SUNNYVALE, California – October 30, 2002 – RAE Systems Inc. (OTC BB: RAEE.OB), a leader in gas detection and Smart Sensing Network platforms and solutions for security, environmental and safety monitoring today announced its third quarter operating results. Revenue for the quarter was $5.9M, an increase of 18.4% compared to the same period last year. Worldwide consolidated net profit was $360,000.00 compared to breakeven for the same quarter in 2001.
“We returned to profitability one quarter ahead of schedule” said Robert I. Chen, president and chief operating officer. “Strong demand for our products among hazardous material and homeland defense first responders, whom we have served for over a decade, propelled us forward in these difficult economic times. Our revenue growth of 18.4% for the quarter has outpaced an industry that is growing at an average rate of five percent. We strive to continue innovation and to create superior technology and product performance to set us apart in the market place.”
RAE Systems’ new single-gas product, the BadgeRAE, was announced at the National Safety Congress in San Diego earlier this month. The BadgeRAE, a personal, disposable gas detector, addresses a known and validated market. Two models are currently being offered, one for carbon monoxide detection and the other for hydrogen sulfide; both are also UL/CUL/ATEX approved. The BadgeRAE sets a price performance level for the industry and is now in available in volume shipment. In the third quarter, RAE Systems also introduced the RAEGuard, a photo-ionization equipped- Volatile Organic Compound (VOC) detector that is UL/CUL-approved for fixed system applications. It can detect VOCs in parts per billion, another industry-first. During the last quarter, RAE Systems continued to build on its AreaRAE wireless platform, adding GPS functionality and new software features that enable first responders to create a safety perimeter with a self-configured ad hoc wireless network.
RAE Systems will continue to broaden its product offering. As the first responder community moves toward nuclear, biological, and chemical (NBC) detection, RAE Systems is actively innovating new network and detection technologies. We believe that our wireless platform is well-positioned to incorporate additional hazard detection to the same network so that life-critical and time-critical information is available any time, any where. In our new paradigm, the network is the sensor.
About RAE Systems
RAE Systems Inc provides sophisticated sensing network platforms. We are a leading manufacturer of both single and multiple sensor atmospheric monitors, photo-ionization detectors, gas detection tubes, sampling pumps and wirelessly connected gas detection and security monitoring devices. Our products and services are designed to enable our customers to monitor gas and other volatile organic compounds in confined spaces, and to establish a perimeter security around hazardous material sites and sites of weapons of mass destruction. RAE Systems’ customers typically operate in such industries as safety and security, oil and gas, pharmaceuticals, utilities, food, chemical, airlines, military and hazardous material storage and disposal. Its monitors are used in civilian and government atmospheric monitoring programs in more than 50 countries. For more information about RAE Systems, please visit www.RAESystems.com
Safe Harbor Statement for Q3 Results
This press release contains “forward-looking” statements, as that term is used in Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are denoted by such words as “market acceptance” and “well-positioned”. These types of statements address matters that are subject to risks and uncertainties, which could cause actual results to differ materially. Factors that could cause or contribute to such differences include, but are not limited to, the general receptiveness of the wireless systems market to RAE and its products. In addition, our forward-looking statements should be considered in the context of other risk factors discussed in our filings with the Securities and Exchange Commission, including but not limited to our annual report on Form 10-K and 10-Q filings, available online at http://www.sec.gov. All forward-looking statements are based on information available to the company on the date hereof, and the company assumes no obligation to update such statements.
