NEW YORK, NY / ACCESSWIRE / April 14, 2015 / SeeThruEquity, a leading New York City based independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced that it has issued a company note on COPsync, Inc. (OTCQB: COYN), a company that operates the largest law enforcement mobile data information system and interoperability network in the U.S. and sells a unique real-time threat alert system for schools and other at-risk facilities that connects facilities under threat to the nearest law enforcement patrol units and the local dispatch center in seconds.
The note is available here: COYN Company Note - April 2015. SeeThruEquity is an approved equity research contributor on Thomson First Call, CapitalIQ, FactSet, and Zack's. The report will also be available on these platforms. We also contribute our estimates to Thomson Estimates, the leading estimates platform on Wall Street.
"We see the addition of Louisiana as a nice addition to the company's existing network of customers, which includes Texas, Massachusetts, Mississippi, and New Hampshire. We expect management to add new states during 2015 but also to focus on increasing penetration and use of the system in existing territories to try to create highly penetrated regions where the platform reaches a critical mass," commented Ajay Tandon, CEO of SeeThruEquity. "We are maintaining our price target of $0.57 per share."
Highlights of note are as follows:
Revenues increase to end the year on an upbeat note
COPsync released fiscal 2014 results on April 1, 2015, with sales increasing year-over-year by 25.1% to reach $5.9mn, versus $4.7mn in 2013 and our estimate of $7.6mn. For the quarter, COPsync revenue grew 18% sequentially to reach $1.54mn, up from $1.30mn in 3Q14. The company now has approximately 650 unique customers, and there are over 730 locations using the COPsync911 threat alert system. This represents nearly 50% customer growth since we initiated on the company a year ago.
Adding experience to sales team to drive growth in 2015
New sales bookings in 2014 came in at $4.5mn, while billings from renewing customers was $1.5mn. COPsync executed approximately 347 service agreements during 2014, a 21.7% increase from approximately 285 in 2013. The company also announced it had recently expanded into Louisiana, a nice win for COPsync. Deferred revenue was $3.6mn at the end of 2014, versus $3.9mn in 2013. COPsync management indicated that it in an effort to accelerate bookings it would seek to add experienced sales talent to its team and expects growth in these areas during 2015.
Strong growth in higher margin recurring solutions
We see building an increasing base of software and subscription services as crucial to COPsync building a predictable, profitable growth business over time. COPsync made good progress in this area during 2014. Revenue from recurring, software licenses and subscription services increased by 49% in 2014 to $2.7mn from $1.7 in 2013. Software licenses and subscription services increased to 45.0% of total revenue versus 37.7% in 2013.
Improving margin structure
In addition to improved visibility, the increasing contribution from recurring software and subscription revenues also improves the margin structure at COPsync. Software and subscription services carry high incremental gross margins, and we see growth in this area as key to the company's achieving sustainable free cash flow. Indeed, gross margins from subscription and software revenues expanded to 60% in 2014 from 46% in 2013. Overall gross margins were 38% due to the impact of lower margin hardware revenues, but expanded by 11% from 27% in 2013. EPS came in at ($0.02), below our estimate of ($0.01) and even with 2013 levels.
Please review important disclosures on our website at www.seethruequity.com.
About COPsync, Inc.
COPsync, Inc. operates the largest law enforcement mobile data information system and interoperability network in the U.S. The COPsync Network enables officers to report and share actionable, mission-critical data and communicate 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 campuses, government buildings, energy, telecommunications and other potentially at-risk facilities to automatically and silently send threat alerts directly to local law enforcement officers in their patrol cars and local dispatch 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(R), an in-vehicle, software-driven video system for law enforcement.
For more information, visit www.copsync.com and www.copsync911.com.
About SeeThruEquity
SeeThruEquity is an equity research and corporate access firm focused on companies with less than $1 billion in market capitalization. The research is not paid for and unbiased. We do not conduct any investment banking or commission based business. We are approved to contribute our research to Thomson Reuters One (First Call), CapitalIQ, FactSet, Zacks and distribute our research to our database of opt-in investors. We also contribute our estimates to Thomson Estimates, the leading estimates platform on Wall Street.
For more information visit www.seethruequity.com.
Contact:
Ajay Tandon
SeeThruEquity
info@seethruequity.com
SOURCE: SeeThruEquity