AIDO

Overview

Highlights

Profile

Marketing

Industry

News

Chart

Management

Contacts

 

   
 
   
"The Company has been actively involved with government and industry projects establishing livestock identification and trace back solutions in Australia, Canada, Brazil, Argentina, Thailand, Taiwan, China and the United States."   
   
   
Approximate Financial Snapshot as of 9/29/08
Shares Outstanding 62.9M
52 Wk Hi/Lo 0.35/

0.13

Market Cap $7.6M
Recent Price $0.12

 

 

 

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Advanced ID Corp. (AIDO)

Website: www.advancedidcorp.com

'AIDO currently supplies more than 3,000 organizations, including animal shelters, veterinarians, breeders, government agencies, universities, zoos, research labs and fisheries with RFID devices for companion animals. 

The Company’s microchips have been implanted in more than 500,000 animals and are being used to track nearly 1 million animals in the PETtrac database.'


Overview

Advanced ID Corp. (AIDO) is a complete solutions provider in the RFID market with a focus on the tire management industry. The company is also a major factor in the tire inspection business through its UK based Pneu-Logic subsidiary. Lastly, the Company is active in the pet recovery business through its AVID Canada subsidiary in Calgary, Alberta, which is reintroducing its livestock tagging product line in several countries and has developed a UHF RFID reader product line for all market applications.


AIDO Investor Highlights

  • Second Quarter revenues Increase 90%. Business Expands to China, Taiwan, Portugal, UK, Germany, US, Brazil & Mexico. New Distribution Agreements Bring Products to India and Indonesia
  • After agreeing to purchase 2 million of the AIDO's UHF/RFID chips, Qingdao, China-based Qingdao Mesnac Co., became the worlds first tire manufacturer to commit to embedding RFID tire tags in a commercial truck line.
  • As part of its expansion in the region, AIDO acquired 20% interest in its Brazilian distribution partner.
  • The Companys UHF/RFID reader business secured ten new customers for reader sales and continues to gain worldwide acceptance.
  • AIDO currently supply over 3,000 organizations such as animal shelters, veterinarians, breeders, government agencies, universities, zoos, research labs and fisheries with RFID devices for companion animals, equines, bovines, llamas, alpacas, ostriches, aquatic species, reptiles, migratory and endangered species. The Company has implanted microchips in over 500,000 animals and currently tracks nearly one million animals in their pet recovery database, while reuniting numerous lost pets with their families each month.
  • The Company has been actively involved with government and industry projects establishing livestock identification and trace back solutions in Australia, Canada, Brazil, Argentina, Thailand, Taiwan, China and the United States.
  • The Company uses low frequency radio waves for companion animal recovery and is the second largest player in the Canadian companion animal and biological sciences market, with an estimated 40% market share.
  • The Company is making the transition from being a provider of pet recovery systems to offering global RFID solutions for asset management applications. AIDO’s tracking systems are being tested in asset management applications by major companies in the tire, document management, pharmaceutical, vehicle ID, food services and general retail industries.
  • AIDO also sells UHF identification tags for tires. Goodyear Tire and Rubber Company is its major customer. I
  • AIDO’s revenues increased 123% year-over-year to $424,955 in the first quarter of 2008, reflecting increased sales to animal shelters, expanding reader sales and sales of the Company’s new PR500 reader. Revenues were also positively impacted by the Pneu-Logic acquisition. AIDO attributed 34% of first quarter 2008 revenues to sales by its Canadian Companion Animal/Biological Sciences division and the remaining 66% to worldwide sales made by its Ultra High Frequency division.
  • Beacon Equity Research expects AIDO to report revenues of approximately $2.6 million in 2008 and $5.1 million in 2009.
  • Beacon Equity Research initiated coverage of AIDO with a Speculative Buy rating and a $0.35 price target at the end of August 2008.
  • AIDO has also emerged as a major player in the RFID tire tag/patch business; revenues associated with this business line are growing at double and triple-digit rates. The Company has already announced a multi-million dollar purchase agreement with Mesnac in China, as well as similar agreements for Europe, Brazil, Mexico, Venezuela, Indonesia, India and Malaysia.
  • According to research company IDTechEx, the value of the RFID market is likely to rise to $5.3 billion in 2008 from $4.9 million in 2007. By 2018, the market is forecast to grow five-fold and the number of tags supplied will increase 300-fold, driven by the development of lower cost tags and an installed infrastructure, which will enable high volumes of tagging.
  • In 2005, the Company went in a new direction with its UHF RFID products and entered the tire RFID business. The Company was successful in getting a contract from Goodyear to supply the tire tag that is embedded in every Racing Eagle Tire that is used on the NASCAR circuit. The Company won the 2006-2007 contract and have recently confirmed the 2007-2008 season.

