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» I.D. Systems CEO Discusses Q3 2010 Results - Earnings Call Transcript
» I.D. Systems, Inc. Q2 2010 Earnings Call Transcript
» I.D. Systems, Inc. Q1 2010 Earnings Call Transcript
For the fourth quarter ended December 31, 2010, I.D. Systems revenues increased sequentially from the third quarter by 11% to $7.2 million. For the full year, our revenues increased to $25.9 million, compared to $10.3 million for 2009.These gains reflect the acquisition of our Asset Intelligence business unit in January 2010, which contributed $15.2 million of our revenue for the year. With its high margin service subscription model, Asset Intelligence also contributed significantly to our solid overall gross margin: 56% for both the fourth quarter and full year. We are pleased by our progress in the last six months of 2010 and believe that this second-half performance has put us in a good position for 2011. Our top line revenue growth in 2010 reflects some fundamental improvements in the economic condition of our core industrial markets as well as several promising new product developments. Sales of our wireless asset management solutions increased across both our primary market segments: industrial vehicle management and trailer fleet management. We've also met or exceeded the goals we set at the beginning of the year to reduce and control the company's operating costs. The fourth quarter of 2010 was the second consecutive quarter in which we generated positive cash flow from operations. Overall in the second half of 2010, we increased our net cash from operations by $1.9 million. In addition, our company remains debt-free. As Ned will detail in a moment, our non-GAAP net loss for the last six months of 2010, which excludes depreciation and amortization of intangible assets and stock-based compensation, decreased 62% compared to the first six months of the year. Our key customer developments during 2010, which Darryl and Ken will discuss further, included Walmart, which expanded its use of our Asset Intelligence trailer tracking solutions, while continuing to maintain and benefit from our industrial vehicle management systems; American and American Eagle airlines, which expanded their use of our vehicle management systems at major US airports; Ford Motor Company, which launched our vehicle management technology in Europe and began the process of upgrading our systems across their operations in the US; Nestle, which continues to roll out our industrial vehicle management systems across multiple food and beverage business divisions; Knight Transportation, one of North America's largest truck load carriers, which significantly expanded its utilization of Asset Intelligence trailer management solutions; and a leading US car rental company for which we developed and deployed a new generation of rental fleet management technology.
Strategically, in 2010 we introduced a new go-to-market strategy for our wireless vehicle management business with a hosted subscription model similar to that of our Asset Intelligence business. We believe this strategy will help us compress our selling and implementation cycles, bringing financial benefits to our customers faster and stimulate more robust growth.We also implemented a stock repurchase program in the fourth quarter, which Ned will describe, to help provide greater shareholder value. We remain committed to sustaining revenue growth, managing costs, and maintaining strong gross margins. Having accomplished our goal of generating positive cash flow from operations in the second half of 2010, our next major goal remains to achieve a profitable run rate as we exit 2011. Thank you for your time today. I look forward to taking your questions a little later on the call. Now let me turn the call over to Ned Mavrommatis, our CFO, to detail our financial results. Read the rest of this transcript for free on seekingalpha.com