SmarTire posts quarterly net loss
SmarTire Systems Inc. announced a net loss of $1.54 million on gross revenue of $638,323 for the third quarter ended April 30. That compares to a net loss of $1.51 million on gross revenues of $234,393 for the third quarter 2002.
"The positive revenue results achieved during the third fiscal quarter reflect SmarTire's continued success in establishing a distribution network that penetrates global markets at the original equipment manufacturing and aftermarket levels with new and existing products," says Robert Rudman, CEO and president.
"One key objective is to successfully market SmarTire's complete product line through North American, European and Asian customers. Although the tire monitoring industry is still in its early stages, we are beginning to see a significant increase in product awareness and acceptance throughout a number of these target markets."
Rudman says TREAD (Transportation Recall Enhancement, Accountability and Documentation) Act legislation has created major OEM marketing opportunities in the United States, while auto makers in Europe and Asia are beginning to source tire monitoring systems for their new models.
"SmarTire is aggressively pursuing these OEM opportunities, as they represent a critical element of the company's marketing plan. However, our sales objectives extend beyond the passenger car OEM level to include a wider range of products and customers.
"An excellent example of SmarTire's marketing approach is our tire monitoring system for motorcycles being marketed throughout North America and Europe by leading suppliers to the motorcycle industry," says Rudman. "This product is being very well received by both motorcycle manufacturers as an OEM product and by retailers as an aftermarket accessory."
Year-to-date revenues for 2003 total $1,182,674, an increase of 52% over 2002 revenues.