Advanced ID Corp, a complete solutions provider in the radio frequency identification market, has released its financial results for the first quarter ending March 31, 2008, and according to the company’s data revenues increased by 123% to $424,955 compared to revenues of $190,380 for the same period of 2007. This increase was due to the growth in sales for the company’s RFID ultra-high frequency tracking and identification tags and proprietary readers, as well as contributions relating to sales of tire management solutions at Pneu-Logic Ltd., a wholly owned subsidiary acquired in late 2007.
The company also saw a 120% increase in gross profit for the first quarter of 2008. The gross profits were $146,968 compared to gross profit of $66,895 in the first quarter of 2007. Research and development expenses decreased to $12,930 from $35,842 compared to the same period last year. The decrease of research and development spending is in part due to the completion of the PR500 UHF reader.
Commenting on the financial results, Dan Finch, President and CEO stated, “We are pleased with the progress made in increasing our sales in the first quarter and the development of a longer term pipeline with far more substantial revenue opportunities. While our legacy RFID business is holding steady, products relating to our tire technology are clearly the catalyst for growth. The impressive revenue performance in the first quarter of the year does not reflect our formal entry the Asian market which was marked by the landmark decision of a leading Chinese tire production equipment and software maker to become the world’s first tire manufacturer to commit to embedding Advanced ID’s RFID tire tags in a commercial truck line.”
He continued, “This agreement has an estimated value of approximately $4 million over the next 12 months and is the largest contract ever signed by the Company. Sales to China under this contract should be recognized as revenues beginning in the second quarter of 2008, which is expected to lead to the highest level of annual revenues in the Company’s history.”
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