ICOP Digital Reports Record Revenue of $3.75 Million for 2007 Third Quarter

LENEXA, Kan., Nov. 8 /PRNewswire-FirstCall/ -- ICOP Digital, Inc. (Nasdaq: ICOP), an industry-leading company engaged in advancing digital surveillance solutions, today announced its financial results for the three and nine months ended September...


LENEXA, Kan., Nov. 8 /PRNewswire-FirstCall/ -- ICOP Digital, Inc. (Nasdaq: ICOP), an industry-leading company engaged in advancing digital surveillance solutions, today announced its financial results for the three and nine months ended September 30, 2007 .

Financial highlights for the three months ended September 30, 2007 compared to the three months ended September 30, 2006:

Financial highlights for the nine months ended September 30, 2007 compared to the nine months ended September 30, 2006:

As of September 30, 2007 , the Company had $4.3 million in cash; accounts receivables of $3.2 million; $4.5 million in inventory and working capital of $10.8 million. Total shareholders' equity was $12.4 million. During the 2007 third quarter period, ICOP received approximately $933,000 in proceeds from the issuance of stock under our employee stock purchase plan and the exercise of warrants and employee stock options.

Commenting on the results, Dave Owen , Chairman and CEO, noted, "We are very proud of the sales traction that ICOP continues to enjoy, which resulted in another new record for quarterly revenue performance. During the third quarter, ICOP processed customer orders for the ICOP Model 20/20-W (and related ancillary products) from more than 99 law enforcement agencies in 40 states, with approximately 30% of these orders representing re-orders from existing customers, and 70% from agencies that have only recently chosen ICOP for their respective fleet deployments. In addition, we are very pleased to have won our first customer for ICOP Guardian IP cameras - a sale resulting from our joint marketing collaboration with Sprint/Nextel."

Owen continued, "Also in the third quarter, ICOP successfully launched an exciting new initiative designed to expand and enhance our global sales and marketing platform. Through focused outreach targeting professional sales organizations and systems integrators with specialized expertise in advanced security and digital surveillance products, we expanded our construction of a Manufacturers Rep and Independent Dealer network to help us enhance and accelerate our market penetration efforts - both domestically and abroad. As a result, we have quickly amassed an impressive group of high-end independent reps and dealers that are now working in close coordination with our direct sales teams to pursue and win a number of prevailing sales opportunities in a wide range of industries."

"With the anticipated soft market launch of the ICOP Model 4000 later this quarter, we are anxious to begin addressing a sizable backlog of prospective new customers for our new transit system solution. Moreover, with this impending product release, we will have succeeded in bringing to market the full complement of products that comprise the total ICOP Solution, ICOP's visionary answer to protecting and securing our nation's communities in times of crisis," added Owen.

Concluding, Owen stated, "Over the last two years, ICOP has fought hard to earn its reputation as the preferred provider of digital surveillance solutions widely deemed as the industry gold standard for law enforcement. Aided by our growing list of world class strategic partners and supporters, we intend to pursue with even greater diligence our goal of winning ICOP global distinction as the gold standard for every industry where security is at issue."

Adjusted EBITDA is defined as operating loss excluding depreciation and amortization and stock-based compensation expenses. While depreciation and amortization are considered operating costs under U.S. GAAP, these expenses primarily represent a non-cash current period allocation of costs associated with long-lived assets acquired in prior periods. Similarly, the expense recorded for stock-based compensation does not represent a current or future period cash cost.

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