Health & Fitness
Health and Fitness
Health and Fitness
Thu, May 20, 2010
Wed, May 19, 2010 SecureAlert, Inc. Announces Positive Stockholders' Equity and Gross Profit Margin Increase
SANDY, UT--(Marketwire - May 19, 2010) - SecureAlert (
SecureAlert's gross profit margin increased from 9% for the three months ended March 31, 2009 to 44% for the three months ended March 31, 2010. The primary reasons for this significant increase is due to a reduction of communication and monitoring center costs. Communication costs decreased 45% from $604,506 to $332,261 and monitoring center costs decreased 31% from $424,581 to $291,426, for the respective periods. The reduction of communication costs have been realized due to entering into additional agreements with cellular companies with more favorable rates and monitoring center costs have decreased due to the development of software which more effectively automates alarms requiring less operators to manage the active devices in the field. Additionally, SecureAlert is able to dynamically adjust between Passive, Active, and Intervention monitoring service options, which have different cost structures, to meet the needs of its customers and to increase gross profit margins.
Although revenues were relatively flat to slightly decreasing for the three months ended March 31, 2010 compared to the same period ended 2009, this was primarily attributed to the non-renewal of a monitoring contract with a single customer at Midwest Monitoring and Surveillance, a subsidiary of the Company. Excluding the revenue lost from this discontinued customer, revenues increased $125,184 through the continued placement of the Company's TrackerPAL™ products and services with our customers.
SecureAlert has continued to drive toward profitability by increasing the Company's gross profit margin and by reducing the Company's burden to pay debt obligations resulting in an improvement of $1,950,899 or 39% in net cash used in operating activities from $4,993,267 for the six months ended March 31, 2009 to $3,042,368 for the same period ended 2010.
"I am pleased with the progress that the Company has made during the fiscal year through continuous improvement in gross profit margin reaching 44% compared to 9% a year ago. Additionally, the Company has continued to focus on increasing monitoring revenues to provide strong future recurring revenue streams to drive toward profitability and bring success to our shareholders," said John Hastings, President and Chief Operating Officer. "We are excited about the future of the Company, in that we continue to win contracts, and as those contracts reflect the changes we have made over the past several months, the impact to the bottom line will be greatly enhanced," Mr. Hastings stated. Mr. Hastings concluded, "We are also honored to have a research report written on the Company by Waterville Research. A link to the report can be found on our website at: [ http://www.securealert.com/Investor/ ]. Also, a Medium Term Plan has been produced by the Company which can be found on the same link, which describes SecureAlert's marketplace, industry, mission, and vision of the Company."
A more complete discussion of operating results for the second quarter ended March 31, 2010 is included in the Company's quarterly report on Form 10-Q, filed with the Securities and Exchange Commission on May 17, 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 of services widely utilized by more than 625 law enforcement agencies, judicial districts and county jurisdictions across 35 states. Approximately 15,000 offenders are supported, managed and supervised monthly through the company's programs, services and electronic monitoring initiatives. 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.
