RICHMOND, British Columbia (March 25, 2003)—A traditionally slow time of year hit SmarTire Systems Inc. in its second quarter ending Jan. 31, with the company posting a net loss of $2.13 million.
Gross revenue for the quarter totaled $146,762, down from $192,665 for the same period in 2002. In the second quarter last year, the Richmond-based developer of tire pressure monitoring systems recorded a net loss of $2.10 million.
“Historically the second quarter is our most challenging, and this year was no exception,” said Robert Rudman, president and CEO. “However, since the end of the second quarter, our sales have increased substantially with actual and booked sales during this six-week period representing approximately 85 percent of total sales for this fiscal year.”
A spokeswoman said the second quarter traditionally is slower because retailers and distributors wait until the new year and spring to place their orders, slowing the months of November through January, which encompass SmarTire's second quarter. She said the company did not identify any specific reasons besides the general lagging economy for decreases from 2002.
Mr. Rudman said the company plans to pursue opportunities in passenger cars with several original equipment manufacturers in North America as well as introducing new products and expanding distribution.