|By Marketwired .||
|March 28, 2014 05:32 PM EDT||
HANOVER, MD -- (Marketwired) -- 03/28/14 -- Brekford Corp. (the "Company") (OTCBB: BFDI) (OTCQB: BFDI), a leading public safety technology service provider of fully integrated traffic safety solutions, parking enforcement citation collections and an end-to-end suite of technology equipment for public safety vehicle services, today announced its operating results for the year ended December 31, 2013.
The Company generated annual revenue of $13,619,306 for the year ended December 31, 2013, compared to $18,295,906 for the year ended December 31, 2012. Gross margin percentage increased significantly to 25.2% for the year ended December 31, 2013, compared to 19.6% for the year ended December 31, 2012, as automated traffic safety enforcement ("ATSE") services represented a higher percentage of the overall business. A net loss for the year of $1,419,586 was primarily due to increased expenses related to the expansion of ATSE programs without corresponding increases in revenue as certain program implementations were delayed or terminated.
"During 2013, we made significant strides in shoring up our product and service offerings in support of current and prospective clients within the public safety industry," stated C. B. Brechin, Chief Executive Officer of Brekford Corp. "The decision to mutually terminate our largest ATSE contract in December, 2013 was appropriate considering the political pressure and uncertainty in terms of when the program would ultimately begin live enforcement. Fortunately, the resources dedicated in 2013 to this project resulted in extreme refinement of our ATSE hardware and backend software, and we believe we have an industry leading turnkey solution as we seek to expand nationwide in 2014. Our full year results were impacted by these efforts; however, with the investments we have made in innovative ATSE and parking citation management solutions we are excited about our prospects for the coming year."
"We are aggressively marketing our ATSE programs and the recently released School Safety Zone SpeedAlert system, which combines speed warning radar with an optional enforcement camera," commented Rod Hillman, President and Chief Operating Officer of Brekford. "In the coming months we will be introducing handheld and mobile automated photo speed enforcement products as well as a pole mounted red light photo enforcement system. Additionally, we continue to work with other technology partners as we build an array of solutions customized to fit nearly any customer application. Our citation management application suite integrates with all of our hardware to provide a seamless and intuitive program for municipalities, no matter how small or large."
"As a result of the financial challenges of 2013, we have implemented a plan to make significant changes in 2014 with cost containment and restructuring measures that will continue for several months," continued Mr. Hillman. "Among other changes, we have significantly reduced the overall workforce and revamped our sales and marketing team with a renewed emphasis on nationwide growth beyond our traditional Maryland client base. While we have reduced operating expenses dramatically, we still anticipate losses in the near term as we focus on strong results in the latter half of 2014 in conjunction with adding recurring revenue from new clients. We are encouraged by the increase in our gross margin percentage in 2013 which we expect to continue as ATSE represents an increasing percentage of our overall business moving forward."
"Supplemental to our efforts with ATSE, we also continue to pursue contracts to provide parking citation services and collection of past-due receivables for municipalities. Our initial contracts with the Cities of Asheville, North Carolina and Huntington, New York have provided a solid foundation for expansion in this large national market. Additionally, we anticipate renewed growth in our legacy vehicle services business with a primary focus on rugged mobile technology vehicle installations for state and federal agencies," concluded Hillman.
Financial highlights for year ended December 31, 2013:
Net revenue decreased 25.6% to $13,619,306 for the twelve months ended December 31, 2013, compared with $18,295,906 in the previous year. The decrease in total net revenue was primarily due to lower sales of rugged IT products offset in part by an 80% increase in ATSE revenue.
As of December 31, 2013, the Company's total assets approximated $6.7 million, compared with approximately $9.3 million on December 31, 2012. Cash on hand approximated $2.1 million at the end of 2013, versus approximately $1.4 million at the end of 2012. The total amount outstanding against the Company's bank line of credit as of December 31, 2013 was $1,470,533.
Gross profit declined to $3,436,228 (25.2% of net revenue) in the year ended December 31, 2013, from $3,589,808 (19.6% of net revenue) in 2012. The increased gross profit margin percentage was primarily due to a higher proportion of ATSE services in relation to the overall business.
