SOURCE: Sensor System Solutions

May 22, 2006 09:00 ET

Sensor System Solutions Announces Fourth Quarter and 2005 Year-End Financial Results

Fourth Quarter Revenues Increase 139% Over Previous Year

IRVINE, CA -- (MARKET WIRE) -- May 22, 2006 -- Sensor System Solutions, Inc. (OTCBB: SSYO), a manufacturer of micro-electromechanical systems (MEMS) sensors, intelligent sensor interface electronics and intelligent embedded control systems, today announced its financial results for the fourth quarter ended December 31, 2005.

Revenues for the quarter ended December 31, 2005 grew 139% to $469.5 thousand from revenues of $196.1 thousand in the fourth quarter of 2004. Revenues for the year ended December 31, 2005 increased 100% over the same period in 2004, to $1.3 million. Revenues increased due to a continuing effort to expand the Company's product offerings into the growing sensor market.

Net loss for the fourth quarter of 2005 improved to $1.6 million compared to a net loss of $2.5 million in the fourth quarter of 2004. For the year ended December 31, 2005, the Company's net loss declined to $2.7 million, compared to $3.7 million for the same period last year. For the fourth quarter and for the 2005 fiscal year, stock based compensation, a non-cash expenditure, contributed $775 thousand to the Company's net loss.

Gross profit for the fourth quarter of 2005 was $156.7 thousand or 33.4% of revenues, compared to a gross profit of $39.8 thousand or 20.3% of revenues for the fourth quarter last year. For the twelve months ended December 31, 2005, gross profit grew to $466.7 thousand, or 33.7% of revenues, compared to $81.6 thousand or 12.3% of revenues, for the same period last year, an increase of more than 400%. Increased sales levels, the success in securing long-term OEM accounts, and the resultant increase in production capacity utilization contributed to the increase in gross profit.

"Our sales increase in 2005 reflects our ongoing efforts to provide innovative and cost effective products for the sensor market," said Michael Young, CEO of Sensor System Solutions. "During 2006, we plan to expand our network of sales representatives and seek new distribution channels for our sensor modules."

The Company has started the production phase of two new series of sensor modules. The increased integration level of these new products has resulted in a unit price for these modules that is significantly higher than the current, less sophisticated sensor component.

The Company remains committed to expanding its presence in Asia. Mr. Young stated, "We continue to increase market awareness of our entire line of sensor products in China and India through Universal Sensors, Inc., our joint venture with China Automotive. USI has a 7-person sales team to promote not only its own automotive sensors but also 3S' other sensor products into a growing market."

About Sensor System Solutions (3S)

3S is engaged in the design and manufacture of sensor components and sensor system solutions. These products are marketed to a variety of OEM and end-product manufacturers, including the medical, chemical, military, oil and gas industries. 3S' strategy is to integrate the Company's numerous intellectual properties into intelligent interface electronics and sensors enabling "smart products" that provide enterprises with an unbroken stream of critical real-time information -- 24 / 7 -- for machine conditions, manufacturing processes and/or business transactions, without human attention or intervention. 3S markets these products through various strategic partners. For more information, please contact us at 949-855-6688 or visit us at

Forward-Looking Statements:

This release may contain statements we believe are, or may be considered to be, "forward-looking statements." These forward-looking statements generally can be identified by use of the statements that include phrases such as we "expect," "plan," "believe," or other similar words or phrases. Similarly, statements describing our objectives, plans or goals also are forward-looking statements. All of these forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the expected results expressed or implied by the relevant forward-looking statement. All forward-looking statements speak only as of the date made, and we undertake no obligation to update them.

Contact Information