Business
Sirit Reports 2006 Results Achieving Highest Revenue in its History
Sirit Reports 2006 Results Achieving Highest Revenue in its History.
About this update from Torq Resources Inc.
[{"type":"text","content":"\n\n\n\nTORONTO, March 15 /CNW/ - Sirit Inc. ("Sirit") (TSX: SI), a leading\nprovider of radio frequency identification ("RFID") technology, today reported\nits financial results for the fourth quarter and year ended December 31, 2006.\nAll amounts are stated in Canadian Dollars unless otherwise noted.\n\n\nTotal revenue for 2006 reached $21.7 million representing Sirit's highest\nreported revenue in the Company's thirteen year history. Overall, revenue grew\nby over 30% compared to 2005 with increases experienced across all\napplications. Revenue from Automatic Vehicle Identification (AVI) applications\ngrew by 33% reaching $16.8 million and Radio Frequency Solutions (RFS) revenue\nexperienced a 29% growth rate reaching $4.9 million in 2006. Comparative\nresults for 2005 were $12.6 million for AVI and $3.8 million for RFS.\n\n\n"Sirit has successfully managed a very active 2006 with the completion of\ntwo acquisitions, a $12.6 million public offering and new product releases\nwhile focusing on revenue growth. These efforts have enabled the Company to\nattain its highest sales levels in its history," commented Anastasia\nChodarcewicz, Chief Financial Officer, Sirit Inc. "Sirit is evolving into a\nposition of strength within the RFID market. A solid financial position and\nstrong portfolio of products will allow Sirit to focus on execution and\ncontinued growth in 2007."\n\n\nFourth Quarter Ended December 31, 2006\n\n\nSirit reported total revenue of $5.7 million for the fourth quarter ended\nDecember 31, 2006, its best quarter to date. AVI revenue was $4.3 million or\n75% of total sales and RFS revenue reached $1.4 million or 25% of total sales.\nThis reflects a 12% increase over the third quarter 2006 revenue of\n$5.1 million and a 34% increase over the $4.3 million reported in the fourth\nquarter of 2005. Increased demand for toll tags during the quarter, increased\nvolumes from RFS customers as well as new Parking and Access Control (PACS)\ncustomers all contributed to the fourth quarter results.\n\n\nGross profit in the fourth quarter was impacted by a $0.4 million\ninventory write-down from a product rationalization effort. This involved\neliminating duplicate product offerings resulting from the acquisitions,\nmandated changes to the metal composition of components (RoHS Directives) ...