Business
Sirit Reports First Quarter 2008 Results
TORONTO, May 13 /CNW/ - Sirit Inc. ("Sirit") (TSX: SI), a leading provider of radio frequency ide...
About this update from Torq Resources Inc.
[{"type":"text","content":"\n\n\n\nTORONTO, May 13 /CNW/ - Sirit Inc. ("Sirit") (TSX: SI), a leading\nprovider of radio frequency identification ("RFID") technology, reports its\nfinancial results for the first quarter ended March 31, 2008. All amounts are\nstated in Canadian Dollars unless otherwise noted.\n\n\nAs previously announced, the first quarter of 2008 reflects a decline in\ntotal revenue from the same period last year. Total revenue for the three\nmonths ended March 31, 2008 reached $4.3 million, (US$4.3 million) compared to\n$6.5 million (US$5.5 million) in the prior year. The decline is due primarily\nto lower toll transponder sales during the quarter as well as foreign exchange\nimpacts when compared to the prior year first quarter. The total decline, in\nUS Dollars, is 22% compared to the prior year. This trend is expected to\ncontinue through the second quarter of 2008.\n\n\nSirit's Automatic Vehicle Identification ("AVI") applications contributed\n$3.3 million (US$3.3 million) or 77% of the total revenue down from\n$5.2 million (US$4.4 million) or 79% in the first quarter of 2007. Radio\nFrequency Solutions ("RFS") applications revenue contributed $1.0 million\n(US$1.0 million) compared to $1.3 million (US$1.2 million) in the first\nquarter of 2007. RFS revenue was impacted by quarterly fluctuations due to the\ntiming of specific deliveries and deployments by our customers.\n\n\n"The first quarter results were within our expectations as our largest\ntoll customer significantly scaled back on deliveries. We effectively\nmaintained operating expenses at the same level compared to last year and as a\nresult had to fund operations during the quarter," commented Anastasia\nChodarcewicz, Chief Financial Officer, Sirit Inc. "From a business\nperspective, the first quarter was very successful with the announcement of\nour acquisition of RSI ID Technologies, Inc., which closed on April 1, 2008\nand several product and partner announcements. We are working closely with our\npartners and customers to ensure we make the best investment decisions today\nto improve results for the latter part of the year."\n\n\nGross profit in the first quarter of 2008 reached 36.2% up from the 34.8%\nin the first quarter of 2007. This reflects a change in the mix of toll\ncustomers during the quarter.\n\n\nOp...