Exhibit 99.1
PRESS RELEASE
For Immediate Release
For more information, contact: For ICOP Investor/Media Relations:
Laura E. Owen, COO & President Elite Financial Communications Group/Elite Media Group
16801 West 116th Street Dodi Handy, President and CEO
Lenexa, KS 66219 USA Phone: (407) 585-1080
Phone: (913) 338-5550 ICOP@efcg.net
Fax: (913) 312-0264
Lowen@ICOP.com
www.ICOP.com
ICOP DIGITAL REPORTS 121% REVENUE GROWTH IN
FIRST SIX MONTHS OF 2007
Management to Host Teleconference and Webcast
This Afternoon Beginning at 4:15 PM ET
LENEXA, KS - (PR NEWSWIRE) - August 13, 2007 - 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
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three months ended June 30, 2006:
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o 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.
o Gross profit margin improved to 45% from 41%.
o 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
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months ended June 30, 2006:
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o Revenues more than doubled, rising 121% to $4.80 million, up from
$2.17 million.
o Gross profit margin increased to 45% from 42%.
o 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.
o Net cash used in operating activities was $449,000, an 87% improvement
from $3.57 million.
As of June 30, 2007, the Company had $4.8 million in cash; $2.4 million in cash
restricted to inventory purchases; $2.0 million in accounts receivable; $2.5
million in inventory and total working capital of $10.8 million. Total
shareholders' equity was $11.9 million.
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
www.ICOP.com. For those unable to participate at that time, a replay of the web
cast will be available for 90 days on 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 www.ICOP.com/veil.html, or visit
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,
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2007 2006 2007 2006
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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
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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 5,619,264
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 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.