OMAHA, NE — (Marketwire) — 05/15/12 — iSECUREtrac Corp (OTCBB: ISEC), an industry leader in electronic monitoring solutions, has released its financial results for the three months ended March 31, 2012.
Total revenue for the three months ended March 31, 2012 was $2,281,000, down $219,000, or approximately 9%, from the $2,500,000 reported for the same period in 2011. Total expenses for the three months ended March 31, 2012 were $2,128,000, down $837,000, or approximately 28% from the $2,965,000 reported for the same period in 2011.
The Company-s Chief Executive Officer, Lincoln Zehr, commented that “Despite the decline in revenue experienced in the three months ended March 31, 2012 we are pleased with the results of the quarter. As pointed out when we released the 2011 results, while the accrual of executive severance in the fourth quarter was certainly appropriate from the standpoint of applying accounting principles, it does not allow for perspective when comparably measuring operating performance. In the absence of that accrual, the Company would have reported Net Income of nearly $359,000 over the last three quarters as well as three consecutive quarters of Net Income.”
Zehr also pointed out “With regard to the next several quarters — as disclosed in the Company-s filings with the SEC, in comparison to the quarter ending March 31, 2012 — we expect to see a decline in revenue for the quarter ending June 30, 2012 and potentially September 30, 2012.”
“We also reported that the Company has eliminated nearly $1 million from its annual operating expenses from the levels reported this quarter, which is in addition to the reduction in expenses reflected in the 28% noted above. The important thing to note here is that we view the decline in revenue as temporary as we continue add new customers, compared to the reductions in expenses which are largely permanent.”
“Accordingly, we expect the successful implementation of our current strategy to result in improving financial performance in the latter portion of 2012 including a return to monthly positive cash flow as well as providing the platform and resources to continue increasing revenue and improve cash flow in 2013 and beyond.”
As a reminder, the quarter-end conference call will be held Thursday afternoon, May 17, 2012 as follows:
Time: 3:30 PM Central – 4:30 PM Eastern
Dial-in number: 1-877-941-8416
International: 1-480-629-9808
Please dial in 5-10 minutes prior to the start. An operator will request your name and organization and ask you to wait until the call begins. If you have any difficulty connecting, please call iSECUREtrac at (866) 537-0022.
A taped replay of the conference call will be available from May 17, 2012 at 6:30 PM Central until May 24, 2012 at 10:59 PM Central.
Replay number: 1-877-870-5176
International Replay number: 1-858-384-5517
Replay Pin Number: 4538783
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 for more information.
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.
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