|By Marketwired .||
|November 9, 2012 04:50 PM EST||
HANOVER, MD -- (Marketwire) -- 11/09/12 -- Brekford Corp. (the "Company") (OTCBB: BFDI) (OTCQB: BFDI), a leading public safety technology service provider of fully integrated traffic safety solutions, vehicle up-fitting, and rugged mobile technology, today announced its operating results for the third quarter and first nine months of 2012.
"Our third quarter operating results were significantly influenced by the timing in our receipt of over $2.2 million in vehicle upfitting contracts, along with unanticipated delays in the commencement of a new automated speed enforcement program in Maryland," stated C. B. Brechin, Chief Executive Officer of Brekford Corp. "As these new contracts will positively influence our operating results in the current three-month period, we expect to end the year with a stronger fourth quarter."
"We have made a conscious effort over the past year to stay ahead of the R&D curve," continued Brechin. "It is critical for our shareholders to understand the impact of traffic safety solutions to our long-term business model. While our vehicle upfitting business provides stability, our automated traffic safety solutions business offers significant growth potential near-term as well as over the next several years."
"Last week, we announced that Brekford was selected by the City of Baltimore to manage the largest combined automated speed and red light enforcement program in North America. This is a tremendous 'win' for the Company and its shareholders, and it illustrates how far Brekford has come in the two years since we entered the automated traffic safety enforcement market. Our selection by the City of Baltimore is even more impressive in light of the facts that (1) we were competing against two of the largest companies in the automated traffic enforcement industry and (2) we took the contract away from the incumbent vendor, Xerox State and Local Solutions, Inc., which has been managing the Baltimore program for over a decade."
"Based upon publicly available information, we believe that tickets issued by the Baltimore speed and red light cameras should generate gross citations in excess of $135 million during the initial five-year term of the program under Brekford's management. Thereafter, the City will have the option to renew the contract up to three (3) more times for periods of one (1) year each, for a total contract term of up to eight (8) years. While Brekford has established a strong reputation managing automated traffic enforcement programs throughout the State of Maryland, our selection to manage the Baltimore program, which currently includes over 160 cameras, clearly illustrates our ability to be competitive on large-scale projects. We look forward to bidding on other large contracts, primarily in the Eastern half of the United States, in the future," concluded Brechin.
Financial highlights for the third quarter of 2012:
Net revenue declined slightly to approximately $3.93 million for the quarter ended September 30, 2012, compared with approximately $3.98 million in the quarter ended September 30, 2011. The modest decrease in revenue was due to delays in the execution of certain major contracts and the timing of certain vehicle up-fitting orders.
The Company recorded a net loss of $50,948, or 0.00 per share, in the third quarter of 2012, versus net income of $493,924, or $0.01 per diluted share, in the third quarter of 2011. Management attributes the net loss to increases in operating expenses due to an expansion in automated traffic enforcement R&D and staffing in anticipation of future growth, and the above-mentioned delay in the execution of significant contracts.
Gross profit for the most recent quarter declined to $786,001, compared with $1,266,683 in the third quarter of 2011. Gross profit margin narrowed to 20% of revenue during the third quarter of 2012, compared with 32% in the year-earlier quarter, primarily due to variances in profit margins from electronic ticketing systems, automated traffic revenue and rugged IT products. The Company expects gross profit margins to improve in the fourth quarter of 2012 as automated traffic enforcement revenue expands with the commencement of a new contract and delayed up-fitting orders are completed and shipped.
Total operating expenses increased from $734,232 in the third quarter of 2011 to $801,279 in the third quarter of 2012. Salaries and related expenses increased $93,248 from the prior-year period due to increased staffing for automated traffic enforcement programs, higher marketing and IT expenditures, and higher employee benefit costs. Selling, general and administrative expenses declined $26,201 due to lower bad debt and legal expenses, partially offset by higher investor relations, marketing and business development, insurance, depreciation and amortization expenses.
Financial highlights for the first nine months of 2012:
Net revenue increased 6.2% to approximately $12.2 million in the nine months ended September 30, 2012, compared with approximately $11.5 million in the first nine months of 2011. The increase reflected higher revenue from automated traffic enforcement systems, electronic ticketing systems and vehicle upfitting services, partially offset by delays in the execution of major contracts.
Net income for the first nine months of 2012 totaled $198,895, compared with $938,960 in the corresponding period of the previous year. Diluted earnings per share of $0.00 in the nine months ended September 30, 2012 compared with $0.02 in the nine months ended September 30, 2011.
Gross profit for the nine months ended September 30, 2012 declined 4.1% to $2,940,986, compared with $3,066,501 in the first nine months of the previous year. Gross profit margin narrowed to 24% of revenue during the most recent nine-month period, compared with 27% in the corresponding period of the previous year.
