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ICOP Digital Reports 2009 Year End Results
LENEXA, KS, Mar 18, 2010 (MARKETWIRE via COMTEX) --
ICOP Digital, Inc. (NASDAQ: ICOP), an industry-leading company
engaged in advanced mobile video technology solutions, today
announced financial and operational results for the three and 12
months ended December 31, 2009.
Key Operational Highlights
-- ICOP experienced three consecutive quarters of increased revenues in
the last three quarters of 2009.
-- Availability of early stimulus funds for the purchase of law
enforcement equipment has begun to flow to agencies, and is expected
to increase based on federally allocated funding.
-- 81% of all purchase orders processed during the year represented
re-orders from existing customers engaged in fleet deployments of the
ICOP Model 20/20-W. This compared to 61% in 2008. Based on the
estimated number of current customer patrol cars yet to be equipped
with the Company's digital surveillance solution, potential future
sales to the Company's existing customer base is an estimated $100
million.
-- ICOP responded to 45 Requests for Proposals (RFPs) during 2009; of the
contracts awarded to date, ICOP has achieved a 47% closing ratio.
-- In March of 2009, ICOP announced that it had been awarded a contract
to equip vehicles for the Ministry of Interior in Saudi Arabia, with
the ICOP Model 20/20-W; ICOP shipped 100 units in support of this
pilot deployment project, and integrated servers into five Ministry of
Interior headquarters offices and 15 precincts across Riyadh,
establishing the platform to support the installation of additional
ICOP units. This deployment has proven to be highly successful, and
follow-on orders are anticipated in the near future.
-- In July 2009, the Company entered into an agreement with JPS
Communications Inc., a wholly owned subsidiary of Raytheon Company
("Raytheon"). This five year agreement enables Raytheon to co-brand
and market ICOP's mobile video solutions to all of their existing
markets, including public safety, fire/EMS, transportation and
military customers worldwide. ICOP announced the sale of their first
units through this partnership in September 2009 to a strategic
location for the U.S. Army in Camp Zama, Japan. Many subsequent orders
have been received from Raytheon. Raytheon and ICOP are working
together on several large potential projects at this time.
-- The Company announced a sale to the Highway Patrol in the State of
Queretaro, in Mexico. The Company foresees significant growth in
sales to Mexico, in addition to other key global markets for 2010.
-- On March 16, 2010, ICOP was issued patent number US 7,680,947 B2 by
the U.S. Patent and Trademark office for a technology used in ICOP
LIVE(TM). This is an important differentiating technology as it
provides the delivery of real-time situational awareness to an
unlimited numbers of simultaneous first responders.
-- ICOP 20/20 VISION, a mobile video solution which is managed through
the vehicle laptop, was successfully launched in 2009, which was
developed in response to market demand from large cities and counties.
The product has been well received by the law enforcement community.
-- Also in 2009, the Company released an 802.11n wireless upload
solution, which provides upload speeds up to four times faster than
the older industry-standard 802.11g technology.
-- The Company filed a $25 million 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. On February 3, 2010, ICOP
completed a registered direct offering of 3.5 million shares of our
common stock, raising gross proceeds of approximately $1.34 Million,
before placement agent's fees and other offering expenses.
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 financial results, corporate progression and
other meaningful developments. The conference call can be accessed
via telephone by dialing toll free 888-296-4302 or via webcast
accessible on www.ICOP.com. For those unable to participate at that
time, a replay of the webcast will be available for 90 days at
www.ICOP.com.
Financial highlights for the three months ended December 31, 2009
compared to the three months ended December 31,
2008:
-- Revenues increased 5% to $2.6 million from $2.5 million.
-- Total operating expenses increased 19% to $2.7 million from $2.3
million.
--
-- Sales, general and administrative costs were $2.5 million, up 27%
from $2.0 million.
-- Research and development costs fell 36% to $186,000 from $293,000.
-- Net loss increased to $1.8 million, or $0.08 per basic and diluted
share, as a result of an inventory impairment, from $1.5 million, or
$0.21 per basic and diluted share.
Financial highlights for the 12-months ended December 31, 2009 compared
to the 12-months ended December 31, 2008.
-- Revenues totaled $8.4 million, down 22% from $10.9 million.
-- Total operating expenses declined 9% to $9.1 million from $10.0
million.
--
-- Sales, general and administrative costs declined $530,000, or 6%
year over year.
-- Research and development costs dropped 31% to $784,000 from $1.1
million.
-- Net loss was $5.5 million, or $0.40 per basic and diluted share, a
decrease from $5.9 million, or $0.79 per basic and diluted share.
-- Net cash used in operating activities increased 38% to $4.6 million
from $3.3 million.
