Previous Statements by IDSY
» I.D. Systems' CEO Discusses Q1 2012 Results - Earnings Call Transcript
» ID Systems' CEO Discusses Q4 2011 Results - Earnings Call Transcript
» I.D. Systems' CEO Discusses Q3 2011 Results - Earnings Call Transcript
» I.D. Systems CEO Discusses I.D. Systems agreement with Avis Budget Group Transcript
The following discussion contains forward-looking statements that are subject to risks and uncertainties including, but not limited to, the impact of competitive products, product demand and market acceptance risks, fluctuations in operating results, and other risks detailed from time to time in I.D. Systems filings with the Securities and Exchange Commission.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. The second quarter of 2012 continued a positive trend for I.D. Systems. Revenue increased from Q2 of last year to $8.7 million, marking our 10th consecutive quarter of year-over-year revenue growth. For the six-month period, revenues were up 14% to a first-half revenue of $18.5 million. So we are on pace to make 2012 our second year in a row of record annual revenue. Revenue contributions in Q2 of 2012 continued to come from a balanced mix of products and services across multiple market segments led by increased sales of both vehicle and transportation asset management systems. As a sign of our growing diversification of sources of revenue, I am pleased to report that only one of our customers accounted for more than 10% of our revenue in the first half of the year. The predictability of our revenue stream was also a positive. Recurring revenue was 49% of total revenue in Q2 and 46% of total revenue year to date. Our gross margin remains strong, at more than 50% in both the three and six month periods, consistent with historic levels. As a result, our cash flow from operations was positive in Q2, and our net loss for the first six months of 2012 improved over last year, as Ned will detail in a moment. Overall, we are making progress toward our long-term strategic growth objectives, and we look forward to building on this positive momentum for the remainder of this year and into 2013. Our outlook for the rest of 2012 is especially strong due to expected deliveries of rental fleet management systems to Avis Budget Group.
In July of 2012, ABG confirmed delivery orders for the approximately 20,000 units representing the balance of the 25,000 systems earmarked for the northeast US and Canada, under the first phase of our master agreement with ABG. We expect to deliver all of these units in Q3 of 2012. In fact, we have already shipped a significant portion of the units.We are working diligently to build shareholder value, and I look forward to reporting to you further on our continuing progress. Thank you for your time today, and I will be pleased to take your questions later in the call. Now let me turn the discussion over to Ned Mavrommatis to detail our financial results. Ned Mavrommatis Thank you Jeff, and hello to everyone on the call today. As Jeff noted, revenue for the three months ended June 30, 2012 increased 4% to $8.7 million, compared to $8.3 million in the second quarter a year ago, with 49% of all revenue coming from predictable recurring sources. For the six months ended June 30, 2012, our revenue increased to a record $18.5 million, up 14% from $16.2 million in the same period a year ago. Our revenue growth in the first half of the year was driven by increased sales of our wireless vehicle and transportation asset management systems. Recurring revenue for the six months was $8.4 million, or 46% of total revenue. Gross margins in Q2 2012 was a solid 52.4% once again meeting our expectations. SG&A expenses for the quarter were $5.7 million, relatively flat both year-over-year and sequentially from Q1 2012. Excluding stock-based compensation and depreciation, amortization, non-GAAP net loss in Q2 was $1.2 million, or $0.10 per basic and diluted share, compared to $1.1 million or $0.10 per basic and diluted share in the second quarter a year ago. Read the rest of this transcript for free on seekingalpha.com