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Sirit to Buy SAMSys Technologies
"We see this new product development as a key asset, and it is something we will be integrating into our product line," says Dawalibi. "We have products that SAMSys didn't have, and SAMSys had stuff that we didn't have, so it will become a much richer and stronger product line that we will be offering to customers of both companies."
The SAMSys product line includes a strong base of UHF products designed for Electronic Product Code (EPC) applications in open-loop supply chains. Sirit's core competency in UHF technology has been in automatic vehicle identification for electronic toll collection and parking control. It also sells a growing line of reader modules, designed for embedding in handheld devices, but more of these operate in the high-frequency (13.56 MHz) band than in UHF. An early provider of a Gen 2 reader upgrade, SAMSys launched the "Tru Blue Gen 2" program in February 2005 to address users' concerns about Gen 2 reader compatibility (see SAMSys Announces Reader Upgrade Policy).
Late last summer, SAMSys secured $6 million in debt financing from Wellington Financial. In September, it "closed an offering of $3 million in common stock and warrants ("Unit") and $1 million in Convertible Unsecured Subordinated Debentures ("Convertible Debentures") on a private placement basis," according to SAMSys' Web site. A story posted by TechFinance.ca, a Canadian financial news site, reported that Wellington demanded repayment last week, forcing SAMSys into a quick sale.
Earlier this week, a SAMSys spokesperson declined to comment on the firm's decision to sell itself. The company has also not responded to requests for comment on the pending sale to Sirit.
In its first quarter 2006 financial disclosures, SAMSys reported that it had slowed its cash burn and had generated $1.2 million in revenue for the first fiscal quarter, down from $1.4 million for the corresponding quarter of 2005—a 12.8 percent decrease. The firm's CFO, George Kypreos, also noted that SAMSys was seeking means of satisfying its debt and had not ruled out a merger or acquisition. The company, at the time, was anticipating the new reader platform to generate increased OEM sales, providing increased margins over direct sales to end users. It also expected the new platform to lower its manufacturing costs.
Late last year, Tom Dziersk became president and CEO of SAMSys. He replaced founder and chairman Cliff Horwitz, who assumed the role of president in August 2004 to fill a vacancy.
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The SAMSys product line includes a strong base of UHF products designed for Electronic Product Code (EPC) applications in open-loop supply chains. Sirit's core competency in UHF technology has been in automatic vehicle identification for electronic toll collection and parking control. It also sells a growing line of reader modules, designed for embedding in handheld devices, but more of these operate in the high-frequency (13.56 MHz) band than in UHF. An early provider of a Gen 2 reader upgrade, SAMSys launched the "Tru Blue Gen 2" program in February 2005 to address users' concerns about Gen 2 reader compatibility (see SAMSys Announces Reader Upgrade Policy).
Late last summer, SAMSys secured $6 million in debt financing from Wellington Financial. In September, it "closed an offering of $3 million in common stock and warrants ("Unit") and $1 million in Convertible Unsecured Subordinated Debentures ("Convertible Debentures") on a private placement basis," according to SAMSys' Web site. A story posted by TechFinance.ca, a Canadian financial news site, reported that Wellington demanded repayment last week, forcing SAMSys into a quick sale.
Earlier this week, a SAMSys spokesperson declined to comment on the firm's decision to sell itself. The company has also not responded to requests for comment on the pending sale to Sirit.
In its first quarter 2006 financial disclosures, SAMSys reported that it had slowed its cash burn and had generated $1.2 million in revenue for the first fiscal quarter, down from $1.4 million for the corresponding quarter of 2005—a 12.8 percent decrease. The firm's CFO, George Kypreos, also noted that SAMSys was seeking means of satisfying its debt and had not ruled out a merger or acquisition. The company, at the time, was anticipating the new reader platform to generate increased OEM sales, providing increased margins over direct sales to end users. It also expected the new platform to lower its manufacturing costs.
Late last year, Tom Dziersk became president and CEO of SAMSys. He replaced founder and chairman Cliff Horwitz, who assumed the role of president in August 2004 to fill a vacancy.
