DALLAS, Nov. 7, 2016 /PRNewswire/ -- COPsync, Inc.
(NASDAQ: COYN), the developer and operator of the proprietary COPsync Network™, a communication system that protects
citizens from violence and domestic terrorism, and the proprietary COPsync911™ threat-alert system to safeguard schools and other
high-risk facilities, has today released a Letter to Shareholders from the Company's chief executive officer to provide an update
on current progress and outline its business plans for 2016 and 2017, as follows:
Dear Shareholders:
Loyal shareholders, both old and new: THANK-YOU for your continuing dedication and support of your Company and our mission to
create safer schools, safer communities and safer law enforcement. The purpose of this letter is to provide an update on your
Company's current progress and to provide insight into future plans from the perspective of the board of directors and Company
management. We are confident that our current course will lead to ever-increasing sales and a profitable business.
Your Company has surpassed many significant milestones in 2016. The total number of Network customers has increased 20%, from
647 in 2015 to currently 776. The number of states that have a COPsync presence has increased to 19 states, and the number of
COPsync911 locations has increased 23% from 950 to 1172. Of course, these numbers are approximate and change weekly as the
Company's dedicated sales team continues to expand the COPsync customer footprint.
Your Company continues to expand its footprint in Texas with 80% of its 254 counties having a
COPsync customer presence and 52% of the 254 Texas sheriff's offices subscribing to the Network. The Bexar County Sheriff's Office and the San Antonio Police Department,
located in Bexar County, are conducting an evaluation of the COPsync Network. The Company
believes that signing one or more major Texas law enforcement agencies, such as the Bexar County Sheriff's Office or the San Antonio Police Department, to the
COPsync Network sooner or later will create a 'tipping point' effect in Texas. This momentum is
expected to bring the bulk of the estimated 100,000 Texas law enforcement officers, comprising
approximately 8% of the law enforcement officers in the U.S., onto the COPsync Network.
The Harris County Department of Education (HCDE) in Houston, TX is also currently conducting
an evaluation of the COPsync911 threat-alert system to increase the safety and security of its campuses, students and faculty.
The HCDE is an important entry point for COPsync technology into the Houston metro area where
there are more than 100 law enforcement agencies and approximately 60 school districts that could be potential customers.
The Company believes these and other evaluations will ultimately evolve into paying customers.
Sales bookings have grown significantly over the last year. As expected, the Company's order bookings are increasing at a
faster pace than in previous years. For example, the 2015 sales order bookings were $455,000 in Q1,
$1.45M for Q2, $1.74M for Q3 and $922,000 for Q4. In contrast, 2016 sales order bookings have been $1.16M,
$1.44M, and $2.02M for the comparable quarters. You can see that the
Company's sales order bookings through Q3 2016 exceeded order bookings for all of 2015. This momentum is
continuing in Q4 of this year as October order bookings were $632,000 in comparison to October 2015 of $417,000. We have a strong sales pipeline for the remainder of
the year and expect this forward momentum to continue into 2017.
This acceleration of order bookings is attributable to the dogged determination and persistence of the Company's talented
sales team, which is executing a new sales strategy. The new strategy involves collaborating with law enforcement and school
industry subject matter experts and decision influencers, both in government and private industry. This strategy is expected to
decrease the sales cycle and increase the velocity of sales. The recently announced sales order in Paterson, NJ is an example of the shortened sales cycle. UN Ambassador and
former New York Giant, Jack Brewer, was instrumental in closing this particular sale. We expect
these factors to boost sales and revenue and provide a sustainable platform for growth.
We want to remind our shareholders of the power of the Company's recurring cash and revenue "software as a service" (SaaS)
business model. The COPsync Network and COPsync911 customers subscribe to a (typically) annual renewing, high-margin subscription
service -- supported by a relatively fixed-cost technology and people infrastructure. As with any SaaS business model, the
Company has incurred a material level of expense in creating a technology and people infrastructure that is designed to scale
throughout the US and other countries throughout the world. These expenses are expected to remain relatively fixed as customers
renew year-after-year in ever-increasing numbers at high retention rates, while the Company adds new subscribers at an
ever-increasing velocity.
