Revenues Up 19% Over 2006 OMAHA, Neb., May 9 /PRNewswire-FirstCall/
-- iSECUREtrac(TM) Corp. (OTC:ISEC) (BULLETIN BOARD: ISEC) , an
industry leader in electronic monitoring solutions, reported total
revenue in the first quarter of 2007 ending March 31, 2007 was $2.2
million, with approximately 90% attributable to recurring revenue.
This represents an increase in total revenue of 19% over the same
period a year ago and a 17% increase in recurring revenue. The
company reported a net loss of $1.4 million for the period,
compared to a net loss of $1.2 million for 2006. The first quarter
was also highlighted by a number of significant contracts and
achievements, including: * Awarded contract for offender monitoring
in Newport News VA * Won contract for statewide deployment of GPS
monitoring for New Jersey * Received contract for offender
monitoring from the Montgomery County Virginia Sheriff * Awarded a
3-year multi-million dollar contract for providing active GPS to a
Michigan county through a service provider * Awarded a contract for
active and passive GPS for a consortium of federal offices *
Completed testing of new System 5000 GPS units preparing for
national roll-out in the second half of 2007 "Both total revenue
and recurring revenue showed solid gains over the same period a
year ago," said David Vana, CFO of iSECUREtrac. "Gross margins
remained steady at 60%. As compared to the fourth quarter of 2006
our net loss was reduced by 20% from $1.7 million. In addition we
signed an amendment to our $6 million loan agreement extending its
maturity date to July 1, 2009." Peter Michel, CEO of iSECUREtrac
added, "During the first quarter the infrastructure expansion and
new outsourced services helped us secure new contracts and further
penetrate existing markets. Two additional contracts in Virginia
demonstrate our continued dominance there with over 500 iSECUREtrac
units currently deployed and room for substantial expansion. We
secured a 3-year statewide contract with New Jersey using active
and passive GPS monitoring. New Jersey remains poised for further
expansion with a budget of $12 million and 14,000 offenders under
supervision, 2,600 of which are subject to lifetime supervision. We
remain focused on our strategic plans to increase market
penetration with our new System 5000 GPS monitoring line. We'll
also utilize our dramatically increased capacity due to our new
state of the art 24-7 monitoring center that opened on May 4th
2007. The strength of our business model enables us to continue
expanding our core business, while investing in programs and
dominating technology to drive future growth." Conference Call
Information Date: Wednesday, May 9, 2007 Time: 3:30 PM Central
(4:30 PM Eastern) Dial-in number: 1-800-418-6860 International:
1-973-935-8756 Conference ID: 8756087 Please dial in 5-10 minutes
prior to the start time. An operator will request your name and
organization and place you on hold until the call begins. A replay
of the conference call will be available until May 16, 2007 Replay
number: 1-877-519-4471 International Replay number: 1-973-341-3080
Replay Pin Number: 8756087 About iSECUREtrac iSECUREtrac Corp.
provides state-of-the-art electronic monitoring technology and
administrative services which offer correctional agencies effective
solutions for community supervision and offender management. The
company's full-service solutions include electronic monitoring
systems and monitoring center services, as well as outsourced
pretrial, probation and parole. Electronic monitoring systems from
iSECUREtrac provide a supervising officer a rich stream of reliable
data concerning an offender's location, movement or status. Visit
http://www.isecuretrac.com/ for more information. Safe Harbor This
press release contains forward-looking statements that, if not
verifiable historical fact, may be viewed as forward-looking
statements that could predict future events or outcomes with
respect to iSECUREtrac Corp. and its business. The predictions
embodied in these statements will involve risks and uncertainties
and accordingly, iSECUREtrac's actual results may differ
significantly from the results discussed or implied in such
forward-looking statements. Company Contact: Peter Michel David
Vana (402) 537-0022 Investor Relations: Liolios Group Inc Ron Both
949-574-3860 iSECUREtrac Corp. and SUBSIDIARIES CONSOLIDATED
BALANCE SHEETS (Unaudited) March 31, December 31, 2007 2006 ASSETS
Current Assets Cash and cash equivalents $3,259,322 $4,341,685
Accounts receivable, net of allowance for doubtful accounts of
$209,954 in 2007 and $171,409 in 2006 2,014,481 2,284,177
Inventories 119,913 61,021 Prepaid expenses and other 69,785 74,608
Total current assets 5,463,501 6,761,491 Equipment, net of
accumulated depreciation of $367,228 in 2007 and $336,721 in 2006
369,339 382,072 Leasehold improvements, net of accumulated
depreciation of $11,932 in 2007 and $9,535 in 2006 165,966 67,396
Monitoring equipment, net of accumulated depreciation of $5,278,918
in 2007 and $4,904,883 in 2006 2,588,831 2,930,429 Intangibles, net
of accumulated amortization and impairment charges of $788,240 in
2007 and $767,598 in 2006 123,282 143,924 Goodwill 2,302,179
2,302,179 Other assets 67,170 66,045 Total assets $11,080,268
$12,653,536 LIABILITIES AND STOCKHOLDERS' (DEFICIT) Current
Liabilities Accounts payable and accrued expenses $737,419 $847,765
Current maturities of long-term debt 798,082 891,070 Deferred
revenues & gain on sale-leaseback transaction 372,346 423,349
Accrued interest payable 141,400 37,838 Total current liabilities
2,049,247 2,200,022 Long-term debt, less current maturities
6,552,779 6,694,102 Redeemable convertible Series C preferred stock
10,980,314 10,696,697 Stockholders'(Deficit) Common stock 10,775
10,773 Additional paid-in capital 54,972,782 54,950,315 Accumulated
deficit (63,485,629) (61,898,373) Total stockholders' (deficit)
(8,502,072) (6,937,285) Total liabilities and stockholders'
(deficit) $11,080,268 $12,653,536 iSECUREtrac Corp. and
SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS Three Months
Ended March 31, 2007 and 2006 (Unaudited) 2007 2006 Revenues:
Equipment leasing & hosting $1,934,038 $1,653,472 Equipment
sales 56,208 7,989 Service revenues 119,510 42,712 Gain on related
party sale-leaseback transactions 44,862 100,321 Total revenues
2,154,618 1,804,494 Operating expenses: Cost of revenues 860,999
696,134 Research and development 473,109 307,240 Sales, general and
administrative 2,067,227 1,970,624 Total operating expenses
3,401,335 2,973,998 Operating loss (1,246,717) (1,169,504) Other
income (expense): Interest income 46,475 36,621 Interest expense
(152,526) (61,182) Total other income (expense) (106,051) (25,191)
Loss before provision for income taxes (1,352,768) (1,194,695)
Provision for income taxes -- -- Net loss $(1,352,768) $(1,194,695)
Preferred stock dividends and accretion (283,617) (266,116) Net
loss available to common stockholders $(1,636,385) $(1,460,811)
Basic and diluted loss per common share $(0.15) $(0.14) Weighted
average shares of common stock outstanding 10,773,675 10,698,688
DATASOURCE: iSECUREtrac(TM) Corp. CONTACT: Peter Michel, , or David
Vana, , both of iSECUREtrac(TM) Corp., +1-402-537-0022; or Investor
Relations, Ron Both of Liolios Group Inc, +1-949-574-3860, , for
iSECUREtrac(TM) Corp. Web site: http://www.isecuretrac.com/
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