Total operating expenses decreased from $4,708,291 in 2012 to $4,678,290 in 2013. Salaries and related expenses increased 25.9% to $1,956,640, versus $1,554,377 in 2012 due to increased staffing to support growth in the Company's ATSE products. Selling, general and administrative expenses decreased 13.7%, primarily due to a decrease of $827,441 in bad debt expense partially offset by an increase in depreciation expense related to additional investments in Brekford's intellectual property, hardware, and software.
The Company recorded a net loss of $1,419,586, or $0.03 per diluted share, in 2013, versus a net loss of $1,266,671, or $0.03 per diluted share, for the year ended December 31, 2012. Management primarily attributes the net loss in 2013 to increased expenses related to salaries, benefit programs, and associated support costs for the expansion of ATSE programs without corresponding increases in revenue as certain program implementations were delayed or terminated.
About Brekford Corp.
Brekford Corp. provides state-of-the art public safety technology and automated traffic enforcement solutions to municipalities, the U.S. military, various federal entities and other public safety agencies throughout the United States. Its services include automated speed and red light camera enforcement programs, parking enforcement citation collections and an end-to-end suite of technology and equipment for public safety vehicle up-fitting. Brekford's combination of up-fitting services, cutting-edge technology, and automated traffic enforcement services offers a unique 360-degree solution for law enforcement agencies and municipalities.
The Company is headquartered in Hanover, Maryland, and its common stock is traded on the OTC Bulletin Board and the OTCQB under the symbol "BFDI". Additional information on Brekford can be accessed online at www.brekford.com.
Forward-Looking Statements. This press release 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 (the "Exchange Act") (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Statements preceded by, followed by or that otherwise include the words "believe," "anticipate," "estimate," "expect," "intend," "plan," "project," "prospects," "outlook," and similar words or expressions, or future or conditional verbs such as "will," "should," "would," "may," and "could" are generally forward-looking in nature and not historical facts. These forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the Company's actual results, performance or achievements to be materially different from any anticipated results, performance or achievements. The Company disclaims any intention to, and undertakes no obligation to, revise any forward-looking statements, whether as a result of new information, a future event, or otherwise. For additional risks and uncertainties that could impact the Company's forward-looking statements, please see the Company's Annual Report on Form 10-K for the year ended December 31, 2013, including but not limited to the discussion under "Risk Factors" therein, which the Company has filed with the SEC and which may be viewed at http://www.sec.gov.
BREKFORD CORP. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS ($000, except per-share figures) Years Ended December 31, ---------------------------- 2013 2012 ------------- ------------- Net revenue $ 13,619 $ 18,296 Gross profit 3,436 3,590 Loss from operations (1,242) (1,118) Total other expense (178) (148) Net loss $ (1,420) $ (1,267) Loss per share - basic and diluted $ (0.03) $ (0.03) Weighted average shares outstanding Basic 44,283 44,129 Diluted 44,283 44,129 --------------------------------------------------------------------------- CONDENSED CONSOLIDATED BALANCE SHEETS ($000, except per-share figures) December 31, December 31, 2013 2012 ------------- ------------- Cash $ 2,052 $ 1,415 Current assets 4,880 6,593 Total assets 6,660 9,346 Current liabilities 4,759 5,426 Total liabilities 5,545 6,869 Stockholders' equity $ 1,115 $ 2,477
For Further Information:
C. B. Brechin
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. 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 an...
Oct. 27, 2016 10:30 PM EDT Reads: 3,076
SYS-CON Events announced today that Transparent Cloud Computing (T-Cloud) Consortium 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. The Transparent Cloud Computing Consortium (T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data proces...
Oct. 27, 2016 10:30 PM EDT Reads: 1,501
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
Oct. 27, 2016 10:30 PM EDT Reads: 9,785
Intelligent machines are here. Robots, self-driving cars, drones, bots and many IoT devices are becoming smarter with Machine Learning. In her session at @ThingsExpo, Sudha Jamthe, CEO of IoTDisruptions.com, will discuss the next wave of business disruption at the junction of IoT and AI, impacting many industries and set to change our lives, work and world as we know it.
