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I.D. Systems Reports First Quarter 2013 Financial Results

I.D. Systems Reports First Quarter 2013 Financial Results

WOODCLIFF LAKE, N.J., May 9, 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 results for the
quarter ended March 31, 2013.

First Quarter 2013 Financial Results

  *Revenue was $8.0 million, compared to $9.8 million in the first quarter of
    2012. The decrease was attributable primarily to the timing of closing
    industrial vehicle management business in the U.S. and a shortfall of
    revenue from Europe, reflecting the economic climate in that region.
  *Recurring revenue was $4.4 million, up 4% from $4.2 million in the first
    quarter a year ago.
  *Gross margin was 48%, compared to 50% in the first quarter of 2012. The
    decrease was attributable primarily to a higher contribution of revenue
    from channel partners.
  *Selling, general and administrative expenses and research and development
    expenditures of $5.5 million and $1.1 million, respectively, were flat
    compared to $5.6 million and $1.1 million, respectively, in the first
    quarter of 2012.
  *Excluding stock-based compensation and depreciation and amortization,
    non-GAAP net loss was $1.8 million, or $(0.15) per basic and diluted
    share, compared to a non-GAAP net loss of $840,000, or $(0.07) per basic
    and diluted share, in the same period a year ago.
  *Net loss was $2.6 million, or $(0.22) per basic and diluted share,
    compared to a net loss of $1.6 million, or $(0.14) per basic and diluted
    share, in the first quarter of 2012.
  *As of March 31, 2013, I.D. Systems had $15.2 million in cash, cash
    equivalents and marketable securities, and no debt.

Management Commentary

"We remain optimistic about our growth opportunities in 2013," said Jeffrey
Jagid, I.D. Systems' chairman and CEO. "Our sales pipeline is solid and we
will continue to execute our revenue growth strategy that has proven
successful over the past three years. We will work to deepen the penetration
of our solutions with our core customers, especially through our enterprise
Analytics software. We will strive to continue diversifying revenue sources by
pursuing new customers, through both direct sales and channel partners. And we
will continue our efforts to extend our market leadership, especially through
solution innovations, including new generations of technology for both the
industrial vehicle and rental car management markets."

First Quarter 2013 Operational Highlights

  *Repeat business from core end users, including Caterpillar, Continental
    Tire, Ford Motor Company, Forward Air, John Deere, Kellogg's, Nestlé,
    Procter & Gamble, Swift Transportation, and Walmart.
  *Substantial revenue contributions from channel partners (industrial truck
    OEMs and their dealers).
  *The award of United States patent number 8,370,268 for a wireless,
    automated, remotely controlled vehicle rental system, which enables a
    renter to reserve a vehicle via the Internet or a smart phone, confirm
    vehicle availability in real time, automatically unlock the vehicle's
    doors, and return the vehicle without the aid of any other person.
  *The award of a three-year contract from a leading publicly-held U.S.
    transportation service company for I.D. Systems' VeriWise™ Track and Trace
    system, to help manage a diverse fleet of approximately 1,000
    cargo-carrying assets, including dry vans, flatbeds, and refrigerated
    trailers.

Investor Conference Call

I.D. Systems will hold a conference call for investors and analysts today,
Thursday, May 9, 2013, at 4:45 p.m. Eastern time. The company's chairman and
CEO, Jeffrey Jagid, will lead a discussion on the results of the quarter and
other recent developments, followed by a question and answer period. The
conference call will be broadcast live via the Investors section of the
company's website at www.id-systems.com. To listen to the live call, go to the
website at least 10 minutes early to download and install any necessary audio
software.

Non-GAAP Measures

To supplement its financial statements presented in accordance with Generally
Accepted Accounting Principles (GAAP), I.D. Systems provides certain non-GAAP
measures of financial performance. These non-GAAP measures include non-GAAP
net income/loss and non-GAAP net income/loss per basic and diluted share.
Reference to these non-GAAP measures should be considered in addition to
results prepared under current accounting standards, but are not a substitute
for, or superior to, GAAP results. These non-GAAP measures are provided to
enhance investors' overall understanding of I.D. Systems' current financial
performance. Specifically, I.D. Systems believes the non-GAAP measures provide
useful information to both management and investors by excluding certain
expenses, gains and losses that may not be indicative of its core operating
results and business outlook. Reconciliation of all non-GAAP measures included
in this press release to the nearest GAAP measures can be found in the
financial tables included in this press release.

