Brekford Corp. Reports Positive Increase of 327% in Net Income for the First Quarter 2011
HANOVER, Md., May 13, 2011 (GlobeNewswire via COMTEX) — Brekford Reports Positive Increase in Net Income for First Quarter 2011.
Brekford Corp. (the “Company”) (OTCQB:BFDI), a leading homeland technology service provider of fully integrated vehicle installation services, rugged mobile technology solutions, and traffic safety solutions geared towards mission critical operations, is pleased to announce positive net income for fiscal first quarter 2011. First quarter performance includes 22.1% improvement in revenues, 74.8% increase in gross profit with a significant increase in net income of 326.8%.
Financial highlights for the first quarter 2011:
For the first quarter ended March 31, 2011, net sales totaled $4.1 million compared to $3.3 million for the first quarter of 2010, an increase of $ 0.743 million. Operating expenses increased 73% for the first quarter 2011 to $0.611 million compared to $0.352 million for the first quarter of 2010, as the result of an increase in expenses for the automated traffic enforcement program.
Net income for the first quarter of 2011 totaled $112,952 compared to $26,465 for the first quarter of 2010. Gross profit for the first quarter 2011 was $0.753 million compared to $0.431 million for the first quarter of 2010. Gross profit margin increased to 18% for the first quarter 2011 compared with 13% for the first quarter of 2010 due to new revenue stream from the automated traffic enforcement program. The Company expects gross margin to improve in the remaining quarters of the year as the automated traffic enforcement program gains acceleration with the implementation of new contracts in upcoming months.
As of March 31, 2011, the Company’s assets totaled approximately $5.9 million compared to approximately $4.5 million at the end of first quarter of 2010, an increase of 29.2 %. The Company’s cash position as of the end of first quarter of 2011 improved to total $2.3 million, up from $1.2 million at the end of first quarter of 2010, to reflect positive net income.
Company highlights first quarter ended March 31, 2011:
The Company continues its expansion into the automated traffic enforcement industry. With additional contracts expected to be added, the program should generate additional revenues in the following quarters. Brekford’s automated traffic enforcement solution is unique with its 360º approach by having its own hardware, software and a state of the art processing and call center. Brekford is consistently seeking to upgrade its services to provide premier service to its clients. With additional contracts expected to be added, the program is expected to generate additional revenues in the following quarters. Brekford’s automated traffic enforcement solution is unique with its 360º approach by having its own hardware, software and a state of the art processing and call center. Brekford is consistently seeking to upgrade its services to provide premier service to its clients.
In addition, the Company has been awarded indefinite delivery/indefinite quantity (IDIQ) contracts for over $4.0 million from a quasi-government utility over a period of one year with initial deliveries commencing during the first quarter of 2011.
C.B. Brechin, Chief Executive Officer of Brekford, commented: “The fact that Brekford continues to attain solid revenues is attributed to our trusted name in the public safety industry. We believe that our established relationships and reputation with public safety agencies will continue to play a crucial role in our expansion into the automated traffic enforcement industry. We are confident that with new markets opening up every day within the United States’ counties and municipalities, Brekford is poised for rapid growth in the remaining months, and we are very thrilled to be able to offer our shareholders value for their investments. We expect the growth of the automated traffic safety enforcement to continue with new opportunities in securing additional contracts from various towns and municipalities.”
For over a decade, Brekford has been providing services to the U.S. military, various federal entities and numerous security and public safety agencies throughout the United States with an end-to-end suite of mobile computer and video technology, vehicle upfitting services, and automated traffic safety solutions. Brekford is a one-stop shop with its unique 360-degree approach to vehicle upfitting services, cutting edge mobile and video technology, and automated traffic enforcement services for homeland security and law enforcement agencies. Additional information about Brekford may be found online at www.brekford.com
This press release contains forward-looking statements within the meaning of that term in Section 21E of the Securities Exchange Act of 1934, as amended. Actual results may differ materially from the results suggested by these forward-looking statements, for a number of reasons, including, but not limited to, market conditions, the cost and success of development activities and ability to successfully manage growth. Readers are referred to the documents filed by Brekford Corp. with the SEC, specifically the Company’s most recent reports filed on Form 10-K and Forms 10-Q, which further identify the important risks, trends and uncertainties which could cause actual results to differ materially from the forward-looking statements in this press release. The Company expressly disclaims any obligation to update any forward-looking statements.
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: Brekford Corp.
CONTACT:C.B. Brechin, CEO
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