Welcome!

News Feed Item

Brekford Announces 2013 Operating Results

Company Anticipates Renewed Growth in 2014

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.

Management Comments:

"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

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


More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
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...
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, ...
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle. In his session at 18th Cloud Expo, ...
Ovum, a leading technology analyst firm, has published an in-depth report, Ovum Decision Matrix: Selecting a DevOps Release Management Solution, 2016–17. The report focuses on the automation aspects of DevOps, Release Management and compares solutions from the leading vendors.
Continuous testing helps bridge the gap between developing quickly and maintaining high quality products. But to implement continuous testing, CTOs must take a strategic approach to building a testing infrastructure and toolset that empowers their team to move fast. Download our guide to laying the groundwork for a scalable continuous testing strategy.
Choosing the right cloud for your workloads is a balancing act that can cost your organization time, money and aggravation - unless you get it right the first time. Economics, speed, performance, accessibility, administrative needs and security all play a vital role in dictating your approach to the cloud. Without knowing the right questions to ask, you could wind up paying for capacity you'll never need or underestimating the resources required to run your applications.
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, 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. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
Up until last year, enterprises that were looking into cloud services usually undertook a long-term pilot with one of the large cloud providers, running test and dev workloads in the cloud. With cloud’s transition to mainstream adoption in 2015, and with enterprises migrating more and more workloads into the cloud and in between public and private environments, the single-provider approach must be revisited. In his session at 18th Cloud Expo, Yoav Mor, multi-cloud solution evangelist at Cloudy...
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 ...
StackIQ has announced the release of Stacki 3.2. Stacki is an easy-to-use Linux server provisioning tool. Stacki 3.2 delivers new capabilities that simplify the automation and integration of site-specific requirements. StackIQ is the commercial entity behind this open source bare metal provisioning tool. Since the release of Stacki in June of 2015, the Stacki core team has been focused on making the Community Edition meet the needs of members of the community, adding features and value, while ...
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it ...
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
Security, data privacy, reliability, and regulatory compliance are critical factors when evaluating whether to move business applications from in-house, client-hosted environments to a cloud platform. Quality assurance plays a vital role in ensuring that the appropriate level of risk assessment, verification, and validation takes place to ensure business continuity during the migration to a new cloud platform.
It’s 2016: buildings are smart, connected and the IoT is fundamentally altering how control and operating systems work and speak to each other. Platforms across the enterprise are networked via inexpensive sensors to collect massive amounts of data for analytics, information management, and insights that can be used to continuously improve operations. In his session at @ThingsExpo, Brian Chemel, Co-Founder and CTO of Digital Lumens, will explore: The benefits sensor-networked systems bring to ...