Company: SAMSys Technologies Inc.
Stock Symbol: SMY
Listing: Toronto Stock Exchange (TSX)
Outstanding Shares: 47.8 Million
Web Site: www.samsys.com
TORONTO, Aug. 15 /CNW/ - SAMSys Technologies Inc., ("SAMSys"), (TSX:SMY),
www.samsys.com, of Toronto, an international provider of Radio Frequency
Identification (RFID) reader hardware solutions, today reports on the
Company's unaudited 2005 financial results for the three and nine-month
periods ended June 30, 2005.
3rd Quarter Business Highlights:
- In June 2005, the Company introduced its new MP9320 v2.8 Ultra-High
Frequency ("UHF") Fixed reader, capable of reading tags that conform
to the new EPC Generation 2 standard. In addition, in July of 2005
the Company introduced its new MP9311 UFH OEM reader module designed
for embedded RFID applications in barcode printer/encoders and smart
label applicators also supporting the new Generation 2 protocol.
Production units of the MP9320 v2.8 began shipping in the last week
in July while production units of the MP9311 are scheduled to ship in
the last week of August. The current order book, including these
products, is approximately $1.5 million.
- In June 2005, the Company introduced its new MP9320 v2.8 Ultra-High
Frequency ("UHF") Fixed reader, capable of reading tags that conform
to the new EPC Generation 2 standard. In addition, in July of 2005
the Company introduced its new MP9311 UFH OEM reader module designed
for embedded RFID applications in barcode printer/encoders and smart
label applicators also supporting the new Generation 2 protocol.
Production units of the MP9320 v2.8 began shipping in the last week
in July while production units of the MP9311 are scheduled to ship in
the last week of August.
- In June 2005, the Company joined the Intermec Rapid Start licensing
program providing the Company with full access to Intermec's full
fixed RFID reader and fixed RFID printer intellectual property
portfolios. This proactive step continued to demonstrate the
Company's leadership in eliminating barriers to adoption by reducing
a significant risk for the Company and its customers.
- In May 2005, SAMSys announced that the Company would provide RFID
readers to the U.S. government. Two of SAMSys' resellers were awarded
blanket purchase agreements for SAMSys' RFID readers to be deployed
for use in the DoD RFID initiative.
3rd Quarter Financial Highlights:
-------------------------------------------------------------------------
Consolidated 3-Month 3-Month 9-Month 9-Month
Financial Ending Ending Ending Ending
Statement June 30, June 30, June 30, June 30,
- unaudited 2005 2004 2005 2004
-------------------------------------------------------------------------
Revenues $1,035,340 $1,054,310 $3,444,107 $1,966,903
-------------------------------------------------------------------------
Gross profit $461,004 $469,695 $1,454,149 $960,038
-------------------------------------------------------------------------
Net income (loss) ($2,917,022) ($1,950,519) ($8,283,846) ($5,131,870)
-------------------------------------------------------------------------
Earnings (loss)
per share ($0.06) ($0.04) ($0.17) ($0.12)
-------------------------------------------------------------------------
Weighted average of
outstanding shares 47,784,765 45,243,542 47,731,245 43,478,954
-------------------------------------------------------------------------
The Company recorded sales of $1,035,340, a marginal increase in quarter
over quarter sales in the third quarter of fiscal 2005 as compared to the
second quarter of fiscal 2005. In May 2005, management reported that second
quarter revenue had decreased as compared to previous quarters as a result of
a temporary diminished demand in the RFID supply chain market. It was reported
that this was a result of a number of issues including regulatory and
intellectual property concerns. Management further reported a marked increase
in the volume and value of orders over the months of March and April of 2005
and reported record bookings in terms of orders received for those months.
Subsequent to April, management witnessed a further softening in demand in the
RFID supply chain market as a result of continuing issues around regulatory
and intellectual property concerns. In addition, despite the ratification of
the Generation 2 EPC protocol in December 2004 and its submission to the
International Standards Organization in January 2005 for their review, a
number of companies have delayed their rollout projects until the availability
of robust and efficacious Generation 2 tags which are expected in the third
calendar quarter of 2005.
Nonetheless, the Company is now beginning to receive greater visibility
with respect to the anticipated uptake from its OEM customers and its UHF OEM
module and fully expects to see significant increases in revenue from this
product in the fourth quarter of fiscal 2005. Production units of the
Company's new MP9311 UHF OEM module are expected to begin shipping in the last
week of August 2005.
Gross margin increased to 44.5% in the third quarter of fiscal 2005 from
42.8% in the second quarter of fiscal 2005 and a low of 35.8% in the fourth
quarter of fiscal 2004. The Company has completed negotiations with its
contract manufacturers in connection with the current builds of all of its
reader products. Management believes that this will serve to further improve
profit margins.
General and administrative expenses increased in the third quarter of
fiscal 2005 as compared to the second quarter of 2005, primarily as a result
of one time relocation and recruitment costs of approximately $237,000.
