SOURCE: ICOP Digital, Inc.

ICOP Digital, Inc.

August 06, 2009 16:31 ET

ICOP Digital Reports Second Quarter 2009 Results

Investor Teleconference and Webcast to Begin at 4:15 PM ET Today

LENEXA, KS--(Marketwire - August 6, 2009) - ICOP Digital, Inc. (NASDAQ: ICOP), an industry-leading company engaged in advancing digital surveillance technology solutions, announced today its financial and operational results for the three months ended June 30, 2009. The Company will host a conference call later today to discuss the results, and plans to file its 10-Q tomorrow, Friday, August 7, 2009. This call can be accessed through the Company's website, www.icop.com.

Key Operational Highlights

--  On July 15, 2009, ICOP Digital, Inc. (NASDAQ: ICOP) and JPS
    Communications Inc., a wholly owned subsidiary of Raytheon Company, entered
    into a five year agreement enabling Raytheon to co-brand and market ICOP
    mobile video solutions to all of their existing markets, including; public
    safety, fire/EMS, transportation and military customers worldwide. The
    agreement grants Raytheon the right to resell ICOP products, including but
    not limited to, the ICOP Model 20/20®-W, ICOP 20/20 VISION™, ICOP
    Model 4000™, ICOP LIVE™, ICOP iVAULT™, and ICOP DVMS™.
    
--  ICOP shipped ICOP Model 20/20®-W units to law enforcement agencies
    in 33 states; sales activity was most pronounced in Florida, North
    Carolina, New Jersey, Utah and Texas.
    
--  63% of units shipped in the second quarter of 2009 were reorders from
    existing customers engaged in full fleet deployments of the ICOP Model
    20/20-W.
    
--  ICOP responded to a growing number of Requests for Proposals from
    federal agencies.
    

Financial highlights for the three months ended June 30, 2009 compared to three months ended June 30, 2008:

--  Revenues declined 43.4% to $1.6 million from $2.8 million
    
--  Gross margin increased to 53.3% from 39.3%
    
--  Total Operating expenses declined 14.2% to $2.2 million from $2.5
    million.  The decrease is mainly due to lower compensation and benefit
    expense along with the reduction in research and development expenses and
    travel costs attributed to lower sales.
    
--  Net loss was $1.4 million, or $0.14 per basic and diluted share,
    compared to $1.4 million, or $0.19 per basic and diluted share.
    

Financial highlights for the six months ended June 30, 2009 compared to six months ended June 30, 2008:

--  Revenues declined 31.8% to $3.8 million from $5.6 million
    
--  Gross margin increased to 50.4% from 37.9%
    
--  Total Operating expenses declined 13.1% to $4.2 million from $4.9
    million.  The decrease is mainly due to lower compensation and benefit
    expense along with the reduction in research and development expenses and
    travel costs attributed to lower sales.
    
--  Net loss was $2.3 million, or $0.28 per basic and diluted share,
    compared to $2.7 million, or $0.37 per basic and diluted share.
    

As of June 30, 2009, the Company had $1,124,875 in cash, $858,518 in accounts receivable, $2,244,220 in inventory and $2,020,557 in current liabilities, and a net working capital of $4,308,230. Total Shareholders' equity was $5,895,169.

About ICOP Digital, Inc.

ICOP Digital, Inc. (NASDAQ: ICOP) is a leading provider of mobile video solutions for Law Enforcement, Fire, EMS, Military, and Transportation markets, worldwide. ICOP solutions help the public and private sectors mitigate risks, reduce losses, and improve security through the live streaming, capture and secure management of high quality video and audio. www.ICOP.com

Financial Charts Follow

                        ICOP Digital, Inc.
                     Condensed Balance Sheets

                                                    June 30,   December 31,
                                                      2009         2008
                                                  -----------  -----------
                                                  (unaudited)
                     Assets
Current assets:
 Cash and cash equivalents                        $ 1,124,875  $    99,192
 Accounts receivable, net of allowances of
  $52,103 and $121,173 at June 30, 2009 and
  December 31, 2008, respectively                     858,518    1,775,741
 Inventory, at lower of cost or market              2,244,220    3,568,596
 Prepaid expenses                                     125,204      209,545
 Other current assets                               1,975,970      549,867
                                                  -----------  -----------
   Total current assets                             6,328,787    6,202,941

Property and equipment, net of accumulated
 depreciation $1,494,147 and $1,230,779 at June
 30, 2009 and December 31, 2008, respectively       1,761,442    2,024,318

Other assets:
 Deferred patent costs                                 87,621       87,621
 Investment, at cost                                   25,000       25,000
 Security deposit                                      18,258       18,258
                                                  -----------  -----------
Total other assets                                    130,879      130,879
                                                  -----------  -----------
Total assets                                      $ 8,221,108  $ 8,358,138
                                                  ===========  ===========


      Liabilities and Shareholders' Equity
Current liabilities:
 Accounts payable                                 $   443,901  $   643,124
 Accrued liabilities                                  551,380      596,854
 Notes payable                                        629,985      780,000
 Due to factor                                        188,626      602,009
 Unearned revenue                                     206,665      178,147
                                                  -----------  -----------
  Total current liabilities                         2,020,557    2,800,134
                                                  -----------  -----------