Total operating expenses increased from $2,033,623 in the first nine months of 2011 to $2,632,078 in the year-earlier period. Salaries and related expenses increased $280,515 from the prior-year period due to increased staffing for automated traffic enforcement programs, higher marketing and IT expenditures, and higher employee benefit costs. Selling, general and administrative expenses increased $317,940 due to higher marketing, stock-based compensation, and corporate development expenses, professional fees, travel and related costs, insurance expense, and depreciation and amortization expenses.
As of September 30, 2012, the Company's total assets approximated $8.9 million, compared with approximately $8.1 million on December 31, 2011. Cash on hand increased 19% during the first nine months of 2012 to approximately $2.2 million, versus approximately $1.8 million at the end of 2011, and the Company's current ratio stood at 1.8-to-1.0 ($6.1 million in current assets vs. $3.5 million in current liabilities). There were no borrowings outstanding against the Company's bank line of credit as of September 30, 2012.
The Company has available an aggregate $3.5 million credit facility with PNC Bank, N.A., consisting of a $3.0 million revolving line of credit and a $500,000 non-revolving equipment credit line. Amounts borrowed under the revolving credit facility bear interest at an annual rate equivalent to the daily LIBOR rate plus 2.5%.
About Brekford Corp.
Brekford Corp. has provided state-of-the art mobile technology and traffic safety solutions to municipalities, the U.S. military, various federal entities and other security and public safety agencies throughout the United States over the last ten years. Its services include automated traffic safety solutions and an end-to-end suite of mobile computer, video technology and equipment upfitting services. Brekford's combination of upfitting services, cutting-edge technology, and automated traffic enforcement services offers a unique 360-degree solution for any organization, including homeland security and law enforcement agencies. Additional information about Brekford may be found online at www.brekford.com.
This press release contains forward-looking statements within the meaning of that term in Section 21E of the Securities Exchange Act of 1934, as amended. Actual results may differ materially from the results suggested by these forward-looking statements, for a number of reasons, including, but not limited to, market conditions, the cost and success of development activities and the ability to successfully manage growth. Readers are referred to the documents filed by Brekford Corp. with the SEC, specifically the Company's most recent reports filed on Form 10-K and Forms 10-Q, which further identify important risks, trends and uncertainties which could cause actual results to differ materially from the forward-looking statements in this press release. The Company expressly disclaims any obligation to update any forward-looking statements.
Brekford Corp. Condensed Statement of Operations (Unaudited) ($000, except per-share figures) Three Months Ended Nine Months Ended -------------------- -------------------- 9/30/12 9/30/11 9/30/12 9/30/11 --------- --------- --------- --------- Net Revenue $ 3,934 $ 3,989 $ 12,170 $ 11,457 Gross Profit 786 1,267 2,941 3,066 Income (Loss) from Operations (15) 532 309 1,033 --------- --------- --------- --------- Total Other Expense (36) (39) (110) (94) --------- --------- --------- --------- Net Income (Loss) $ (51) $ 494 $ 199 $ 939 ========= ========= ========= ========= Earnings Per Share - Basic and Diluted $ 0.00 $ 0.01 $ 0.00 $ 0.02 ========= ========= ========= ========= Weighted Avg. Number of Shs. Outstanding - Basic 44,223 40,744 44,092 40,626 Weighted Avg. Number of Shs. Outstanding - Diluted 46,869 44,812 47,076 42,533 BALANCE SHEET ($000) 9/30/12 12/31/11 --------- --------- Cash and Cash Equivalents $ 2,182 $ 1,833 Current Assets 6,135 6,073 Total Assets 8,966 8,139 Current Liabilities 3,483 3,341 Total Liabilities 5,023 4,400 Stockholders' Equity $ 3,943 $ 3,739
For Additional Information, Please Contact:
RJ Falkner & Company, Inc.
Investor Relations Counsel
or via email at [email protected]
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
Jul. 25, 2016 10:00 PM EDT Reads: 2,498
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
Jul. 25, 2016 08:30 PM EDT Reads: 1,931
With 15% of enterprises adopting a hybrid IT strategy, you need to set a plan to integrate hybrid cloud throughout your infrastructure. In his session at 18th Cloud Expo, Steven Dreher, Director of Solutions Architecture at Green House Data, discussed how to plan for shifting resource requirements, overcome challenges, and implement hybrid IT alongside your existing data center assets. Highlights included anticipating workload, cost and resource calculations, integrating services on both sides...
