LENEXA, Kan., Aug. 13 /PRNewswire-FirstCall/ -- ICOP Digital, Inc. (Nasdaq: ICOP), an industry-leading company engaged in advancing digital surveillance solutions, today announced its financial results for three and six months ended June 30, 2007 .
Financial highlights for the three months ended June 30, 2007 compared to the three months ended June 30, 2006:
-- Revenues rose 85% to $2.53 million, up from $1.37 million. On a subsequent quarter-over-quarter basis, revenues increased 11% over $2.27 million reported for the first quarter of 2007. -- Gross profit margin improved to 45% from 41%. -- Net loss rose 15% to $1.15 million, or $0.16 loss per basic and diluted share, compared to a net loss of $1.0 million, or $0.18 loss per basic and diluted share mainly as the result of an increase in non-cash stock compensation expense of approximately $20,000 and an increase in research and development expense related to the development of the Company's new ICOP Solution products of approximately $215,000.Financial highlights for the six months ended June 30, 2007 compared to the six months ended June 30, 2006:
-- Revenues more than doubled, rising 121% to $4.80 million, up from $2.17 million. -- Gross profit margin increased to 45% from 42%. -- Net loss increased 18% to $2.14 million, or $0.30 loss per basic and diluted share, from $1.81 million, or $0.32 loss per basic and diluted share mainly as the result of an increase in non-cash compensation expense of approximately $90,000 over the six months June 30, 2006 and increased spending on research and development of the Company's new leading edge suite of community-centric surveillance solutions of approximately $425,000 over the six months ended June 30, 2006. -- Net cash used in operating activities was $449,000, an 87% improvement from $3.57 million. As of June 30, 2007 , the Company had
Dave Owen , Chairman and CEO, stated, "The first six months of 2007 have proven to be a period of notable growth for ICOP and a time in which we have made meaningful progress in expanding our growing product platform and increasing our share of the domestic digital surveillance market. With the commercial availability of the ICOP Model 20/20-W(TM), ICOP LIVE(TM) and ICOP Guardian(TM) IP camera, and with the planned third quarter launch of the ICOP Model 4000(TM) for applications in the mass transit industry, we believe we are ideally positioned to achieve a series of critical financial and operational objectives in the second half of this year. In fact, already in the third quarter, we have been processing, or have been notified that we're being awarded, record-size orders from new and existing customers within law enforcement who are proceeding with planned fleet deployments of the ICOP Model 20/20 and ICOP Model 20/20-W. Moreover, we are seeing a number of state-supported initiatives coming to bear, with states like New Mexico , choosing ICOP to supply local and state law enforcement agencies with digital in-car solutions under state-approved pricing contracts."
Continuing, Owen added, "Our joint national marketing effort with Sprint- Nextel continues to yield a broad range of compelling sales opportunities for our proprietary community-centric surveillance and communications platform, the ICOP Solution(TM), marked by interest from government agencies and commercial enterprises, alike, who recognize the immediate need to wirelessly interface site surveillance and security with local law enforcement and related emergency response agencies within the community. This area of focus for ICOP represents perhaps the most exciting and significant long term growth potential for our Company. By capitalizing on our superior suite of surveillance products, the combined strength of ICOP and Sprint-Nextel national sales teams, and our first-to-market advantage, we anticipate many meaningful developments on this front in coming quarters."
ICOP will host a teleconference this afternoon, beginning at 4:15 PM Eastern, and invites all interested parties to join management in a discussion regarding the Company's financial results, corporate progression and other meaningful developments referred to in this press release. The conference call can be accessed via telephone by dialing toll free 1-800-240-2134 or via the web at http://www.ICOP.com. For those unable to participate at that time, a replay of the web cast will be available for 90 days on http://www.ICOP.com.
About ICOP Digital, Inc.
