Recurring Revenues Up 18% OMAHA, Neb., Nov. 14
/PRNewswire-FirstCall/ -- iSECUREtrac(TM) Corp. (OTC:ISEC)
(BULLETIN BOARD: ISEC) , an industry leader in electronic
monitoring solutions reported financial results for the third
quarter and nine months ending September 30, 2007. Total revenue
for the third quarter was up 18% to approximately $2.2 million
compared to approximately $1.9 million for the same quarter of the
prior year. For the nine months ending September 30, 2007, total
revenue increased 12% to $6.6 million from $5.9 million for the
same period, year ago. Recurring revenues were approximately $2.1
million and $6.2 million for the three and nine month periods
ending September 30, 2007, up 18% and 17%, respectively, from $1.8
million and $5.3 million in 2006. Net loss for the first nine
months of 2007 was $5.1 million compared to $3.8 million for the
prior year period. The increase in net loss is primarily
attributable to an accrual for expenses related to litigation with
a competitor. "As a result of the investments we've made throughout
2007, we are approaching 2008 well positioned to capitalize on the
growth of the electronic monitoring market. In the third quarter,
we secured a number of new awards and expanded our relationships
with current customers," said Peter Michel, president and CEO of
iSECUREtrac. "We experienced a slight delay in the launch of the
System 5000. This postponement was the result of some manufacturing
problems which have all been identified and successfully resolved.
I am pleased to report that there are 500 System 5000s in the field
today. Through March, 2008, we will take delivery of an additional
3,000 units which will help us meet pent up demand for this
state-of-the-art system. In addition to GPS, we expect to expand
our alcohol monitoring business at a rate slightly faster than
projected for the market as a whole. Industry experts anticipate
the market to grow at double digit rates through 2011." Conference
Call Information Date: Wednesday, November 14, 2007 Time: 3:30 PM
Central (4:30 PM Eastern) Dial-in number: 1-800-418-6860
International: 1-973-935-8756 Conference ID: 9436702 Please dial in
5-10 minutes prior to the start time. An operator will request your
name and organization and place you on hold until the call begins.
A replay of the conference call will be available until November
21, 2007 Replay number: 1-877-519-4471 International Replay number:
1-973-341-3080 Replay Pin Number: 9436702 About iSECUREtrac
iSECUREtrac Corp. provides electronic monitoring systems, client
management software and supplemental services for use in community
supervision. The company's rich stream of reliable data concerning
a client's location, movement and status better enables effective
compliance management and positive behavior modification. Visit
http://www.isecuretrac.com/ for more information. Safe Harbor This
press release contains forward-looking statements that, if not
verifiable historical fact, may be viewed as forward-looking
statements that could predict future events or outcomes with
respect to iSECUREtrac Corp. and its business. The predictions
embodied in these statements will involve risks and uncertainties
and accordingly, iSECUREtrac's actual results may differ
significantly from the results discussed or implied in such
forward-looking statements. Company Contact: Peter Michel David
Vana (402) 537-0022 Investor Relations: Liolios Group Inc Ron Both
949-574-3860 iSECUREtrac Corp. and SUBSIDIARIES CONSOLIDATED
BALANCE SHEETS (Unaudited) September 30, 2007 December 31, 2006
ASSETS Current Assets Cash and cash equivalents $1,300,567
$4,341,685 Accounts receivable, net of allowance for doubtful
accounts of $300,916 in 2007 and $171,409 in 2006 2,105,380
2,284,177 Inventories 204,534 61,021 Prepaid expenses and other
71,339 74,608 Total current assets 3,681,820 6,761,491 Equipment,
net of accumulated depreciation of $417,019 in 2007 and $336,721 in
2006 415,845 382,072 Leasehold improvements, net of accumulated
depreciation of $39,403 in 2007 and $9,535 in 2006 187,826 67,396
Monitoring equipment, net of accumulated depreciation of $6,108,932
in 2007 and $4,904,883 in 2006 2,336,002 2,930,429 Intangibles, net
of accumulated amortization and impairment charges of $829,524 in
2007 and $767,598 in 2006 81,998 143,924 Goodwill 2,302,179
2,302,179 Other assets 72,388 66,045 Total assets $9,078,058
$12,653,536 LIABILITIES AND STOCKHOLDERS' (DEFICIT) Current
Liabilities Accounts payable and accrued expenses $2,128,623
$847,765 Current maturities of long-term debt 672,508 891,070
Deferred revenues & gain on sale-leaseback transaction 304,515
423,349 Accrued interest payable 351,975 37,838 Total current
liabilities 3,457,621 2,200,022 Long-term debt, less current
maturities 6,657,349 6,694,102 Redeemable convertible Series C
preferred stock 11,574,541 10,696,697 Stockholders' (Deficit)
Common stock 10,778 10,773 Additional paid-in capital 55,058,563
54,950,315 Accumulated deficit (67,680,794) (61,898,373) Total
stockholders' (deficit) (12,611,453) (6,937,285) Total liabilities
and stockholders' (deficit) $9,078,058 $12,653,536 iSECUREtrac
Corp. and SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) Three Months Ended Nine Months Ended September 30
September 30 2007 2006 2007 2006 Revenues: Equipment leasing &
hosting $2,141,774 $1,817,050 $6,230,187 $5,320,514 Equipment sales
10,752 18,421 87,755 306,476 Service revenues 38,639 5,401 188,608
79,127 Gain on related party sale-leaseback transactions 39,828
44,844 129,534 228,543 Total revenues 2,230,993 1,885,716 6,636,084
5,934,660 Operating expenses: Cost of revenues 852,406 793,912
2,607,090 2,383,586 Research and development 392,012 326,979
1,278,236 987,991 Sales, general and administrative 3,163,369
2,384,055 7,459,334 6,259,082 Total operating expenses 4,407,787
3,504,946 11,344,660 9,630,659 Operating loss (2,176,794)
(1,619,230) (4,708,576) (3,695,999) Other income (expense):
Interest income 18,091 11,222 97,743 74,023 Interest expense
(143,102) (41,651) (441,132) (145,565) Total other income (expense)
(125,011) (30,429) (343,389) (71,542) Loss before provision for
income taxes (2,301,805) (1,649,659) (5,051,965) (3,767,541)
Provision for income taxes - - - - Net loss $(2,301,805)
$(1,649,659) $(5,051,965) $(3,767,541) Preferred stock dividends
and accretion (308,003) (288,827) (877,844) (823,471) Net loss
available to common stockholders $(2,609,808) $(1,938,486)
$(5,929,809) $(4,591,012) Basic and diluted loss per common share
$(0.24) $(0.18) $(0.55) $(0.43) Weighted average shares of common
stock outstanding 10,777,305 10,771,897 10,775,556 10,747,007
DATASOURCE: iSECUREtrac Corp. CONTACT: Peter Michel, , or David
Vana, , both of iSECUREtrac Corp., +1-402-537-0022; or Investor
Relations, Ron Both of Liolios Group Inc, +1-949-574-3860, , for
iSECUREtrac Corp. Web site: http://www.isecuretrac.com/
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