CANYON LAKE, Texas, May 18, 2010 (GLOBE NEWSWIRE) -- COPsync, Inc. (OTCBB:COYN), a software technology provider to law enforcement, emergency service and public safety professionals, has reported financial results for the first quarter ended March 31, 2010.
During the first quarter of 2010, the Company generated total revenue, using generally accepted accounting principles (GAAP), of $311,124, resulting in a gross profit of $16,465. During the quarter, the Company's primary business activities included the sale and implementation of an open architecture data collection and information sharing software product for law enforcement, COPsync™. For the three month period ended March 31, 2010, total revenues were $311,124, including $262,389 in hardware, installation and other revenue and $48,735 in license fee revenues, compared to $4,169 for the three month period ended March 31, 2009, all of which was hardware, installation and other revenue. The increase in license fee revenue was due to increasing sales following the release of COPsync, for licensing and the recognition of deferred revenue in the first quarter of 2010 from previously executed license agreements. For the three month period ended March 31, 2010, the Company's cost of revenues was $294,659, resulting in a gross profit of $16,465, compared to cost of revenues of $39,641 for the three months ended March 31, 2009, resulting in a gross loss of $35,472.
The Company's management believes that "gross cash receipts" is useful to measure the performance of the Company's sales efforts in any given period. Gross sales receipts, which quantifies actual cash received by the Company from its sales efforts, is calculated by adjusting recorded total revenue by changes in the amount of the Company's deferred revenues, net of deferred costs, and changes in the amount of recorded revenue reflected in the Company's accounts receivable. During the first quarter of 2010, the Company generated gross cash receipts of $576,569, including $311,124 in total GAAP revenue for the period, and a net increase of $236,651 in deferred revenues, net of deferred costs, during the period and a net decrease of $28,794 in recognized revenues reflected in accounts receivable during the period, versus $1,153,914 in gross cash receipts for the full year ended December 31, 2009. The Company began selling and installing hardware required to run the COPsync software in the first quarter of 2009.
According to the CEO of COPsync, Russell Chaney, "I am extremely pleased with our performance in the first quarter of 2010. When you compare first quarter gross cash receipts to the gross cash receipts for all of 2009, you can easily see our progress. I firmly believe our geographic footprint will continue to expand as more law enforcement agencies find out about our Company and begin to adopt our technology to facilitate true law enforcement information sharing."
COPsync not only enhances productivity and quality of work for law enforcement officers, but also creates a safer work environment for the public safety community by providing the first real-time, in-car, public safety information sharing network. The software shares critical law enforcement data collected by all agencies on the system regardless of their geographical location in real-time, in the patrol car environment, at the point of incident.
The complete quarterly report, including management's discussion and analysis of financial condition and results of operations, financial statements, and notes can be found on the Securities Exchange Commission's website at www.sec.gov. ( http://www.sec.gov/cgi-bin/browse-edgar?company=copsync%2C+inc&match=&CIK=coyn&filenum=&State=&Country=&SIC=&owner=exclude&Find=Find+Companies&action=getcompany )
About COPsync, Inc.
COPsync, Inc. (OTCBB:COYN) is positioned to become one of the fastest growing software technology providers to law enforcement and emergency service professionals worldwide. COPsync, Inc. is the only law enforcement software provider to provide full data collection and information sharing capabilities to all subscribing agencies in real time at the point of incident directly to the patrol officer. For more information, please visit http://www.COPsync.com/.
The COPsync, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5203
Forward-Looking Statements
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements in this news release looking forward in time involve risks and uncertainties, including the risks associated with the effect of changing economic conditions, product market trends, variations in the company's cash flow, market acceptance risks, technical development risks, seasonality and other risk factors detailed in the company's Securities and Exchange Commission filings. The Company undertakes no obligations to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.