SANDY, UT -- (Marketwire) -- 08/17/10 -- SecureAlert Inc. (OTCBB: SCRA), a national leader in intervention offender tracking technologies widely utilized by public safety agencies throughout the United States, announces results for its third fiscal quarter, ended June 30, 2010.
As a result of deploying its next generation TrackerPAL II(e) offender tracking devices, now "Made in the USA," the Company has successfully exchanged 2,861 devices out of 4,010 prior generation devices deployed in the field through June 30, 2010 supporting revenues for the fiscal quarter ended June 30, 2010 of $3,079,226 an increase of 3% over its previous fiscal quarter ended March 31, 2010. This compares to $3,208,969 for the same period ended 2009, a decrease of $129,743 or 4% attributed to the non-renewal of a single agency contract at the Company's Midwest Monitoring and Surveillance subsidiary. This discontinued agency accounted for $0 of revenues during the three months ended June 30, 2010 compared to $169,964 during the three months ended June 30, 2009.
Importantly, the Company reported a gross profit of $1,363,765 and a gross margin of 44% for the third fiscal quarter ended June 30, 2010 compared to a gross profit of $788,143 or a gross margin of 25% for the same period ended 2009. This represents an increase of 19 basis points or an 80% improvement. The Company achieved this gross profit and gross margin improvement through its continuous efforts focused against reducing direct costs associated with the leasing of its electronic monitoring devices.
The net loss for the third fiscal quarter ended June 30, 2010 of $2,054,238 improved over the same period a year ago of $5,032,308, an improvement of $2,978,070, or 59%. This was primarily achieved through reducing selling, general, and administrative costs by $474,514, or 15% and a reduction in interest expense of $1,025,521, or 82%, resulted from debt instruments exchanged into the Company's Series D Preferred stock.
The Company also reported Shareholders Equity of $3,869,330 for the third fiscal quarter ended June 30, 2010 compared to a Stockholders Deficit of $12,372,821 for the same period ended 2009, an improvement of $16,242,151.
"I believe the Company is now well positioned to achieve planned growth within the expanding electronic monitoring marketplace through the delivery of unmatched reliability and quality of our intervention monitoring products and services. As a result, we have been able to achieve significant improvements in gross margins, while continuously focusing on delivering greater value to our customer agencies," said John Hastings, President and Chief Operating Officer. "Through the recent release of our TrackerPAL II(e) technology, we are establishing ourselves as the industry leader in GPS tracking device reliability, which when combined with our state-of-the-art intervention monitoring center and easy-to-use interactive software, provides the most advanced world-class solution available in the Global marketplace today, making streets safer while providing a lower cost to governmental agencies," Mr. Hastings stated.
"Additionally, I would like to emphasize some key financial indicators in relation to SecureAlert Monitoring, Inc. the Company's flagship subsidiary, specifically comparing the third fiscal quarter ending June 30, 2010, to its previous second fiscal quarter ending March 31, 2010 which are as follows:
-- Revenues increased 5% to $1,594,057
-- Gross profit increased 5 basis points, or 16% to 46%
-- Operating loss improved 6% to $1,557,806
-- Net loss improved 42%, from $3,000,281 to $1,755,181
"As depicted above, we have made great strides since the last reported quarter in our core operating subsidiary. I expect to demonstrate to our shareholders continued positive results in the upcoming quarters in all facets of the Company," Mr. Hastings concluded.
A more complete discussion of operating results for the third fiscal quarter ended June 30, 2010 is included in the Company's quarterly report on Form 10-Q, filed with the Securities and Exchange Commission on August 16, 2010.
About SecureAlert
SecureAlert (website at www.securealert.com) is a leading edge, patented monitoring, case management and advanced communications Technology Company with a portfolio intervention of services widely utilized by law enforcement agencies, judicial districts and county jurisdictions across the United States. Through its SecureAlert Monitoring, Inc. subsidiary, SecureAlert observes and tracks offenders wherever they may be -- in their car, home or office. SecureAlert offers the only single-piece device which incorporates GPS tracking technology, 90 decibel alarm with 3-way voice, text and data communications, all of which interacts with real time intervention monitoring services, unrivaled in the industry. The SecureAlert programs allow probationers and paroled offenders to re-enter society by holding them accountable 24 hours a day, every day, supporting rehabilitation initiatives and providing for enhanced public safety, while reducing the overall burdens and costs carried by the criminal justice and corrections systems.
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 retain and to promptly satisfy current backorders 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.
Contact:
Jeffrey Peterson
Investor/Public Relations
866-451-6141
ir@securealert.com