Profile

AIDO develops, manufactures and sells microchip identification devices, referred to as RFID microchips and readers, to the livestock and companion animal markets, and supply chain management applications. In the second quarter of 2004, the Company began commercializing its animal tracking products under the brand name DataTRAC™.

RFID enables the positive identification and location tracking of animals or objects that are tagged with RFID microchips. The Company currently supplies more than 3,000 organizations, including animal shelters, veterinarians, breeders, government agencies, universities, zoos, research labs and fisheries with RFID devices for companion animals, exotics, equines, bovines, llamas, alpacas, ostriches, aquatic species, reptiles, migratory and endangered species. The Company’s microchips have been implanted in more than 500,000 animals and are being used to track nearly 1 million animals in the PETtrac database.

AIDO also sells UHF identification tags for tires. Goodyear Tire and Rubber Company is its major customer. In addition, tire tag and tire patch sales have been made to value-added resellers in several countries for trial or pilot runs. Tire tag readers are sold to tire manufacturers and resellers in India, Canada, Mexico, Venezuela, Australia, Japan and the United States. Michelin U.S. has purchased multiple readers.

AIDO recently secured approval for its new, lower cost ISO chip made by SOKYMAT. The significant cost savings associated with this new ISO standard chip will allow the Company to reduce tag prices in Canada and other countries, thus spurring higher sales. AIDO has also developed a new LF reader for companion animals with language-specific readout capabilities that will be made available in several countries.

In its tire ID product line, AIDO is collaborating with Hana and others manufacturers to introduce products that will serve the tire management industry worldwide. The addition of Pneu-Logic’s tire inspection tools to AIDO’s RFID tire management product line creates a unique, vertically integrated product offering that will prove attractive to tire manufacturers and retailers. AIDO plans to focus its resources on securing a leadership position in the tire tagging market to capitalize on growth as this market matures and reaches high volume levels.

Additionally, AIDO has developed high power, long range UHF RFID readers that are being sold for supply chain management and tire tag applications. AIDO’s readers are priced at half of the cost of a competitor’s equivalent product. The Company also designed a lower cost, mass market UHF RFID reader that will retail at half the price of AIDO’s current readers.

Management believes the UHF RFID reader market will follow a path similar to the UPC bar code reader market. The UPC barcode business did not take off in the 1970-1980s until reader prices fell below $100. AIDO plans to introduce a $100 UHF RFID reader. The Company has completed development of its new lower price PR 500 reader, and has installed it at bookstores in Portugal and Spain. During 2008, the Company plans to market the new reader for a variety of industry applications.

For the latest Quote and News on AIDO visit here


Marketing and Distribution

AIDO has already established strong distribution channels in the Canadian companion animal and biological sciences markets, and intends to extend its reach by forging relationships with additional veterinary professionals across Canada. At present, the Company has relationships with Associate Vet Purchasing, Western Drug Distribution Center, Vet Purchasing, Canadian Kennel Club and Centre de Distribution de Medicaments Veterinaires. None of these relationships involve contractual agreement or volume commitments. Additionally, AIDO is expanding its sales efforts into several Asian countries, including China, Taiwan and Thailand.

During 2007, Goodyear Tire and Rubber Company accounted for more than 10% of AIDO’s revenues. The Company plans to market its tire management product line, UHF RFID reader line, and Pneu-Logic product line, both direct and through third-party resellers on a global basis.

Between 2006 and 2008, AIDO signed agreements with 18 distributors in 16 countries. Major distributors include: Aresnault Associates and Meyers in the United States; EDP in France; REMA Tip Top in Germany; Kit Loong in Malaysia; Suar Group in Indonesia; Syncroft in India; ODEM in Israel; CODEBAR in Venezuela; Right Size Informatica in Brazil; and Entyrety in the United Kingdom. The Company is seeking additional distributor relationships in countries not yet represented.

AIDO intends to become a price-performance leader in all of its market segments. Keeping low prices discourages competitors from entering the market, while still allowing AIDO to earn a healthy margin. This strategy should help the Company garner market share in both the pet recovery and tire management markets.