-- On June 5, 2009, the Company completed a public offering, generating
gross proceeds of approximately $3.4 million.
As of December 31, 2009, ICOP had $3.2 million in cash, cash
equivalents and accounts receivable; inventory valued at approximately
$2.1 million and prepaid and other expenses of $1.9 million. ICOP's
net working capital as of that date was $4.7 million and total
shareholders' equity stood at approximately $5.9 million.
Dave Owen, ICOP Chairman and CEO, stated, "While economic conditions
were challenging in 2009, ICOP advanced on many fronts throughout the
year including: fortifying our sales and management team, expanding
our international market presence, cultivating strategic partnerships
with Fortune 200 companies and making significant enhancements to our
products. We have seen a quarter over quarter increase in sales over
the last three consecutive quarters. This focused and consistent
commitment to succeed in the market place despite economic obstacles
positions ICOP favorably for the coming year."
ICOP DIGITAL, INC.
Condensed Balance Sheet
(Audited)
December 31,
------------------------
2009 2008
----------- -----------
Assets
Current assets:
Cash and cash equivalents $ 1,171,943 $ 99,192
Accounts receivable, net of allowances of
$100,457 and $121,173
at December 31, 2009 and 2008, respectively 2,009,591 1,775,741
Inventory, at lower of cost or market 2,094,168 3,568,596
Prepaid Expenses 98,351 209,545
Other Assets 1,759,004 549,867
----------- -----------
Total current assets 7,133,057 6,202,941
Property and equipment, net of accumulated
depreciation $1,411,988 and $1,230,779
at December 31, 2009 and 2008, repsectively 1,463,765 2,024,318
Other assets:
Deferred patent costs 95,906 87,621
Investment, at cost 25,000 25,000
Security deposit 18,258 18,258
----------- -----------
Total other assets 139,164 130,879
----------- -----------
Total assets $ 8,735,986 $ 8,358,138
=========== ===========
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 370,998 $ 643,124
Accrued liabilities 476,761 596,854
Notes payable 629,985 780,000
Due to factor 686,965 602,009
Unearned revenue - current portion 233,175 178,147
----------- -----------
Total current liabilities 2,397,884 2,800,134
Other liabilities:
Unearned revenue - long term portion 420,009 288,836
Shareholders' equity:
Preferred stock, no par value; 5,000,000 shares
authorized, no shares issued
and outstanding at December 31, 2009 and 2008 - -
Common stock, no par value; 50,000,000 shares
authorized, 23,602,944 and 7,286,385
issued and outstanding at December 31, 2009 and
2008, respectively 36,469,313 30,338,572
Accumulated other comprehensive income 3,465 272
Retained deficit (30,554,685) (25,069,676)
----------- -----------
Total shareholders' equity 5,918,093 5,269,168
----------- -----------
Total liabilities and shareholders' equity $ 8,735,986 $ 8,358,138
=========== ===========
ICOP DIGITAL, INC.
Condensed Statements of Operations
(Audited)
Years Ended December 31,
--------------------------
2009 2008
------------ ------------
Sales, net of returns and allowances $ 8,423,365 $ 10,859,850
Cost of sales 4,689,302 6,689,758
------------ ------------
Gross profit 3,734,063 4,170,092
Operating expenses:
Selling, general and administrative 8,302,104 8,830,394
Research and development 783,908 1,131,199
------------ ------------
Total operating expenses 9,086,012 9,961,593
Operating Loss (5,351,949) (5,791,501)
Other income (expense):
Gain on derecognition of liabilities 52,765 -
Loss on disposal of property and equipment (5,830) (33,361)
Interest income 74 28,589
Loss on extended warranties (1,406) -
Interest expense (203,263) (125,906)
Other income 24,600 -
------------ ------------
Loss before income taxes (5,485,009) (5,922,179)
Income tax provision - -
------------ ------------
Net Loss $ (5,485,009) $ (5,922,179)
============ ============
Basic and diluted net loss per share $ (0.40) $ (0.79)
============ ============
Basic and diluted weighted average common
shares outstanding 13,550,875 7,472,032
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
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
Email Contact
www.ICOP.com
For Investor Relations:
DC Consulting, LLC
Daniel Conway, Chief Executive Officer
Phone: (407) 792-3332
Email Contact
Email Contact
SOURCE: ICOP Digital, Inc.
http://www2.marketwire.com/mw/emailprcntct?id=A81C78EF842EC4CD
http://www.ICOP.com
http://www2.marketwire.com/mw/emailprcntct?id=5EBB43F25E92E513
http://www2.marketwire.com/mw/emailprcntct?id=F71E4AE94890461E
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