SmarTire Systems Inc. posted a net loss of $5.3 million on revenue of $851,799 for the first quarter of its 2007 fiscal year. That compares to a net loss of $17.8 million on sales of $592,866 for the first quarter of fiscal year 2006.
Excluding non-cash charges of $3.3 million for Q1 2007 and $15.4 million for Q1 2006, net loss decreased to $2 million. Cash used to fund operating activities decreased to $1.8 million compared to $3.1 million during Q1 2006. Less cash was used in the first quarter of fiscal 2007 than the comparable quarter a year ago mainly as a result of a $900,000 interest payment on SmarTire's convertible debentures in Q1 2006.
"I believe that our revenues will increase in the second half of our fiscal year," says CEO and President Dave Warkentin. "Major players in the commercial vehicle industry have advised us that they plan to order products beginning in calendar 2007.
"Future sales to these customers would be the culmination of investments made in product development, sales and marketing activities during the past 18 months."
Warkentin says SmarTire recently has undertaken actions to reduce its costs, "which we believe will enable us to reach the goal of profitability within the next 12 months."
At SmarTire's annual and special meeting of shareholders, all resolutions proposed by management for adoption by the shareholders were approved (the company's Form 10-QSB is available at www.sec.gov.) All incumbent directors were re-elected, and the board re-appointed SmarTire's incumbent officers for fiscal year 2007.
For more information about SmarTire, visit www.smartire.com.
