Toronto-based RFID technology provider Sirit today reported a steep drop in revenue in both its second quarter and first half of 2008. The company attributed the results largely to lower demand for its automated toll-collection transponder technology during the first six months of 2008, and also pointed a finger at unfavorable exchange rates, as the Canadian dollar has strengthened against its U.S. counterpart in 2008.
Sirit’s total revenue for the quarter, ended June 30, was C$4.8 million, down 32% from C$7.0 million in the second quarter of 2007. First-half revenue charted a similar path, dropping to C$9.1 from C$13.5 million.
“Sirit continued to experience delays in toll transponder orders from our largest toll customer” in the first half, said Sirit CFO Anastasia Chodarcewicz in a statement. “However, expenses in the second quarter remained consistent with the first, even with the acquisition of RSI,” Chodarcewicz said, referring to Sirit’s April purchase of RFID hardware provider RSI ID Technologies.
The company also reported a wider net loss in the second quarter — C$2.2 million versus C$1.4 million in the same period last year.