SOURCE: iSECUREtrac

iSECUREtrac

November 10, 2010 10:16 ET

iSECUREtrac Corp. Reports Continued Operating Income and Positive Cash Flow From Operating Activities Despite Decrease in Revenue

OMAHA, NE--(Marketwire - November 10, 2010) - iSECUREtrac Corp. (OTCBB: ISEC), an industry leader in electronic monitoring solutions, today announced that Equipment and Service revenues for the quarter ended September 30, 2010 was $2.6 million, down 13% from the $3.0 million reported for the same quarter in 2009. Total revenue which includes equipment and service revenue and also royalty revenue declined 18%.

The Company reported operating income for the quarter ended September 30, 2010 of $97,000, an improvement of $170,000, over the $73,000 operating loss reported for the same period in 2009. Without the change in estimated useful life effected in the quarter ended June 30, 2010, the operating loss for the quarter ended September 30, 2010 would have been $110,000.

Lincoln Zehr, Chief Financial Officer of iSECUREtrac pointed out that "The Company's performance for the quarter ended September 30, 2010 is actually much better than it might initially appear for several reasons. First, the Company returned to generating positive cash flow from operating activities this quarter. Second, the decline in Equipment and Services revenue, which is largely attributable to lower average daily lease rates, actually occurred in the 4th Quarter of 2009 and 1st Quarter of 2010. Compared to the quarter ended March 31, 2010, Equipment and Service revenue for the quarter ended September 30, 2010 is actually up 2%." Zehr went on to note that "In absolute dollars, Research & Development and Selling, General and Administrative expenses are the lowest in nearly five years, and as a percentage of revenue -- Research & Development and Selling, General and Administrative expenses are the lowest in the history of the Company."

President and Chief Executive Officer, Peter Michel, commented, "While contracts signed over the past three to four months remain slow to roll out and the revenue growth has been slower than we would like, we remain very optimistic about prospects for revenue growth and cash flow positive operations. In addition, the agreement in principle with Crestpark LP, Inc to restructure and extend, to 2015, the maturity date of all of our credit facilities significantly strengthens the Company's financial condition and is a strong indication of the commitment Crestpark has to the eventual success of the Company."

Conference Call Information:
As a reminder, the Company's 3rd Quarter 2010 earnings call will be held this afternoon as follows:

Time: 3:30 PM Central - 4:30 PM Eastern
Dial-in number: 1-877-941-1429
International: 1-480-629-9666

Please dial in 5-10 minutes prior to the start. An operator will request your name and organization and ask you to wait until the call begins. If you have any difficulty connecting, please call iSECUREtrac at (866) 537-0022.

About iSECUREtrac
iSECUREtrac Corp. provides electronic monitoring systems, client management software and supplemental services for use in community supervision. The company's rich stream of reliable data concerning a client's location, movement and status better enables effective compliance management and positive behavior modification. Visit www.isecuretrac.com for more information.

Safe Harbor
This press release contains forward-looking statements that, if not verifiable historical fact, may be viewed as forward-looking statements that could predict future events or outcomes with respect to iSECUREtrac Corp. and its business. The predictions embodied in these statements will involve risks and uncertainties and accordingly, iSECUREtrac's actual results may differ significantly from the results discussed or implied in such forward-looking statements.