|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]
WebRTC sits at the intersection between VoIP and the Web. As such, it poses some interesting challenges for those developing services on top of it, but also for those who need to test and monitor these services. In his session at WebRTC Summit, Tsahi Levent-Levi, co-founder of testRTC, reviewed the various challenges posed by WebRTC when it comes to testing and monitoring and on ways to overcome them.
Jan. 17, 2017 07:45 AM EST Reads: 5,875
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
Jan. 17, 2017 07:00 AM EST Reads: 6,760
The best-practices for building IoT applications with Go Code that attendees can use to build their own IoT applications. In his session at @ThingsExpo, Indraneel Mitra, Senior Solutions Architect & Technology Evangelist at Cognizant, provided valuable information and resources for both novice and experienced developers on how to get started with IoT and Golang in a day. He also provided information on how to use Intel Arduino Kit, Go Robotics API and AWS IoT stack to build an application tha...
Jan. 17, 2017 06:30 AM EST Reads: 3,755
Every successful software product evolves from an idea to an enterprise system. Notably, the same way is passed by the product owner's company. In his session at 20th Cloud Expo, Oleg Lola, CEO of MobiDev, will provide a generalized overview of the evolution of a software product, the product owner, the needs that arise at various stages of this process, and the value brought by a software development partner to the product owner as a response to these needs.
Jan. 17, 2017 06:00 AM EST Reads: 1,119
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex softw...
Jan. 17, 2017 04:15 AM EST Reads: 1,786
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
Jan. 17, 2017 03:45 AM EST Reads: 2,712
Internet of @ThingsExpo, taking place June 6-8, 2017 at the Javits Center in New York City, New York, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @ThingsExpo New York Call for Papers is now open.
Jan. 17, 2017 03:45 AM EST Reads: 3,525
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
Jan. 17, 2017 03:00 AM EST Reads: 570
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
Jan. 17, 2017 12:45 AM EST Reads: 6,021
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Jan. 16, 2017 09:00 PM EST Reads: 7,454
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
Jan. 16, 2017 03:15 PM EST Reads: 396
"LinearHub provides smart video conferencing, which is the Roundee service, and we archive all the video conferences and we also provide the transcript," stated Sunghyuk Kim, CEO of LinearHub, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 16, 2017 02:30 PM EST Reads: 1,557
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
Jan. 16, 2017 01:45 PM EST Reads: 3,609
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
Jan. 16, 2017 12:30 PM EST Reads: 5,498
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
Jan. 16, 2017 12:30 PM EST Reads: 5,031
Discover top technologies and tools all under one roof at April 24–28, 2017, at the Westin San Diego in San Diego, CA. Explore the Mobile Dev + Test and IoT Dev + Test Expo and enjoy all of these unique opportunities: The latest solutions, technologies, and tools in mobile or IoT software development and testing. Meet one-on-one with representatives from some of today's most innovative organizations
Jan. 16, 2017 12:00 PM EST Reads: 1,428
SYS-CON Events announced today that Linux Academy, the foremost online Linux and cloud training platform and community, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Linux Academy was founded on the belief that providing high-quality, in-depth training should be available at an affordable price. Industry leaders in quality training, provided services, and student certification passes, its goal is to c...
Jan. 16, 2017 11:30 AM EST Reads: 1,894
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Jan. 16, 2017 11:30 AM EST Reads: 4,165
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 7-9, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and E...
Jan. 16, 2017 11:30 AM EST Reads: 5,695
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
Jan. 16, 2017 08:30 AM EST Reads: 3,054