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 Querétaro, 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™. 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.
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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
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