ICOP Reports First Quarter Results
Public Conference Call and Webcast Set for This Afternoon at 4:15 PM ET
LENEXA, Kan., May 11 -- ICOP Digital, Inc. (NYSE Arca: ICOP), a leading provider of digital in-car video systems for law enforcement, today announced its first quarter results for the period ended March 31, 2006.
Financial Highlights for the Three-Month Period Ended March 31, 2006 Compared to Same Three Month Period Ended March 31, 2005:
* Revenues increased to $801,675, up from $0. On a sequential quarter over quarter basis, revenues increased 51% from $531,000 reported for the three months ended December 31, 2005.
* Gross profit margin for the current three month reporting period was 43%.
* Net Losses were $801,534, or $0.15 basic and diluted loss per share, an increase from net losses of $480,456, or $0.29 basic and diluted loss per share.
* As of March 31, 2006, ICOP had cash and receivables of $2.67 million; restricted cash of $2.64 million; $8.56 million in total shareholders' equity; and $7.85 million in working capital.
Operational Highlights for the First Quarter 2006
* As of March 31, 2006, ICOP had shipped ICOP Model 20/20 units to 35 U.S. states.
* The percentage of re-orders, based on total customers as of March 31, 2006, had increased to 40%, up from 30% as of December 31, 2005.
* ICOP completed its sales team expansion bringing its national sales force to 12, satisfying a critical corporate objective associated with the Company's stated growth strategy.
* The Company formed a strategic marketing alliance with Strand, a privately held school surveillance company based in Warrenville, Illinois. The Companies are currently collaborating on joint marketing initiatives designed to expand their respective share of the U.S. education market.
ICOP CEO Dave Owen stated, "ICOP today is a completely different company than it was a year ago, and remarkably stronger than we were just three months ago. Growing recognition of and demand for our in-car video solution from law enforcement agencies nationwide is laying the foundation for very strong financial and operational performance in 2006. In fact, based on the steady volume of purchase orders we have been processing for shipment in the second quarter, we remain confident that ICOP is indeed on pace to achieve profitability during the current year."
"Now that we have begun to win notable market penetration in the U.S. law enforcement market, we plan to begin taking steps towards expanding our product platform through in-house research and development, collaborative partnerships and strategic acquisitions. We are seeing compelling and immediate growth opportunities for ICOP to outfit school and commercial buses and police and highway patrol motorcycle fleets with our proprietary mobile video surveillance technologies. As we move forward, we hope to begin detailing specific strategies that we are executing to leverage our technology leadership into these exciting areas," concluded Owen.
ICOP Digital will also 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 1-800-218-8862 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/ .
ICOP DIGITAL, INC.
Balance Sheet (Unaudited)
March 31,
2006
Assets
Current Assets
Cash $ 2,042,818
Cash, restricted 2,641,410
Accounts receivable, net 629,641
Finished goods inventory, at cost 3,181,659
Prepaid expenses 99,571
Total current assets 8,595,099
Property and equipment, at cost, net of accumulated
depreciation of $176,838 740,655
Other assets:
Deferred patent costs 61,480
Deposits 15,000
$ 9,412,234
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts payable $ 343,859
Accrued liabilities 301,261
Unearned revenue 55,525
Current maturities of long-term debt 40,232
Total current liabilities 740,877
Long-term debt, net of current maturities 111,819
Total liabilities 852,696
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, 5,500,980 shares issued and outstanding 19,459,937
Accumulated other comprehensive income, net of tax 72,103
Deficit accumulated during development stage (10,972,502)
Total shareholders' equity 8,559,538
$ 9,412,234
ICOP DIGITAL, INC.
Statements of Operations (Unaudited)
Three Months
Ended
March 31,
2006 2005
Sales, net of returns $ 801,675 $ --
Cost of sales 457,866 --
Gross profit 343,809 --
Operating expenses:
Selling, general and administrative 923,167 334,049
Research and development 249,887 117,226
Total operating expenses 1,173,054 451,275
Loss from operations (829,245) (451,275)
Other income (expenses):
Foreign currency translation 7,944 --
Interest income 25,980 --
Interest expense (6,213) (29,181)
Loss before income taxes (801,534) (480,456)
Income tax provision -- --
Net loss $ (801,534) $ (480,456)
Basic and diluted loss per share $ (0.15) $ (0.29)
Basic and diluted weighted average common
shares outstanding 5,485,528 1,647,444
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 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 the common stock and warrants trade under the ticker symbols "ICOP" and "ICOPW," respectively. For more information, please visit http://www.icop.com/ , or to view a three-minute ICOP marketing presentation, please go to http://www.impactmovie.com/ICOP .
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.
For more information, contact: For Investor Relations: Laura E. Owen, COO Elite Financial Communications Group, LLC 16801 West 116th Street Dodi Handy, President and CEO Lenexa, KS 66219 USA Phone: (407) 585-1080 Phone: (913) 338-5550 ICOP@efcg.net Fax: (913) 312-0264 Lowen@ICOP.com http://www.icop.com/Audio: http://www.icop.com/