Business News
InkSure Technologies Releases 2007 Results
Friday 11. April 2008 - Reports Higher Revenues and Lower Operating Loss
InkSure Technologies Inc. (BULLETIN BOARD: INKS) , a leading provider of covert machine-readable security solutions for the prevention of counterfeiting, fraud and diversion, today reported its operating results for the year ended December 31, 2007.
2007 Highlights (compared to 2006)
— Revenues up 44%, to $2.89 million
— Gross margin increased to 61.7%
— Continued investment in next generation SARcode(TM) “chipless” RFID
technology
— Substantial reduction in operating loss to $2.5 million
— Generated net loss of $3 million, same as last year.
2007 Results
Revenues for the year ended December 31, 2007 increased 44%, reaching $2,890,000 compared with $2,002,000 in 2006. Gross profit for the year increased 56%, reaching $1,782,000, compared with $1,139,000 last year. Gross margin for 2007 reached 61.7%, an increase compared to 56.9% last year.
Operating loss for the year was reduced by 24% reaching $2,498,000, compared to an operating loss of $3,302,000 last year. Operating loss for the year included $536,000 in non-cash expenses relating to share based compensation under SFAS 123, compared to a $891,000 non-cash expense last year. Excluding this share based compensation expense in both periods, operating loss for 2007 totaled $1,962,000, compared to $2,411,000 in 2006.
Net loss for the year, including $852,000 non-cash financial expenses related to convertible notes, and share-based compensation, totaled $3,078,000, and the loss per share equaled $0.20, compared to a net loss of $3,112,000, or loss per share of $0.20, as reported last year.
The Company ended 2007 with $820,000 cash and cash equivalents, compared with $403,000 as of January 1, 2007.
“We are pleased to report another year of revenue growth, improved gross profit margin and marked decline in our operating loss,” commented Mr. Elie Housman, Chief Executive Officer.
Mr. Housman added, “In terms of business development, this year we continued to generate new orders for our innovative solutions. As recently announced, we won our first project for currency marking with a major central bank. This order bears substantial potential. The first stage will include the marking of a single banknote denomination, with the potential to mark all of that country’s banknotes once the first stage is successfully completed. Furthermore, this year we continued the development of our innovative SARcode chipless RFID technology, while gaining healthy encouragement for its development by winning the prestigious 2007 Frost and Sullivan Product Innovation Award. Looking ahead, we expect to continue wining new orders, identify new opportunities for our products, driving healthy backlog and maintaining our underlying growth momentum, while exploring new strategic alternatives to support our ongoing RFID and other efforts, given the cash requirements of the research and marketing efforts.”