SmarTire posts net loss on sales of $946,665 for 2Q
SmarTire Systems Inc. recorded a net loss of $5.3 million on revenue of $946,665 for the second quarter of fiscal year 2007. That compares to a net loss of $3.9 million on sales of $839,615 for the same period in 2006.
For the six months ended Jan. 31, 2007, SmarTire reported $1.8 million in sales, a 25% increase versus the first six months of fiscal 2006. Its comparative net loss decreased, from $22.1 million to $10.6 million.
"I am pleased that we have increased revenues by 25% year to date. However, our goal is for the business to reach break-even on a cash flow basis by the end of the calendar year, which requires an increase in our revenue growth rate," says CEO and President Dave Warkentin.
"The foundation for this growth has been laid, and I expect revenues to increase by 30-50% over the next fiscal quarter. We forecast this growth to be derived from sales of tire pressure monitoring systems in both the United States and Europe, as we expect to begin shipping to new major accounts that have been in process for the past two years."
In the recently completed second quarter, SmarTire streamlined operations and "significantly reduced" its overhead, according to Warkentin. "We anticipate these actions and future cost saving measures to result in annual savings of $2 million to $2.5 million."
For more information on SmarTire, a provider of active tire pressure and temperature monitoring systems for the global commercial transportation, recreational vehicle, bus and off-highway vehicle markets, visit www.smartire.com.