As of March 31, 2011, I.D. Systems had $26.0 million in cash, cash equivalents and marketable securities, and $24.3 million of working capital.

Under a stock repurchase program instituted in November, 2010, I.D. Systems has acquired 125,000 shares of its common stock at an aggregate purchase price of $511,000, as of March 31, 2011. The program authorizes the repurchase of issued and outstanding shares of up to $3 million in aggregate value.

Investor Conference Call

I.D. Systems will hold a conference call for investors and analysts today, May 9, 2011, at 4:45 p.m. Eastern time. Jeffrey Jagid, chairman and chief executive officer, will lead a discussion on the results of the quarter and recent developments. After opening remarks and a discussion of the quarter, there will be a question and answer period. The conference call will be broadcast live over the Internet 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.

About I.D. Systems

Based in Woodcliff Lake, New Jersey, with subsidiaries in Germany and the United Kingdom, I.D. Systems is a leading provider of wireless solutions for securing, controlling, tracking, and managing high-value enterprise assets, including vehicles, powered equipment, trailers, containers, and cargo. The company’s patented technologies address the needs of organizations to monitor and analyze their assets to improve safety, security, efficiency, and productivity. For more information, please visit www.id-systems.com.

Non-GAAP Measures

To supplement its consolidated financial statements presented in accordance with 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 to the nearest GAAP measure of all non-GAAP measures included in this press release can be found in the financial tables included in this press release.

“Safe Harbor” Statement

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, 2010. 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. 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.

-- Tables to Follow --

 

I.D. Systems, Inc. and Subsidiaries

Statement of Operations Data

(Unaudited)

		Three Months Ended
		March 31,
		2010				2011
Revenue:
Products		$	2,023,000			$	3,804,000
Services			4,101,000				4,030,000
			6,124,000				7,834,000
Cost of Revenue:
Cost of products			975,000				2,181,000
Cost of services			1,764,000				1,492,000
			2,739,000				3,673,000
Gross Profit			3,385,000				4,161,000
Selling, general and administrative expenses			6,474,000				5,095,000
Research and development expenses			1,154,000				906,000
Loss from operations			(4,243,000	)			(1,840,000	)
Interest income			209,000				47,000
Interest expense			(30,000	)			—
Other income, net			1,000				28,000
Net loss		$	(4,063,000	)		$	(1,765,000	)
Net loss per share – basic and diluted		$	(0.36	)		$	(0.16	)
Weighted average common shares outstanding – basic and diluted			11,185,000				11,189,000

 

I.D. Systems, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Financial Measures

(Unaudited)

			Three Months Ended March 31, 2010				Three Months Ended March 31, 2011
Net loss attributable to common stockholders		$	(4,063,000	)		$	(1,765,000	)
Depreciation and amortization			432,000				605,000
Stock-based compensation			454,000				308,000
Non-GAAP net loss		$	(3,177,000	)		$	(852,000	)
Non-GAAP net loss per share – basic and diluted		$	(0.28	)		$	(0.08	)

 

 

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I.D. Systems, Inc. and Subsidiaries

