TORONTO – AirIQ Inc., a leader in wireless location-based services, specializing in telematics and security, announced its financial results for the fourth quarter and year ended Dec. 31, 2007.
Financial highlights include:
- Recorded a gain on sale of certain assets and liabilities of vehicle finance business of approximately $4.0 million.
- Operating expenses were reduced by approximately $4.5 million or 24.7 percent year over year from $18.2 million to $13.7 million excluding foreign exchange loss and stock-based compensation.
- Cash position at Dec. 31, 2007, was approximately $6.0 million (including restricted cash of approximately $1.9 million) compared to $2.3 million at Dec. 31, 2006, representing a 161 percent increase.
- Employee headcount was reduced from 123 to 59, or 52 percent year over year.
- Foreign exchange loss increased from approximately $0.1 million in 2006 to approximately $2.2 million in 2007 due to progressive strengthening of Canadian dollar. The company responded by reducing expenses at its Canadian office.
- Direct cost of sales were affected by certain adjustments due to a write-down of analog equipment assets and inventory provisions.
- Working capital improved by $6.9 million year over year from a negative working capital position of approximately $1.4 million at Dec. 31, 2006, to a positive working capital of approximately $5.5 million at Dec. 31, 2007.