The Company is pleased to report significant positive growth for the fourth consecutive quarter.
Hanover, MD (PRWEB) November 03, 2011
Brekford Corp. (the “Company” OTCBB, OTCQB: “BFDI”), a leading homeland technology service provider of fully integrated vehicle installation services, rugged mobile technology solutions, and traffic safety solutions is pleased to announce a 100.68% increase in revenue, 162.46% increase in gross profit, and a significant increase in net profit of 1311.74% for third fiscal quarter 2011.
Company CEO, C.B. Brechin, commented “The Company is pleased to report significant positive growth for the fourth consecutive quarter, attributed largely to the ongoing expansion of our Traffic Safety Group (TSG). We believe the Company’s sustained growth is a measure of the enormous opportunity that exists in automated traffic safety, a space we remain focused on realizing its full potential as we continue to build shareholder value.”
Financial highlights for the third quarter 2011:
Net sales totaled $5.3 million for the third quarter ended September 30, 2011, compared to $2.6 million for the third quarter of 2010, an increase of $ 2.67 million. Operating expenses increased for the third quarter 2011 to $0.734 million compared to $0.431 million for the third quarter of 2010, the result of an increase in expenses for the expansion of the business.
Net income for the third quarter of 2011 totaled $493,925 compared to $34,987 for the third quarter of 2010.
Gross profit for the third quarter 2011 was $1.26 million compared to $0.482 million for the third quarter of 2010. Gross profit margin increased to 24% for the third quarter 2011 compared with 18% for the third quarter of 2010 due to increase in contracts being implemented and increase sale of electronic ticketing systems. The Company expects gross margin to improve in the remaining quarters of the year as the expanded business program continues to grow with new contracts.
The Company's cash position as of the end of third quarter of 2011 improved to total $2.2 million, up from $1.5 million at the end of third quarter of 2010.
In Spring of 2009, The Maryland State General Assembly passed Maryland Transportation Law §21-809 allowing the use of "photographic speed-monitoring systems". As a result of this legislation, the Maryland Transportation Article includes the use of photographic speed-monitoring systems in its school zones. A photographic speed-monitoring system is a speed-measuring system that works in conjunction with a photographic, video, or electronic camera to automatically measure the speed and produce photographs or digital images of vehicles violating a speed limit or speed restriction.
As of September 2011 in the U.S., red light cameras are used in approximately 553 communities while speed cameras are used in more than 103 jurisdictions. According to the Insurance Institute for Highway Safety, in 2010 a review of 28 studies into the impact of speed enforcement technology found that injury and fatal crashes fell as much as 60 percent in areas with speed cameras. The cost to U.S. municipalities from speed-related crashes, as reported by the National Highway Safety Administration, is over $40 billion annually.
For over a decade, Brekford has been providing services to the U.S. military, various federal entities and numerous security and public safety agencies throughout the United States with an end-to-end suite of mobile computer and video technology, vehicle upfitting services, and automated traffic safety solutions. Brekford is a one-stop shop with its unique 360-degree approach to vehicle upfitting services, cutting edge mobile and video technology, and automated traffic enforcement services for homeland security and law enforcement agencies. Additional information about Brekford may be found online at http://www.brekford.com
This press release contains forward-looking statements within the meaning of that term in Section 21E of the Securities Exchange Act of 1934, as amended. Actual results may differ materially from the results suggested by these forward-looking statements, for a number of reasons, including, but not limited to, market conditions, the cost and success of development activities and ability to successfully manage growth. Readers are referred to the documents filed by Brekford Corp. with the SEC, specifically the Company's most recent reports filed on Form 10-K and Forms 10-Q, which further identify the important risks, trends and uncertainties which could cause actual results to differ materially from the forward-looking statements in this press release. The Company expressly disclaims any obligation to update any forward-looking statements.