General and administrative expenses in each quarter of fiscal 2005 increased
as a result of the implementation of the CICA Handbook Section 3870 "Stock
based compensation and other stock based payments" which resulted in an
additional compensation expense of $217,531 in the first quarter of fiscal
2005, $162,805 in the second quarter of fiscal 2005 and $184,059 in the third
quarter of fiscal 2005. The costs are non-cash expenses and added back on the
statement of cash flows as items not affecting cash.
Research and development expenses increased for the three months ended
June 30, 2005 as the full cost of staff additions made during the year were
realized. In addition, the Company had a number of development projects
converge in the second quarter of fiscal 2005 and continue into the third
quarter of 2005 including the development of its OEM reader modules as well as
the most recent version of its UHF fixed reader. The Company also began
development of its next generation UHF reader platform in the third quarter of
Fiscal 2005.
The Company recorded net loss of $2,917,022 ($0.06 per share loss) for
the three months ended June 30, 2005.
SAMSys held cash and short-term investments of $4,799,141 at June 30,
2005 as compared to $7,289,358 at March 31, 2005. On August 5, 2005, the
Company announced that it was working to complete the financing and expected
that the financing would be a combination of debt and equity that totals
$6 to $10 million.
The Company's unaudited 2005 financial statements for the three and
nine-month periods ended June 30, 2005 will be posted on SAMSys' web site by
11am EST today.
Outlook:
Early adopters of the technology, including retail and consumer packaged
goods companies, continue to move toward meeting the various mandates defined
by numerous North American and European retailers and the U.S. Department of
Defence. As a result of these trends and the introduction of new products,
SAMSys expects to see growth and expansion in the adoption and deployment of
RFID technology in the remainder of fiscal 2005 and beyond which should result
in significant growth in the Company's revenues. The current order book is
approx $1.5 million and represents the highest level in the history of the
Company.
Investor Conference Call:
A conference call and web cast of this event to review the 2005 Q3
results will take place today, August 15th, 2005, beginning at 11:00am EST.
Mr. Cliff Horwitz, President & CEO of SAMSys and Mr. George Kypreos, CFO
of SAMSys will speak on behalf of the Company. A question-and-answer forum
will follow the review of the 2005 Q3 financial results and update on the
Company's operations and growth strategies.
To listen and/or participate in this conference call, please dial
1-800-814-3911 (from Toronto: 416-640-4127) approximately 10 minutes prior to
the beginning of the conference call.
The investor conference call can also be heard over the Internet through
a web cast by visiting www.samsys.com or through a direct URL link:
http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID(equal sign)1206920.
For those unable to participate in the conference call, a recording of
the conference call will be available from 1:00 p.m. EST, Monday August 15,
2005, until 11:59 p.m. EST, Monday August 22, 2005. Please dial 1-877-289-8525
(from Toronto: 416-640-1917) and enter the reservation number 21133596
followed by the number sign to listen to the rebroadcast.
The web cast will be archived for 90 days following the day of investor
conference call. Visit the "Investor Relations"-section of SAMSys website at
http://www.samsys.com for a replay link.
About SAMSys Technologies Inc.
SAMSys Technologies Inc. (SAMSys), founded in 1995, is a world-leading
provider of radio frequency identification (RFID) hardware solutions and RFID
integration consulting services designed to evaluate and recommend optimal
RFID solutions to enhance existing business process. SAMSys offers a family of
products to simplify the installation and ensure the ongoing performance of
the overall RFID hardware infrastructure. SAMSys is a public company whose
shares are listed for trading on the Toronto Stock Exchange (TSX) under the
symbol: "SMY". The Company has a total of 47.8 million shares outstanding.
Visit SAMSys at: www.samsys.com and www.investorfile.com.
THIS NEWS RELEASE MAY CONTAIN FORWARD-LOOKING INFORMATION. ACTUAL FUTURE
RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTEMPLATED. THE RISKS,
UNCERTAINTIES AND OTHER FACTORS, BOTH KNOWN AND UNKNOWN, THAT COULD INFLUENCE
ACTUAL RESULTS MAY BE SUBSTANTIAL AND INCLUDE THOSE DESCRIBED IN DOCUMENTS
FILED WITH REGULATORY AUTHORITIES, SUCH AS THE COMPANY'S MOST RECENTLY FILED
ANNUAL REPORT AND ANNUAL INFORMATION FORM. ACCORDINGLY, NO ASSURANCES CAN BE
GIVEN THAT ANY OF THE EVENTS ANTICIPATED BY THE FORWARD-LOOKING STATEMENTS
WILL TRANSPIRE OR OCCUR, OR IF ANY OF THEM DO SO, WHAT BENEFITS THE COMPANY
WILL DERIVE THEREFROM.
>>
Powered by 
Google Übersetzer
Google Übersetzer