Revenue Growth Continues, Rising 73.4% and 203% in Comparable Three
and Nine Month Periods LENEXA, Kan., Nov. 13 /PRNewswire-FirstCall/
-- ICOP Digital, Inc. (NASDAQ:ICOP)(NYSE:ICOP), an industry-leading
company engaged in advancing digital surveillance solutions, today
announced its financial results for the three and nine months ended
September 30, 2006. Financial highlights for the three months ended
September 30, 2006 compared to the three months ended September 30,
2005: - Revenues increased 73.4% to $1.56 million, up from
$902,000. On a sequential quarter-over-quarter basis, revenues
increased 14.5% over revenues of $1.37 million reported for the
second quarter of 2006. - Gross profit margins improved to 44% from
42%. - Net losses increased to $896,000, or $0.15 loss per basic
and diluted share, from $499,500, or $0.11 loss per basic and
diluted share. When compared to the $1 million net loss posted for
the second quarter of 2006, net loss in the third quarter declined
11.1%. Financial highlights for the nine months ended September 30,
2006 compared to the nine months ended September 30, 2005: -
Revenues rose 203% to $3.73 million from $1.23 million. - Gross
profit margins climbed to 43% from 38%. - Net losses were $2.70
million, or $0.47 loss per basic and diluted share, increasing from
$1.68 million, or $0.66 loss per basic and diluted share. As of
September 30, 2006, cash and accounts receivable totaled
approximately $3.05 million; working capital was approximately
$7.11 million and total shareholders' equity was approximately
$7.92 million. Dave Owen, Chairman and CEO, stated, "We are very
pleased that ICOP has continued to demonstrate solid revenue growth
in the third quarter and expect that this trend will continue well
into the foreseeable future - particularly in light of the robust
flow of orders and reorders for our award winning ICOP Model
20/20's that we continue to process for law enforcement agencies
nationwide. Moreover, with customers now in 47 states, we are close
to achieving our goal of penetrating all US states by year end and
anticipate announcing a series of sizable orders from mid-sized and
large metro agencies in the next several quarters." Continuing,
Owen said, "Now that we have completed our recent public offering,
raising close to $7 million in gross proceeds, ICOP has greatly
strengthened its balance sheet and is well positioned to
aggressively implement exciting new growth initiatives designed to
perpetuate and enhance ICOP's leadership in the advanced
surveillance industry. With ambitious growth objectives that
include introducing streaming video capabilities, our new
web-enabled stationary camera - the ICOP Guardian, and a fully
integrated solution for providing a 'veil of protection' over an
entire community, we couldn't be more enthused about the future of
ICOP." ICOP Digital 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.
The conference call can be accessed via telephone by dialing toll
free 1-800-240-2134 or via the web at http://www.icop.com/. For
those unable to participate at that time, a replay of the web cast
will be available for 90 days on http://www.icop.com/. About ICOP
Digital, Inc. ICOP Digital, Inc. is a Kansas-based company that
delivers innovative, mission-critical security, surveillance, and
communications solutions that provide timely and accurate
information for the public and private sectors, and monitor and
protect people, assets and profits. The award winning ICOP Model
20/20 is the leading digital in-car video recorder system for use
by law enforcement. ICOP Digital is currently marketing its
solutions for application in law enforcement, homeland security and
defense, mass transit and commercial surveillance. ICOP Digital, a
GSA contractor, is dual listed on the NASDAQ market and the NYSE
Arca, and its common stock and warrants trade under the ticker
symbols "ICOP" and "ICOPW," respectively. For more information,
please visit http://www.icop.com/, or view a 3-minute movie about
ICOP at http://www.impactmovie.com/ICOP. For more information,
contact: Laura E. Owen, President and COO 16801 West 116th Street
Lenexa, KS 66219 USA Phone: (913) 338-5550 Fax: (913) 312-0264
http://www.icop.com/ For Investor Relations: Elite Financial
Communications Group, LLC Dodi Handy, President and CEO Phone:
(407) 585-1080 ICOP DIGITAL, INC. Balance Sheet (Unaudited)
September 30, 2006 Assets Current Assets Cash $1,959,360 Accounts
receivable, net 1,088,139 Finished goods inventory, at cost
4,524,275 Prepaid expenses 268,769 Total current assets 7,840,543
Property and equipment, at cost, net of accumulated depreciation of
$303,387 753,735 Other assets: Deferred offering costs 72,113
Deferred patent costs 64,750 Deposits 15,000 $8,746,141 Liabilities
and Shareholders' Equity Current Liabilities: Accounts payable
$153,022 Accrued liabilities 403,944 Unearned revenue 128,147
Current maturities of long-term debt 43,147 Total current
liabilities 728,260 Long-term debt, net of current maturities
100,309 Total liabilities 828,569 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, 6,079,481 shares issued and outstanding 20,793,313
Accumulated other comprehensive income, net of tax - Deficit
accumulated (12,875,741) Total shareholders' equity 7,917,572
$8,746,141 ICOP DIGITAL, INC. Statement of Operations (Unaudited)
Three Months Nine Months Ended Ended September 30, September 30,
2006 2005 2006 2005 Sales, net of returns $1,564,240 $902,297
$3,731,999 $1,229,691 Cost of sales 878,029 523,911 2,141,279
762,814 Gross profit 686,211 378,386 1,590,720 466,877 Operating
expenses: Selling, general and administrative 1,349,200 750,674
3,898,717 1,617,240 Research and development 245,730 137,337
465,660 399,065 Total operating expenses 1,594,930 888,011
4,364,377 2,016,305 Loss from operations (908,719) (509,625)
(2,773,657) (1,549,428) Other income (expenses): Foreign currency
translation 2,823 1,283 29,982 (55,023) Interest income 18,645
30,190 61,795 30,190 Interest expense (8,339) (21,325) (22,893)
(106,128) Loss before income taxes (895,590) (499,477) (2,704,773)
(1,680,389) Income tax provision -- -- -- -- Net loss
$(895,590)$(499,477) $(2,704,773) $(1,680,389) Basic and diluted
loss per share $(0.15) $(0.11) $(0.47) $(0.66) Basic and diluted
weighted average common shares outstanding 5,905,784 4,390,059
5,715,785 2,557,435 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 our
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.
DATASOURCE: ICOP Digital, Inc. CONTACT: Laura E. Owen, President
and COO, ICOP Digital, Inc., +1-913-338-5550, fax, +1-913-312-0264,
or ; or Investor Relations, Dodi Handy, President and CEO, Elite
Financial Communications Group, LLC, +1-407-585-1080, or Web site:
http://www.icop.com/
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