HANOVER, Md., Brekford Corp. (the “Company” OTCBB: BFDI), a leading public safety technology service provider of fully integrated traffic safety solutions, vehicle up-fitting, and ruggedmobile technology is pleased to announce net income for fiscal first quarter 2012. First quarter performance includes a 20.13% increase in revenue, 42.23% increase in gross profit and an increase of 9.17% in net profit.
“We are pleased with the strong performance of our expansion efforts in Q1, especially in consideration of the frontloaded costs that were needed to cover personnel, inventory, customer support and engineering for several new contract implementations, which can take four to seven months,” stated C.B. Brechin, Brekford CEO. “Our average contract length is for anywhere between three to six years. This represents substantial growth potential for investors who understand the business cycle, as well as the emerging opportunities in the industry overall.”
“Our solutions deliver shareholder results that are preforming better than forecasted in the present market environment, which is directly attributable to Brekford’s trusted name, strategic positioning and the growth opportunity that exists in the traffic safety sector,” added Brechin. “R&D is feverishly working on state-of-the-art technology that will bear lower upfront costs and shorter deployment, further increasing shareholder value in upcoming quarters.”
Financial highlights for the first quarter 2012:
Net sales totaled $4.1 million for the first quarter ended March 31, 2012, compared to $3.5 million for the first quarter ended March 31, 2011, an increase of $ 0.695 million.
Net income for the first quarter of 2012 totaled $123,310 compared to $112,952 for the first quarter of 2011.
Gross profit for the first quarter of 2012 was $1.07 million compared to $0.753 million for the first quarter of 2011. Gross profit margin increased to 26% for the first quarter of 2012 compared to 22% for the first quarter of 2011 due to an increase in contracts for automated traffic enforcement programs and an increase in sales of electronic ticketing systems. The Company expects the gross profit margin to improve in the remaining quarters of the year as the expanded business program continues to grow with new contracts.
Operating expenses increased for the first quarter of 2012 to $0.910 million compared to $0.611 million for the first quarter of 2011, the result of an increase in expenses for the expansion of the business.
At March 31, 2012, the Company’s assets totaled approximately $7.9 million compared to approximately $8.1 million at the end of 2011. The Company’s cash position at the end of first quarter of 2012 improved to $2.2 million, up from $1.8 million at the end of 2011.
About BREKFORD
Brekford has provided state of the art mobile technology and traffic safety solutions to the U.S. military, various federal entities and numerous security and public safety agencies throughout the United States over the last ten years. Their services include an end-to-end suite of mobile computer and video technology as well as automated traffic safety solutions. Brekford’s combination of vehicle upfitting services, cutting edge mobile and video technology, and automated traffic enforcement services offers a unique 360-degree solution for any organization, including homeland security and law enforcement agencies. Additional information about Brekford may be found online at www.brekford.com.
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