Business
Sirit Reports Financial Results for the Third Quarter Ended September 30, 2005
Sirit Reports Financial Results for the Third Quarter Ended September 30, 2005.
About this update from Torq Resources Inc.
[{"type":"text","content":"\n\n\n\n\nTORONTO, Nov. 10 /CNW/ - Sirit Inc. (TSX: SI), a leading provider of\nradio frequency identification (RFID) technology, today reported its financial\nresults for the third quarter ended September 30, 2005. All amounts are stated\nin Canadian Dollars unless otherwise noted.\n\n\nThird Quarter 2005 Financial Highlights\n---------------------------------------\n\n- Total revenue of $3.1 million in Q3 2005 compared to $5.2 million\n in Q3 2004.\n- For the third quarter, sales of modules supporting RF Solutions (RFS)\n applications contributed $0.5 million or 16% of revenue. Fluctuations\n in quarterly results continue to be reflective of early stage market\n adoption within supply chain management.\n- Sales of products for Automatic Vehicle Identification applications\n (AVI) contributed $2.6 million or 84% of quarterly revenue. Company\n wins $4.0 million toll tag supplier contract in early October with\n deliveries commencing in the fourth quarter.\n- Net loss for Q3 2005 of $2.8 million, including the write-down of a\n non-core investment of $0.9 million, compared to a net loss of\n $2.6 million in Q2 2005.\n- Cash utilization of $0.9 million during third quarter 2005 compared to\n $1.5 million in the second quarter 2005.\n\n\nThree and Nine Months Ended September 30, 2005\n----------------------------------------------\n\nRevenue for the nine months ended September 30, 2005 totaled \n$12.2 million, a 21.8% or $3.4 million decrease from $15.6 million in the\nfirst nine months of 2004. The year-to-date decline is due to foreign exchange\nfluctuations of approximately $1.0 million, a decline in AVI revenue resulting\nfrom customers building inventory levels in the prior year which did not recur\nin the current year and the consolidation of three toll agency customers.\nRevenue from sales of RFS related products was $0.5 million during the\nquarter compared to $1.0 million in the 2004 third quarter. Sales of RFS\nproducts remain unpredictable and are expected to fluctuate on a quarterly\nbasis as customers continue to roll out pilots and tests which vary in timing,\nsize and value.\nRevenue from sales of AVI related products was $2.6 million for the third\nquarter and $9.3 million year-to-date. Sirit maintains strong supplier\nrelationships with all of its AVI customers evidenced by the recent \n$4.0 million win with the B...