ICOP Digital Reports Q3 2009 ResultsInvestor Teleconference and Webcast to Begin at 4:15 PM ET Today
LENEXA, KS -- (Marketwire - November 11, 2009) - ICOP Digital, Inc. (NASDAQ: ICOP), an industry-leading company engaged in advancing digital surveillance technology solutions, announced today its financial and operational results for the three months ended September 30, 2009. The Company will host a conference call later today to discuss the results, and plans to file its 10-Q Thursday, November 12, 2009. This call can be accessed through the Company's website, www.ICOP.com. The live audio presentation can be accessed by dialing toll free at 1-800-946-0709.
Key Operational Highlights
- -- The Company filed a $25,000,000 shelf registration statement on Form S-
3 with the Securities and Exchange Commission (SEC) on October 16, 2009,
which was approved by the SEC on October 23, 2009. The Company has the
option of selling securities off this shelf registration statement for
three years but is not required to sell any securities at any time in that
three year period. To date, no securities have been issued off the shelf
registration statement.
- -- Raytheon road show has been well attended with 5 out of 10 stops
completed. Raytheon's Sales Organization and Tier One Tech Support team are
now fully trained, and have been marketing ICOP's mobile video solutions to
their public safety, transportation and military customers in the US and
abroad.
- -- Quarter over quarter, Q3 unit sales increased 36% over Q2.
- -- International sales continued to show an increase in the third quarter
with year to date international sales totaling 13% of total revenue.
- -- While attending last month's International Association of Chiefs of
Police (IACP) Conference, the Company featured demonstrations of ICOP LIVE,
our live-streaming video which delivers real-time situational awareness to
law enforcement, between the ICOP booth and Raytheon booth, in addition to
linking our booth with Sprint's booth, an ICOP co-marketing partner.
- -- Raytheon closed their first order for ICOP products in September,
selling units to the 88th MP Detachment of the US Army in Japan.
- -- Stimulus Funds are beginning to reach agencies, as reflected by the
order from Billings, MT.
Financial highlights for the three months ended September 30, 2009 compared to three months ended September 30, 2008:
- -- Revenues declined 28.5% to $1.9 million from $2.7 million
- -- Gross margin decreased to 39.7% from 42.8% due to a summer special
program which began July 1, 2009 and ended September 30, 2009, offering
promotional items with certain qualified purchases.
- -- Total Operating expenses decreased 23.6% to $2.1 million from $2.8
million. The decrease is mainly due to lower compensation and benefit
expense and professional services along with the decline in research and
development projects.
- -- Net loss was $1.4 million, or $0.09 per basic and diluted share,
compared to $1.7 million, or $0.22 per basic and diluted share.
Financial highlights for the nine months ended September 30, 2009 compared to nine months ended September 30, 2008:
- -- Revenues declined 30.7% to $5.8 million from $8.4 million
- -- Gross margin increased to 46.8% from 39.5%, primarily due to higher
cost of goods sold in the previous year as a result of the ICOP EXTREME
microphone exchange program offered to certain qualifying customers.
- -- Total Operating expenses decreased 16.9% to $6.4 million from $7.7
million. The decrease is mainly due to lower compensation and benefit
expense along with the reduction in research and development expenses.
- -- Net loss was $3.7 million, or $0.33 per basic and diluted share,
compared to $4.4 million, or $0.59 per basic and diluted share.
On September 30, 2009, the Company had $172 thousand in cash, $1.5 million in accounts receivable, $2.1 million in inventory, $1.8 million in prepaid expenses and other current assets and $2.1 million in current liabilities, for a net working capital of $3.5 million. Total Shareholders' equity was $5.0 million.
About ICOP Digital, Inc.
ICOP Digital, Inc. (NASDAQ: ICOP) is a leading provider of mobile and in-car video solutions for Law Enforcement, Fire, EMS, Military, and Transportation markets, worldwide. ICOP solutions help the public and private sectors mitigate risks, reduce losses, and improve security through the live streaming, capture and secure management of high quality video and audio. www.ICOP.com
Financial Charts Follow
ICOP Digital, Inc.
