SOURCE: Law Enforcement Associates

Law Enforcement Associates

May 16, 2011 09:32 ET

Law Enforcement Associates Reports First Quarter Financial Results

RALEIGH, NC--(Marketwire - May 16, 2011) - Law Enforcement Associates Corporation (LEA) (OTCBB: LAWE), a leading U.S.-based developer and manufacturer of electronic surveillance equipment, today announced financial results for its first fiscal quarter ended March 31, 2011.

First quarter net sales were $1.1 million versus $1.2 million in the first quarter last year. The decline was attributable to delays in the receipt of equipment from various vendors, which led to shipping delays on multiple orders. Gross margin increased to 30% from 26% in the comparable year-ago quarter. The gross margin improvement was due to the Company's shift to a more profitable product mix.

The Company reduced its operating loss to $331,000 from $417,000 in the year-ago first quarter. Net loss was $330,000, or $0.01 per share, versus a net loss of $267,000, or $0.01 per share, in the comparable quarter of 2010. Last year's first quarter net loss was positively impacted by a $161,000 income tax benefit.

"Demand for our new video surveillance products continued to improve during the first quarter," said Paul Briggs, president and CEO. "Had we shipped all of the orders that were in our backlog at March 31, our top-line results would have surpassed the revenue we reported in last year's first quarter by a significant margin."

Briggs said order volume has been particularly strong for LEA's new Live Link Mobile Video Surveillance Systems and Scorpion Bluetooth Video Recorders.

"The efforts we have made to enter industries outside our traditional law enforcement market are paying off," Briggs added. "We are pursuing several order opportunities for our Live Link platform within the railway and oil and gas industries, where there is increased focus on advanced security and surveillance systems. Demand for our Scorpion micro cameras is coming primarily from our core law enforcement market, where many agencies are equipping officers with lightweight, on-body video recorders in an effort to augment evidence collection during arrests and investigations."

Briggs said the Company is working with vendors to secure the equipment necessary to address current demand. Management also is preparing for the trial associated with the previously discussed asset purchase agreement litigation. The trial is scheduled to start on June 6, 2011.

Detailed information about LEA's first quarter financial performance is available at:
http://www.sec.gov/Archives/edgar/data/1165921/000119312511139454/d10q.htm

Information about LEA's Live Link and Scorpion products are available at LEA's online store, located at:
http://www.leacorp.com/pages/online-store.html

About Law Enforcement Associates Corporation
LEA is a leading security and surveillance technology Company that manufactures and markets a diverse product line to the worldwide law enforcement, military, security and corrections markets. The Company's Audio Intelligence Devices (AID) division has been serving the law enforcement sector for more than 30 years and is one of the most respected names in the surveillance equipment industry. LEA's products are used by a wide variety of government and non-governmental agencies, as well as public and private companies. These include military bases, nuclear facilities, embassies, government installations, oil refineries, United Nations and NATO locations. LEA's products have been used at high-profile events such as the Summer & Winter Olympics, Super Bowl, U.S. Golf Championship, and the Democratic and Republican National Conventions. Its products include the Under Vehicle Inspection System (UVIS), EDK123 (Explosive Detection Kit), Bloodhound and Birddog GPS Tracking Systems, Graffiti Cam, Letter-bomb Visualizer Spray, and a wide variety of Audio & Video Surveillance Equipment. Headquartered in Raleigh, N.C., the Company has been featured in many industry publications and websites. For more information, please visit www.leacorp.com.

Forward-Looking and Cautionary Statements
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Among other things, these statements relate to our financial condition, results of operations and future business plans, operations, opportunities and prospects. In addition, we and our representatives may from time to time make written or oral forward-looking statements, including statements contained in filings with the Securities and Exchange Commission and in our reports to stockholders. These forward-looking statements are generally identified by the words or phrases "may," "could," "should," "expect," "anticipate," "plan," "believe," "seek," "estimate," "predict," "project" or words of similar import. These forward-looking statements are based upon our current knowledge and assumptions about future events and involve risks and uncertainties that could cause our actual results, performance or achievements to be materially different from any anticipated results, prospects, performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements are not guarantees of future performance. Many factors are beyond our ability to control or predict. You are accordingly cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date that we make them. For description of factors that may cause actual results to differ materially from such forward-looking statements, see the Company's Annual Report on Form 10-K for the year ended 2010, and other reports from time to time filed or furnished to the Securities and Exchange Commission. We do not undertake to update any forward-looking statement that may be made from time to time by us or on our behalf.

Contact Information

  • Contact:
    Pfeiffer High Investor Relations, Inc.
    Geoff High
    303-393-7044