SOURCE: Electronic Control Security, Inc.

Electronic Control Security, Inc.

May 04, 2011 15:17 ET

Electronic Control Security, Inc. Announces Third Quarter Results

CLIFTON, NJ--(Marketwire - May 4, 2011) - Electronic Control Security, Inc. (ECSI) (OTCBB: EKCS), a leading provider of integrated entry control and perimeter security system technologies to the government and private sectors, announced its results of operations for the three and nine months ended March 31, 2011.

Arthur Barchenko, President and CEO, stated, "We had net revenues of $2,888,625 for the nine months ended March 31, 2011 compared to $2,923,381 for the corresponding nine month period in 2010. Net revenues for the three months ended March 31, 2011 were $1,006,662 compared to $1,287,677 for the corresponding period in 2010. This decrease is primarily attributable to delays by the U.S. Navy in finalizing its design and issuing approvals on the project on which we serve as sub-contractor."

"Gross margins for the nine months ended March 31, 2011 were 57% compared to 62% of revenues for the corresponding nine month period in 2010. Gross margins for the three months ended March 31, 2011 were 48% compared to 57% for the corresponding period in 2010. Again, the decreased margins were primarily attributable to the delays associated with the U.S. Navy project."

Further, "Our selling, general and administrative expenses for the nine month period were $1,098,224 compared to $1,216,745 for the corresponding period in 2010. For the three month period in 2011, these costs totaled $417,644 compared to $470,992 for the same three months in 2010 due to our continuing efforts to reduce these costs."

"Income from operations decreased to $422,845 in the nine-month period in 2011 compared to $461,859 in the 2010 period. For the three months ended March 31, 2011, income was $31,104 compared to $227,282 for the comparable period in the prior fiscal year. The decreases are due primarily to the aforementioned delays in the progress of the U.S. Navy project. We believe that these delays will be addressed over the next several weeks."

About ECSI

ECSI is a global leader in perimeter security and a quality provider to the Department of Defense, Department of Energy, nuclear power stations, and other large commercial-industrial complexes. The Company designs, manufactures and markets physical electronic security systems for high profile, high threat environments utilizing risk assessment and analysis to determine and address the security needs of its customers. Teaming agreements with major system integrators enable ECSI to support the installation and aftermarket of its products in the U.S. and overseas. ECSI is located at 790 Bloomfield Avenue, Bldg. C-1, Clifton, NJ 07012. Tel: 973-574-8555; Fax: 973-574-8562. For more information on ECSI and its customers, please visit http://www.ecsiinternational.com.

ECSI INTERNATIONAL, INC. SAFE HARBOR STATEMENT: This press release contains forward-looking statements that involve substantial uncertainties and risks. These forward-looking statements are based upon our current expectations, estimates and projections about our business and our industry and reflect our beliefs and assumptions based upon information available to us at the date of this release. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including but not limited to changes in economic conditions generally and in our industry specifically, changes in security technology, legislative or regulatory changes that affect us, the availability of working capital, timing of purchase orders, acceptance of company proposals, changes in costs and the availability of goods and services, the introduction of competing products, changes in our operating strategy or development plans, our ability to attract and retain qualified personnel, changes in our acquisition and capital expenditure plans, sufficiency of cash reserves and the risks and uncertainties discussed under the heading "RISK FACTORS" in Item 1 of our Annual Report on Form 10-K for the fiscal year ended June 30, 2010 and in our other filings with the Securities and Exchange Commission. We undertake no obligation to revise or update any forward-looking statement for any reason.

Contact Information

  • For contact:
    Natalie Schneider
    973-574-8555