Press Release
INTEGRATED SECURITY SYSTEMS, INC. ANnOUNcEs RESULTS FOR THIRD QUARTER of Fiscal year 2005
May 6, 2005 - For Immediate Release
Irving, Texas – May 6, 2005 – Integrated Security Systems, Inc. (OTCBB Symbol: IZZI) today announced results for the third quarter ended March 31, 2005 (see attached tables).
Sales for the third quarter of fiscal 2005 increased by approximately $0.8 million, or 28%, to $3.6 million from $2.8 million from the previous quarter a year ago and also increased by $2.2 million, or 28%, to $10 million from $7.8 million during the nine months ending March 31, 2005 compared to the same period a year ago. This increase is due to increased sales volume at the company’s B&B ARMR subsidiary and the inclusion of the sales of DoorTek Corporation, as a result of the acquisition of DoorTek on December 16, 2004.
Gross margin decreased by $0.1 million or 14% from the same quarter a year ago due to a less favorable product mix and cost overruns on a large customer order related to the road and bridge division at B&B ARMR. This decrease in gross margin was offset, however, for the nine months ended March 31, 2005 compared to the same period a year ago due to the inclusion of DoorTek.
Operating expenses increased by 13% during the current period compared to the same period a year ago and also increased by 26% for the comparable nine month periods due to the addition of professional staffing levels at B&B ARMR and administrative expenses incurred at the corporate level related to the Company’s registration statement filing with the SEC on April 8, 2005.
Interest expense decreased by approximately $200,000 during the current quarter compared to the same quarter a year ago and also decreased approximately $485,000 for the current nine month period compared to the same period a year ago primarily due to the amortization of the value of warrants issued in conjunction with securing additional debt and the related interest.
C. A. Rundell, Jr., Chairman and CEO of ISSI stated,” We experienced disappointing results in the third fiscal quarter ended March 31, 2005. These are concentrated in our largest subsidiary, B&B ARMR. We are expecting improvement in gross margins during the 4th quarter at our B&B ARMR subsidiary as fixed overhead reductions continue to be realized at our primary manufacturing facility. In addition, we are continuing to contract with third party manufacturers for production of certain product assemblies and parts at a more favorable and fixed cost structure. Meanwhile, our Intelli-Site and DoorTek subsidiaries are starting to contribute consistently.”
About Integrated Security Systems, Inc. (ISSI)
Headquartered in Irving, Texas, ISSI is a technology company that designs, develops and markets safety equipment and security software to the commercial, industrial and governmental marketplaces. ISSI is a leading provider of traffic control and safety systems within the road and bridge and perimeter security gate industries. ISSI designs, manufactures and distributes warning gates, crash barriers (anti-terrorist and traffic control barriers), lane changers, airport and navigational lighting and perimeter security gates and operators. ISSI’s Intelli-Site® provides users with a software solution that integrates existing subsystems from multiple vendors without incurring the additional costs associated with upgrades or replacement. Intelli-Site® features a user-defined graphics interface that controls various security devices within one or multiple facilities. ISSI conducts its design, development, manufacturing and distribution activities through two wholly owned subsidiaries: BB ARMR Corporation and Intelli-Site, Inc. For more information, please visit www.integratedsecurity.com, www.bb-armr.com or www.intelli-site.com.
This information contains certain forward-looking statements. It is important to note that IZZI's actual results could differ materially from those projected by such forward-looking statements. Important factors that could cause actual results to differ materially from those projected in the forward-looking statements include, but are not limited to, the following: operations may not improve as projected, new products may not be accepted by the marketplace as anticipated, or new products may take longer to develop than anticipated.
CONTACTS:
Integrated Security Systems, Inc.
C. A. Rundell, Jr., Chairman, CEO
(972) 444-8280
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Integrated Security Systems, Inc • www.integratedsecurity.com 8200 Springwood Dr. Ste 230 • Irving, TX 75063 • 972-444-8280 All images & content © Copyright 2003 ISSI. All Rights Reserved. |