgreens, and Walmart.
   
• Record sales of VeriWise™ transportation asset management systems, many of which replaced competitors' systems; new customers include a leading global provider of multi-modal transportation services and a major U.S. logistics solutions provider.
   
• Growing sales of PowerFleet® and PowerBox™ industrial vehicle management systems through channel partners; new customers across diverse industries include a Fortune 100 food producer, a Fortune 500 retailer, one of North America's largest healthcare products suppliers, and a major U.S. building supply distributor.
   
• Continued success of direct sales of industrial vehicle management systems; new customers include a regional U.S. grocery chain, a North American consumer beverage producer, and a leading U.K.-based industrial products manufacturer.
   
• Expanded rental fleet management business with Avis Budget Group, which converted its 5,000-vehicle pilot program with I.D. Systems into a 60-month contract, placed an additional $14 million order to deploy I.D. Systems' technology on 25,000 more vehicles (with an option for global fleet deployment), and purchased an equity stake in I.D. Systems.

Management Commentary

"In the third quarter of 2011 we achieved our highest quarterly revenue to date and our fifth consecutive quarter of revenue growth," said Jeffrey Jagid, I.D. Systems' chairman and CEO. "We are also pleased by our net income of $0.06 per share, on a non-GAAP basis.

"Our strong third quarter revenue was driven by three factors: deployment of rental vehicle management systems for Avis Budget, which based its new "Avis On Location" virtual rental offering on our wireless technology; robust sales of our core industrial vehicle management systems; and record orders of our Asset Intelligence transportation management solutions. Our revenues continue to reflect a balance of product and service sales, with 45% of total revenue for the first nine months of 2011 coming from recurring sources.

"I.D. Systems' gross margins remain strong and stable, at 52% for the quarter and 53% for the nine-month period, consistent with the company's historical range. We also continue to closely manage costs, with combined SG&A and R&D expenses over the first nine months of 2011 9% lower than the same period last year."