DALLAS, March 27, 2014 (GLOBE NEWSWIRE) -- COPsync, Inc., which operates the nation's largest law enforcement real-time, in-car information sharing, communication and data interoperability network, announces preliminary, unaudited financial results for the fiscal year ended December 31, 2013.
Annual 2013 Financial Highlights*
- The Company reported a year-over-year revenue increase of 46.5% relating to record total revenues of $4,726,000 for 2013, compared to total revenues of $3,225,000 for 2012.
- Revenues for recurring, software license/subscription revenues were $1,781,000 for 2013 compared to $1,561,000 for the same period in 2012, for a year-over-year increase of 14.1%.
- Contracted new sales bookings were $5,583,000 for 2013 compared to $2,913,000 for 2012, for a year-over-year increase of 91.7%.
- Total operating expenses, inclusive of R&D expenses, were $4,846,000 for 2013 compared to $5,035,000 for 2012, a year-over-year decrease of 3.8%.
- R&D expenses were $2,158,000 for 2013 compared to $2,218,000 for 2012, for a year-over-year decrease of 2.7%.
- The Company reported a GAAP net loss of $3,898,000 ($0.02 per share) for 2013 compared to a net loss of $4,307,000 ($0.03 per share) for 2012.
- Cash consumed in operating activities for 2013 was $625,000 compared to $2,699,000 for 2012, for a year-over-year decrease of 76.8%.
* The Company's audited financial results will appear in the Company's Annual Report on Form 10-K, which is due to be filed with the SEC on or about March 31, 2014.
"The Company continued to make significant R&D investments in 2013, including a significant investment to develop the newly-introduced COPsync911 threat alert service," said Ronald A. Woessner, COPsync chief executive officer. "The COPsync911 service is the only threat alert service in the U.S. that enables teachers and other personnel in schools, government buildings, energy, telecommunications and other potentially at-risk facilities to send an alert from a classroom or office or from any mobile device directly to the patrol officers in their cruisers and engage in an interactive "chat" discussion with the officers and local dispatch while the first responding officers are en-route. Also funded, were infrastructure and database initiatives to enhance the scalability of the Company's information sharing and communication network to support foreseeable accelerated growth in the number of officers and agencies using the COPsync Network and facilities safeguarded by the COPsync911 threat alert service."
Outlook for 2014
Mr. Woessner continued, "Despite these substantial R&D investments, the Company in 2013 significantly reduced its cash consumed in operating activities to $625,000. We plan to reduce our non-customer funded R&D expenses this year by approximately $700,000 to cover this gap. We also expect our 2014 sales bookings and payments from renewing customers, who we expect to continue to renew at or above the historical rate of 95%, collectively to outpace comparable 2013 activity. The Company believes it will achieve cash-flow breakeven sometime in 2014 as a result of these actions."
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 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 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 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 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 obtain and retain customers and development, implementation and acceptance of its products and services. In particular, the statements, "We also expect our 2014 sales bookings and payments from renewing customers, who we expect to continue to renew at or above the historical rate of 95%, collectively to outpace comparable 2013 activity. The Company believes it will achieve cash-flow breakeven sometime in 2014 as a result of these actions" 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 forthcoming filing on Form 10-K with the Securities and Exchange Commission.