HANOVER, MD -- (Marketwire) -- 03/08/13 -- Brekford Corp. (the "Company") (OTCBB: BFDI) (OTCQB: BFDI), a leading public safety technology service provider of fully integrated traffic safety solutions, vehicle up-fitting, and rugged mobile technology, today announced its operating results for the year ended December 31, 2012.
The Company generated record annual revenue of $18,295,906 for 2012, an increase of 9.5% over 2011 annual revenue. A net loss for the year of $1,266,671 was primarily due to a non-cash write-down of bad debts for outstanding citations, coupled with significant infrastructure expenditures in preparation for future Automated Traffic Enforcement programs, including Baltimore, Maryland.
"We consider 2012 a watershed year for Brekford, primarily due to our selection as the official vendor for the Automated Traffic Violation Enforcement System ('ATVES') program for the City of Baltimore, Maryland," stated C. B. Brechin, Chief Executive Officer of Brekford Corp. "This represents the largest combined speed and red light automated camera enforcement program in North America. The Baltimore program will more than triple Brekford's market presence in 2013 with respect to managed traffic enforcement cameras. We believe our success in securing the Baltimore contract has positioned Brekford as a formidable contender for automated traffic enforcement contracts with other large cities, while continuing to gain market share with smaller municipalities that value our commitment to superior customer service. We expect 2013 to be an outstanding year for Brekford, in terms of both revenue and earnings, reflecting contributions from the Baltimore program, additional automated traffic enforcement contracts, anticipated contracts for our newly established financial services offering, and continued growth in our vehicle upfitting product line with federal and state agencies."
"Excluding the non-cash charge, we would have reported a modest loss for the year, reflecting 'ramp-up' costs associated with staffing levels, software development, and technology development in preparation for the Baltimore contract, which will begin to produce significant revenue starting in the second quarter of 2013. Although the contract did not contribute any revenue in 2012, we had to expand staffing levels and infrastructure capabilities in order to be ready to assume our role as vendor for the Baltimore ATVES program. We are confident these expenditures will ensure a smooth transition for the Baltimore program and prepare Brekford to seamlessly add other programs as new contracts are signed."
"With respect to the bad debt expense, management determined that a more conservative approach to the recognition of write-offs would be appropriate in light of the impact of an uncertain economy upon the timing of violator payments of tickets issued by law enforcement agencies," continued Brechin. "Outstanding citations must be paid before motorists are allowed to renew their vehicle registrations every two year. Collection of previously charged off accounts driven by such vehicle registration renewals and efforts by our financial services personnel will be reported as recoveries."
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