Lots of buyers for I.D. Systems (NASDAQ:IDSY) today after announcing strong third quarter results late yesterday. In late trading, shares of IDSY were up more than 17 percent (or 37 cents per share) at $2.50 per share on heavy volume of more than 170,000 shares compared to its average daily volume of only 19,000 shares. This lightly traded SmallCap stock has a market cap of $28 million and a 52-week range between $1.77 and $3.89 per share.
Highlights from the third quarter:
- Revenue for the quarter increased 8% to $6.5 million, compared to $6.0 million for the second quarter of 2010, attributable primarily to increased sales of wireless vehicle management systems.
- Gross margin for the quarter was 52%.
- Selling, general and administrative ("SG&A") costs decreased 34% to $4.4 million, compared to $6.7 million for the second quarter of 2010.
- Net loss for the quarter was reduced by 54% to $1.9 million, or ($0.17) per basic and diluted share, compared to $4.0 million, or ($0.36) per basic and diluted share, for the second quarter of 2010.
- Cash, cash equivalents, and marketable securities as of September 30, 2010, increased $1.2 million to $28.3 million, compared to $27.1 million, net of a $1.1 million line of credit, as of June 30, 2010.
In addition, on November 3, 2010, I.D. Systems' Board of Directors authorized the repurchase of issued and outstanding shares of the company's common stock having an aggregate value of up to $3 million pursuant to a share repurchase program. The repurchases under this program will be made from time to time in the open market or in privately negotiated transactions and will be funded from I.D. Systems' working capital. The amount and timing of such repurchases will be dependent upon the price and availability of shares, general market conditions, and the availability of cash, as determined at the discretion of I.D. Systems' management.
"The growth of our wireless industrial vehicle management business, the recurring service contract revenue from the trailer tracking business of our Asset Intelligence subsidiary, and our efforts to reduce operating costs are all positive trends that contributed to our substantially lower net loss for the quarter," said Jeffrey Jagid, I.D. Systems' Chairman and Chief Executive Officer. "We also increased our net cash position by over $1 million, with no debt. With the market for our core wireless vehicle management solutions rebounding from the global economic downturn of 2009, we are optimistic that our business will continue to improve."
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.
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