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American Company Spotlight

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Advanced ID Corp. Website:
Click Here |
Information As Of August 27,
2008 |
| Exchange:
OTCBB |
Market
Cap:
18.9 Million |
| Outstanding Shares:
62.9 Million |
52 Low / High:
$0.13 / $0.35 |
|
Price August 27, 2008:
$0.26 |
AIDO Recent Stock Quote and News:
Click Here |
'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. The Company’s microchips have
been implanted in more than 450,000 animals and are being used
to track nearly 1 million animals in the PETtrac database.'
Overview
Advanced ID Corporation 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.
Investment Highlights
- The Company 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.
- 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.
- 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’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.
- 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 billion 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.
Marketing & 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.
Pet food, veterinary care and supplies are the largest
segments of pet industry spending. Lately there have been
important changes in the veterinary care segment resulting
from the development of pet health insurance.
Recent News and Press Releases
ADVANCED ID CORP Financials
EDGAR Online Financials (Fri, Aug 22)
ADVANCED ID CORP Files SEC form 10-Q/A, Quarterly Report
EDGAR Online (Tue, Aug 19)
Advanced ID Continues its Asian Expansion into Taiwan
Business Wire (Mon, Aug 18)
Advanced ID Acquires 20% Interest in Brazilian RFID Company
Business Wire (Tue, Jul 29)
ADVANCED ID CORP Files SEC form 8-K/A, Financial Statements
and Exhibits
EDGAR Online (Wed, Jul 16)
ADVANCED ID CORP Files SEC form 8-K/A, Financial Statements
and Exhibits
EDGAR Online (Thu, Jul 10)
Advanced ID Announces Opening of Asian Offices
Business Wire (Thu, Jun 26)
Advanced ID Applauds U.S. NHTSA's Consumer Advisory on Tire
Safety
Business Wire (Tue, Jun 10)
Advanced ID Announces 123% Increase in First Quarter Revenues
Business Wire (Thu, May 29)
ADVANCED ID CORP Files SEC form 10-Q, Quarterly Report
EDGAR Online(Mon, May 19)
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.
Contact
Advanced ID Corporation
4500 – 5th Street NE
#200 Bay 6
Calgary, Alberta
Canada T2E 7C3
Phone: (866) 941-AIDO (2436)
Web:
www.advancedidcorp.com
E-mail:
advancedidir@gmail.com
FORWARD LOOKING STATEMENTS
This report includes forward-looking
statements that reflect Advanced ID Corp. current
expectations about its future results, performance,
prospects and opportunities.
Advanced ID Corp. has
tried to identify these forward-looking statements by using
words and phrases such as "may," "will," "expects,"
"anticipates," "believes," "intends," "estimates," "plan,"
"should," "typical," "preliminary," "we are confident" or
similar expressions. These forward-looking statements are
based on information currently available and are subject to
a number of risks, uncertainties and other factors that
could cause Advanced ID Corp.'s actual results,
performance, prospects or opportunities to differ materially
from those expressed in, or implied by, these
forward-looking statements. These risks, uncertainties and
other factors include, without limitation, the Company's
growth expectations and ongoing funding requirements, and
specifically, the Company's growth prospects with scalable
customers, and those outlined above. Other risks include the
Company's limited operating history, the Company's history
of operating losses, consumers' acceptance, the Company's
use of licensed technologies, risk of increased competition,
the potential need for additional financing, the terms and
conditions of any financing that is consummated, the limited
trading market for the Company's securities, the possible
volatility of the Company's stock price, the concentration
of ownership, and the potential fluctuation in the Company's
operating results.
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to the business plans of the Company, within the meaning of
Section 27A of the Securities Act of 1933 and Sections 21E
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the safe harbor created by these sections. Actual results
may differ materially from the Company's expectations and
estimates. This is an advertisement for
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