In July 2008, AIDO announced a partnership with its largest distributor in Brazil to establish Advanced ID, Brazil Ltd. Brazil is one of the world’s fastest-growing markets for RFID supply chain management. AIDO’s products and solutions are being marketed for tire management, pharmaceutical, document control, and other asset management and tracking applications.

AIDO has also formed a new Hong Kong subsidiary, Advanced ID Asia Pacific Co. Ltd., to serve as the Company’s regional headquarters in the Asian market. China has emerged as a leader in implementing RFID technology in the tire sector and for other asset management applications. China is the world’s largest tire-producing nation, with 205 million tires manufactured in 2006, according to Tire Business magazine.

In April 2008, Qingdao Mesnac Co. Ltd., a leading Chinese tire production equipment and software maker with significant tire manufacturing operations, became the first tire manufacturer to embed AIDO RFID tire tags in a commercial truck tire line. Mesnac has committed to purchasing a minimum of 2 million RFID tire tags and a quantity of RFID readers from AIDO.

AIDO originally entered the Asian market in late 2007 through a strategic relationship with Kit Loong Tyre Management of Malaysia. Kit Loong has signed an exclusive, three-year commitment contract for AIDO RFID and Pneu-Logic tire inspection products. Kit Loong is one of Southeast Asia’s largest tire retreaders and tire distributors, working with Goodyear, Dunlop, Michelin, Bridgestone, BF Goodrich, Pirelli, Continental Sime and Cooper Tire. As part of the agreement, Kit Loong agreed to initially purchase $1.8 million of Advanced ID tire products. Kit Loong’s territory includes Greater China, Malaysia, Singapore, Brunei, Thailand, Indonesia, Philippines, Vietnam, Cambodia, Laos and Myammar.


Industry Outlook

The global market for RFID technology has been growing steadily in recent years. According to IDTechEx, the value of the RFID market is likely to increase to $5.3 billion in 2008 from $4.9 million in 2007. The RFID market includes tags, readers and software/services for RFID cards, labels, fobs and all other form factors.

Within the RFID industry, a major part of the growth has come from existing applications such as security/access control, automobile immobilization, animal tracking and toll collection. However, emerging applications in security-based solutions, contactless payments, and supply chain management are in late testing stages and are expected to present significant new market opportunities. In particular, use of RFID technology in conjunction with contactless payment cards and Wi-Fi has emerged as a substantial opportunity for RFID vendors.

For example, China is issuing each citizen a national RFID ID card. The tagging of pallets and cases by retailers in the United States will use approximately 325 million RFID labels in 2008. According to IDTechEx, the technology is also being embraced by retailers outside the United States. British retailer Marks & Spencer has used well over 100 million RFID tags to-date. The tagging of animals (such as pigs and sheep) is quickly becoming a legal requirement in many countries, with 90 million livestock tags deployed in 2008.

By 2018, the RFID market is forecast to grow five-fold, and the number of tags supplied will increase 300-fold, driven by the development of lower cost tags and installed infrastructure, which will enable high tagging volume.

In 2008, it is estimated that 57.3% of the total market value for RFID will be spent on cards and associated infrastructure, with $2.3 billion of the $5.3 billion total spent on all other forms of RFID - from RFID labels to active tags. By volume, the tag part of the RFID market is dominated by labels or label-like tags (such as tickets), which represented 62.4% of the tag types shipped in 2008. These tag types are expected to represent 99.1% of the market by 2018.

As of early 2008, more than 6.0 billion RFID tags have been sold worldwide. IDTechEx estimates 2.16 billion tags will be sold in 2008 versus 1.74 billion in 2007 and 1.02 billion in 2006.

Although the United States remains North America’s RFID leader, its overall share of the market will likely decline in the future due to Canada’s booming RFID market. Corporate funding and government support are fueling growth in the global RFID industry.

In the near future, significant additional growth is likely to come from Asian countries like China and Japan. Supply chain applications for UHF RFID are growing, and China has the world’s largest low cost manufacturing infrastructure. The item-level tagging market is forecast to grow 55% annually between 2006 and 2016.


Pet Industry Trends

According to the American Pet Products Manufacturers Association (APPMA), pet ownership is currently at its highest level ever, with 63% of all U.S. households owning a pet, or more than 71 million households. That's up from 64 million in 2002 and 51 million in 1988 when APPMA first began tracking pet ownership.

U.S. pet industry expenditures are forecast to grow 6% annually over the next several years. By the end of 2007, total pet industry spending was estimated at $41 billion. The steady increase in spending on pets and pet ownership confirms that many Americans consider their pet a treasured member of their family.


