HACKENSACK, N.J. (AP) — I.D. Systems Inc., which makes wireless tracking and movement-control systems for vehicles and packages, said Tuesday that its first-quarter loss widened as expenses climbed while revenue jumped due to a recent acquisition.
For the quarter that ended March 31, I.D. Systems reported a loss of $4.1 million, or 36 cents per share, compared with a loss of $3.1 million, or 28 cents per share, in the year-ago quarter.
Excluding one-time items, the company's loss totaled 32 cents per share.
Revenue more than doubled to $6.1 million.
I.D. Systems said the increase in revenue was due mostly to service contracts belonging to its asset intelligence business unit, which it bought in January from General Electric Co. for $15 million. I.D. Systems may also pay G.E. up to $2 million more next February, depending on the unit's performance during this year.
Expenses rose too. Selling, general and administrative expenses climbed 54 percent to $6.5 million, which I.D. Systems attributed to acquisition-related payroll and other costs. Research and development expenses rose 68 percent to $1.2 million, which the company said stemmed from investments it made in upcoming asset intelligence products.
The company said it started laying off employees during the first quarter as part of a goal to lower its headcount by more than 30 percent by the end of July — moves it believes will lower operating expenses by $8 million annually.
I.D. Systems shares fell 2 cents to $3.34 in after-hours trading, after finishing regular trading up 3 cents at $3.36.