Achieves 317% and 562% Revenue Growth for Three and Six Months,
Respectively LENEXA, Kan., Aug. 9 /PRNewswire-FirstCall/ -- ICOP
Digital, Inc. (Nasdaq: ICOP; NYSE Arca: ICOP), a leading provider
of digital in-car video systems for law enforcement, today
announced its financial results for the three and six months ended
June 30, 2006. Financial highlights for the three months ended June
30, 2006 compared to the three months ended June 30, 2005: --
Revenues rose 317% to $1,366,084 from $327,394. -- Gross profit
margins improved to 41% from 27%. -- Net losses increased to
$1,007,650, or $0.18 loss per basic and diluted share, from
$700,456, or $0.42 loss per basic and diluted share. Financial
highlights for the six months ended June 30, 2006 compared to the
six months ended June 30, 2005: -- Revenues increased 562% to
$2,167,759, up from $327,394. -- Gross profit margins climbed to
41.7% from 27%. -- Net losses were $1,809,184, or $0.32 loss per
basic and diluted share, rising from $1,180,912, or $0.71 loss per
basic and diluted share. As of June 30, 2006, cash and accounts
receivable totaled approximately $2.4 million; working capital was
approximately $7.2 million and total shareholders' equity was
approximately $7.9 million. "The second quarter results confirm
that ICOP's sales and marketing programs are achieving a strong and
favorable response from the law enforcement marketplace, and we are
gaining notable momentum," stated Dave Owen, Chief Executive
Officer of ICOP. "With fleet deployments of the ICOP Model 20/20
underway at police agencies in 43 states, and literally hundreds of
agencies nationwide contemplating purchase, we believe we are well
positioned to deliver an outstanding year, defined by rapid revenue
growth and steady forward progression towards profitability."
"During the second half of the year, we are focused on perpetuating
our sales growth within the law enforcement industry, while
implementing aggressive growth strategies to win market share of
the military and homeland defense markets. The ICOP Model 20/20 is
well suited to provide feature-rich and enhanced mobile
surveillance functionality to our security forces, with
applications in the United States and in military markets around
the world. This not only represents a sizable growth opportunity
for ICOP, but perhaps more importantly, it represents an
opportunity for ICOP to play a vital role in helping to protect
lives and critical assets," concluded Owen. ICOP Digital will host
a teleconference this morning, beginning at 10:15 AM Eastern, and
invites all interested parties to join management in a discussion
regarding the Company's financial results, corporate progression
and other meaningful developments. The conference call can be
accessed via telephone by dialing toll free 1-800-257-1927 or via
the web at http://www.icop.com/. For those unable to participate at
that time, a replay of the web cast will be available for 90 days
on http://www.icop.com/. About ICOP Digital, Inc. ICOP Digital,
Inc. is a Kansas-based company that delivers innovative,
mission-critical security, surveillance, and communications
solutions that provide timely and accurate information for the
public and private sectors, and monitor and protect people, assets
and profits. The ICOP Model 20/20 is the leading digital in-car
video recorder system for use by law enforcement. ICOP Digital is
currently marketing its solutions for application in law
enforcement, homeland security and defense, mass transit and
commercial surveillance. ICOP Digital, a GSA contractor, is dual
listed on the NASDAQ market and the NYSE Arca, and the common stock
and warrants trade under the ticker symbols "ICOP" and "ICOPW,"
respectively. For more information, please visit
http://www.icop.com/, or to view a three-minute ICOP marketing
presentation, please go to
http://www.icopdigital.com/why_icop.html. ICOP DIGITAL, INC.
Balance Sheet (Unaudited) June 30, 2006 Assets Current Assets Cash
$1,530,411 Accounts receivable, net 888,529 Finished goods
inventory, at cost 5,204,595 Prepaid expenses 85,044 Total current
assets 7,708,579 Property and equipment, at cost, net of
accumulated depreciation of $236,684 757,380 Other assets: Deferred
patent costs 61,480 Deposits 15,000 $8,542,439 Liabilities and
Shareholders' Equity Current Liabilities: Accounts payable $140,192
Accrued liabilities 269,681 Unearned revenue 109,880 Current
maturities of long-term debt 41,087 Total current liabilities
560,840 Long-term debt, net of current maturities 100,814 Total
liabilities 661,654 Shareholders' equity: Preferred stock, no par
value; 5,000,000 shares authorized, no shares issued and
outstanding -- Common stock, no par value; 50,000,000 shares
authorized, 5,900,980 shares issued and outstanding 19,860,937
Accumulated other comprehensive income, net of tax -- Deficit
accumulated (11,980,152) Total shareholders' equity 7,880,785
$8,542,439 ICOP DIGITAL, INC. Statement of Operations (Unaudited)
Three Months Six Months Ended Ended June 30, June 30, 2006 2005
2006 2005 Sales, net of returns $1,366,084 $327,394 $2,167,759
$327,394 Cost of sales 805,385 238,903 1,263,251 238,903 Gross
profit 560,699 88,491 904,508 88,491 Operating expenses: Selling,
general and administrative 1,281,349 532,517 2,204,516 866,566
Research and development 315,043 144,502 564,930 261,728 Total
operating expenses 1,596,392 677,019 2,796,446 1,128,294 Loss from
operations (1,035,693) (588,528) (1,864,938) (1,039,803) Other
income (expenses): Foreign currency translation 19,215 (56,306)
27,159 (56,306) Interest income 17,169 -- 43,150 -- Interest
expense (8,341) (55,622) (14,555) (84,803) Loss before income taxes
(1,007,650) (700,456) (1,809,184) (1,180,912) Income tax provision
-- -- -- -- Net loss $(1,007,650) $(700,456) $(1,809,184)
$(1,180,912) Basic and diluted loss per share $(0.18) $(0.42)
$(0.32) $(0.71) Basic and diluted weighted average common shares
outstanding 5,754,313 1,668,862 5,619,264 1,667,444 Safe Harbor
Statement This document contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Such statements are subject to risks and uncertainties
that could cause actual results to vary materially from those
projected in the forward-looking statements. The company may
experience significant fluctuations in future operating results due
to a number of economic, competitive, and other factors, including,
among other things, our reliance on third-party manufacturers and
suppliers, government agency budgetary and political constraints,
new or increased competition, changes in market demand, and the
performance or reliability of our products. These factors and
others could cause operating results to vary significantly from
those in prior periods, and those projected in forward-looking
statements. Additional information with respect to these and other
factors, which could materially affect the company and its
operations, are included in certain forms the company has filed
with the Securities and Exchange Commission. For more information,
contact: For Investor Relations: Laura E. Owen, COO Elite Financial
Communications Group, LLC 16801 West 116th Street Dodi Handy,
President and CEO Lenexa, KS 66219 USA Phone: (407) 585-1080 Phone:
(913) 338-5550 Fax: (913) 312-0264 http://www.icop.com/ DATASOURCE:
ICOP Digital, Inc. CONTACT: Laura E. Owen, COO, of ICOP Digital,
Inc., +1-913-338-5550, Fax: +1-913-312-0264, ; Investor Relations:
Dodi Handy, President and CEO, of Elite Financial Communications
Group, LLC, for ICOP Digital, Inc., +1-407-585-1080, Web site:
http://www.icop.com/
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