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


For Further Information:

Brekford Corp.
C. B. Brechin
(443) 557-0200
[email protected]

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
Organizations do not need a Big Data strategy; they need a business strategy that incorporates Big Data. Most organizations lack a road map for using Big Data to optimize key business processes, deliver a differentiated customer experience, or uncover new business opportunities. They do not understand what’s possible with respect to integrating Big Data into the business model.
The session is centered around the tracing of systems on cloud using technologies like ebpf. The goal is to talk about what this technology is all about and what purpose it serves. In his session at 21st Cloud Expo, Shashank Jain, Development Architect at SAP, will touch upon concepts of observability in the cloud and also some of the challenges we have. Generally most cloud-based monitoring tools capture details at a very granular level. To troubleshoot problems this might not be good enough.
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, will discuss some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he’ll go over some of the best practices for structured team migrat...
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, will discuss how from store operations...
As people view cloud as a preferred option to build IT systems, the size of the cloud-based system is getting bigger and more complex. As the system gets bigger, more people need to collaborate from design to management. As more people collaborate to create a bigger system, the need for a systematic approach to automate the process is required. Just as in software, cloud now needs DevOps. In this session, the audience can see how people can solve this issue with a visual model. Visual models ha...
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, will discuss how they bu...
SYS-CON Events announced today that Dasher Technologies will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dasher Technologies, Inc. ® is a premier IT solution provider that delivers expert technical resources along with trusted account executives to architect and deliver complete IT solutions and services to help our clients execute their goals, plans and objectives. Since 1999, we'v...
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busine...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities – ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups. As a result, many firms employ new business models that place enormous impor...
SYS-CON Events announced today that TidalScale, a leading provider of systems and services, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale has been involved in shaping the computing landscape. They've designed, developed and deployed some of the most important and successful systems and services in the history of the computing industry - internet, Ethernet, operating s...
We all know that end users experience the Internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices – not doing so will be a path to eventual b...
In his session at 21st Cloud Expo, James Henry, Co-CEO/CTO of Calgary Scientific Inc., will introduce you to the challenges, solutions and benefits of training AI systems to solve visual problems with an emphasis on improving AIs with continuous training in the field. He will explore applications in several industries and discuss technologies that allow the deployment of advanced visualization solutions to the cloud.
SYS-CON Events announced today that Taica will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Taica manufacturers Alpha-GEL brand silicone components and materials, which maintain outstanding performance over a wide temperature range -40C to +200C. For more information, visit http://www.taica.co.jp/english/.
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
As hybrid cloud becomes the de-facto standard mode of operation for most enterprises, new challenges arise on how to efficiently and economically share data across environments. In his session at 21st Cloud Expo, Dr. Allon Cohen, VP of Product at Elastifile, will explore new techniques and best practices that help enterprise IT benefit from the advantages of hybrid cloud environments by enabling data availability for both legacy enterprise and cloud-native mission critical applications. By rev...