Business
Sirit Reports Financial Results for the Third Quarter Ended September 30, 2006
Sirit Reports Financial Results for the Third Quarter Ended September 30, 2006.
About this update from Torq Resources Inc.
[{"type":"text","content":"\n\n\n\n\nCompany achieves strong revenue growth across all application areas\n\nTORONTO, Nov. 15 /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, 2006. All amounts are stated\nin Canadian Dollars unless otherwise noted.\nRevenue continues to show strong growth over prior year across all\napplications. For the third quarter of fiscal 2006, total revenue reached $5.1\nmillion, a 64% increase from the $3.1 million reported in the same quarter of\n2005. Automatic Vehicle Identification (AVI) related products comprised 73% or\n$3.7 million of total revenue, an increase of 42% over the third quarter of\n2005. Radio Frequency Solutions (RFS) related revenue represents 27% or $1.4\nmillion of total revenue, a 180% increase over prior year reported revenue of\n$0.5 million.\n\"Sirit remains one of the few companies with significant, real world RFID\nexperience with over 330,000 RFID readers deployed around the world. As supply\nchain adoption hovers on the horizon, our solid and profitable AVI business\nbecomes an important differentiator among our peers,\" noted Anastasia\nChodarcewicz, Chief Financial Officer, Sirit Inc. \"With continued focus on top\nline growth and bottom line cost controls, we believe that we should achieve a\ncash flow neutral position by the end of next year.\"\nGross margin for the third quarter of 2006 remained consistent with both\nthe second quarter of 2006 as well as the third quarter of 2005.\nTotal operating expenses of $4.4 million are down $0.8 million when\ncompared to the prior quarter and up $1.5 million in relation to the third\nquarter of 2005. The decrease from the prior quarter relates primarily to\nseverance costs incurred in the second quarter as well as resulting lower\nsalary costs incurred during the third quarter. The resultant net loss was\n$2.6 million in the third quarter compared to $3.3 million in the second\nquarter.\nYear-to-date total revenue of $16.0 million represents a 32% or $3.8\nmillion increase when compared to the same period in 2005. AVI revenue was\n$12.5 million and RFS revenue was $3.5 million compared to $9.3 million and\n$2.9 million respectively in the first nine months of 2005.\nRevenue year-to-date from the AVI vertical has increased 3...