AXcess News: RFID Reaching Beyond 'Tag and Ship' to New Applications, Report Shows

Market Wire, August, 2008

A new report from Aberdeen shows RFID applications are going beyond "tag and ship." Advanced ID Corporation (OTCBB: AIDO) is one of those companies building an innovative brand in RFID applications in pet ID and now tires.

According to the Aberdeen report, which was announced Thursday, August 28, 2008, "RFID and IT Infrastructures: Maximizing Business Value," the range of areas in which Radio Frequency Identification (RFID) is being used is expanding beyond traditional "slap and ship" and "track and trace" applications. But Advanced ID's president Dan Finch says his Company is light years ahead of Aberdeen's discovery in that AIDO's RFID marketing strategy is already expanding traditional applications. Advanced ID's latest quarterly report supports that take.

Wednesday, Advanced ID Corp. released its second-quarter results, which boast a 90% increase in revenue over the same period last year. In the first-quarter, Advanced ID Corp. reported an even stronger result. While AIDO's sales are typical of a junior stock, Finch says his company is growing and Advanced ID's brand of RFID products is proving itself in new markets worldwide.

Advanced ID recently cut a deal with China's Qingdao Mesnac Company who purchased two million of AIDO's RFID chips becoming the world's first tire manufacturer to commit to embedding RFID tire tags in a commercial truck line. Granted, Qingdao is no household name when it comes to the global automotive sector, but Advanced ID is optimistic and believes other major manufacturers will fall in line.

Indeed, the June Aberdeen report shows that 20% of fleet vehicles are being tagged and monitored with RFID chips, though Advanced ID's RFID chips can help customers keep track of wear and tear and even tire pressure, a safety feature insurers may be interested in as companies look to develop better operating efficiencies.

Still, IT assets were cited by Aberdeen as the highest application of RFID technology at 43% of its survey respondents. Yet Aberdeen, a Harte-Hanks (HHS) Company, says of the 135 executives surveyed, over 74% are looking to drive the number of applications with external Service Level Agreements, implying that keeping track of information is as important as knowing whether or not a shipment has arrived. To that end, Advanced ID says its Pet ID business unit has well over 1 million animals in its database that's accessed to help identify lost or stolen animals.

"We are extremely confident in our ability to further drive sales volume on an international level," Finch said. The Advanced ID executive's comments came on the heels of a 20% acquisition of the Company's Brazilian distributor and opening new markets in Asia and Europe.

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