SOURCE: SWAT

April 03, 2007 08:45 ET

Security With Advanced Technology Updates Preliminary Year-End Status and Results

WESTMINSTER, CO -- (MARKET WIRE) -- April 3, 2007 -- Security With Advanced Technology (NASDAQ: SWAT) and (NASDAQ: SWATW) announced today it has filed Form 12b-25 and will be filing its Form 10-KSB for the year ended Dec. 31, 2006 within the next fifteen days. The filing status and timing is a result of the extensive accounting and financial reporting matters associated with the acquisition of Vizer Group and Avurt International that was completed Dec. 31, 2006, as well as the completion of the recent $5.2 million private placement funding that was announced on March 27, 2007, and delays in processing certain accounting documents related primarily to the correct classification and recording of revenue that is directly attributable to performance issues involving the ShiftWatch™ TVS-300 product.

Preliminary estimates of year-end results reflect revenues of $296,000 which represents a 71.6 percent increase over 2005 revenues. The net loss expected to be reported is $8.6 million ($2.08 per share) as compared to a loss of $4.2 million reported for 2005 ($2.16 per share). Included in the 2006 results is an approximate $2.5 million, non-cash interest expense amount recorded relative to the beneficial conversion feature of the private placement that was completed in Oct. 2006. This non-cash expense had no effect on the net reported stockholders' equity total, as the expense was also a direct credit to total stockholders' equity.

"While correctly wrapping up the 2006 results is a priority that is being focused on, we are excited about the significant progress we have made in our business plan execution -- the $5.2 million funding we received in March accelerates development of our new line of personal protection devices and provides funding for the ShiftWatch hardware and software product needs, and the acquisition of Vizer Group and Avurt International expanded our portfolio in the security and personal protection markets," said Scott Sutton, president and CEO of SWAT. "We are diligently working through the financial reporting matters of the acquisition and recent funding, as well as the appropriate classification of revenue for our ShiftWatch business unit; these factors contributed significantly to the delay in filing our 10-KSB. We continue to be optimistic with significant revenue opportunities from new product introductions in the second quarter of 2007 and are currently testing the newest version of our ShiftWatch product and expect to commence deliveries in May."

SWAT is rapidly bringing patented technologies to the market and is scheduled to launch new products and services throughout the year. SWAT recently announced its VT-MK series of non-lethal projectile launchers for military and law enforcement agencies, as well as its non-lethal SafeMunitions™ weapon conversion unit, a unit that allows real firearms to safely fire marking and non-marking training projectiles.

SWAT also plans on releasing the Avurt IM-5, its consumer line of non-lethal projectile launchers, by the end of the second quarter. The Avurt IM-5 is a compact five-shot personal protection device that shoots an irritant filled projectile capable of disabling an attacker or suspect up to 50 feet away. There are currently no other products like it on the market.

During the next several days, SWAT will announce the scheduled timing and call in numbers for the year-end investor call and related web presentation.

About Security With Advanced Technology, Inc.

Security With Advanced Technology, Inc. is a leading provider of high-tech security products and services, which include non-lethal personal protection devices, surveillance and intrusion detection systems and mobile digital video surveillance solutions. SWAT's products and services are designed for government agencies, military and law enforcement, in addition to transportation, commercial facilities and non-lethal personal protection segments. For additional information visit www.swat-systems.com or call the corporate headquarters at (800) 498-7965.

Forward-Looking Statement

This press release includes "forward-looking statements" as defined by the Securities and Exchange Commission (the "SEC"). All statements, other than statements of historical fact, included in the press release that address activities, events or developments that the company believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made based on experience, expected future developments and other factors the company believes are appropriate under the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company and may not materialize. Investors are cautioned that any such statements are not guarantees of future performance. Actual results or developments may differ materially from those projected in the forward-looking statements as a result of many factors. Furthermore, the company does not intend (and is not obligated) to update publicly any forward-looking statements, except as required by law. The contents of this release should be considered in conjunction with the warnings and cautionary statements contained in the company's recent filings with the SEC.

Contact Information

  • Media Contact:
    Heather Black
    303-952-3434