Recent News and Press Releases

Advanced ID Anticipates 400% Increase in 4th Quarter Revenue with Acquisition of Shenzhen DDCT Technology Co.

Advanced ID Acquires Shenzhen, China Corporation

Advanced ID Subsidiary Secures New Sales Channel

Advanced ID Subsidiary Creates First Paperless Tire Audit System in Europe

EDP and Advanced ID's Pneu-Logic Plan Major Growth in Rest of 2008

Advanced ID Inks Acquisition Letter of Intent in China, Bolsters Market Penetration in Region

Advanced ID Corporation Reports Solid Second Quarter Results

ADVANCED ID CORP Files SEC form 10-Q/A, Quarterly Report

Advanced ID Continues its Asian Expansion into Taiwan

Advanced ID Acquires 20% Interest in Brazilian RFID Company

Advanced ID Announces Opening of Asian Offices

Advanced ID Applauds U.S. NHTSA's Consumer Advisory on Tire Safety


Chart



Management

Dan Finch - President and CEO, Advanced ID Corporation

Dan Finch has 25 years of executive level management experience starting and growing companies in wireless HSIA and VoIP phone technology, high-speed internet infrastructure and financial services for pre IPO high tech companies. Dan Finch started Westell in suburban Chicago and left as it became a NASDAQ company. Dan Finch lead a division of DSC (now Alcatel) that designed and manufactured the cell switches for Motorola, under the Motorola brand. Sales of Dan’s unit exceeded $350 million per year. While serving as President of C-COR Electronics he was responsible for increasing revenue from $65 million to $135 million in two years in the mid 90's. Dan Finch’s educational background includes an MBA, Finance and Economics from University of Chicago, a BS in Physics from the Indiana Institute of Technology and certification in Technical Management from the University of California, Berkeley.

Laren Yeomans - Managing Director, Pneu-Logic Ltd.

Laren Yeomans, 40, is married with 5 children, graduated from Paget High School and Burton Technical College in 1989 with a host of business related qualifications. During the next 20 years Yeomans gathered a vast range of commercial experience within Electronic based manufacturing companies, working his way up from Production Supervisor to Production Director with Y & S Products. During the past 8 years, Yeomans has been involved in high level sales presentations and negotiations with blue chip organizations such as QVC, Michelin and Goodyear. Lately Yeomans has headed Pneu-logic Ltd as Managing Director, concentrating on a sales orientated organization, which resulted in a net profit increase of over 200 % in his first year.

Seymour Kazimirski, Chairman of the Board, Director

In 1995, Mr. Kazimirski established Hawaii Pet Care Alliance, which is involved in RFID for companion animals and where he continues to serve as president. From 1995 to 1998, Kazimirski provided consulting services to AVID Inc., a manufacturer of RFID microchips and readers. In 1993, Kazimirski established a global consulting business specializing in finance, administration and marketing. In 1980, Kazimirski founded Florexotica International Inc., an import/export business acquiring products from Asia and Europe and reselling them to U.S. military and major retail stores.

Gottfried Auer - Managing Director, Advanced ID Asia Engineering Co. Ltd.

Gottfried Auer's engineering experience spans the globe from Europe to Asia. Educated in Germany with a keen interest in RFID applications along with the Asian market, Gottfried established his own engineering consulting group in Thailand. He soon developed a strong reputation locally as well as internationally for providing expert advice on the development of new products and applications. His reputation and invaluable network of contacts in Asia captured the attention of the Advanced ID Corporation who purchased a majority stake in his company.

Sudeep Bhargava - Vice President Operations/COO, Advanced ID Corporation

Sudeep Bhargava has enjoyed a broad background in management in the hospitality, arts and companion animal businesses, both in India and Canada. He is a Certified Management Accountant and is especially skilled in determining financial benchmarks and controls, forecasting and reporting. He was previously with the Calgary Humane Society and approached the pet recovery business from a pet shelter perspective. This experience is valuable as Sudeep's responsibilities include administering Advanced ID's pet recovery business from a product provider view.


SEC Filings

AIDO filings with the SEC can be found here. All Fillings are current and the Company is fully reporting.


Contacts

Advanced ID Corporation
4500 – 5th Street NE
#200 Bay 6
Calgary, Alberta
Canada T2E 7C3
Phone: (403) 264-6300
Web: www.advancedidcorp.com
E-mail: danf@advancedidcorp.com


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