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.