Exhibit 99.1
Digital Recorders, Inc. Announces Preliminary
Second Quarter 2006 Results
DALLAS--(BUSINESS WIRE)--July 19, 2006--Digital Recorders, Inc.
(Nasdaq:TBUS):
-- Revenue Exceeds Same Period of Prior Year
-- Operating Results Improving
-- Company Backlog of Orders and Revenue Trend Increasing
-- Federal Funding for Projects Increasing
Digital Recorders, Inc. (DRI) (Nasdaq:TBUS), a digital
communications technology leader in the transportation, law
enforcement, and security markets, announced today that second quarter
2006 sales were approximately $13.6 million, an increase of 7.0
percent over the $12.7 million in sales posted for the same period a
year ago.
"Our preliminary second quarter sales reflect improvement over
last year's same-period outcome. Primarily as a result of this
progress, we expect to significantly narrow the net loss of $0.12 per
share reported for the same period last year. Given the ongoing
turn-around in the U.S. transportation market, we anticipate posting
additional improvements in future quarters," David L. Turney, the
Company's Chairman, President, and Chief Executive Officer, said.
On or about Monday, Aug. 14, 2006, the Company plans to file with
the Securities and Exchange Commission a Form 10-Q for the period
ended June 30, 2006.
U.S. TRANSIT AND TRANSIT SECURITY FUNDING DEVELOPMENTS
According to the American Public Transportation Association
(APTA), the House of Representatives approved the Fiscal Year (FY)
2007 Transportation, Treasury, and Housing and Urban Development, the
Judiciary, District of Columbia, and Independent Agencies
Appropriations bill (H.R. 5576) on June 14, 2006. The bill funds
Federal Transit Administration programs at $8.979 billion -- a
record-high level approximately $4 million above the amount authorized
and guaranteed by SAFETEA-LU (P.L. 109-59) for FY2007 and a 5.6
percent increase over the final amount appropriated for FY2006.
The Senate Appropriations Committee, according to APTA, has
tentatively scheduled its subcommittee markup of the FY2007
Transportation Appropriations bill in July. The bill is not expected
to reach the Senate floor before Congress adjourns for its August
recess.
According to APTA, the Senate Committee on Appropriations approved
the FY2007 Department of Homeland Security Appropriations bill (H.R.
5441) on June 29, 2006. The bill provides $150 million for transit and
rail security funding. The House of Representatives approved its
version of the bill in June after agreeing to an amendment that
increased transit and rail security grant funding by $50 million,
bringing the bill's total for these programs to $200 million.
Mr. Turney said, "We remain excited to see the House's record-high
funding increases for transit and the increased transit security
funding in FY2007. These increases, if sustained through the full
process, could positively impact orders as we enter 2007.
Additionally, the increased funding may ultimately lead to more orders
for our security-related products. Our backlog of orders and revenue
trend continue to increase. I should also note that high gas prices
are driving more transit ridership and that, too, could ultimately
increase the demand for our products."
ABOUT APTA
APTA is a nonprofit international association of more than 1,500
member organizations, including: public transportation systems;
planning, design, construction and finance firms; product and service
providers; academic institutions; and state associations and
departments of transportation. APTA members serve the public interest
by providing safe, efficient, and economical public transportation
services and products. More than 90 percent of persons using public
transportation in the U.S. and Canada are served by APTA members. For
more information, go to www.apta.com.
ABOUT THE COMPANY
Digital Recorders, Inc. is a digital communications technology
leader in the transportation, law enforcement, and security
industries. Using proprietary hardware and software applications, our
products improve the flow and mobility of people through
transportation infrastructure, improve energy efficiency, mitigate
security threats, and enhance law enforcement agencies' surveillance
capabilities. Our transportation communications products --
TwinVision(R) and Mobitec(R) electronic destination sign systems,
Talking Bus(R) voice announcement systems, Digital Recorders(R)
Internet-based passenger information and automatic vehicle
location/monitoring systems, and VacTell(TM) video actionable
intelligence systems -- enhance public transportation and mitigate
security threats worldwide. By assisting transit vehicle operators in
their quest to increase ridership, our products help reduce dependence
on foreign oil. Our DAC(R) electronic surveillance tools, including
microphone amplifiers and processors, countermeasures devices, speech
activity detectors, and noise cancellation equipment, help
law-enforcement agencies around the globe arrest and prosecute
criminals. For more information about DRI and its operations
worldwide, go to www.digrec.com.
FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995.
In particular, statements concerning the timing or amount of future
revenues, statements about the expected passage of pending federal
legislation, as well as the potential beneficial effects of such
legislation on the Company's sales, statements made by APTA regarding
federal transportation funding and the potential effect such funding
may have on the transportation industry, statements about the expected
outcome of U.S. transit and transit security funding for fiscal year
2007, statements about the potential benefits to the Company that may
result from such increased federal funding, statements about the
expected outcome of the Company's backlog of orders and revenue
trends, as well as any statement, express or implied, concerning
future events or expectations is a forward-looking statement. Use of
words such as "expect," "fully expect," "expected," "appears,"
"believe," "plan," "anticipate," "would," "goal," "potential,"
"potentially," "range," "pursuit," "run rate," "stronger,"
"preliminarily," etc., is intended to identify forward-looking
statements that are subject to risks and uncertainties, including
risks and uncertainties pertaining to the timing or amount of future
revenues, the expected passage of pending federal legislation, the
potential beneficial effects of such legislation on the Company's
sales, federal transportation funding and the potential effect such
funding may have on the transportation industry, the expected outcome
of U.S. transit and transit security funding for fiscal year 2007, the
expected outcome of the Company's backlog of orders and revenue
trends, as well as other risks and uncertainties set forth in our
Annual Report on Form 10-K filed April 17, 2006, particularly those
identified in Risk Factors Affecting Our Business. There can be no
assurance that any expectation, express or implied, in a
forward-looking statement will prove correct or that the contemplated
event or result will occur as anticipated.
CONTACT: Veronica B. Marks
Manager, Corporate Communications
Digital Recorders, Inc.
Phone: (214) 378-4776
Fax: (214) 378-8437
E-Mail: veronicam@digrec.com