SmarTire Reports Year End Financial Results
SmarTire Systems Inc has published its results for the financial year ended 31 July 2005. The company reported revenue of $1.46 million compared to $1.66 million in 2004. Net loss for the year totalled $14.3 million compared with losses of $11 million in 2004.
SmarTire president and CEO Al Kozak said: “To align our corporate focus and resources with the opportunities of a changing marketplace, SmarTire made two major transitions in 2005. We shifted our priorities from the extremely competitive passenger car market to the more attractive commercial vehicle market where we believe we have significant competitive advantages and much greater opportunities. In addition, we have focused on sales to original equipment manufacturers (OEM) instead of the more diverse and less rewarding aftermarket. Our recent announcement of a major new distribution agreement underlines the progress we are achieving.”
Kozak continued: “These two marketing transitions did not translate into increased revenues during our 2005 fiscal year although significant progress was made. The sales growth rate of our tyre pressure monitoring systems to the OEM market was 288 per cent in 2005. OEM business accounted for 57 per cent of our total business in fiscal 2005 compared to 14 per cent for the previous year. We achieved this growth while reducing non-profitable aftermarket sales in a number of areas to enable us to focus on increased OEM business with recurring revenues. We will continue to focus our efforts on acquiring new OEM customers and positive revenue growth over the next year.”