This powerful combination of a relatively fixed cost infrastructure and an ever-increasing customer base with attractive
margins is expected to drive recurring cash and recurring revenue in ever-increasing amounts and result in profitability. This
recurring cash, recurring revenue business model positions your Company for sustainable and profitable growth for many years to
come. Other successful SaaS companies have demonstrated that this revenue and growth is reasonably predictable
year-after-year.
While your Company relies on renewing customers to increase revenue, we are relentlessly pursuing new customers. Your Company
has this year hired eight new sales staff to cover about 16 new states outside of Texas. Sales
resources will be focused in the densely populated states of New York/New Jersey, Florida, Illinois and
California. Private schools, particularly those in the Northeast, will be targeted for the
Company's COPsync911 threat-alert systems -- in addition to public schools, courthouses, government buildings and energy
infrastructure facilities.
To support this ever-increasing number of customers, the Company's technology infrastructure and technical support
capabilities continue to evolve to meet customer expectations and industry standards through the efforts of a brilliant and
motivated group of IT staff and truly dedicated support personnel. The operations team, consisting of on-boarding, procurement,
and installation and training professionals, continue to strengthen the Company's service offerings through their dedication and
commitment.
Your Company expects to continue to execute on its business plan and increase the velocity of business with the assistance of
a new member of the board of directors, well-known child safety advocate, Mr. Ward E. Leber.
COPsync911 sales in 2015 were only approximately 10% of total revenue. With the addition of about 200 school facilities from 2015
to 2016 and with Mr. Leber's guidance, we expect COPsync911 sales to have a more meaningful impact on future revenue.
Further, the Company expects the assistance of another new board member and seasoned financier, Mr. Brad Powers, will enable the Company to attract and secure non-toxic financing to increase its financial
strength. The Company also expects to begin considering accretive and attractive acquisition candidates sourced, in part, through
Mr. Powers' extensive business network.
Our shareholders will also be interested in learning that the COPsync Network fulfills the objectives of two key federal
government mandates. The first of which is the National Blue Alert Act of 2015. The Act is named after New York City Police officers Rafael Ramos and Wenjian Liu who were assassinated in December 2014 while sitting in their patrol
car in Brooklyn. The Act requires the Department of Justice to develop a national communications
network to disseminate officer safety alerts to law enforcement officers. It is evident that the COPsync Network already fulfills
the requirements of the Act since thousands of officers already are using the COPsync Network to
distribute and receive officer safety warning alerts in real-time and directly in their patrol cars.
Another important federal mandate already fulfilled by the COPsync Network is the First Responder Network Authority (FirstNet)
created by Congress in 2012 and accompanied with a reported $7 BILLION federal spending
authorization. The objective of the FirstNet Authority is to build, operate and maintain a high-speed, nationwide wireless
broadband public safety network to provide a single interoperable platform for emergency and daily public safety communications.
The COPsync Network provides such a platform for law enforcement officers. The Company is actively working to find an opportunity
to participate in the contracts flowing from this federal initiative in a meaningful manner.
Looking ahead, I am confident the Company's sales momentum, strengthened sales force and proven methodology, sound business
model, and new board members -- combined with expected financial resources -- will drive significant revenue growth and expand
the scope of the COPsync Network and the COPsync911 threat-alert system. The Company's board of directors, management team and
all employees strive with passion, diligence, incredible energy and skill every day to create safer
schools, safer communities and safer law enforcement.
We believe the COPsync Network and the COPsync911 threat-alert system will become an industry standard in the years to come,
and we are all very excited about the anticipated growth we envisage and that all stakeholders will witness in the future.
On behalf of those of us that have the privilege and honor to work for your Company – we thank you for your continued support
and loyalty and dedication to the cause of a safer America!
Sincerely,
Ronald A. Woessner
Chief Executive Officer
November 7, 2016
About COPsync, Inc.
