Dallas, Nov. 19, 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 and nine
month periods ended September 30, 2014.
Third Quarter 2014 Financial
Results**
- The Company reported a year-over-year total revenue increase of
7% for total revenues of $1,302,267 for the three month period
ended September 30, 2014, compared to $1,212,141 for the same
period in 2013.
- Software subscription revenues increased year-over-year by 44%
to $701,424 for the three month period compared to $487,413 for the
same period in 2013.
- Hardware, installation and other revenues decreased
year-over-year by 17% to $600,843 for the three month period
compared to $724,728 for the same period in 2013. The decrease in
the quarterly revenue was due principally to a few contracts not
being completed in the third quarter of 2014 because of delays in
receiving third party and proprietary hardware. The completion of
these contracts and the related revenues and costs are expected to
be recognized in the fourth quarter of 2014.
- Total gross profits increased year-over-year by 160% to
$647,299, representing an overall gross margin percentage of 50%,
for the three month period compared to $249,267, representing an
overall gross margin percentage of 21%, for the same period in
2013.
- Total cost of sales decreased by $307,906 to $654,968 for the
three month period compared to $962,874 for the same period in 2013
for a year-over-year decrease of 32%.
- Total operating expenses, inclusive of R&D, increased by
$141,845 to $1,268,638 for the three month period compared to
$1,126,793 for the same period in 2013 for a year-over-year
increase of 13%. Of this increase, sales and marketing
expense increased by $95,416 to $398,607. G&A increased
$62,028 to $370,097 and R&D expenses decreased $15,599 to
$499,934.
- The Company reported a GAAP net loss of $692,374 ($0.00 per
share) for the three month period compared to a net loss of
$1,086,236 ($0.01 per share) for the same period in
2013.
Nine Month Financial Results**
- Total revenue for the nine month period ended September 30,
2014 increased 35% to $4,369,678 compared to $3,233,117 for the
same period in 2013.
- Software subscription revenues for the nine month period ended
September 30, 2014 increased 48% to $1,928,988 compared to
$1,301,369 for the same period in 2013.
- Hardware, installation and other revenues for the nine month
period ended September 30, 2014 increased 26% to $2,440,690
compared to $1,931,748 for the same period in 2013.
- Total gross profits for the nine month period ended September
30, 2014 increased 95% to $1,752,283 compared to $898,632 for the
same period in 2013.
- Total cost of sales for the nine month period ended September
30, 2014 increased 12% to $2,617,395 compared to $2,334,485 for the
same period in 2013.
- Total operating expenses, inclusive of R&D, for the nine
month period ended September 30, 2014 increased 5% to $3,668,793
compared to $3,479,985 for the same period in 2013.
- Cash consumed by operating activities was $2,320,681 for the
nine month period compared to $495,860 for the same period in
2013.
- The GAAP net loss for the nine month period ended September 30,
2014 decreased 26% to $2,096,735 ($0.01 per share) compared to
$2,850,203 ($0.02 per share) for the same period in 2013.
** For more information, see the Company's Form 10-Q filed with
the SEC on November 14, 2014.
"The company relentlessly continues to add law
enforcement agencies, courts and schools to its subscriber base of
approximately 1,100," said Ronald A. Woessner, COPsync chief
executive officer. "While the bulk of those subscribers are located
in Texas, we are beginning to see meaningful numbers of New
Hampshire schools subscribing to use the COPsync911 threat alert
service. The company's key performance indicators of software
subscription revenues, gross profit, operating expenses and
customer renewal bookings continue to trend favorably, although our
new order sales bookings are not yet where we want them to be,"
said Mr. Woessner.
He continued, "We continue to add Texas
customers and move the market closer to the 'tipping point' here in
our home base of Texas. As previously announced, we will be
expanding our sales efforts to key, target geographies throughout
the United States. In furtherance of these broader sales efforts,
we are embarking on a "nationwide scalability" R&D effort
focused on the twin objectives of moving the entirety of the
COPsync technology platform to the Microsoft Azure cloud and
developing new and enhanced features, functionality and products.
The fruits of these R&D efforts are expected to enable the
company's technology platform to "scale" nationwide and service
large law enforcement departments. After our early assessment of
the customer opportunities in our target key geographies, we
decided to accelerate this development effort so that we are
positioned to meet the increased customer demand if, as and when it
materializes in these target geographies."
About COPsync
COPsync, Inc. (OTCQB: COYN) operates the nation's largest law
enforcement, real-time, mobile data interoperability system and
network. 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 and communicate between
and among themselves across jurisdictional boundaries as if they
were one agency. The Network's companion COPsync911 threat alert
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 and local dispatch in the event of crisis.
The COPsync911 system is expected to reduce first responder
response times and save minutes in those situations when seconds
count. 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
the company logo, go to: 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 completion of these
contracts and the related revenues and costs are expected to be
recognized in the fourth quarter of 2014" and "The fruits of these
R&D efforts are expected to enable the company's technology
platform to "scale" nationwide and service large law enforcement
departments," are highly dependent on the Company's ability to
successfully procure and install the necessary hardware and develop
the company's technology platform and new or enhanced features,
functionality and products that can be and are sold in substantial
volumes to potential customers. 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