Oct. 27, 2016 10:30 PM EDT Reads: 532
In today's uber-connected, consumer-centric, cloud-enabled, insights-driven, multi-device, global world, the focus of solutions has shifted from the product that is sold to the person who is buying the product or service. Enterprises have rebranded their business around the consumers of their products. The buyer is the person and the focus is not on the offering. The person is connected through multiple devices, wearables, at home, on the road, and in multiple locations, sometimes simultaneously...
Oct. 27, 2016 10:30 PM EDT Reads: 3,831
Established in 1998, Calsoft is a leading software product engineering Services Company specializing in Storage, Networking, Virtualization and Cloud business verticals. Calsoft provides End-to-End Product Development, Quality Assurance Sustenance, Solution Engineering and Professional Services expertise to assist customers in achieving their product development and business goals. The company's deep domain knowledge of Storage, Virtualization, Networking and Cloud verticals helps in delivering ...
Oct. 27, 2016 10:15 PM EDT Reads: 1,157
In the 21st century, security on the Internet has become one of the most important issues. We hear more and more about cyber-attacks on the websites of large corporations, banks and even small businesses. When online we’re concerned not only for our own safety but also our privacy. We have to know that hackers usually start their preparation by investigating the private information of admins – the habits, interests, visited websites and so on. On the other hand, our own security is in danger bec...
Oct. 27, 2016 10:15 PM EDT Reads: 669
The Internet of Things (IoT), in all its myriad manifestations, has great potential. Much of that potential comes from the evolving data management and analytic (DMA) technologies and processes that allow us to gain insight from all of the IoT data that can be generated and gathered. This potential may never be met as those data sets are tied to specific industry verticals and single markets, with no clear way to use IoT data and sensor analytics to fulfill the hype being given the IoT today.
Oct. 27, 2016 10:00 PM EDT Reads: 2,909
SYS-CON Events announced today that Hitrons Solutions 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. Hitrons Solutions Inc. is distributor in the North American market for unique products and services of small and medium-size businesses, including cloud services and solutions, SEO marketing platforms, and mobile applications.
Oct. 27, 2016 10:00 PM EDT Reads: 2,104
OnProcess Technology has announced it will be a featured speaker at @ThingsExpo, taking place November 1 - 3, 2016, in Santa Clara, California. Dan Gettens, OnProcess’ Chief Analytics Officer, will discuss how Internet of Things (IoT) data can be leveraged to predict product failures, improve uptime and slash costly inventory stock. @ThingsExpo is an annual gathering of IoT and cloud developers, practitioners and thought-leaders who exchange ideas and insights on topics ranging from Big Data in...
Oct. 27, 2016 09:45 PM EDT Reads: 524
Enterprises have been using both Big Data and virtualization for years. Until recently, however, most enterprises have not combined the two. Big Data's demands for higher levels of performance, the ability to control quality-of-service (QoS), and the ability to adhere to SLAs have kept it on bare metal, apart from the modern data center cloud. With recent technology innovations, we've seen the advantages of bare metal erode to such a degree that the enhanced flexibility and reduced costs that cl...
Oct. 27, 2016 09:45 PM EDT Reads: 619
As companies adopt the cloud-to-streamline workflow, deployment hasn’t been very seamless because of IT concerns surrounding security risks. The cloud offers many benefits, but protecting and securing information can be tricky across multiple cloud providers and remains IT’s overall responsibility. In his session at 19th Cloud Expo, Simon Bain, CEO of SearchYourCloud, will address security compliance issues associated with cloud applications and how document-level encryption is critical for sup...
Oct. 27, 2016 09:15 PM EDT Reads: 359
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
Oct. 27, 2016 09:00 PM EDT Reads: 3,692
SYS-CON Events announced today that Impiger Technologies will exhibit in Booth #109 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. Impiger Technologies is a world-class, enterprise software product engineering company specializing in Mobile Application Development, Cloud Applications, Microsoft Technology Solutions, Web Technology and Telecom Services. Impiger Technologies helps enterprises improve busi...
Oct. 27, 2016 08:45 PM EDT Reads: 306
SYS-CON Events announced today that Enzu 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. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to focus on the core of their online busine...
Oct. 27, 2016 07:45 PM EDT Reads: 1,462