Jul. 25, 2016 08:00 PM EDT Reads: 1,965
Big Data engines are powering a lot of service businesses right now. Data is collected from users from wearable technologies, web behaviors, purchase behavior as well as several arbitrary data points we’d never think of. The demand for faster and bigger engines to crunch and serve up the data to services is growing exponentially. You see a LOT of correlation between “Cloud” and “Big Data” but on Big Data and “Hybrid,” where hybrid hosting is the sanest approach to the Big Data Infrastructure pro...
Jul. 25, 2016 07:30 PM EDT Reads: 1,881
"We are a well-established player in the application life cycle management market and we also have a very strong version control product," stated Flint Brenton, CEO of CollabNet,, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 25, 2016 07:15 PM EDT Reads: 1,794
We all know the latest numbers: Gartner, Inc. forecasts that 6.4 billion connected things will be in use worldwide in 2016, up 30 percent from last year, and will reach 20.8 billion by 2020. We're rapidly approaching a data production of 40 zettabytes a day – more than we can every physically store, and exabytes and yottabytes are just around the corner. For many that’s a good sign, as data has been proven to equal money – IF it’s ingested, integrated, and analyzed fast enough. Without real-ti...
Jul. 25, 2016 07:15 PM EDT Reads: 1,007
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
Jul. 25, 2016 06:30 PM EDT Reads: 979
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.
Jul. 25, 2016 06:15 PM EDT Reads: 1,751
Unless your company can spend a lot of money on new technology, re-engineering your environment and hiring a comprehensive cybersecurity team, you will most likely move to the cloud or seek external service partnerships. In his session at 18th Cloud Expo, Darren Guccione, CEO of Keeper Security, revealed what you need to know when it comes to encryption in the cloud.
Jul. 25, 2016 06:00 PM EDT Reads: 2,431
We're entering the post-smartphone era, where wearable gadgets from watches and fitness bands to glasses and health aids will power the next technological revolution. With mass adoption of wearable devices comes a new data ecosystem that must be protected. Wearables open new pathways that facilitate the tracking, sharing and storing of consumers’ personal health, location and daily activity data. Consumers have some idea of the data these devices capture, but most don’t realize how revealing and...
Jul. 25, 2016 06:00 PM EDT Reads: 2,077
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Jul. 25, 2016 03:45 PM EDT Reads: 962
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
Jul. 25, 2016 03:30 PM EDT Reads: 1,692
"delaPlex is a software development company. We do team-based outsourcing development," explained Mark Rivers, COO and Co-founder of delaPlex Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 25, 2016 03:00 PM EDT Reads: 1,974
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
Jul. 25, 2016 02:45 PM EDT Reads: 872
Is your aging software platform suffering from technical debt while the market changes and demands new solutions at a faster clip? It’s a bold move, but you might consider walking away from your core platform and starting fresh. ReadyTalk did exactly that. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, will discuss why and how ReadyTalk diverted from healthy revenue and over a decade of audio conferencing product development to start an innovati...
Jul. 25, 2016 02:00 PM EDT Reads: 979
Early adopters of IoT viewed it mainly as a different term for machine-to-machine connectivity or M2M. This is understandable since a prerequisite for any IoT solution is the ability to collect and aggregate device data, which is most often presented in a dashboard. The problem is that viewing data in a dashboard requires a human to interpret the results and take manual action, which doesn’t scale to the needs of IoT.
Jul. 25, 2016 01:00 PM EDT Reads: 1,936
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Jul. 25, 2016 12:15 PM EDT Reads: 516
CenturyLink has announced that application server solutions from GENBAND are now available as part of CenturyLink’s Networx contracts. The General Services Administration (GSA)’s Networx program includes the largest telecommunications contract vehicles ever awarded by the federal government. CenturyLink recently secured an extension through spring 2020 of its offerings available to federal government agencies via GSA’s Networx Universal and Enterprise contracts. GENBAND’s EXPERiUS™ Application...
Jul. 25, 2016 12:00 PM EDT Reads: 1,826
IoT generates lots of temporal data. But how do you unlock its value? You need to discover patterns that are repeatable in vast quantities of data, understand their meaning, and implement scalable monitoring across multiple data streams in order to monetize the discoveries and insights. Motif discovery and deep learning platforms are emerging to visualize sensor data, to search for patterns and to build application that can monitor real time streams efficiently. In his session at @ThingsExpo, ...
Jul. 25, 2016 11:00 AM EDT Reads: 925
Verizon Communications Inc. (NYSE, Nasdaq: VZ) and Yahoo! Inc. (Nasdaq: YHOO) have entered into a definitive agreement under which Verizon will acquire Yahoo's operating business for approximately $4.83 billion in cash, subject to customary closing adjustments. Yahoo informs, connects and entertains a global audience of more than 1 billion monthly active users** -- including 600 million monthly active mobile users*** through its search, communications and digital content products. Yahoo also co...
Jul. 25, 2016 10:30 AM EDT Reads: 389