Business
Sirit Reports Financial Results for the Second Quarter Ended June 30, 2006
Sirit Reports Financial Results for the Second Quarter Ended June 30, 2006.
About this update from Torq Resources Inc.
[{"type":"text","content":"\n\n\n\n\nYear-to-Date Revenue Increases 21 Percent\n\nTORONTO, Aug. 10 /CNW/ - Sirit Inc. (TSX: SI), a leading provider of\nradio frequency identification (RFID) technology, today reported its financial\nresults for the second quarter ended June 30, 2006. All amounts are stated in\nCanadian Dollars unless otherwise noted.\nRevenue for the second quarter of fiscal 2006 was $5.5 million, up 3%\nfrom $5.4 million in the first quarter of 2006 and up 20% from $4.6 million in\nthe same quarter of last year. The revenue breakdown for the quarter was\napproximately 79% or $4.4 million for Automatic Vehicle Identification (AVI)\nrelated products and 21% or $1.1 million for Radio Frequency Solutions (RFS)\nrelated revenue.\n\"We are very pleased with the progress achieved by Sirit over the past\nquarter and we are encouraged by our prospects for the second half of the\nfiscal year,\" said Norbert Dawalibi, President and CEO, Sirit Inc. \"We are\nentering the second half of the year with solid market positioning and an\nimpressive line-up of new products.\"\nGross margin for the second quarter of 2006 was 33.4% a decline from\ngross margin of 36.9% from the first quarter attributable to customer and\nproduct mix changes plus increased overhead costs to support Sirit's larger\nproduct portfolio.\nTotal operating expenses during the second quarter were $5.2 million\ncompared to $3.0 million in the first quarter. The increase is primarily\nattributable to higher staff levels, development, sales and marketing\nexpenditures plus non-recurring severance costs associated with the\nintegration of two acquisitions early in the quarter. The resultant net loss\nwas $3.3 million in the second quarter compared to $1.0 million in the first\nquarter.\nRevenue for the six months ended June 30, 2006 totaled $10.9 million, a\n21% or $1.8 million increase from $9.1 million in the first half of 2005.\nYear-to-date, RFS revenue totaled $2.1 million compared to $2.4 million in the\nfirst half of 2005. In the previous year, Sirit reported a non-recurring sale\nof over 1,000 UHF reader modules which represented approximately $0.8 million\nin revenue.\nRevenue year-to-date from the AVI vertical was $8.8 million compared to\n$6.7 million for the first six months in 2005. The increase is due to a 39%\ngrowth in sales of tolling solutions compared to the first six m...