Balance Sheet Data

		December 31, 2010*				March 31, 2011
						(Unaudited)
ASSETS
Cash and cash equivalents		$	14,491,000			$	11,049,000
Investments – short term			4,565,000				6,692,000
Interest receivable			53,000				70,000
Accounts receivable, net			7,044,000				5,512,000
Note and sales-type lease receivable – current			353,000				277,000
Unbilled receivables			—				134,000
Inventory, net			7,295,000				7,720,000
Prepaid expenses and other current assets			1,211,000				2,219,000
Deferred costs – current			1,159,000				1,772,000
Total current assets			36,171,000				35,445,000
Investments – long term			9,364,000				8,211,000
Note and sales-type lease receivable – long term			839,000				943,000
Deferred costs – long term			2,978,000				2,874,000
Fixed assets, net			3,853,000				3,597,000
Goodwill			1,837,000				1,837,000
Intangible assets, net			5,571,000				5,277,000
Other assets			272,000				272,000
		$	60,885,000			$	58,456,000
LIABILITIES
Accounts payable and accrued expenses		$	9,141,000				8,160,000
Deferred revenue			2,186,000				3,023,000
Total current liabilities			11,327,000				11,183,000
Deferred rent			199,000				280,000
Deferred revenue			4,614,000				4,038,000
Total liabilities			16,140,000				15,501,000
Commitments and Contingencies
STOCKHOLDERS' EQUITY
Preferred stock; authorized 5,000,000 shares, $.01 par value; none issued			—				—
Common stock; authorized 50,000,000 shares, $0.01 par value; 12,491,000 and 12,547,000 shares issued at December 31, 2010 and March 31, 2011, respectively; shares outstanding, 11,242,000 and 11,195,000 at December 31, 2010 and March 31, 2011, respectively			121,000				121,000
Additional paid-in capital			105,156,000				105,538,000
Accumulated deficit			(49,470,000	)			(51,235,000	)
Accumulated other comprehensive (loss) income			(37,000	)			15,000
			55,770,000				54,439,000
Treasury stock, at cost			(11,025,000	)			(11,484,000	)
Total stockholders’ equity			44,745,000				42,955,000
Total liabilities and stockholders’ equity		$	60,885,000			$	58,456,000

*Derived from audited balance sheet as of December 31, 2010.

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I.D. Systems, Inc. and Subsidiaries

Statement of Cash Flow Data

(Unaudited)

		Three Months Ended March 31,
		2010				2011
Cash flows from operating activities:
Net loss		$	(4,063,000	)		$	(1,765,000	)
Adjustments to reconcile net loss to cash used in operating activities:
Bad debt expense			16,000				73,000
Accrued interest income			(34,000	)			(17,000	)
Stock-based compensation expense			454,000				308,000
Depreciation and amortization			432,000				605,000
Deferred rent expense			—				81,000
Changes in:
Accounts receivable			1,011,000				1,501,000
Unbilled receivables			—				(134,000	)
Note and lease receivable			74,000				(28,000	)
Inventory			715,000				(422,000	)
Prepaid expenses and other assets			(483,000	)			(1,008,000	)
Deferred costs			(494,000	)			(509,000	)
Deferred revenue			802,000				261,000
Accounts payable and accrued expenses			(1,360,000	)			(914,000	)
Net cash  used in operating activities			(2,930,000	)			(1,968,000	)
Cash flows from investing activities:
Expenditures for fixed assets			(506,000	)			(55,000	)
Business acquisition			(15,000,000	)			—
Purchase of investments			(2,751,000	)			(984,000	)
Maturities of investments			9,877,000				—
Net cash used in investing activities			(8,380,000	)			(1,039,000	)
Cash flows from financing activities:
Proceeds from exercise of stock options			3,000				35,000
Purchase of treasury shares			—				(412,000	)
Principal payments on line of credit			(2,187,000	)			—
Net cash used in financing activities			(2,184,000	)			(377,000	)
Effect of foreign exchange rate changes on cash and equivalents			(8,000	)			(58,000	)
Net decrease in cash and cash equivalents			(13,502,000	)			(3,442,000	)
Cash and cash equivalents - beginning of period			19,481,000				14,491,000
Cash and cash equivalents - end of period		$	5,979,000			$	11,049,000
Supplemental disclosure of cash flow information:
Cash paid for Interest		$	30,000			$	—
Noncash activities:
Unrealized gain (loss) on investments		$	66,000			$	(10,000	)
Shares withheld pursuant to stock issuance		$	10,000			$	47,000
Accrued contingent consideration		$	1,017,000			$	—
Acquisition :
Fair value of assets acquired		$	20,712,000			$	—
Liabilities assumed			(4,695,000	)			—
Less: contingent consideration potentially due			(1,017,000	)			—
Net cash paid in 2010		$	15,000,000			$	—

 

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