ICOP Digital Reports Q2 2010 ResultsInvestor Teleconference and Webcast to Begin at 4:15 PM ET Today
LENEXA, KS -- (Marketwire - August 11, 2010) - 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 June 30, 2010. The Company will host a conference call later today to discuss the results, and plans to file its 10-Q later today. 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 1-877-315-9024.
Key Operational Highlights
- Domestic sales increased 16.3% over the same six (6) month period in 2009.
- ICOP entered into a partnership with General Dynamics to resell each other's products. General Dynamics ranks as number "100" on the Fortune 500 list.
54% of the units sold during the second quarter were to new ICOP customers.
ICOP was successful in obtaining initial orders from of two strategic accounts: Newark NJ Police Department and Orange County FL Sheriff Office.
The Company was notified by The NASDAQ Stock Market LLC that the Company has met the requirements of the March 24, 2010 decision of the Listing Qualifications Panel of The NASDAQ Stock Market and will continue to be listed on the NASDAQ Stock Market.
Financial highlights for the three months ended June 30, 2010:
- Revenues increased to $1.8 million, a 14% increase compared to second quarter revenues of $1.6 million reported in 2009.
Gross margin for the second quarter of 2010 was 42.8%, compared to 53.3%, for the same period in 2009, primarily due to currency risk.
Operating expenses in the second quarter 2010 totaled $1.9 million compared to $2.2 million for 2009, a decrease of 14%. The decrease is mainly due to the decline in depreciation, stock based compensation and research and development costs as a result of projects being brought to maturity. Overall operating expenses as a percentage of sales decreased from 136.5% in 2009 to 102.8% for the three months ended June 30, 2010.
Operating loss for the three month period year over year declined $251 thousand, approximately 18%, primarily due to the decline in operating expenses previously mentioned, along with an increase in sales for the quarter.
About ICOP Digital, Inc.
ICOP Digital, Inc. (NASDAQ: ICOP) is a leading provider of mobile video solutions (i.e. in-car video) for Law Enforcement, Military, and Homeland Security 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
ICOP Digital, Inc.
Condensed Balance Sheets - Unaudited
June 30, December 31,
2010 2009
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Assets
Current assets:
Cash and cash equivalents $ 326,314 $ 1,171,943
Accounts receivable, net of allowances of
$100,457 at June 30, 2010 and December 31, 2009 1,340,750 2,009,591
Inventory, at lower of cost or market 2,144,800 2,094,168
Prepaid Expenses 123,893 98,351
Other Assets 1,380,879 1,759,004
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Total current assets 5,316,636 7,133,057
Property and equipment, net of accumulated
depreciation $1,573,720 and $1,411,988 at June
30, 2010 and December 31, 2009, respectively 1,299,120 1,463,765
Other assets:
Deferred patent costs 100,667 95,906
Investment, at cost 25,000 25,000
Security deposit 20,758 18,258
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Total other assets 146,425 139,164
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Total assets $ 6,762,181 $ 8,735,986
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Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 361,845 $ 370,998
Accrued liabilities 529,547 476,761
Notes payable 479,985 629,985
Due to factor 553,809 686,965
Unearned revenue - current portion 258,573 233,175
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Total current liabilities 2,183,759 2,397,884
Other liabilities:
Unearned revenue - long term portion 317,496 420,009
Shareholders' equity:
Preferred stock, no par value; 5,000,000 shares
authorized, no shares issued and outstanding at
June 30, 2010 and December 31, 2009 - -
Common stock, no par value; 50,000,000 shares
authorized, 2,719,918 and 2,360,294 issued and
outstanding at June 30, 2010 and December 31,
2009, respectively 37,708,155 36,469,313
Accumulated other comprehensive income 3,465 3,465
Retained deficit (33,450,694) (30,554,685)
----------- -----------
Total shareholders' equity 4,260,926 5,918,093
----------- -----------
Total liabilities and shareholders' equity $ 6,762,181 $ 8,735,986
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ICOP Digital, Inc
Condensed Statement of Operations - Unaudited
Three Months Ended Six Months Ended
June 30, June 30,
------------------------ ------------------------
2010 2009 2010 2009
----------- ----------- ----------- -----------
Sales, net of returns
and allowances $ 1,826,790 $ 1,601,463 $ 3,736,222 $ 3,849,996
Cost of sales 1,044,389 748,623 2,169,147 1,910,993
----------- ----------- ----------- -----------
Gross profit 782,401 852,840 1,567,075 1,939,003
Operating expenses:
Selling, general and
administrative 1,700,925 2,002,398 4,005,699 3,826,803
Research and
development 176,153 183,918 349,729 400,898
----------- ----------- ----------- -----------
Total operating
expenses 1,877,078 2,186,316 4,355,428 4,227,701
----------- ----------- ----------- -----------
Operating loss (1,094,677) (1,333,476) (2,788,353) (2,288,698)
Other income (expense):
Gain on derecognition
of liabilities - - - 52,765
Gain/(Loss) on
disposal of property
and equipment 403 (2,477) 403 (6,646)
Interest income 27 31 46 36
Loss on extended
warranties (1,345) (1,345)
Interest expense (46,659) (60,318) (113,634) (97,354)
Other income 2,874 8,046 5,529 8,697
----------- ----------- ----------- -----------
Loss before income
taxes (1,138,032) (1,389,539) (2,896,009) (2,332,545)
Income tax provision - - - -
----------- ----------- ----------- -----------
Net Loss $(1,138,032) $(1,389,539) $(2,896,009) $(2,332,545)
=========== =========== =========== ===========
Basic and diluted net
loss per share $ (0.48) $ (1.44) $ (1.09) $ (2.75)
=========== =========== =========== ===========
Basic and diluted
weighted average common
shares outstanding 2,360,315 965,490 2,651,143 847,057
Forward-Looking Statements
This document contains forward-looking statements. You should not rely too heavily on forward-looking statements because they are subject to uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control. 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 our products. This, plus other uncertainties and factors described in our most-recent annual report and our most-recent prospectus filed with the Securities and Exchange Commission, could materially affect the Company and our operations. These documents are available electronically without charge at 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