COPsync, Inc. (NASDAQ: COYN) is a technology Company that connects law enforcement officers across the nation, so they can
communicate and share mission-critical information in real-time. This saves officers' lives and keeps the public safer; helps law
enforcement officers catch common criminals and stop child kidnappings, vehicle thefts, bank robberies and other crimes in
progress, and arms the nation's law enforcement officers with needed information so they can help defend against terrorism. For
more information, go to www.copsync.com.
Safe Harbor
Statements in this press release that are not purely historical facts or that depend upon future events, including statements
about forecasts of earnings, revenue, product development, sales, proposed financing transactions 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. For example, statements containing words like
"expect," "anticipate," "potential," "expects," "believe," "confident," "estimated," "future," "plan," "planning," "projected,"
"strategy," "pursuing," "objective" and other similar terms, express management's current views concerning future events, trends,
contingencies or results, which may be considered forward-looking statements. Specifically, the statements: "We are confident
that our current course will lead to ever-increasing sales and a profitable business "; "The Company believes that signing one or
more major Texas law enforcement agencies, such as the Bexar
County Sheriff's Office or the San Antonio Police Department, to the COPsync Network
sooner or later will create a 'tipping point' effect in Texas"; "This momentum is expected to
bring the bulk of the estimated 100,000 Texas law enforcement officers, comprising approximately
8% of the law enforcement officers in the U.S., onto the COPsync Network"; "The Company believes these and other evaluations will
ultimately evolve into paying customers"; "We have a strong sales pipeline for the remainder of the year and expect this forward
momentum to continue into 2017"; "This strategy is expected to decrease the sales cycle and increase the velocity of sales"; "We
expect these factors to boost sales and revenue and provide a sustainable platform for growth"; "These expenses are expected to
remain relatively fixed as customers renew year-after-year in ever-increasing numbers at high retention rates, while the Company
adds new subscribers at an ever-increasing velocity"; "This powerful combination of a relatively fixed cost infrastructure and an
ever-increasing customer base with attractive margins is expected to drive recurring cash and recurring revenue in
ever-increasing amounts and result in profitability"; "Your Company expects to continue to execute on its business plan and
increase the velocity of business with the assistance of a new member of the board of directors, well-known child safety advocate
Ward E. Leber"; "With the addition of approximately 200 school facilities from 2015 to 2016 and
with Mr. Leber's guidance, we expect COPsync911 sales to have a more meaningful impact on future revenue"; "Further, the Company
expects the assistance of another new board member and seasoned financier, Mr. Brad Powers, will
enable the Company to attract and secure non-toxic financing to increase its financial strength. The Company also expects to
begin considering accretive and attractive acquisition candidates sourced, in part, through Mr. Powers' extensive business
network"; "Looking ahead, I am confident the Company's sales momentum, strengthened sales force and proven methodology, sound
business model, and new board members -- combined with expected financial resources -- will drive significant revenue growth and
expand the scope of the COPsync Network and the COPsync911 threat-alert system"; "We believe the COPsync Network and the
COPsync911 threat-alert system will become an industry standard in the years to come, and we are all very excited about the
anticipated growth we envisage and that all stakeholders will witness in the future." These statements are highly dependent on
actual sales results and the Company's ability to execute its business and sales strategy. 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 update
publicly or revise any forward-looking statements, whether because of new information, future events or otherwise. Any
forward-looking 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 implement its business plans, raise sufficient capital, maintain its NASDAQ listing, or succeed in its sales strategy,
which may adversely affect the Company's business and the value of an investment in its equity securities. 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 Annual Report on Form
10-K for the year ended December 31, 2015, filed with the Securities and Exchange Commission.
Contact:
Investor Relations
Everest Corporate Advisors, Inc.
702-902-2361
702-982-1339
For COPsync:
Ronald A. Woessner
Chief Executive Officer
972-865-6192
invest@copsync.com
Media:
Cynthia Vetter
Director of Media
and Investor Relations
cvetter@copsync.com
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SOURCE COPsync, Inc.