Earnings reportSAMSys Technologies Reports Fiscal 2006 Q1 Financial Results and Holds Investor Conference Call
Stock Symbol: SMY
Listing: Toronto Stock Exchange (TSX)
Outstanding Shares: 51.5 Million
Web Site: www.samsys.com
TORONTO, Feb. 14 /CNW/ - SAMSys Technologies Inc., ("SAMSys"), (TSX:SMY),
www.samsys.com, of Toronto, an international provider of Radio Frequency
Identification (RFID) reader hardware solutions, today reports on the
Company's unaudited fiscal 2006 first quarter financial results for the
three-month period ended December 31, 2005.
The following summarizes the key points for the period updated to
February 14, 2006 (note - all dollars Canadian):
- Revenue from all sources was $1.22 million compared to $1.04 million
in the quarter ended September 30, 2005, representing a 17% increase.
- Loss for the period was $2.07 million ($0.04 per share loss) compared
to a loss of $2.53 million ($0.05 per share loss) million for the
quarter ended September 30, 2005.
- SAMSys held cash and short-term investments of $8.39 million at
December 31, 2005
- As of January 1,2006, Tom Dziersk commenced his role as SAMSys' new
President and Chief Executive Officer.
- In May 2006, the Company will be unveiling its next generation RFID
reader.
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First Quarter Financial Highlights:
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Consolidated Financial 3-Months Ending 3-Months Ending
Statement - unaudited Dec. 31, 2005 Dec. 31, 2004
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Revenues $ 1,224,068 $ 1,403,425
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Gross profit $ 368,768 $ 562,463
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Net income (loss) ($ 2,073,308) ($ 2,641,982)
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Earnings (loss) per share ($0.04) ($0.05)
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Weighted average of outstanding shares 51,534,656 47,658,324
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SAMSys reported revenue in the first quarter of fiscal 2006 of $1,224,068
compared with $1,403,425 for the first quarter of fiscal 2005. While this
represented a decrease of 12.8% in revenue between the two corresponding
periods, it also represented a 17% increase as compared to revenue of
$1,042,879 in the fourth quarter of fiscal 2005. Revenue from the sale of the
MP9320 (excluding related accessories) and the Company's UHF OEM module
represented 83% of revenues in this quarter.
Gross margin for the first quarter of fiscal 2006 was 30.1%, as compared
to 40.1% for the first quarter of fiscal 2005. The decline in gross margin was
a result of a number of factors that converged in the first quarter of fiscal
2006 including:
- The Gen 2 RFID Pilot Express Program which was launched in the first
quarter of fiscal 2006 and included a bundled RFID kit to shorten the
time for implementation of RFID pilot programs for systems integrators
and end user suppliers. This packaged solution resulted in reduced
overall margins.
- The Company accrued royalties payable to Intermec for all fixed
readers sales in the first quarter of fiscal 2006 in connection with
the licensing agreement completed with Intermec in June 2005 and which
became effective on September 1, 2005.
- The average sales price for the Company's UHF fixed reader dropped by
approximately 8% in the three months ended December 31, 2005 as
compared to the three months ended September 30, 2005. The drop in the
average sales price of its UHF fixed reader was a direct result of
pricing decisions made to secure important opportunities for the
Company.
Margins are expected to remain at current levels over the second and
third quarters of fiscal 2006 before improving as a result of the expected
introduction of higher margin products in the third and fourth quarters of
fiscal 2006.
The Company incurred general and administrative expenses for the three
months ended December 31, 2005 totaling $743,423 compared to $976,439 for the
three months ended December 31, 2004.
The Company incurred sales and marketing expenses for the three months
ended December 31, 2005 totaling $604,103 compared to $868,001 for the three
months ended December 31, 2004.
The Company continues to invest in research and development activities.
The focus of the Company's current research and development program is the
development of its "next generation" reader platform. As a result of this
program and the increase in the number of staff devoted to it as compared with
the first quarter of fiscal 2005, total research and development costs in the
first three months of fiscal 2006 including costs subsequently deferred as
development costs increased to $1,169,929 from $1,073,700 in the first three
months of fiscal 2005.
The Company incurred amortization costs for the three months ended
December 31, 2005 of $327,457 as compared to $49,657 for the three months
ended December 31, 2004. This increase is primarily attributable to the
amortization of costs incurred by the Company in connection with obtaining
long-term debt financing in the fourth quarter of fiscal 2005.
The Company recorded net loss of $2,073,308 ($0.04 per share loss) for
the 3 months ended December 31, 2005 and net loss of $2,531,178 ($0.05 per
share loss) for the prior 3 months ended September 30, 2005 and net loss of
$2,641,982 ($0.05 per share loss) for the prior year period 3 months ended
December 31, 2004.
SAMSys held cash and short-term investments of $8,399,424 at December 31,
2005, long-term debt of $4,957,103 and current portion of long term debt of
$2,000,000.
The Company's unaudited fiscal 2006 Q1 financial statements for the
three month periods ended December 31, 2005 and December 31, 2004 will be
posted on SAMSys' web site (www.samsys.com) later today.
"About eighteen months ago SAMSys launched a research and development
program to develop a best-in-class "next generation" RFID reader platform
designed to address all major RFID supply chain applications anticipated in
the next five years. The first product based prototype is expected to be
completed within weeks with an official new product launch scheduled for May
2006," said Tom Dziersk, CEO and President of SAMSys. "We expect that the
technological advancements of this RFID reader product as well SAMSys Gen 2
reader modules launched last year will allow SAMSys to capture a larger share
of the emerging RFID market."
Dziersk continues, "To best leverage our resources for the pending
product launch, I have undertaken to retool SAMSys' operations. Already in an
effect, I have redeployed our resources and in doing so have appointed
Michael Koch, who was our Vice President of Engineering and a key member of
SAMSys team in charge of the Company's R&D program over past 18 months, to
Executive Vice President of SAMSys."
"As SAMSys' CEO, I aim to ensure a successful new product launch of our
next generation RFID reader. To achieve our objectives in the short term,
SAMSys will have to carefully manage its cash resources to realize the
opportunity of the emerging RFID market and the launch of our new RFID
reader," said Dziersk.
Investor Conference Call:
A conference call and web cast of this event to review the fiscal 2006
Q1 results will take place today February 14th, 2006 beginning at 11:00am EST.
Mr. Tom Dziersk, recently appointed President and CEO of SAMSys and
Mr. George Kypreos, CFO of SAMSys will speak on behalf of the Company. A
question-and-answer forum will follow the review of the Q1 financial results
and update on the Company's operations and growth strategies.
To listen and/or participate in this conference call, please dial
1-800-814-4890 (from Toronto: 416-644-3425) approximately 10 minutes prior to
the beginning of the conference call.
The investor conference call can also be heard over the Internet through
a web cast by visiting www.samsys.com or through a direct URL link:
https://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=1363340
For those unable to participate in the conference call, a recording of
the conference call will be available from 2:00 p.m. EST, Tuesday
February 14th, 2006, until 11:59 p.m. EST, Tuesday February 21st, 2006. Please
dial 1-877-289-8525 (from Toronto: 416-640-1917) and enter the reservation
number 21175143 followed by the number sign to listen to the rebroadcast.
The web cast will be archived for 90 days following the day of investor
conference call. Visit the Investor Relations - section of SAMSys website at
https://www.samsys.com for a replay link.