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I.D. Systems Reports 2012 Revenue Up 14% To Record $44.6 Million

WOODCLIFF LAKE, N.J., March 6, 2013 (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 its financial results for the fourth quarter and fiscal year ended December 31, 2012.

Fourth Quarter 2012 Financial Results

  • Revenue was $10.7 million compared to $11.8 million in the fourth quarter of 2011, reflecting the company's completion of a statement of work for Avis Budget Group that culminated in the third quarter of 2012.
  • Recurring revenue increased 10% to $4.5 million compared to $4.1 million in the same period a year ago, attributable primarily to the company's transportation asset and rental car management businesses.
  • Revenue from I.D. Systems' industrial vehicle management business increased 10% to $5.4 million compared to $4.9 million in the same period a year ago.
  • Gross margin was 45%, below the company's historical target of 50%, as a result of a short-term increase in production and shipping costs to meet year-end demand, and a one-time sale of surplus inventory built several years ago exclusively for the U.S. Postal Service.
  • Selling, general & administrative and research & development expenses were $5.7 million and $1.0 million, respectively, compared to $5.5 million and $0.9 million, respectively, in the same period a year ago.
  • Excluding stock-based compensation and depreciation and amortization, non-GAAP net loss was $215,000, or $(0.02) per basic and diluted share, compared to non-GAAP net income of $830,000, or $0.07 per basic and diluted share, in the same period a year ago.
  • Net loss was $1.0 million, or $(0.09) per basic and diluted share, compared to net loss of $18,000, or $(0.00) per basic and diluted share, in the fourth quarter of 2011.

Full Year 2012 Financial Results

  • Revenue increased 14% to a record $44.6 million from $39.3 million in 2011, driven by year-over-year sales increases across all product segments.
  • Recurring revenue increased 5% to $17.3 million from $16.4 million in 2011.
  • Rental car management revenue increased 86% to $8.0 million from $4.3 million in 2011.
  • Industrial vehicle management revenue increased 7% to $19.1 million from $17.9 million in 2011.
  • Transportation asset management revenue increased 2% to $17.6 million compared to $17.2 million in 2011. Deferred revenue, attributable primarily to transportation asset management hardware sales, increased 42% to $10.6 million from $7.4 million in 2011.
  • Gross margin was consistent with historic levels at 51%.
  • Selling, general & administrative expenses were $22.4 million, an increase of less than 2% compared to $22.0 million in 2011, as management continued to closely monitor labor and other overhead costs.
  • Research and development expenses increased 23% to $4.3 million from $3.5 million a year ago, reflecting the company's investment in new product development, including 4th-generation industrial fleet management technology, a 3rd-generation rental car management device, an enhanced refrigerated trailer monitoring system, and a new enterprise software analysis tool—I.D. Systems Analytics.
  • Excluding stock-based compensation and depreciation and amortization, non-GAAP net income was $748,000, or $0.06 per basic and diluted share, compared to non-GAAP net loss of $485,000, or $(0.04) per basic and diluted share, in 2011.
  • Net loss improved to $2.6 million, or $(0.22) per basic and diluted share, from a net loss of $4.0 million, or $(0.36) per basic and diluted share, in 2011.
  • As of December 31, 2012, the company had $15.8 million in cash, cash equivalents and marketable securities, equating to $1.30 per share outstanding, and no debt. As of December 31, 2011, the company had $25.4 million in cash, cash equivalents and marketable securities. The year-over-year decrease was primarily due to management's decision to invest the company's cash in a self-funded lease financing program to encourage customers to enter into long-term service contracts.

Results for both the fourth quarter and full year 2012 include an income tax benefit of $662,000 from the sale of a portion of the company's New Jersey net operating losses under the State's Technology Business Tax Certificate Transfer Program, which allows qualified New Jersey-based technology businesses to sell unused amounts of net operating loss carryforwards and research and development tax credits for cash.

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