Other liabilities:
 Unearned revenue                                     305,382      288,836

Shareholders' equity:
Preferred stock, no par value; 5,000,000 shares
 authorized, no shares issued
 and outstanding
Common stock, no par value; 50,000,000 shares
 authorized, 16,276,232 and  7,286,385                      -            -
 issued and outstanding at June 30, 2009 and
  December 31, 2008, respectively                  33,293,946   30,338,572
Accumulated other comprehensive income                  3,444          272
Retained deficit                                  (27,402,221) (25,069,676)
                                                  -----------  -----------
 Total shareholders' equity                         5,895,169    5,269,168
                                                  -----------  -----------
Total liabilities and shareholders' equity        $ 8,221,108  $ 8,358,138
                                                  ===========  ===========



                            ICOP Digital, Inc
                    Condensed Statement of Operations

                           Three Months Ended         Six Months Ended
                                June 30,                  June 30,
                        ------------------------  ------------------------
                            2009         2008         2009         2008
                        -----------  -----------  -----------  -----------
Sales, net of returns
 and allowances         $ 1,601,463  $ 2,830,625  $ 3,849,996  $ 5,645,948
Cost of sales               748,623    1,719,385    1,910,993    3,508,799
                        -----------  -----------  -----------  -----------
      Gross profit          852,840    1,111,240    1,939,003    2,137,149
Operating expenses:
    Selling, general and
     administrative       2,002,398    2,281,508    3,826,803    4,351,746
    Research and
     development            183,918      265,678      400,898      512,033
                        -----------  -----------  -----------  -----------
      Total operating
       expenses           2,186,316    2,547,186    4,227,701    4,863,779
                        -----------  -----------  -----------  -----------
Operating loss           (1,333,476)  (1,435,946)  (2,288,698)  (2,726,630)
Other income (expense):
  Gain on derecognition
   of liabilities                 -            -       52,765            -
  Loss on disposal of
   property and
   equipment                 (2,477)           -       (6,646)      (5,283)
  Interest income                31        7,711           36       24,899
  Loss on extended
   warranties                (1,345)           -       (1,345)           -
  Interest expense          (60,318)     (16,673)     (97,354)     (27,070)
  Other income                8,046            -        8,697            -
                        -----------  -----------  -----------  -----------
   Loss before income
    taxes                (1,389,539)  (1,444,908)  (2,332,545)  (2,734,084)

Income tax provision              -            -            -            -
                        -----------  -----------  -----------  -----------
   Net Loss             $(1,389,539) $(1,444,908) $(2,332,545) $(2,734,084)
                        ===========  ===========  ===========  ===========

Basic and diluted net
 loss per share         $     (0.14) $     (0.19) $     (0.28) $     (0.37)
                        ===========  ===========  ===========  ===========
Basic and diluted
 weighted average common
 shares outstanding       9,654,899    7,462,937    8,470,568    7,461,587

Safe Harbor Statement

This document 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. Such forward-looking statements include statements describing the objectives, projections, estimates or future predictions of ICOP's operations. These statements may be identified by the use of forward-looking terminology such as "anticipates," "believes," "could," "estimate," "expect," "will," or other variations on these terms. Such statements are subject to risks and uncertainties that could cause actual results to vary materially from those projected in the forward-looking statements. The company may experience significant fluctuations in future operating results due to a number of economic, competitive, and other factors, including, among other things, our reliance on third-party manufacturers and suppliers, government agency budgetary and political constraints, new or increased competition, changes in market demand, the performance or reliability of our products, our ability to draw funds, meet obligations and regain covenant compliance under our line of credit, the success of our proposed Units offering, our ability to regain compliance with Nasdaq listing standards, our ability to generate working capital to sustain operations, the impact of the current recession on sales and profitability, the risks of doing business internationally, the size and timing of customer contracts, seasonality, our continuing losses from operations and our need to achieve profitable operations and positive cash flow, and our continued ability to meet the conditions for operating as a going concern as described in the footnotes to our financial statements for the year ended December 31, 2008. These factors and others could cause operating results to vary significantly from those in prior periods, and those projected in forward-looking statements. Additional information with respect to these and other factors, which could materially affect the company and its operations, are included in certain forms the company has filed with the Securities and Exchange Commission, including but not limited to the section entitled "Risk Factors" and the notes to financial statements contained in our registration statement on Form S-1 filed with the SEC on April 13, 2009. You should not place undue reliance on such forward-looking statements, which speak only as of the date on which they are made. ICOP has no obligation and does not undertake publicly to update, revise or correct any forward-looking statement for any reason.

Contact Information


  • For more information, contact:
    Melissa K. Owen
    Dir. of Communications
    16801 West 116th Street
    Lenexa, KS 66219 USA
    Phone: (913) 338-5550
    Fax: (913) 312-0264
    Email Contact
    www.ICOP.com

    For Investor Relations:
    DC Consulting, LLC
    Daniel Conway
    Chief Executive Officer
    Phone: (407) 792-3332
    Email Contact
    Email Contact