Condensed Balance Sheets
September 30, December 31,
2009 2008
------------ ------------
(unaudited)
Assets
Current assets:
Cash and cash equivalents $ 172,000 $ 99,192
Accounts receivable, net of allowances of
$52,103 and $121,173 at September 30, 2009
and December 31, 2008, respectively 1,535,449 1,775,741
Inventory, at lower of cost or market 2,110,768 3,568,596
Prepaid expenses 104,840 209,545
Other current assets 1,742,076 549,867
------------ ------------
Total current assets 5,665,133 6,202,941
Property and equipment, net of accumulated
depreciation $1,598,208 and $1,230,779 at
September 30, 2009 and December 31, 2008,
respectively 1,653,536 2,024,318
Other assets:
Deferred patent costs 87,621 87,621
Investment, at cost 25,000 25,000
Security deposit 18,258 18,258
------------ ------------
Total other assets 130,879 130,879
------------ ------------
Total assets $ 7,449,548 $ 8,358,138
============ ============
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 312,270 $ 643,124
Accrued liabilities 421,073 596,854
Notes payable 629,985 780,000
Due to factor 542,190 602,009
Unearned revenue 221,258 178,147
------------ ------------
Total current liabilities 2,126,776 2,800,134
------------ ------------
Other liabilities:
Unearned revenue 278,003 288,836
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, 17,512,361 and 7,286,385 - -
issued and outstanding at September 30, 2009
and December 31, 2008, respectively 33,843,976 30,338,572
Accumulated other comprehensive income 3,465 272
Retained deficit (28,802,672) (25,069,676)
------------ ------------
Total shareholders' equity 5,044,769 5,269,168
------------ ------------
Total liabilities and shareholders' equity $ 7,449,548 $ 8,358,138
============ ============
ICOP Digital, Inc.
Condensed Statement of Operations
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------ ------------------------
2009 2008 2009 2008
----------- ----------- ----------- -----------
Sales, net of returns
and allowances $ 1,945,231 $ 2,720,296 $ 5,795,227 $ 8,366,244
Cost of sales 1,173,137 1,555,186 3,084,130 5,063,985
----------- ----------- ----------- -----------
Gross profit 772,094 1,165,110 2,711,097 3,302,259
Operating expenses:
Selling, general and
administrative 1,950,190 2,482,823 5,776,993 6,834,569
Research and
development 196,641 326,045 597,539 838,078
----------- ----------- ----------- -----------
Total operating
expenses 2,146,831 2,808,868 6,374,532 7,672,647
----------- ----------- ----------- -----------
Operating loss (1,374,737) (1,643,758) (3,663,435) (4,370,388)
Other income (expense):
Gain on derecognition
of liabilities - - 52,765 -
Loss on disposal of
property and equipment 4,537 (6,793) (2,109) (12,076)
Interest income 25 3,097 61 27,996
Loss on extended
warranties (599) - (1,944) -
Interest expense (43,555) (28,725) (140,908) (55,795)
Other income 13,878 - 22,574 -
----------- ----------- ----------- -----------
Loss before income
taxes (1,400,451) (1,676,179) (3,732,996) (4,410,263)
Income tax provision - - - -
----------- ----------- ----------- -----------
Net Loss $(1,400,451) $(1,676,179) $(3,732,996) $(4,410,263)
=========== =========== =========== ===========
Basic and diluted net
loss per share $ (0.09) $ (0.22) $ (0.33) $ (0.59)
=========== =========== =========== ===========
Basic and diluted
weighted average common
shares outstanding 16,414,298 7,478,569 11,146,565 7,467,195
Safe 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 per share price of the Company's common stock may experience significant fluctuations, so there can be no assurance that holders exercising Class B warrants will profit from such exercise. Neither can there be any assurance that all Class B warrants will be exercised, and the Company could therefore receive significantly less than $3.7M in additional capital. Additional information with respect to these and other factors, which could materially affect the Company and its operations, are included in the Company's most recent annual report and registration statement filed with the Securities and Exchange Commission and which are available from the Company without charge or at http://www.sec.gov.
For more information, contact:
Melissa K. Owen
Dir. of Communications
16801 West 116th Street
Lenexa, KS 66219 USA
Phone: (913) 338-5550
Fax: (913) 312-0264
mowen@ICOP.com
www.ICOP.com
For Investor Relations:
DC Consulting, LLC
Daniel Conway
Chief Executive Officer
Phone: (407) 792-3332
investorinfo@ICOP.com
daniel@dcconsultingllc.com