About I.D. Systems

Headquartered in Woodcliff Lake, New Jersey, with subsidiaries in Texas,
Germany, and the United Kingdom, I.D. Systems is a leading global provider of
wireless solutions for securing, controlling, tracking, and managing
high-value enterprise assets, including industrial vehicles, rental cars,
trailers, containers, and cargo. The company's patented technologies address
the needs of organizations to monitor and analyze their assets to increase
efficiency and productivity, reduce costs, and improve profitability.For more
information, please visit www.id-systems.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward looking statements within the meaning of
federal securities laws. Forward-looking statements include statements with
respect to I.D. Systems' beliefs, plans, goals, objectives, expectations,
anticipations, assumptions, estimates, intentions, and future performance, and
involve known and unknown risks, uncertainties and other factors, which may be
beyond I.D. Systems' control, and which may cause its actual results,
performance or achievements to be materially different from future results,
performance or achievements expressed or implied by such forward-looking
statements.All statements other than statements of historical fact are
statements that could be forward-looking statements.For example,
forward-looking statements include: statements regarding prospects for
additional customers; market forecasts; projections of earnings, revenues,
synergies, accretion or other financial information; and plans, strategies and
objectives of management for future operations, including integration plans in
connection with acquisitions. The risks and uncertainties referred to above
include, but are not limited to, future economic and business conditions, the
loss of key customers or reduction in the purchase of products by any such
customers, the failure of the market for I.D. Systems' products to continue to
develop, the possibility that I.D. Systems may not be able to integrate
successfully the business, operations and employees of acquired businesses,
the inability to protect I.D. Systems' intellectual property, the inability to
manage growth, the effects of competition from a variety of local, regional,
national and other providers of wireless solutions, and other risks detailed
from time to time in I.D. Systems' filings with the Securities and Exchange
Commission, including its annual report on Form 10-K for the year ended
December 31, 2012. These risks could cause actual results to differ materially
from those expressed in any forward looking statements made by, or on behalf
of, I.D. Systems. Unless otherwise required by applicable law, I.D. Systems
assumes no obligation to update the information contained in this press
release, and expressly disclaims any obligation to do so, whether as a result
of new information, future events or otherwise.

I.D. Systems, Inc. and Subsidiaries
Condensed Statement of Operations Data
(Unaudited)
                                                                
                                                    Three Months Ended
                                                    March 31,
                                                    2012         2013
Revenue:                                                         
Products                                             $5,711,000   $3,775,000
Services                                             4,101,000    4,239,000
                                                    9,812,000    8,014,000
Cost of Revenue:                                                 
Cost of products                                     3,463,000    2,694,000
Cost of services                                     1,403,000    1,484,000
                                                    4,866,000    4,178,000
                                                                
Gross Profit                                         4,946,000    3,836,000
                                                                
Operating Expenses                                               
Selling, general and administrative expenses         5,589,000    5,516,000
Research and development expenses                    1,114,000    1,140,000
                                                    6,703,000    6,656,000
                                                                
Loss from operations                                 (1,757,000)  (2,820,000)
Interest income                                      89,000       165,000
Other income, net                                    21,000       33,000
                                                                
Net loss                                             ($1,647,000) ($2,622,000)
                                                                
Net loss per share – basic and diluted               ($0.14)      ($0.22)
                                                                
Weighted average common shares outstanding – basic   11,720,000   11,839,000
and diluted

                                                          
I.D. Systems, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
                                                          
                                       Three Months Ended Three Months Ended
                                       March 31, 2012      March 31, 2013
Net loss attributable to common         ($1,647,000)        ($2,622,000)
stockholders
Depreciation and amortization           554,000             539,000
Stock-based compensation                253,000             253,000
Non-GAAP net loss                       ($840,000)          ($1,830,000)
Non-GAAP net loss per share – basic and ($0.07)             ($0.15)
diluted

