SOURCE: Sensor System Solutions

November 16, 2005 09:00 ET

Sensor System Solutions Announces Third Quarter Financial Results

Quarterly Revenues Increase 115% Over Last Year

IRVINE, CA -- (MARKET WIRE) -- November 16, 2005 -- Sensor System Solutions, Inc. (OTC BB: SSYO), a manufacturer of (MEMS) sensors, intelligent sensor interface electronics and intelligent embedded control systems, today announced its financial results for the third quarter ended September 30, 2005.

Revenues for the quarter ended September 30, 2005 grew to $347.1 thousand, an increase of 115% over revenues of $161.7 thousand in the third quarter of 2004. Revenues for the nine months ended September 30, 2005 increased 84% over the same period last year to $855.3 thousand. Revenues increased due to a continuing effort to expand the Company's product offerings and the addition of new sales representatives.

Net loss for the third quarter of 2005 declined to $337.1 thousand compared to a net loss of $602.7 thousand in the third quarter of 2004. For the nine months ended September 30, 2005, net loss was $1,158.4 thousand, compared to $1,134.8 thousand for the same period last year.

"Our financial results this quarter are starting to reflect, through the sales increase, our strategic efforts," said Michael Young, CEO of Sensor System Solutions. "However, despite the increase in revenues, we recorded a net loss for the quarter due primarily to our continued expansion of research and development, marketing and sales programs, and the expenses associated with the new personnel needed for this expansion."

Gross profit for the third quarter of 2005 was $155.5 thousand or 44.8% of revenues, compared to a gross loss of $50.0 thousand for the third quarter last year. For the nine months ended September 30, 2005, gross profit grew to $290.0 thousand, or 33.9% of revenues, compared to $41.7 thousand or 9.0% of revenues, for the same period last year. Increased sales levels and the resultant increase in production capacity utilization were the causes of the increase in gross profit.

"One of the highlights of the quarter was the signing of a contract with a large home therapy equipment provider for our force sensor," continued Young. "This agreement called for delivering a total of 20,000 sensors from October 2005 to December 2005. The quantity is expected to increase in 2006.

"Our goal is to become a global supplier of advanced sensor related products in a myriad of developing markets. We are focusing on developing custom MEMS pressure sensor devices and forming strategic partnerships in industries seeking MEMS sensor applications. We believe that this is a broad, developing market, which will be best addressed by providing high quality sensors and transducers at an economical price. 3S's innovative designs and creative manufacturing methods will, we believe, position us well in this endeavor," Young concluded.

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, oil and gas industries. 3S's 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 real-time information 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 www.corp3s.com.

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

  • Contact:
    Ann Jones
    Jones, Dolan & Co. Inc.
    949-855-6688 ext.128
    714-227-0391 - cell
    ajones@corp3s.com