Revenue Down, Losses Up at SmarTire

Manufacturer of active TPMS systems, SmarTire Systems Inc, has announced that company revenue in the second quarter of the 2008 financial year decreased to US$740,848 from the $946,665 attained in the second quarter of last year. Six-month revenue for the period ending January 31, 2008 also decreased from a year earlier, down to $1,663,874 from $1,798,444.

SmarTire’s net loss for quarter two 2008 was $8.2 million or ($0.01) per share compared to a net loss of $5.3 million or ($0.02) per share in the same quarter of 2007. Net loss for the six months ended January 31, 2008 was $13.5 million or ($0.02) per share as compared to a net loss of $10.6 million or ($0.05) per share for the six months ended January 31, 2007. In the second quarter of 2008, SmarTire’s net loss from operations decreased by 33 per cent to $1.4 million from $2.1 million in quarter two of 2007. Net loss from operations for the six months ended January 31, 2008 decreased by 41 per cent to $2.6 million from $4.4 million for the six months ended January 31, 2007. SmarTire’s net other expenses increased by $3.6 million in the second quarter 2008 to $6.8 million. Net other expenses increased by $4.8 million to $11.0 million for the six months ended January 31, 2008, primarily due to an increase in non-cash interest and financing charges.

“Our continued objective is to make our company profitable,” said David Warkentin, president and CEO. “We have taken the necessary steps to reduce costs and keep them under control. However we recognise that to meet our profitability objective we need to remain tightly focused on increasing revenue. While we are disappointed that revenues have not grown more quickly, I am encouraged by our booked sales orders which was approximately $600,000 at the end of January 2008. The delayed production implementation schedules with a number of OEM customers which are expected to begin in the New Year have continued to impact revenue growth.”