I.D. Systems Inc. (IDSY, Financial) filed Quarterly Report for the period ended 2009-09-30.
I.D. Systems Inc is a leading provider of wireless solutions for corporate asset management. I.D. Systems' customers include 3M Company American Axle Archer Daniels Midland Daimler Chrysler Deere & Co. Ford Motor Company General Dynamics Hallmark Cards Northrop Grumman Target Corporation Walgreen Co. the U.S. Navy the U.S. Postal Service and the U.S. Transportation Security Administration among others. The company's systems enable management to control and track the location and status of their assets in real time. I.d. Systems Inc. has a market cap of $37.2 million; its shares were traded at around $3.36 with and P/S ratio of 1.4.
Cost of products decreased by $3.0 million, or 83.4%, to $603,000 in the three months ended September 30, 2009 from $3.6 million in the same period in 2008. Gross profit for products was $615,000 in 2009 compared to $3.7 million in 2008. As a percentage of product revenues, gross profit of 50.5% in 2009 was consistent with the gross profit of 50.8% in 2008.
Cost of services decreased by $609,000, or 64.2%, to $339,000 in the three months ended September 30, 2009 from $948,000 in the same period in 2008. Gross profit for services was $284,000 in 2009 compared to $1.0 million in 2008. As a percentage of service revenues, gross profit decreased to 45.6% in 2009 from 52.1% in 2008. The gross margin decrease was primarily due to a reduction in service revenue with fixed costs remaining constant, driving the margin down.
Cost of products decreased by $4.5 million, or 66.5%, to $2.3 million in the nine months ended September 30, 2009 from $6.8 million in the same period in 2008. Gross profit for products was $2.1 million in 2009 compared to $7.2 million in 2008. As a percentage of product revenues, gross profit decreased to 47.5% in 2009 from 51.5% in 2008. The decrease in gross profit was due to lower revenue in 2009 resulting in fixed expenses having a greater negative impact on the gross profit percentage in 2009.
Cost of services decreased by $1.3 million, or 52.5%, to $1.2 million in the nine months ended September 30, 2009 from $2.5 million in the same period in 2008. Gross profit for services was $1.9 million in 2009 compared to $2.5 million in 2008. As a percentage of service revenues, gross profit increased to 60.1% in 2009 from 49.5% in 2008. The gross margin increase was due to a mix in service revenue. During the nine months ended September 30, 2008, a higher percentage of our service revenue was for vehicle and infrastructure installations for the United States Postal Service. Those services are performed by subcontractors and have lower gross margins than training and support services performed by our own field staff. Maintenance revenue, which has higher margins, also increased by $400,000, or 73%, in the nine months ended September 30, 2009 compared to September 30, 2008.
Historically, except for our line of credit borrowing of $12.9 million in the first quarter of 2009, the Company s capital requirements have been funded primarily from the net proceeds from the sale of its securities, including the sale of its common stock upon the exercise of options and warrants. As of September 30, 2009, the Company had cash and marketable securities of $64.3 million and working capital of $49.4 million compared to $56.0 million and $30.9 million, respectively, as of December 31, 2008.
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I.D. Systems Inc is a leading provider of wireless solutions for corporate asset management. I.D. Systems' customers include 3M Company American Axle Archer Daniels Midland Daimler Chrysler Deere & Co. Ford Motor Company General Dynamics Hallmark Cards Northrop Grumman Target Corporation Walgreen Co. the U.S. Navy the U.S. Postal Service and the U.S. Transportation Security Administration among others. The company's systems enable management to control and track the location and status of their assets in real time. I.d. Systems Inc. has a market cap of $37.2 million; its shares were traded at around $3.36 with and P/S ratio of 1.4.
Highlight of Business Operations:
COST OF REVENUES. Cost of revenues decreased by $3.6 million, or 79.4%, to $942,000 in the three months ended September 30, 2009 from $4.6 million for the same period in 2008. The decrease is attributable to the decrease in revenue in 2009. Gross profit was $899,000 in 2009 compared to $4.7 million in 2008. As a percentage of revenues, gross profit decreased to 48.8% in 2009 from 51.1% in 2008.Cost of products decreased by $3.0 million, or 83.4%, to $603,000 in the three months ended September 30, 2009 from $3.6 million in the same period in 2008. Gross profit for products was $615,000 in 2009 compared to $3.7 million in 2008. As a percentage of product revenues, gross profit of 50.5% in 2009 was consistent with the gross profit of 50.8% in 2008.
Cost of services decreased by $609,000, or 64.2%, to $339,000 in the three months ended September 30, 2009 from $948,000 in the same period in 2008. Gross profit for services was $284,000 in 2009 compared to $1.0 million in 2008. As a percentage of service revenues, gross profit decreased to 45.6% in 2009 from 52.1% in 2008. The gross margin decrease was primarily due to a reduction in service revenue with fixed costs remaining constant, driving the margin down.
Cost of products decreased by $4.5 million, or 66.5%, to $2.3 million in the nine months ended September 30, 2009 from $6.8 million in the same period in 2008. Gross profit for products was $2.1 million in 2009 compared to $7.2 million in 2008. As a percentage of product revenues, gross profit decreased to 47.5% in 2009 from 51.5% in 2008. The decrease in gross profit was due to lower revenue in 2009 resulting in fixed expenses having a greater negative impact on the gross profit percentage in 2009.
Cost of services decreased by $1.3 million, or 52.5%, to $1.2 million in the nine months ended September 30, 2009 from $2.5 million in the same period in 2008. Gross profit for services was $1.9 million in 2009 compared to $2.5 million in 2008. As a percentage of service revenues, gross profit increased to 60.1% in 2009 from 49.5% in 2008. The gross margin increase was due to a mix in service revenue. During the nine months ended September 30, 2008, a higher percentage of our service revenue was for vehicle and infrastructure installations for the United States Postal Service. Those services are performed by subcontractors and have lower gross margins than training and support services performed by our own field staff. Maintenance revenue, which has higher margins, also increased by $400,000, or 73%, in the nine months ended September 30, 2009 compared to September 30, 2008.
Historically, except for our line of credit borrowing of $12.9 million in the first quarter of 2009, the Company s capital requirements have been funded primarily from the net proceeds from the sale of its securities, including the sale of its common stock upon the exercise of options and warrants. As of September 30, 2009, the Company had cash and marketable securities of $64.3 million and working capital of $49.4 million compared to $56.0 million and $30.9 million, respectively, as of December 31, 2008.
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