SmarTire Systems, which makes tire-pressure and temperature-monitoring technology, took a loss in its first fiscal quarter of 2002, which ended October 31, 2001.
For the quarter, the company reported total gross revenue of $352,629, compared to $179,838 in the first quarter of its fiscal 2001. But it also racked up a net loss of $1.6 million, an increase from the net loss of $1.4 million posted in the same period of its last fiscal year.
"SmarTire's first-quarter performance demonstrates a moderate increase in sales activity from the passenger car aftermarket segment and our new commitment to mass market opportunities in both the passenger car and commercial vehicle original equipment segments," said Robert Rudman, SmarTire's president and CEO. "In North America and Europe, our operations are witnessing an increase in inquiries for both SmarTire's aftermarket products for passenger car and light trucks, and, for SmarTire's OEM technological platform."
A new tire safety law in the U.S. that will make tire-pressure monitoring systems mandatory by 2003 has created a surge in demand, he added. Under the Transportation Recall Enhancement Accountability and Documentation (TREAD) Act, safety standards will require tire pressure warning systems on all new passenger cars and light trucks produced in the U.S. after 2003.
In August 2001, SmarTire restructured its strategic alliance with TRW, Inc., which effectively provided it with immediate access to all levels of the global automotive and transportation industries.