Business News
InkSure Technologies Releases Results of 1st Quarter of 2008
Friday 16. May 2008 - 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 three months period ended on March 31, 2008.
First Quarter Highlights (compared to 1st quarter of 2007)
— Revenues declined by 69%, to $218,000.
— Continued investment in next generation SARcode(TM) “chipless” RFID
technology.
— Net loss $1,083,000.
First Quarter Results
Revenues for the 1st quarter of 2008 were $218,000 a decline of 69%, compared to $696,000 for the 1st quarter last year. Gross profit for the quarter was $94,000 a decline of 79%, compared to $441,000 for the 1st quarter last year. Gross margin for the 1st quarter was 43%, compared to 63% last year.
Operating loss for the quarter was $1,157,000, compared to a loss of $589,000 for the 1st quarter last year. Operating loss for the quarter included $116,000 of non-cash expenses relating to share based compensation under SFAS No. 123, compared to a $152,000 of non-cash expenses in the 1st quarter last year. Excluding these share based compensation expenses in both periods, operating loss for the quarter totaled $1,041,000, compared to $437,000 in the 1st quarter 2007.
Net income for the quarter included $185,000 of non-cash financial income related to outstanding convertible notes. Loss per share was $0.07 the same as for the 1st quarter last year.
The Company ended the 1st quarter of 2008 with $345,000 of cash and cash equivalents, compared to $820,000 of cash and cash equivalents as of March 31, 2007.
“While our ink businesses have been slow this quarter, we are excited about the development of our innovative SARcode chipless RFID technology,” commented Mr. Elie Housman, Chief Executive Officer.
Mr. Housman added, “Since the beginning of this year, we have committed our resources to developing our unique chipless RFID technology. Our issued and pending patents provide InkSure a leading position in the chipless RFID market. Our technology enables us to read items marked at a cost of less than a cent per item without line of sight. To our knowledge, our technology is unique and the market is extremely large. We are encouraged by the market feedback to our RFID technology that we have received to date.