HANOVER, MD--(Marketwired - May 13, 2013) - Brekford Corp. (the "Company") (
The Company generated net income of $75,599 for the quarter ended March 31, 2013, despite an extended transition period for the launch of Baltimore's Automated Traffic Violation Enforcement System ("ATVES"). Revenue increased 5.9% to $4,394,839, primarily driven by automated traffic enforcement services. Significant infrastructure and ramp-up expenditures were incurred during the most recent quarter, as the Company prepares for full-scale implementation of ATVES and other initiatives during the remainder of 2013.
"We are very pleased to report a profitable first quarter, especially in light of the costs associated with an ambitious transition schedule for the Baltimore ATVES program and preparation for initial contracts for our financial services subsidiary," stated C. B. Brechin, Chief Executive Officer of Brekford Corp.
"As Brekford moves towards full implementation of the ATVES program and continues to pursue additional automated traffic enforcement programs and financial services contracts in the second quarter and beyond, we are well-positioned to execute upon our client commitments in a highly efficient and accurate manner. Although we have placed a considerable emphasis on the Baltimore ATVES transition, we are also very excited about enhancements to our existing automated traffic enforcement programs throughout the State of Maryland, prospects for financial services contracts, and opportunities for geographical expansion in coming quarters."
"We are currently pursuing new contract opportunities in a number of states within the eastern and midwestern U.S.," continued Brechin. "We were pleased to announce last month our first financial services contract, which involves the processing of parking citations and the collection of delinquent citation payments for the City of Laurel, Maryland. This represents an important contract for our new Municipal Recover Agency, LLC ('MRA') subsidiary, which was formed in 2012 to target the growing need among large and small municipalities for the more effective collection of delinquent receivables. We look forward to the announcement of additional MRA and automated traffic enforcement contracts as the year progresses."
Financial highlights for quarter ended March 31, 2013
Net revenue increased 5.9% to a first quarter record of $4,394,839 during the three months ended March 31, 2013, compared with $4,149,003 in the previous year. The increase in total net revenue was primarily due to continued growth in automated traffic enforcement and vehicle upfitting services, partially offset by lower sales of rugged IT products. The Company expects vehicle upfitting service revenue and rugged IT product sales to fluctuate from quarter to quarter, depending upon the size and timing of orders from law enforcement and other vehicle fleet operators.
Gross profit for the three months ended March 31, 2013 increased 17.9% to $1,263,353, when compared with gross profit of $1,071,536 in the first quarter of 2012. The increase was primarily due to higher profit margins from automated traffic products.
The Company reported net income of $75,599, or $0.00 per diluted share, for the first quarter of 2013, compared with net income of $123,310, or $0.00 per diluted share, in the year-earlier quarter. Management primarily attributes the decline in net income to higher costs associated with corporate development and infrastructure spending in preparation for the Company's assumption of its responsibilities under the Baltimore ATVES contract.
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.
(Financial Highlights Follow)
|Condensed Statement of Operations|
|($000, except per-share figures)|
|Three Months Ended|
|Income (Loss) from Operations||113||161|
|Total Other Expense||(37||)||(37||)|
|Earnings Per Share - Basic and Diluted||$||0.00||$||0.00|
|Weighted Avg. Number of Shs. Outstanding - Basic||44,257||43,857|
|Weighted Avg. Number of Shs. Outstanding - Diluted||47,265||47,282|
|BALANCE SHEET ($000)|
|Cash and Cash Equivalents||$||1,468||$||1,415|