ICOP Digital, Inc. protects people, assets and profits, providing a Veil of Protection(TM) for our nation's communities with innovative, mission- critical security, surveillance and communication solutions. The Company engineers, manufactures and markets mobile and stationary surveillance products for use in the public and private sectors, and facilitates the delivery of live video to first responders. The ICOP Model 20/20(R)-W, ICOP's flagship product, is the leading digital in-car video recorder system for law enforcement. The ICOP Guardian(TM) is a stationary IP camera that records high quality video images on a local server, and is capable of activation through several triggers. ICOP LIVE(TM) delivers live streaming video to and from first responder vehicles and headquarters, empowering first responders with enhanced situational awareness, helping to optimize the outcome of a crisis. (GSA Contractor)
For more information, please view the following video presentations at http://www.icopdigital.com/why_icop.html and http://www.ICOP.com/veil.html, or visit http://www.ICOP.com.
FINANCIAL CHARTS TO FOLLOW ICOP DIGITAL, INC. Condensed Balance Sheet (Unaudited) June 30, 2007 Assets Current Assets Cash $ 4,783,989 Cash, restricted 2,366,029 Accounts receivable, net 1,998,031 Inventory, at cost 2,521,835 Prepaid expenses 136,941 Total current assets 11,806,825 Property and equipment, at cost, net of accumulated depreciation of $498,449 982,243 Other Assets: Investment in marketing company, at cost 25,000 Deferred patent costs 77,620 Deposits 18,258 Total Assets $ 12,909,946 Liabilities and Shareholders' Equity Current Liabilities: Accounts payable $ 315,420 Accrued liabilities 409,750 Unearned revenue 294,603 Total current liabilities 1,019,773 Shareholders' Equity: Preferred stock, no par value; 5,000,000 shares authorized, no shares issued and outstanding -- Common stock, no par value; 50,000,000 shares authorized, 7,292,095 shares issued and outstanding 27,753,857 Accumulated other comprehensive loss, net of tax (35,912) Accumulated deficit (15,827,772) Total Shareholders' Equity 11,890,173 Total Liabilities and Shareholder's Equity $ 12,909,946 ICOP DIGITAL, INC. Condensed Statements of Operations (Unaudited) Three Months Six Months Ended Ended June 30, June 30, 2007 2006 2007 2006 Sales, net of returns $2,529,025 $1,366,084 $4,801,193 $2,167,759 Cost of sales 1,397,717 805,385 2,643,898 1,263,251 Gross profit 1,131,308 560,699 2,157,295 904,508 Operating expenses: Selling, general and administrative 1,831,700 1,281,349 3,455,748 2,204,516 Research and development 530,121 315,043 989,072 564,930 Total operating expenses 2,361,821 1,596,392 4,444,820 2,769,446 Loss from operations (1,230,513) (1,035,693) (2,287,525) (1,864,938) Other income (expenses): Foreign currency translation 3,360 19,215 11,691 27,159 Interest income 63,493 17,169 130,611 43,150 Interest expense -- (8,341) (8,336) (14,555) Other income 15,000 -- 15,000 -- Loss before income taxes (1,148,660) (1,007,650) (2,138,559) (1,809,184) Income tax provision -- -- -- -- Net loss $(1,148,660)$(1,007,650) $(2,138,559)$(1,809,184) Basic and diluted loss per share $(0.16) $(0.18) $(0.30) $(0.32) Basic and diluted weighted average common shares outstanding 7,246,651 5,754,313 7,239,732 5,619,264Safe Harbor Statement
This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are subject to risks and uncertainties that could cause actual results to vary materially from those projected in the forward-looking statements. The Company may experience significant fluctuations in future operating results due to a number of economic, competitive, and other factors, including, among other things, our reliance on third-party manufacturers and suppliers, government agency budgetary and political constraints, new or increased competition, changes in market demand, and the performance or reliability of the Company's products. These factors and others could cause operating results to vary significantly from those in prior periods, and those projected in forward- looking statements. Additional information with respect to these and other factors, which could materially affect the Company and its operations, are included in certain forms the Company has filed with the Securities and Exchange Commission, including its Annual Report on Form 10-KSB, Quarterly Reports on Form 10-QSB and Current Reports on Form 8-K.
For more information, contact: Laura E. Owen, COO & President 16801 West 116th Street Lenexa, KS 66219 USA Phone: (913) 338-5550 Fax: (913) 312-0264 [email protected] www.ICOP.com For ICOP Investor/Media Relations: Elite Financial Communications Group/Elite Media Group Dodi Handy, President and CEO Phone: (407) 585-1080 [email protected]SOURCE ICOP Digital, Inc.
