These risks could cause the company’s actual results for the current fiscal year and beyond to differ materially from those expressed in any forward-looking statements made by or on behalf of the company.

2012 began on a positive note for ID Systems with first quarter revenues of $9.8 million, up 25% from the first quarter a year ago. This was our ninth consecutive quarter of year-over-year revenue growth. Revenue contributions in Q1 2012 came from a balanced mix of market segments, products and services led by strong increases in sales of both vehicle and transportation asset management systems which Ken and Darryl will discuss in more detail shortly.

Our revenue was also derived from a relatively balanced mix of new product sales and service contracts with recurring revenue representing 43% of total revenue in Q1. Our gross margin remained strong at 50% in the first quarter, consistent with historic levels. As a result, our net loss improved year-over-year in Q1 as Ned will detail in a moment. We remained focused on the growth strategy that we executed successfully in 2011.

We are expanding business with core customers in vertical markets and across geographic regions especially Europe. We are diversifying revenue sources by expanding our customer base both through direct sales to large enterprises and through channel partners. And we are maintaining our market leadership position by continuing to develop unique products and features including many enhancements to our patented systems for securing, tracking, and managing vehicles, trailers, and containers.

As industrial vehicle management increasingly becomes viewed as a best practice in supply chain operations, as we continue deploying our rental car management technology, and as the transportation asset management market continues to mature, this strategy puts ID Systems in a strong position for further organic growth. With our healthy balance sheet, we also continue to evaluate growth opportunities through strategic acquisitions. Our criteria for potential acquisitions include strong fits with our recurring revenue and margin models, complementary technology and operating profiles, and synergies in customers and target markets.

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