ICOP Digital Reports Results for Second Quarter 2008

LENEXA, Kan. , Aug. 12 /PRNewswire-FirstCall/ -- ICOP Digital, Inc. (Nasdaq: ICOP), an industry-leading company engaged in advancing digital surveillance solutions, today announced its operational and financial results for the three and six months...


LENEXA, Kan. , Aug. 12 /PRNewswire-FirstCall/ -- ICOP Digital, Inc. (Nasdaq: ICOP), an industry-leading company engaged in advancing digital surveillance solutions, today announced its operational and financial results for the three and six months ended June 30, 2008 . ICOP will host a teleconference today beginning at 4:15 PM Eastern, and invites all interested parties to join management in a discussion regarding the Company's second quarter financial results, corporate progression and other meaningful developments.

The conference call can be accessed via telephone by dialing toll free 1-800-218-4007 or via the web at http://www.icop.com/investorfaqs.htm. For those unable to participate at that time, a replay of the webcast will be available for 90 days at www.ICOP.com .

Key Operational Highlights:

-- During the first six months of 2008, ICOP responded to 58 Request for Proposals for digital in-car video systems; of the 21 contracts awarded thus far, ICOP has won 12, representing a 57% closing ratio.

-- Approximately 1,000 ICOP Model 20/20(R)-W units were shipped to over 210 law enforcement agencies in the first half of this year.

-- In the second quarter of 2008, purchase orders from existing customers engaged in fleet deployments rose to 62% from 51% during the second quarter 2007.

-- ICOP processed its first orders from major and metropolitan agencies in Illinois , Kansas , North Carolina , South Carolina , Tennessee , Utah and Washington during the three months ended June 30, 2008 .

-- Following a three month, national, multi-agency field test that commenced in March 2008 , ICOP announced the commercial availability of ICOP LIVE(TM) during the second quarter of 2008. ICOP LIVE is a proprietary wireless, audio and video streaming solution designed to provide real-time situational awareness to first responders, emergency managers and crisis coordinators.

-- ICOP expanded its network of independent dealers and distributors actively marketing ICOP's product and solutions in the first six months of 2008.

According to Dave Owen , Chairman and CEO of ICOP, "Strategic decisions made in late 2007 to restructure our direct and indirect sales teams to enhance our Company's market penetration efforts have begun to take hold. By refocusing our regional sales managers on nurturing significant sales opportunities with major and metropolitan agencies, and concentrating our independent channel on winning contract deployments with small and mid-sized agencies across the country, we believe we have found the right formula for long term success."

Continuing, Owen stated, "There are a number of key inflection points that we expect will trigger dynamic sales growth for ICOP in the second half of this year. They include order flow from new customers in the international market place; continued sales to major metro, state and federal agencies; redefinition of the competitive landscape; new strategic partnerships with Fortune 500 companies; industry adoption of ICOP LIVE; and successful penetration into the school bus and transit markets."

Financial highlights for the six months ended June 30, 2008 compared to the six months ended June 30, 2007 :

Financial highlights for the three months ended June 30, 2008 compared to the three months ended June 30, 2007 :

As of June 30, 2008 , the Company had $1.8 million in cash; accounts receivables of $1.4 million; $4.8 million in inventory and net working capital of $5.7 million. Total shareholders' equity was $8.1 million.

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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