                                                              
I.D. Systems, Inc. and Subsidiaries
Condensed Balance Sheet Data
                                                              
                                            December 31, 2012* March 31, 2013
                                                              (Unaudited)
ASSETS                                                         
Cash and cash equivalents                    $1,614,000         $3,677,000
Restricted cash                              300,000            300,000
Investments – short term                     4,794,000          3,759,000
Accounts receivable, net                     8,814,000          8,419,000
Financing receivable – current               3,143,000          2,454,000
Inventory, net                               7,512,000          7,843,000
Deferred costs – current                     2,380,000          2,301,000
Prepaid expenses and other current assets    1,043,000          595,000
Deferred tax asset – current                 662,000            --
Total current assets                         30,262,000         29,348,000
                                                              
Investments – long term                      9,064,000          7,457,000
Financing receivable – long term             10,814,000         11,145,000
Deferred costs – long term                   2,651,000          2,848,000
Fixed assets, net                            2,401,000          2,289,000
Goodwill                                     1,837,000          1,837,000
Intangible assets, net                       3,230,000          2,937,000
Other assets                                 307,000            307,000
                                            $60,566,000        $58,168,000
                                                              
LIABILITIES                                                    
Accounts payable and accrued expenses        $5,638,000         $5,123,000
Deferred revenue                             4,689,000          4,483,000
Total current liabilities                    10,327,000         9,606,000
Deferred rent                                343,000            339,000
Deferred revenue                             5,869,000          6,838,000
Total liabilities                            16,539,000         16,783,000
Commitments and Contingencies                                  
                                                              
STOCKHOLDERS' EQUITY                                           
Preferred stock; authorized 5,000,000        --                 --
shares, $0.01 par value; none issued
Common stock; authorized 50,000,000 shares,
$0.01 par value; 12,678,000 and 12,715,000
shares issued at December 31, 2012 and March 122,000           122,000
31, 2013, respectively; shares outstanding,
12,088,000 and 12,087,000 at December 31,
2012 and March 31, 2013, respectively
Additional paid-in capital                   103,135,000        103,418,000
Accumulated deficit                          (56,102,000)       (58,724,000)
Accumulated other comprehensive (loss)       53,000             (48,000)
income
                                            47,208,000         44,768,000
Treasury stock, at cost                      (3,181,000)        (3,383,000)
Total stockholders' equity                   44,027,000         41,385,000
Total liabilities and stockholders' equity   $60,566,000        $58,168,000
                                                              
*Derived from audited balance sheet as of December 31, 2012

                                                               
I.D. Systems, Inc. and Subsidiaries
Condensed Statement of Cash Flows Data
(Unaudited)
                                                               
                                                 Three Months Ended March 31,
                                                 2012           2013
Cash flows from operating activities:                           
Net loss                                          ($1,647,000)   ($2,622,000)
Adjustments to reconcile net loss to cash used in               
operating activities:
Bad debt expense                                  49,000         139,000
Proceeds from sale of N.J. net operating loss     390,000        662,000
carryforwards
Stock-based compensation expense                  253,000        253,000
Depreciation and amortization                     554,000        539,000
Deferred rent                                    19,000         (4,000)
Changes in:                                                     
Accounts receivable                               (1,406,000)    232,000
Financing receivable                              (821,000)      345,000
Inventory                                         654,000        (331,000)
Prepaid expenses and other assets                 1,137,000      448,000
Deferred costs                                    (24,000)       (118,000)
Deferred revenue                                  1,260,000      763,000
Accounts payable and accrued expenses             (4,552,000)    (515,000)
Net cashused in operating activities             (4,134,000)    (209,000)
                                                               
Cash flows from investing activities:                           
Expenditures for fixed assets, including website  (168,000)      (134,000)
costs
Purchase of investments                           (29,000)       (1,568,000)
Maturities of investments                         712,000        4,173,000
Net cash provided by investing activities         515,000        2,471,000
                                                               
Cash flows from financing activities:                           
Proceeds from exercise of stock options           7,000          7,000
Net cash provided by financing activities         7,000          7,000
                                                               
Effect of foreign exchange rate changes on cash   (48,000)       (206,000)
and equivalents
Net (decrease) increase in cash and cash          (3,660,000)    2,063,000
equivalents
Cash and cash equivalents - beginning of period   8,386,000      1,614,000
Cash and cash equivalents - end of period         $4,726,000     $3,677,000

CONTACT: Investor Relations
         Liolios Group, Inc.
         Scott Liolios or Matt Glover
         949-574-3860, info@liolios.com

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