ECSI Reports Third Quarter Results.CLIFTON, N.J. -- Electronic Control Security Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (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 This is a list of major nuclear power plants in all countries in the world. This is an incomplete list. You can help Name of power station Installed capacity in MW Country Atucha I nuclear power plant 357 Argentina , today announced revenues of $5,043,622 for the 2006 Period as compared to net revenues of $3,353,819 for the 2005 Period, representing an increase of approximately 50%. Net revenues for the three months ended March 31, 2006 were $984,057 as compared to $1,396,227 for the corresponding three months in 2005. The increase in net revenues during the 2006 Period as compared to the 2005 Period is primarily attributable to government contracts under the Integrated Base Defense Security System (IBDSS IBDSS Integrated Base Defense Security System ) delivery orders. The decrease in net revenues during the three months ended March 31, 2006 as compared to the corresponding three-month period in 2005 is primarily attributable to an action taken by one of our vendors in arbitrarily placing us on credit hold. This resulted in our inability to ship certain finished product during the three months ended March 31, 2006 and record revenues in the amount of approximately $2.2 million on such contract. We are currently negotiating with a finance company to support the credit requirements of the vendor and expect to be able complete the shipments by the end of the next quarter. Gross margins for the 2006 Period were 22.86% of revenue as compared to 44.79% of revenue for the 2005 Period and 25.47% of revenue for the three months ended March 31, 2005 as compared to 54.66% for the corresponding three-month period in 2005. The decrease in gross margins for each of the 2006 Period and the three months ended March 31, 2006 as compared to the corresponding periods in 2005 is primarily attributable to an increase in the utilization of sub-contractors related to the Tinker Air Force Base project as well as an increase in the order mix for lower gross margin products during each of the periods in 2006. In the corresponding periods in 2005 we performed a greater percentage of higher gross profit generating activities such as design and engineering services. The decrease in each of the 2006 Periods is also partially attributable to an increase in repair costs of defective sensors delivered by a principle supplier. These sensors had to be reworked and ultimately replaced on a major installation at a cost of approximately $150,000. Net loss before dividends related to preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. for the 2006 and 2005 Periods is $(1,040,736) and $(307,046), respectively. The net loss before deemed dividends, for the three months ended March 31, 2006 was $(608,360) and a net profit of $57,052 for the corresponding period in 2005. There are currently 8,723,601 shares of Electronic Control Security Inc. issued and outstanding. Arthur Barchenko, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , stated, "Although we are not pleased with the results of this quarter we believe that $3.5- $4.0 million will be shipped during the fourth quarter. Our objective is to achieve an improved mix between the private and government sectors which should significantly increase ECSI's gross margins. Based on the number of proposals outstanding for the industrial and chemical, petro-chemical markets, we expect to see profitable growth in sales over the next several years. A more detailed description of the financing activity and financial statements are contained in the 10QSB QSB Fading QSB Qualified Small Business (IRS category) QSB Queen Street Backpackers (Auckland, New Zealand) QSB Quality System Basics QSB Qualified Supplemental Benefit QSB Quantum Singleton Bound filed on May 15, 2006 with the SEC." About ECSI ECSI Export Cargo Shipping Instruction ECSI EarthKeeper Center for Self Improvement ECSI Early Childhood Systems Initiative : ECSI is recognized as a global leader in perimeter security and an effective quality provider for both the Department of Defense and Homeland Security Noun 1. Homeland Security - the federal department that administers all matters relating to homeland security Department of Homeland Security executive department - a federal department in the executive branch of the government of the United States programs. The ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 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 Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. STATEMENT: Statements in this press release, including the statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc 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 KSB Kogod School of Business (American University) KSB Kelley School of Business (Indiana University) KSB Kantonsschule Am Brühl St. 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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