HANOVER, MD -- (Marketwired) -- 05/13/13 -- Brekford Corp. (the "Company") (OTCBB: BFDI) (OTCQB: BFDI), a leading public safety technology service provider of fully integrated traffic safety solutions, vehicle upfitting, and rugged mobile technology, today announced its operating results for the first quarter of 2013.
The Company generated net income of $75,599 for the quarter ended March 31, 2013, despite an extended transition period for the launch of Baltimore's Automated Traffic Violation Enforcement System ("ATVES"). Revenue increased 5.9% to $4,394,839, primarily driven by automated traffic enforcement services. Significant infrastructure and ramp-up expenditures were incurred during the most recent quarter, as the Company prepares for full-scale implementation of ATVES and other initiatives during the remainder of 2013.
"We are very pleased to report a profitable first quarter, especially in light of the costs associated with an ambitious transition schedule for the Baltimore ATVES program and preparation for initial contracts for our financial services subsidiary," stated C. B. Brechin, Chief Executive Officer of Brekford Corp.
"As Brekford moves towards full implementation of the ATVES program and continues to pursue additional automated traffic enforcement programs and financial services contracts in the second quarter and beyond, we are well-positioned to execute upon our client commitments in a highly efficient and accurate manner. Although we have placed a considerable emphasis on the Baltimore ATVES transition, we are also very excited about enhancements to our existing automated traffic enforcement programs throughout the State of Maryland, prospects for financial services contracts, and opportunities for geographical expansion in coming quarters."
"We are currently pursuing new contract opportunities in a number of states within the eastern and midwestern U.S.," continued Brechin. "We were pleased to announce last month our first financial services contract, which involves the processing of parking citations and the collection of delinquent citation payments for the City of Laurel, Maryland. This represents an important contract for our new Municipal Recover Agency, LLC ('MRA') subsidiary, which was formed in 2012 to target the growing need among large and small municipalities for the more effective collection of delinquent receivables. We look forward to the announcement of additional MRA and automated traffic enforcement contracts as the year progresses."
Financial highlights for quarter ended March 31, 2013
Net revenue increased 5.9% to a first quarter record of $4,394,839 during the three months ended March 31, 2013, compared with $4,149,003 in the previous year. The increase in total net revenue was primarily due to continued growth in automated traffic enforcement and vehicle upfitting services, partially offset by lower sales of rugged IT products. The Company expects vehicle upfitting service revenue and rugged IT product sales to fluctuate from quarter to quarter, depending upon the size and timing of orders from law enforcement and other vehicle fleet operators.
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