Dallas, May 28, 2014 (GLOBE NEWSWIRE) -- COPsync, Inc. (OTCQB: COYN), which operates the
nation's largest law enforcement real-time, in-car information
sharing, communication and data interoperability network and the
COPsync 911 threat alert service for schools, government
buildings, hospitals and other potentially at-risk targets,
announces unaudited financial results for the three month period
ended March 31, 2014.
Q1 2014 Financial
Highlights**
- The Company reported a year-over-year revenue increase of 29.2%
for total revenues of $1,487,820 for the three month period ended
March 31, 2014, compared to $1,151,129 for the same period in
2013.
- Software subscription revenues increased year-over-year by
46.7% to $582,889 for the three month period compared to $397,267
for the same period in 2013.
- Hardware, installation and other revenues increased
year-over-year by 20% to $904,931 for the three month period
compared to $753,862 for the same period in 2013.
- Total gross profits increased year-over-year by 38.8% to
$567,407, representing an overall gross margin percentage of 38.1%,
for the three month period compared to $408,903, representing an
overall gross margin percentage of 35.5%, for the same period in
2013.
- Total cost of sales increased by $178,187 to $920,413 for the
three month period compared to $742,226 for the same period in 2013
for a year-over-year increase of 24%.
- Total operating expenses, inclusive of R&D, increased by
$169,677 to $1,303,134 for the three month period compared to
$1,133,457 for the same period in 2013 for a year-over-year
increase of 15%. Of this increase, R&D expenses increased
$103,407 to $553,004 and G&A increased $70,033 to
$433,173.
- Cash consumed by operating activities was $656,028 for the
three month period compared to $27,726 for the same period in
2013.
- The Company reported a GAAP net loss of $746,774 ($0.00 per
share) for the three month period compared to a net loss of
$729,283 ($0.00 per share) for the same period in
2013.
** For more information, see the Company's Form 10-Q filed with
the SEC on May 15, 2014.
"The Company's cash consumption for Q1 is not
reflective of the Company's expectations for the full year," said
Ronald A. Woessner, COPsync chief executive officer. "R&D
spending was heavily weighted to Q1 as the Company made feature
enhancements to its COPsync911 threat alert service and continued
to invest in infrastructure and database initiatives to enhance the
scalability of the COPsync information sharing and communication
Network. Also, the Company naturally experienced a significant
increase in its cost of sales, which reflects the increasing number
of the Company's subscribers. Cash consumption is expected to abate
significantly throughout the year as planned reductions in
non-customer funded R&D expenses take effect, as payments are
collected from the ever-increasing number of renewing subscribers
and as new order bookings accelerate through the efforts of a
larger and realigned sales team."
Mr. Woessner continued, "In the meantime, the
Company relentlessly continues to add subscribers, now numbering
over 440 courts and law enforcement agencies for the COPsync
Network, plus an approximate another 440 facilities, mainly
schools, for the COPsync911 threat alert service. These
subscribers, currently located almost exclusively in Texas and
situated in 70% of the 254 Texas counties, are creating leverage to
reach the "tipping point" here in Texas. They also comprise the
foundation for a future broader launch of the COPsync Network and
the COPsync911 threat alert service throughout the country, which
is the next phase of the Company's blueprint to create one
nationwide network connecting law enforcement throughout the United
States."
About COPsync
COPsync, Inc. (OTCQB: COYN) operates the largest law enforcement
mobile data interoperability system and network in the U.S. The
COPsync Network enables officers to report and share actionable
mission-critical data in real-time and collect for outstanding
misdemeanor warrants in real-time at the point of incident.
Officers are also able to obtain instant access to local, state and
federal law enforcement databases. The Network's companion
COPsync911 system enables schools, government buildings, hospitals,
energy, telecommunications and other potentially at-risk facilities
to automatically and silently send threat alerts, using a computer
or a mobile device, directly to local law enforcement officers in
their patrol cars in the event of crisis, thereby protecting
schools, school children and others. The COPsync Network also
eliminates manual processes and increases officer productivity by
enabling officers to electronically write tickets, accident
reports, DUI forms, arrest forms and incident and offense reports.
The COPsync Network saves lives, reduces unsolved crimes and
assists in apprehending criminals and interdicting criminal
behavior -- through such features as a nationwide officer safety
alert system, GPS/auto vehicle location and distance-based alerts
for crimes in progress, such as school crisis situations, child
abductions, bank robberies and police pursuits. The Company also
sells VidTac®, an in-vehicle, software-driven, 1080p video system
for law enforcement. For more information, visit www.copsync.com
and www.copsync911.com. For company logo, see:
http://www.globenewswire.com/newsroom/prs/?pkgid=13013.
.Safe Harbor Statement
Statements in this release that are not purely
historical facts or that depend upon future events, including
statements about forecasts of earnings, revenue, product
development, sales or other statements about anticipations,
beliefs, expectations, intentions, plans or strategies for the
future, may be forward-looking statements within the meaning of
Section 21E of the Securities Exchange Act of 1934, as amended.
Readers are cautioned not to place undue reliance on
forward-looking statements. All forward-looking statements
are based on information available to the Company on the date this
release was issued. The Company undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise. Any
statements involve risks and uncertainties that could cause actual
events or results to differ materially from the events or results
described in the forward-looking statements, including risks or
uncertainties related to the Company's ability to obtain and retain
customers and development, implementation and acceptance of its
products and services. In particular, the statements, "The
Company's cash consumption for Q1 is not reflective of the
Company's expectations for the full year," and "Cash consumption is
expected to abate significantly throughout the year as planned
reductions in non-customer funded R&D expenses take effect, as
payments are collected from the ever-increasing number of renewing
subscribers and as new order bookings accelerate through the
efforts of a larger and realigned sales team" are highly dependent
on the Company's ability to successfully book new orders for its
products and services and renew its existing customers at
anticipated renewal rates. The Company may not succeed in
adequately addressing and managing these and other risks. Further
information regarding factors that could affect the Company's
financial, operating and other results can be found in the risk
factors section of the Company's filing on Form 10-K for 2013 and
other filings the Company may make with the Securities and Exchange
Commission from time-to-time.
CONTACT: COPsync, Inc.
Ronald A. Woessner
Investor Relations Department
972-865-6192
invest@copsync.com