ISEC.. $0.90,, financial results
iSECUREtrac Reports 59% Improvement in Operating Loss Despite 7% Decline in Equipment & Services Revenue
Market Wire - May 05 at 08:00
Company Symbols: NASDAQ-OTCBB:ISEC
OMAHA, NE -- (MARKET WIRE) -- 05/05/10 -- iSECUREtrac Corp (OTCBB: ISEC), an industry leader in electronic monitoring solutions, today released its financial results for the three months ended March 31, 2010.
Revenue from equipment leasing and services for the quarter ended March 31, 2010 were $2.6 million, down 7% from the $2.8 million reported for the same quarter in 2009. Royalty revenue declined 64%, or $222,000, from $347,000 reported for the quarter ended March 31, 2009 to $125,000 for the same quarter in 2010. Total revenue which includes both royalty revenue and the equipment and services revenue declined 13%.
The Company's operating loss for the quarter ended March 31, 2010 was $122,000, an improvement of $139,000, over the $297,000 operating loss reported for the same period.
"While the overall revenue figures for equipment and services are down 7%, the volume of revenue producing units is actually up compared to the same quarter a year ago," pointed out Lincoln Zehr, Chief Financial Officer of iSECUREtrac. Zehr went on to note that, "the deflationary pressure exerted by the extended economic cycle is somewhat the new reality -- to address that we have been focused, and will continue to focus, on becoming more efficient in everything we do, as evidenced by the 20% decrease in Selling General & Administrative expenses."
President and Chief Executive Officer, Peter Michel, commented that "There was little movement in the development of new electronic monitoring programs or the expansion of existing programs during the past six months as government agencies deal with a lag in tax revenue collections. Community supervision agencies are now realizing they will have small budgets and will need to do more with less. We believe that spending is poised to begin flowing again as agencies end their current fiscal year on June 30th and begin a new budget on July 1."
Michel continued by noting that, "the improvements made by the Company this past year in our proprietary infrastructure as well as the Salesforce.com service delivery platform have significantly improved the responsiveness and capacity of our systems and positioned the Company to profit from that expected increase in spending."
Conference Call Information:
As a reminder, the Company's 1st Quarter 2010 earnings call will be held this afternoon as follows:
Time: 3:30 PM Central (4:30 PM Eastern)
Dial-in number: 1-877-941-4774
International: 1-480-629-9760
Please dial in 5-10 minutes prior to the start. 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 taped replay of the conference call will be available from May 5, 2010 at 6:30 PM Central until May 12, 2010 at 10:59 PM Central.
Dial-in number: 1-800-406-7325
International: 1-303-560-3030
Replay Pin Number 4293293
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 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
Doug Zbylut
Email Contact
(866) 537-0022
