from PR businneswire
Revenues for the second quarter trailed management's earlier expectations, primarily due to the timing of partial shipments of our electro- optic authentication readers," noted Elie Housman, Chief Executive Officer of InkSure Technologies Inc. "We initially expected a significant number of readers to be shipped to a new customer during the month of June, but such shipments were delayed to the third quarter. Therefore, shipments of these readers and initial shipments of SmartInks to the international customer will benefit operating results in the second half of 2005, when we expect to report record revenues and a significant reduction in net loss when compared with the prior-year."
"Strategically, a number of accomplishments were noteworthy in the most recent quarter. We introduced our revolutionary TrackSure handheld electro-optic reader, which performs barcode reading, authentication and validation against an on-board database with the push of a single button. This new reader allows investigators and field agents to retrieve on-the-spot detailed information from a scanned item, including product identification, product origin and distribution area, and it can determine immediately whether the barcode has been copied or tampered with. We believe this expansion in reader capabilities will open the door to significant new market opportunities for our Company in the future."
"We were also awarded two new U.S. patents related to InkSure's ongoing development of 'chipless' RFID (Radio Frequency Identification) tags during the second quarter," said Housman. "Our goal is to develop multi-bit 'chipless' RFID tags that can be manufactured and applied to product labels at a cost of well below one cent (US) each. If we can accomplish this, InkSure should be well-positioned to participate in the predicted shift away from traditional barcodes in the areas of brand protection and supply chain management. We are encouraged by estimates from IDTechEx Ltd., a leading independent consultant in smart labels and smart packaging, that global revenues from RFID systems should exceed $10 billion (US) by 2010, with 'chipless RFID' accounting for at least 30% of the total."
"In June we received the largest equipment order in our Company's history, from our strategic partner Sun Chemical Group B.V., for authentication readers and covert security inks to be used in a number of projects involving the packaging of consumer products. While we were disappointed that no reader shipments occurred in the second quarter, we expect all of the readers to be delivered during the second half of 2005. We should also begin receiving recurring revenues from the sale of SmartInks for these projects well before the end of the year."
"After the end of the second quarter, we announced our first contract in the ethical (prescription-based) pharmaceuticals industry, where counterfeiting poses a huge risk in terms of both lost revenues and product liability issues. We will continue to focus on the pharmaceutical industry as a priority market, and we are currently involved in tests with a number of additional pharma companies and their suppliers," concluded Housman.
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