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Sirit Reports Third Quarter 2009 Financial Results

^{Published on 2009-11-10 05:22:06 - Market Wire}
 

 Q3 2009 Corporate Highlights The following highlights some of Sirit's successes during the third quarter of 2009: - Sirit announced the first installation of its electronic toll collection ("ETC") system in Cartagena, Colombia with its partner Simplexity, one the largest system integrators of Toll Solutions in Latin America. The system utilizes Sirit's IDentity 5100 ("ID5100") readers and ISO 18000 6C passive tags. The ETC system will cover a 17 mile, 4 lane urban highway with a total of 5 toll plazas connecting industrial areas in the south with downtown Cartagena and the Port of Manga. - Sirit received approval from Autopistas Urbanas S.A. ("AUSA") to install Sirit's ETC system in the city of Buenos Aires, Argentina. The system will utilize 90 ID5100 readers which will support the AUSA legacy tags. - Sirit's long-standing customer, the Bay Area Toll Authority ("BATA"), placed a renewal toll transponder order valued at US$6.6 million over the next fifteen months. The order includes two options to purchase up to US$1.7 million in additional toll transponders. Under this order, Sirit will deliver its traditional sealed Title-21 based toll transponders including packaged tags available at retail locations. BATA began taking transponders under this order in late September 2009. - Sirit introduced the latest addition to its 'IDentity' series of high performance, fixed position, UHF RFID readers, the IDentity 5200 ("ID5200"). The ID5200 is a ruggedized, multi-protocol RFID reader, providing increased flexibility in configuration options with similar performance to Sirit's leading ID5100 reader. - Sirit was honoured with the 2009 North American Award for Competitive Strategy Leadership by Frost & Sullivan. Sirit's superior performance, innovation, technological advancement and sound business strategies have enabled the Company to evolve into the perfect choice for automotive vehicle identification application solutions, including vehicle asset tracking, congestion pricing and electronic vehicle registration. 

 Sirit Inc. Interim Consolidated Balance Sheets (expressed in thousands of Canadian dollars) Unaudited As at As at September 30 December 31 2009 2008 ------------ ------------ Assets Current Assets Cash and cash equivalents $ 2,702 $ 3,325 Accounts receivable 2,744 4,303 Inventory 2,869 3,470 Prepaids and deposits 337 287 ------------ ------------ 8,652 11,385 Property and equipment 1,959 2,599 Intangible assets 6,223 7,514 Goodwill 3,905 3,905 ------------ ------------ $ 20,739 $ 25,403 ------------ ------------ ------------ ------------ Liabilities Current Liabilities Bank indebtedness $ 1,360 $ 1,321 Accounts payable and accrued liabilities 3,247 4,716 Deferred revenue 226 339 Warranty obligations 113 108 Capital lease obligations 404 454 Related party debt 965 - ------------ ------------ 6,315 6,938 Long-term deferred revenue 500 442 Long-term warranty obligations 158 150 Long-term capital lease obligations 479 934 Related party debt - 1,100 ------------ ------------ 7,452 9,564 ------------ ------------ Shareholders' Equity Share capital 51,252 51,252 Contributed surplus 3,436 3,109 Deficit (41,401) (38,522) ------------ ------------ 13,287 15,839 ------------ ------------ $ 20,739 $ 25,403 ------------ ------------ ------------ ------------ Sirit Inc. Interim Consolidated Statements of Operations, Comprehensive Loss and Deficit (expressed in thousands of Canadian dollars except per share amounts) Unaudited Three Months Ended Nine Months Ended September 30 September 30 2009 2008 2009 2008 ----------- ----------- ----------- ----------- Revenue $ 4,447 $ 3,816 $ 15,211 $ 12,873 Cost of sales 2,703 2,554 9,782 8,631 ----------- ----------- ----------- ----------- Gross profit 1,744 1,262 5,429 4,242 ----------- ----------- ----------- ----------- Expenses Selling, general and administrative 1,517 1,744 4,937 5,818 Stock-based compensation 106 90 327 319 Development 411 797 1,444 2,474 Amortization 524 551 1,601 1,264 Foreign exchange loss/(gain) 128 4 (184) (162) ----------- ----------- ----------- ----------- 2,686 3,186 8,125 9,713 ----------- ----------- ----------- ----------- Operating loss (942) (1,924) (2,696) (5,471) Interest (expense)/income, net (62) (36) (183) 19 ----------- ----------- ----------- ----------- Net loss and comprehensive loss for the period $ (1,004) $ (1,960) $ (2,879) $ (5,452) Deficit, beginning of period (40,397) (38,685) (38,522) (35,193) ----------- ----------- ----------- ----------- Deficit, end of period $ (41,401) $ (40,645) $ (41,401) $ (40,645) ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Sirit Inc. Interim Consolidated Statements of Cash Flows (expressed in thousands of Canadian dollars) Unaudited Three Months Ended Nine Months Ended September 30 September 30 2009 2008 2009 2008 ----------- ----------- ----------- ----------- Cash provided by/(used in): Operating Activities Net loss for the period $ (1,004) $ (1,960) $ (2,879) $ (5,452) Items not involving cash and cash equivalents 767 810 2,337 1,839 Foreign exchange (gain)/loss 128 4 (184) (162) ----------- ----------- ----------- ----------- (109) (1,146) (726) (3,775) Net change in non-cash working capital items 339 58 453 (2,850) ----------- ----------- ----------- ----------- 230 (1,088) (273) (6,625) ----------- ----------- ----------- ----------- Investing Activities Additions to property and equipment (26) (30) (64) (192) Acquisition of RSI ID Technologies, Inc., net - - - (205) ----------- ----------- ----------- ----------- (26) (30) (64) (397) ----------- ----------- ----------- ----------- Financing Activities (Decrease)/increase in bank indebtedness (107) (1,077) 39 364 Issuance of common shares upon exercise of stock options - - - 15 Issuance of shares in private placement, net of costs - 779 - 779 (Decrease)/increase in related party debt (76) 431 (135) 504 Decrease in capital lease obligations (174) (64) (505) (53) ----------- ----------- ----------- ----------- (357) 69 (601) 1,609 ----------- ----------- ----------- ----------- Exchange rate impact on cash and cash equivalents (90) (288) 315 (44) ----------- ----------- ----------- ----------- Decrease in cash and cash equivalents (243) (1,337) (623) (5,457) Cash and cash equivalents, beginning of period 2,945 4,735 3,325 8,855 ----------- ----------- ----------- ----------- Cash and cash equivalents, end of period $ 2,702 $ 3,398 $ 2,702 $ 3,398 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Cash and cash equivalents consist of: Cash $ 2,038 $ 491 $ 2,038 $ 491 Short-term commercial paper 664 2,907 664 2,907 ----------- ----------- ----------- ----------- $ 2,702 $ 3,398 $ 2,702 $ 3,398 ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------