SOURCE: iSECUREtrac

iSECUREtrac

August 14, 2012 14:14 ET

iSECUREtrac Corp. Reports Improvement in Net Loss -- Decline in Quarterly Income and Expenses

OMAHA, NE--(Marketwire - Aug 14, 2012) - iSECUREtrac Corp (OTCBB: ISEC), an industry leader in electronic monitoring solutions, released its financial results for the three months ended June 30, 2012.

Total revenue for the three months ended June 30, 2012 was $1,601,000, down $817,000, or approximately 33.8% from the $2,418,000 reported for the same period in 2011. Total expenses for the three months ended June 30, 2012 were $2,016,000, down $1,051,000, or approximately 34.3% from the $3,067,000 reported for the same period in 2011. 

   
   
   
Three Months Ended June 30, 2012 and 2011  
   
      Amounts in Thousands  
      2012     2011     Change     %  
                           
Revenue    $ 1,601     $ 2,418     $ (817 )   -33.8 %
                               
Expenses                               
  Cost of Revenue     684       763                
  Research & Development     162       228                
  Selling, General, Administrative     1,082       1,690                
  Interest     88       386                
Total Expenses     2,016       3,067     $ (1,051 )   -34.3 %
                               
Net Loss   $ (415 )   $ (649 )   $ 234        
                               
                               
                               

The Company's Chief Executive Officer, Lincoln Zehr, commented that "The decline in revenue was expected as the Commonwealth of Massachusetts transitioned to a new vendor. As we reported at the end of the first quarter, we have eliminated nearly $1 million in operating expenses from the Company's cost structure. Accordingly, the 34.3% decline in expenses was also expected.

The important thing to keep in perspective about the 2nd quarter results is that the decline in revenue is temporary whereas the decline in expenses is largely permanent -- positioning the Company extremely well for significant improvement in cash flow and a return to generating positive returns to shareholders.

Also at the end of the first quarter, we indicated that we expected revenue to decline, from the levels reported in the first quarter, for the three months ended June 30th as well as the quarter ending September 30, 2012. Based on what we know today -- we expect that the decline in revenue has bottomed out and we expect revenue to begin growing again in the quarter ending September 30, 2012."

"In summary, we believe we are on track with successfully implementing our current strategy, which will result in improving financial performance over the next several quarters, including a return to monthly positive cash flow as well as providing the platform and resources to continue increasing revenue and improve cash flow in 2013 and beyond."

Conference Call Information:
The Company's quarter-end conference call will be held Tuesday, August 21st, 2012, as follows:

Time: 3:30 PM Central - 4:30 PM Eastern
Dial-in number: 1-877-941-2068
International: 1-480-629-9712

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.

A taped replay of the conference call will be available from August 21, 2012 at 6:30 PM Central until August 28, 2012 at 10:59 PM Central.

Replay number: 1-877-870-5176
International Replay number: 1-858-384-5517
Replay Pin Number: 4560150

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.