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CLIFTON, N.J., February 14, 2006 - Electronic Control Security Inc. (OTC BB: EKCS) a leading manufacturer of perimeter security solutions for the Department of Defense (DoD), the Department of Energy (DoE) and nuclear power stations, today announced financial results for the second quarter of fiscal 2006 ending December 31, 2005. Second quarter 2006 revenues were $2,536,251 compared to $1,002,127 in the second quarter of fiscal year 2005, an increase of approximately 153%. Revenues for the six month period ended December 31, 2005 were $4,059,565 as compared to $1,957,592 for the corresponding period in 2004, representing an increase of approximately 107%. The increase in revenues is primarily attributable to the IBDSS contract award on the Tinker Air Force Base project and nuclear facility security upgrades.
Gross margins for the quarter were 24.88% of revenue as compared to 37.66% for the corresponding three-month period in 2004. Gross margins for the six month period ending December 31, 2005, were 22.23% of revenue as compared to 37.76% of revenue for the corresponding period in 2004. The decrease in the 2005 period is primarily due to an increase in the order mix for lower gross margin products and subcontractor services related to the Tinker A.F.B. contract and other IBDSS orders, as compared to the 2004 period, where the fulfillment of orders mostly entailed the shipment of higher gross margin products and services.
The Company reported a net loss of $(97,968) for the quarter compared to a net loss of $(221,220) for the corresponding quarter last year and net loss of $(667,320) for the six months ending December 31, 2005, compared to a net loss of $(464,098) for the comparable six month period in 2004.
There are currently 8,685,601 shares of Electronic Control Security Inc. issued and outstanding.
Arthur Barchenko, President and CEO, stated, "We are pleased with the results of this quarter for ECSI. Spending in the security industry has increased over the last several months as Congress has continued to allocate money to fund Homeland Security initiatives. We acquired the assets of Clarion Sensing Systems in March of 2005, a provider of proprietary nuclear, bio-chemical and radiological water security and control systems. Based on the number of proposals outstanding to date, we expect to see rapid growth in sales of these products over the next several years. Recently, we launched the Water Infrastructure Security Environmental (WISE) initiative, providing a complete, end-to-end, total security envelope that offers security and monitoring of our water supply from source to faucet."
A more detailed description of the financing activity and financial statements are contained in the 10QSB filed on February 13, 2006 with the SEC.
About ECSI
ECSI is recognized as a global leader in perimeter security and an effective quality provider for both the Department of Defense and Homeland Security programs. The ISO 9001 registered company designs, manufactures and markets physical electronic security systems for high profile, high threat environments. ECSI is located at 790 Bloomfield Avenue, Bldg. C-1, Clifton, NJ 07012. Tel: 973-574-8555; Fax: 973-574-8562; for more information on ECSI and its customers please go to http://www.anti-terrorism.com.
ECSI INTERNATIONAL, INC. SAFE HARBOR STATEMENT: Statements in this press release, including the statements relating to projected future financial performance, are considered forward-looking statements under the federal securities laws. Sometimes these statements will contain words such as "anticipates," "expects," "plans," "projects," "estimates," "outlook," "forecast," "guidance," "assumes," and other similar words. These statements and those contained in the 10KSB and 10QSB's are not guarantees of the Corporation's future performance and are subject to risks, uncertainties and other important factors that could cause the Corporation's actual performance or achievements to be materially different from those the Corporation may project. These are only some of the numerous factors that may affect the forward-looking statements contained in this press release.
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