Business
Sirit Announces Financial Results for the Fourth Quarter and Year Ended December 31, 2005
Sirit Announces Financial Results for the Fourth Quarter and Year Ended December 31, 2005.
About this update from Torq Resources Inc.
[{"type":"text","content":"\n\n\n\n\nTORONTO, March 21 /CNW/ - Sirit Inc. (TSX: SI), a leading provider of\nradio frequency identification (\"RFID\") technology, today reported its\nfinancial results for the fourth quarter and year ended December 31, 2005. All\namounts are stated in Canadian Dollars unless otherwise noted.\n\n2005 Financial Highlights\n-------------------------\n\n- Total revenue for the year was $16.4 million bolstered by Q4 2005\n revenue of $4.3 million, up 36.9% from Q3 2005 revenue\n- Radio Frequency Solutions (\"RFS\") revenue grew by 8.6% in 2005\n reaching $3.8 million compared to $3.5 million in 2004\n- Automatic Vehicle Identification (\"AVI\") revenue comprised 77.0% of\n total revenue compared to 83.1% in 2004\n- Gross margin of 35.0% for 2005 (42.6% in 2004) reflects the impact of\n fixed overhead costs on a lower revenue base\n- During 2005 the Company invested $3.2 million ($2.2 million in 2004)\n into primarily RFS development efforts to support its growing product\n portfolio including the INfinity 210 and INfinity 196\n- Operating loss for the year was $6.8 million compared to a\n $1.5 million loss in 2004 reflecting lower gross profit, non-recurring\n costs of $1.0 million, increased stock compensation costs and\n development expenditures during 2005\n- Cash utilized during the year was $3.9 million with a balance of\n $6.1 million at December 31, 2005\n\nFourth Quarter Ended December 31, 2005\n\nFor the fourth quarter ended December 31, 2005, Sirit reported revenue of\n$4.3 million, representing a 36.9% increase from Q3 2005. The growth during\nthe last quarter of 2005 when compared to the third quarter represents a\nreturn to expected toll tag supply levels. During Q4 2004 the Company won a\nTransportation Management System project in the state of Florida which was a\nnon-recurring revenue win. By excluding the revenue generated from this win\nfor comparison purposes, 2005 fourth quarter revenue was slightly higher than\n2004 fourth quarter revenue.\nGross margin for the quarter was 35.8% up from 33.4% in Q3 2005 and down\nfrom 44.5% in Q4 2004.\nTotal expenses in the fourth quarter were $2.7 million, down from\n$2.9 million in Q3 2005 and $3.1 million in Q4 2004. The third quarter results\nbenefited from a reduction of year end bonuses. As a result, on a comparative\nbasis the fourth quarter operating results were ap...