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iSECUREtrac Corp.: iSECUREtrac Reports Year End 2008 Financial Results

^{Published on 2009-03-24 06:10:09, Last Modified on 2009-11-03 18:45:09 - Market Wire}
 

OMAHA, NE--(Marketwire - March 24, 2009) - iSECUREtrac Corp. (OTCBB: [ ISEC ]), an industry leader in electronic monitoring solutions, reported total revenue for the year ending December 31, 2008 was up 10% to $9.7 million, from $8.8 million the prior year. Recurring revenue from the leasing of monitoring systems and related services for the year ended December 31, 2008 was up 8.6% over the prior year.

For the year ending December 31, 2008, the company reported an Operating Loss of $3.5 million, a decrease of $3.1 million from the Operating Loss of $6.6 million reported for 2007. The decrease in net loss was primarily due to:

 1. Increased gross profit margin of $688,000 2. Reduction in Operating Expenses of approximately $866,000 3. Reduction in litigation and settlement costs, management restructuring and Sarbanes-Oxley consulting expenses of $1,595,000 

Lincoln Zehr, the Company's CFO, indicated that, "In early 2008, the Company began a comprehensive cost reduction plan that reduced the Company's headcount by almost 20% -- from 92 at the beginning of the year to 74 at December 31, 2008. In addition, the cost reduction plan and further cost control measures have reduced the Company's monthly operating expenses by almost $2.3 million on an annualized basis."

Zehr also noted, "During 2008, the Company reported four consecutive quarters of improved (lower) Operating Losses for the first time in the history of iSECUREtrac. Most notably, the Operating Loss for the three months ended December 31, 2008 was the lowest quarterly operating loss since December of 2000."

Peter Michel, the Company's CEO, said, "During the last several months of 2008 and subsequent to December 31, 2008, the Company signed several new contracts which have begun generating revenue and are expected to drive up recurring revenue for the first quarter of 2009 between 14% and 18% over the first quarter in 2008."

In addition, Michel added, "As a result of the anticipated growth in total revenue and over the course of the year, significantly lower operating costs, the Company expects to achieve cash flow positive operations in 2009."

Conference Call Information:

The Company's year end 2008 earnings call will be tomorrow, Wednesday, March 25, 2009. Dial in information is as follows:

 Time: 3:30 PM Central (4:30 PM Eastern) Dial-in number: 1-800-762-8779 International: 1-480-629-9031 

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 replay of the conference call will be available until April 1, 2009:

 -- Replay number: 1-800-406-7325 -- International Replay number: 1-303-590-3030 -- Replay Pin Number: 4038234 

About iSECUREtrac

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 [ www.isecuretrac.com ] for more information.

Safe Harbor

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.