Results Reflect Revenue Ramp-up Underway; Sales Up 176% on
Sequential Quarter-Over-Quarter Basis LENEXA, Kan., Nov. 10
/PRNewswire-FirstCall/ -- ICOP Digital, Inc. (NASDAQ:ICOP)
(PCX:ICOP), a leading provider of digital in-car video systems for
law enforcement, today reported its financial results for the
three- and nine-month periods, ended September 30, 2005. Financial
Highlights for the Three-Month Period Ended September 30, 2005
Compared to Same Three Month Period Ended September 30, 2004: *
Revenues increased to approximately $903,000 from $0; on a
sequential quarter-over-quarter basis, revenues grew 176%, up from
$327,000 reported for the three months ended June 30, 2005. * Gross
profit margin for the current three month reporting period was 42%;
this compared to a gross profit margin of 27% for the three months
ended June 30, 2005. * Net Losses decreased 35% to approximately
$500,000, or $0.11 basic and diluted loss per share, compared to
net losses of approximately $770,000, or $.48 basic and diluted
loss per share. Financial Highlights for the Nine-Month Period
Ended September 30, 2005 Compared to Same Nine-Month Period Ended
September 30, 2004: * Revenues rose to $1.23 million from $0. * Net
losses modestly decreased to $1.69 million, down 4% from $1.75
million. As of September 30, 2005, the Company had approximately
$4.4 million in cash and receivables and total stockholders' equity
of approximately $6.3 million. Current available working capital
stands at $5.77 million. Dave Owen, Chief Executive Officer of
ICOP, stated, "We remain very pleased with the financial and
operational excellence that ICOP continues to demonstrate as we
proceed with the aggressive global roll-out of the ICOP Model
20/20(TM). Following the completion of our offering in July, ICOP
began building a highly talented national sales team that has
readily achieved strong initial market penetration and established
a robust pipeline of solid prospects that we are vigorously
pursuing. During the third quarter, ICOP shipped 161 units to 32
law enforcement agencies located throughout the United States, and
have advanced discussions with potential customers in Europe and
the Middle East. We are especially pleased with the rate at which
we are receiving re-orders from existing customers and expect that
this trend will continue, and accelerate, as we progress our
concentrated sales and marketing effort." Continuing, Owen added,
"As we fast approach the end of 2005, the strong momentum we've
achieved since launching commercial product sales this past summer
gives us reason to feel highly confident that ICOP will perpetuate
its early success well into the foreseeable future." ICOP Digital
will host a teleconference this afternoon beginning at 4:15 PM
Eastern, and invites all interested parties to join management in a
discussion regarding the Company's financial results, corporate
progression and other meaningful developments. The conference call
can be accessed via telephone by dialing toll free 1-800-240-5318
or via the web at http://www.icop.com/ . For those unable to
participate at that time, a replay of the web cast will be
available for 90 days on http://www.icop.com/ . ICOP DIGITAL, INC.
BALANCE SHEET (Unaudited) As of September 30, 2005 Assets Current
assets: Cash $3,836,924 Accounts receivable, net 611,583
Inventories, at cost 2,187,356 Prepaid expenses 101,697 Total
current assets 6,737,560 Property and equipment, less accumulated
depreciation of $99,959 502,162 Other assets: Deferred patent costs
61,480 Security deposit 15,000 $7,316,202 Liabilities and
Shareholders' Equity Current liabilities: Accounts payable $662,106
Accrued liabilities 274,163 Current maturities of long-term debt
28,261 Total current liabilities 964,530 Long-term debt, net of
current maturities 83,678 Total liabilities 1,048,208 Shareholders'
equity: Preferred stock, no par value; 5,000,000 shares authorized,
0 shares issued and outstanding -- Common stock, no par value;
50,000,000 shares authorized, 4,828,182 shares issued and
outstanding 15,202,433 Accumulated other comprehensive income, net
of tax 19,120 Retained deficit (8,953,559) Total shareholders'
equity 6,267,994 $7,316,202 ICOP DIGITAL, INC. STATEMENTS OF
OPERATIONS (Unaudited) Three Months Nine Months Ended Ended
September 30, September 30, 2005 2004 2005 2004 Sales, net of
returns $902,297 $-- $1,229,691 $-- Cost of sales 523,911 --
762,814 -- Gross profit 378,386 -- 466,877 -- Operating expenses:
Selling, general and administrative 750,674 702,282 1,617,240
1,561,794 Research and development 137,337 62,948 399,065 668,568
Total operating expenses 888,011 765,230 2,016,305 2,230,362 Loss
from operations (509,625) (765,230) (1,549,428) (2,230,362) Other
income (expense): Realized gain (loss) on foreign currency
translation 1,283 -- (55,023) -- Unusual item: Gain on restructure
of trade debt -- -- -- 485,482 Interest income 30,190 -- 30,190 --
Interest expense (21,325) (4,809) (106,128) (5,828) Loss before
income taxes (499,477) (770,039) (1,680,389) (1,750,708) Income tax
provision -- -- -- -- Net loss $(499,477) $(770,039) (1,680,389)
$(1,750,708) Net loss available to common shareholders after
beneficial conversion feature $(499,477) $(770,039) (1,680,389)
$(2,250,708) Basic and diluted loss per share $(0.11) $(0.48)
(0.66) $(1.40) Basic and diluted weighted average common shares
outstanding 4,390,059 1,602,033 2,557,435 1,606,938 About ICOP
Digital, Inc. ICOP Digital, Inc. is a Kansas-based company that
delivers innovative, mission-critical security, surveillance, and
communications solutions that provide timely and accurate
information for security for the public and private sectors, to
monitor and protect people, assets and profits. The ICOP Model
20/20(TM) is the leading digital in-car video recorder system, for
use by law enforcement. ICOP Digital is committed to providing
surveillance and communications solutions that help our customers
improve their safety and security, through effective deployments of
innovative technologies. ICOP Digital, Inc. is dual listed on the
NASDAQ SmallCap market and the PCX, and the common stock and
warrants trade under the ticker symbols "ICOP" and "ICOPW,"
respectively. For more information, please visit
http://www.icop.com/ . Safe Harbor Statement This document contains
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Such statements are
subject to risks and uncertainties that could cause actual results
to vary materially from those projected in the forward-looking
statements. The Company may experience significant fluctuations in
future operating results due to a number of economic, competitive,
and other factors, including, among other things, our reliance on
third party manufacturers and suppliers, government agency
budgetary and political constraints, new or increased competition,
changes in market demand, and the performance or reliability of our
products. These factors and others could cause operating results to
vary significantly from those in prior periods, and those projected
in forward-looking statements. Additional information with respect
to these and other factors, which could materially affect the
Company and its operations, are included in certain forms the
Company has filed with the Securities and Exchange Commission. For
more information, contact: Laura E. Owen, COO 16801 West 116th
Street Lenexa, KS 66219 USA Phone: (913) 338-5550 Fax: (913)
312-0264 http://www.icop.com/ For Investor Relations: Elite
Financial Communications Group, LLC Dodi Handy, President and CEO
Phone: (407) 585-1080 DATASOURCE: ICOP Digital, Inc. CONTACT: Laura
E. Owen, COO, ICOP, +1-913-338-5550, or +1-913-312-0264, or ; or
Dodi Handy, President and CEO, Elite Financial Communications,
+1-407-585-1080, or , for ICOP Web site:
http://www.icopdigital.com/
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