SANDY, UT -- (Marketwire) -- 02/23/12 -- SecureAlert, Inc. (OTCBB: SCRA) (OTCQB: SCRA), a national leader in offender intervention and tracking technologies widely used by public safety agencies throughout the United States and expanding globally, announced record monitoring revenue results for its first fiscal quarter, ended December 31, 2011. These quarterly results were reported in the Company's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on February 14, 2011.
For the three months ended December 31, 2011, the Company reported revenues of $5,554,704, compared to $3,676,964 for the three months ended December 31, 2010, an increase of $1,877,740, or 51%. Of these revenues, $4,290,035 and $3,420,350 were derived from monitoring services for the three months ended December 31, 2011 and 2010, respectively, an increase of $869,685, or 25%. The increase in monitoring service revenues resulted from both domestic account growth and expanded international customer monitoring, utilizing the Company's intervention monitoring services.
Additionally, for the three months ended December 31, 2011, the Company reported product revenues of $1,264,669 compared to $256,614 for the three months ended December 31, 2010, an increase of $1,008,055, or 393%. The increase in product revenues resulted primarily from non-tracking device product revenues associated with an implementation consulting solution for an international customer totaling $1,071,983.
Gross profit margins for the three months ended December 31, 2011 and 2010 remained stable at 49% of revenues for both reported periods. For the three months ended December 31, 2011, the Company reported a net loss of $1,618,821, compared to $2,069,733 for the three months ended December 31, 2010, an improvement of $450,912, or 22%. This improvement in net loss resulted from increases in gross profit.
"Monitoring revenues continue to show strength at record levels, which are a key indicator of the overall health and progress of SecureAlert," said John L. Hastings, III, CEO of SecureAlert. "Importantly, we are evermore committed to achieving sustainable profitability, while leveraging our core competencies in the rapidly expanding global markets," concluded Hastings.
About SecureAlert, Inc.
SecureAlert is a leading international provider of reliable electronic monitoring solutions, case management and services widely utilized by law enforcement agencies worldwide. SecureAlert offers real-time intervention services and innovative technologies to observe and track offenders wherever they may be: In their car, home or office. The Company delivers highly reliable intervention technologies and peace-of-mind through programs which allow probationers and paroled offenders to re-enter society by electronically monitoring them 24 hours a day, for enhanced public safety, while reducing the overall burdens and costs carried by the criminal justice and corrections systems. To learn more about SecureAlert, Inc., please visit www.securealert.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act, including future growth and earnings opportunities of the Company. Actual results could differ materially from those projected in these forward-looking statements, which involve a number of risks and uncertainties, including the Company's ability to promptly satisfy orders and other economic, competitive, governmental, technological, regulatory, manufacturing and marketing risks associated with the Company's business and financial plans. The contents of this release should be considered in conjunction with the risk factors, warnings, and cautionary statements that are contained in the Company's most recent filings with the Securities and Exchange Commission.
Table to Follow
SECUREALERT, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
December 31,
2011 2010
------------ ------------
Revenues:
Products $ 1,264,669 $ 256,614
Monitoring and other related services 4,290,035 3,420,350
------------ ------------
Total revenues 5,554,704 3,676,964
Cost of revenues:
Products 360,527 161,750
Monitoring and other related services 2,468,493 1,701,500
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Total cost of revenues 2,829,020 1,863,250
Gross profit 2,725,684 1,813,714
Operating expenses:
Selling, general and administrative (including
$748,969 and $49,775, respectively, of
compensation expense paid in stock, stock
options / warrants or as a result of
amortization of stock-based compensation) 3,770,169 3,411,089
Research and development 331,634 330,828
------------ ------------
Loss from operations (1,376,119) (1,928,203)
Other income (expense):
Currency exchange rate loss (65,666) (97)
Loss on disposal of equipment (3,539) -
Redemption of SecureAlert Monitoring Series A
Preferred - 15,176
Interest income 5,111 221
Interest expense (including $58,259 and
$1,918, respectively, paid in stock, stock
options / warrants or re-pricing of warrants) (251,978) (154,149)
Other income (expense), net 73,370 (2,681)
------------ ------------
Net loss (1,618,821) (2,069,733)
Net loss attributable to non-controlling
interest - 10,023
------------ ------------
Net loss attributable to SecureAlert, Inc. (1,618,821) (2,059,710)
Dividends on Series D Preferred stock (601,862) (621,871)
------------ ------------
Net loss attributable to SecureAlert, Inc.
common stockholders $ (2,220,683) $ (2,681,581
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Net loss per common share, basic and diluted $ (0.00) $ (0.01)
Weighted average common shares outstanding,
basic and diluted 508,953,000 291,908,000
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Investor Relations Contact:
Stanley Wunderlich
Consulting for Strategic Growth 1 Ltd.
Tel: 800-625-2236 ext. 7770
Email: info@cfsg1.com
