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Sirit Reports Financial Results for the First Quarter Ended March 31, 2006
Sirit Reports Financial Results for the First Quarter Ended March 31, 2006.
About this update from Torq Resources Inc.
[{"type":"text","content":"\n\n\n\n\nTORONTO, May 11 /CNW/ - Sirit Inc. (TSX: SI), a leading provider of radio\nfrequency identification (RFID) technology, today reported its financial\nresults for the first quarter ended March 31, 2006. All amounts are stated in\nCanadian Dollars unless otherwise noted.\n\nFirst Quarter 2006 Financial Highlights\n---------------------------------------\n\n - Total revenue in Q1 2006 reached $5.4 million, an increase of 22%\n from Q1 2005 and 27% from Q4 2005.\n - Automatic Vehicle Identification (\"AVI\") revenue grew by 33% in the\n first quarter reaching $4.4 million when compared to $3.3 million in\n the first quarter of 2005.\n - Radio Frequency Solutions (\"RFS\") applications revenue remained\n consistent with prior year first quarter at $1.0 million.\n Fluctuations in quarterly RFS results are expected to continue.\n - Net loss for the quarter was $1.0 million, the same level as\n Q1 2005.\n - Cash utilization of $0.9 million during the quarter is consistent\n with prior two quarters.\n\nThree Months Ended March 31, 2006\n---------------------------------\n\nRevenue for the three months ended March 31, 2006 totaled $5.4 million, a\n22% or $1.0 million increase from $4.4 million in the first three months of\n2005. The increase in total revenue is attributable to growth in toll tag\nsales during the quarter as sales volumes return to historical levels.\nRevenue from sales of RFS related products was $1.0 million during the\nquarter compared to $1.1 million in the 2005 first quarter. Sales of RFS\nproducts are expected to vary on a quarterly basis as customers continue to\nfocus on testing with timing of large volume rollouts unpredictable.\nGross margin for the first quarter of 2006 was similar to the first\nquarter of 2005 at 36.9% compared to 37.5%. The increase in margin compared to\nthe fourth quarter of 2005 (35.8%) is attributable primarily to absorption of\nfixed overhead costs associated with the increased sales volume.\nTotal operating expenses during the first quarter were $3.0 million\ncompared to $2.7 million in the same period in 2005. The increase relates\nprimarily to increased development costs, salary increases, stock-based\ncompensation and foreign exchange.\nThe Company utilized $0.9 million of cash to fund operations during the\nquarter resulting in a cash balance of $5.2 million at March 31, 200...