Versus Prior Year: Recurring Revenues Up 16%; Operating Loss Down
6% OMAHA, Neb., May 7 /PRNewswire-FirstCall/ -- iSECUREtrac(TM)
Corp. (OTC:ISEC) (BULLETIN BOARD: ISEC) , an industry leader in
electronic monitoring solutions reported financial results for the
first quarter ending March 31, 2008. Total revenue for the quarter
was up 16% to approximately $2.5 million compared to approximately
$2.2 million for the same quarter of the prior year and up 16%
compared to Q4 2007, as well. Recurring revenues were approximately
$2.2 million for the first three months ending March 31, 2008, up
16% from $1.9 million in Q1 2007, and 6% from $2.1 million recorded
in the Q4 2007. Operating loss for the first three months of 2008
was $1,177,000 compared to $1,247,000 for Q1 2007 and $1,963,000
for Q4 2007. This was the first time since 2005 that the current
quarter loss was less than the same quarter of the prior year. "The
investments we've made in management restructuring, R&D and
infrastructure improvements are beginning to pay off," said Peter
Michel, president and CEO of iSECUREtrac. -- "In the first quarter
of 2008, we've grown revenue, both in total and recurring, over the
previous year's period as well as over the fourth quarter of 2008.
-- Revenue in the first quarter was the highest in the Company's
history and its operating loss was the lowest it's been in six
quarters -- Total Research & Development and SG&A expenses,
as a percentage of recurring revenue, were lower in the first
quarter of 2008 than in any quarter over the past two years. -- We
rounded out the executive team with a new VP Customer Service,
Vicki Anzalone, who is an accomplished and analytical professional
who takes a pro-active approach to customer service. "We are headed
in the right direction," concluded Michel. Please join CEO Peter
Michel and CFO Lincoln Zehr on Wednesday, May 7, 2008 as they
discuss first quarter results and provide a company update. The
details for the call are as follows: Date: Wednesday, May 7, 2008
Time: 3:30 PM Central (4:30 PM Eastern) Dial-in number:
1-800-762-8932 International: 1-480-629-9029 Dial in 5-10 minutes
prior to the start time. An operator will request your name and
organization and ask you to wait until the call begins. If you have
any difficulty connecting, please call iSECUREtrac at (866)
537-0022. A replay of the conference call will be available from
May 7, 2008 at 6:30 PM Central until May 14, 2008 at 10:59 PM
Central. Replay number: 1-800-406-7325 International Replay number:
1-303-590-3030 Replay Pin Number: 3876365 About iSECUREtrac
iSECUREtrac Corp. provides electronic monitoring systems, client
management software and supplemental services for use in community
supervision. The company's rich stream of reliable data concerning
a client's location, movement and status better enables effective
compliance management and positive behavior modification. 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. iSECUREtrac Corp. and SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Unaudited) March 31, 2008 December 31,
2007 ASSETS Current Assets Cash and cash equivalents $2,026,145
$3,442,712 Accounts receivable, net of allowance for doubtful
accounts of $326,766 in 2008 and $292,669 in 2007 2,136,364
1,941,902 Inventories 211,581 135,376 Prepaid expenses and other
62,765 92,750 Total current assets 4,436,855 5,612,740 Leasehold
improvements and equipment, net of accumulated depreciation of
$7,610,793 in 2008 and $7,041,272 in 2007 4,377,671 3,875,728
Intangibles, net of accumulated amortization of $860,657 in 2008
and $850,166 in 2007 50,865 61,356 Goodwill 2,302,179 2,302,179
Other assets 114,504 88,425 Total assets $11,282,074 $11,940,428
LIABILITIES AND STOCKHOLDERS' (DEFICIT) Current Liabilities
Accounts payable $1,279,378 $1,069,577 Accrued expenses 591,161
609,083 Current maturities of long-term debt 750,870 622,340
Deferred revenues & gain on sale-leaseback transactions 289,517
314,090 Accrued interest payable 230,248 30,513 Total current
liabilities 3,141,174 2,645,603 Long-term debt, less current
maturities 12,543,502 12,381,598 Redeemable convertible Series C
preferred stock 12,187,735 11,882,545 Stockholders' (deficit)
Common stock 10,782 10,779 Additional paid-in capital 55,167,329
55,109,333 Accumulated deficit (71,768,448) (70,089,430) Total
stockholders' (deficit) (16,590,337) (14,969,318) Total liabilities
and stockholders' (deficit) $11,282,074 $11,940,428 iSECUREtrac
Corp. and SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS Three
Months Ended March 31, 2008 and 2007 (Unaudited) 2008 2007
Revenues: Equipment leasing $2,179,577 $1,934,038 Administrative,
field & support service revenues 74,453 - Equipment sales
22,242 56,208 Other revenues 212,848 119,510 Gain on related party
sale-leaseback transactions 13,191 44,862 Total revenues 2,502,311
2,154,618 Operating expenses: Cost of revenues 1,087,894 860,999
Research and development 339,811 473,109 Sales, general and
administrative 2,251,803 2,067,227 Total operating expenses
3,679,508 3,401,335 Operating loss (1,177,197) (1,246,717) Other
income (expense): Interest income 19,224 46,475 Interest expense
(264,984) (152,526) Total other income (expense) (245,760)
(106,051) Loss before provision for income taxes (1,422,957)
(1,352,768) Provision for income taxes - - Net loss $(1,422,957)
$(1,352,768) Preferred stock dividends and accretion (305,190)
(283,617) Net loss available to common stockholders $(1,728,147)
$(1,636,385) Basic and diluted loss per common share $(0.16)
$(0.15) Weighted average shares of common stock outstanding
10,781,218 10,773,675 DATASOURCE: iSECUREtrac Corp. CONTACT: Jeff
Durski of iSECUREtrac Corp., +1-402-537-0022, Web site:
http://www.isecuretrac.com/
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