LOS ANGELES, Dec. 02, 2016 (GLOBE NEWSWIRE) -- Blow & Drive Interlock Corp, (OTCQB:BDIC) announced that the company has issued a letter to shareholders to provide an update on the company's recent progress.
Dear Shareholders,
BDIC announces Q3 Results. BDIC is pleased to announce that quarter over quarter revenue growth is up over 50%. Additionally, our gross profit increased, quarter over quarter, by 60% while we simultaneously reduced our cost of revenues by 18%. This is a result of operational efficiencies achieved by the entire team here at Blow & Drive. On behalf of all shareholders, I want to personally thank those involved for making this huge operational accomplishment a reality.
Revenue of $143,756 for the 3rd quarter beat projections of $114,000. We increased our gross profit to $134,859 for the quarter and we are just getting started, as these 3rd quarter numbers are prior to BDIC securing funding from The Doheny Group. Once, we complete the production and deployment of these 1,600 units we believe our reoccurring revenue and assets will meet requirements to move our listing up to the QX marketplace or NASDAQ exchange based on revenue and asset requirements.
These are exciting times for BDIC, we are in the process of completing the production of 1,600 additional units and we have immediate demand for this quick ramp up in production. Our sales team continues to work hard and once these 1,600 units are monetized we will have secured 1% of the U.S. Interlock market in approximately 14 months.
While BDIC is technically approved in eleven states, currently, we are functionally operating in only seven. We expect that now, because we have secured funding from an institutional investor, the massive increase in cash flow should commence immediately as we begin to deploy those new units. I anticipate that as we receive and deploy the 1,600 units currently in production, and add them into our reoccurring revenue stream, we should have the capacity to begin self-financing continued production growth. I want to thank The Doheny Group for making this type of explosive growth possible. Without this investment of almost a million dollars our growth would have been significantly slower.
Results of the recent election may dramatically increase the revenue potential of our business. The legalization of marijuana, increased enforcement of impaired driving, and stricter regulation are just a few of a combination of factors that are quickly expanding this market. We believe most states will follow the model Colorado has set out with their “Drive High Get a DUI” enforcement campaign. This would obviously expand the total market for ignition interlocks very significantly.
We set out to become a pre-eminent manufacturer and provider in the criminal monitoring space and we are proud that our business helps keep the streets and lives safe. In the almost three-years of public flings we have accomplished everything we said we were going to, and more. I am hopeful that our shareholders believe that we will continue to execute our business plan and establish a nationwide interlock company worthy of a national exchange up listing. To appreciate the significance of all that BDIC has accomplished, one must understand the monumental task it is to become a provider of Ignition interlocks in any state, let alone every state. These units must meet strict and specific guidelines and the capital requirements are significant.
As the CEO, I would like to personally reassert my confidence that BDIC has the right plan in place, we are continuing a pattern of hiring the right people, and we are doing everything imaginable to put us in the best possible position for success. We have established a solid track record over three years of public filings demonstrating our successful ability to execute on material commitments made to shareholders.
The SEC has approved Twitter for investor relations and communication and, if there are any concerned investors, we encourage you to reach out to us at @blowanddrive.
Sincerely,
Laurence Wainer
CEO
FORWARD-LOOKING DISCLAIMER
This report may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of mentioned company to be materially different from the statements made herein.