Secure Alert (OTCBB: SCRA) – September 16, 2010 Update
Full Report and Update
Secure Alert issued their quarterly earnings. The highlights showed that as a result of deploying its next generation TrackerPAL II(e) offender tracking devices, now "Made in the USA," SCRA has successfully exchanged 2,861 devices out of 4,010 prior generation devices deployed in the field through June 30, 2010 supporting revenues for the fiscal quarter ended June 30, 2010 of $3,079,226 an increase of 3% over its previous fiscal quarter ended March 31, 2010.
Highlights include:
- SCRA reported a gross profit of $1,363,765 and a gross margin of 44% for the third fiscal quarter ended June 30, 2010 compared to a gross profit of $788,143 or a gross margin of 25% for the same period ended 2009.
- The net loss for the third fiscal quarter ended June 30, 2010 of $2,054,238 improved over the same period a year ago of $5,032,308, an improvement of $2,978,070, or 59%.
- SCRA also reported Shareholders Equity of $3,869,330 for the third fiscal quarter ended June 30, 2010 compared to a Stockholders Deficit of $12,372,821 for the same period ended 2009, an improvement of $16,242,151.
- Management stated SCRA "is now well positioned to achieve planned growth within the expanding electronic monitoring marketplace through the delivery of unmatched reliability and quality of our intervention monitoring products and services."
September 16, 2010 Update
Price $0.11
Rating - BUY
12 Month Target Price - $0.30
52-Week Range: $.08 - $.16
Total Liabilities: $8.5 M
Shares Outstanding: 530 M with fully coverted preferred, options & wrnts
Rev: $3.1 M (per quarter)
Shares in the Float: 65M approximately - Market Cap: $51.5 M
Assets: $12.3
First Berlin Research Issues "Buy" Recommendation and Quarterly Progress - First Berlin Equity Research has issued a "Buy" recommendation on Secure Alert (OTCBB: SCRA) with a price target of $0.37. This increases the price target of $0.30 in the recent Waterville Research Buy recommendation. The First Berlin report can be downloaded here.
Brazil Contract - On August 18, 2010, SecureAlert announced the very first GPS offender monitoring contract ever to be signed in the history of Brazil. The Superintendent of Correctional Services (SUSEPE) Mario Santa Maria Junior, in the Brazilian state of Rio Grande do Sul, signed an emergency contract with the Company through SecureAlert's Brazilian partners to immediately deploy 200 of the Company's TrackerPAL II(e) devices on offenders located in and around the metropolitan area of Porto Alegre. SUSEPE has already identified an initial 256 eligible offenders to participate in the program and has also communicated the need to publish requirements by the end of August 2010 for an additional 800 offenders to be monitored, while forecasting growth to 5,000 offenders in total, as offender electronic monitoring is introduced statewide throughout Rio Grande do Sul going forward.
SecureAlert, Inc., together with its partners in Latin America, have worked for the last three years to create awareness and to demonstrate the advantages and benefits of offender monitoring technologies within Brazil and surrounding countries. The recognition of these efforts culminated on June 16, 2010 when Law 12.258 was approved and published by Luis Inacio Lula da Silva (President of Brazil). The law authorizes offender electronic monitoring throughout Brazil, subject to certain conditions. The law signed by President Luiz Inacio Lula da Silva amends the Penal Code and the Penal Execution Law to provide for such monitoring and includes sanctions for non-compliance by offender participants.
"This is a historical moment for SecureAlert, as it paves the way for additional contracts and opportunities that the Company has pending throughout the Region," said John Hastings President and Chief Operating Officer of SecureAlert. "Brazil in particular is very progressive in its thinking and creation of re-socialization initiatives, providing visionary support for both public safety and offender re-entry solutions, wherein electronic monitoring serves as one of many new tools and technologies that the government will utilize to successfully implement revolutionary correctional programs," said Hastings.
Hastings further noted that over the past year, "SecureAlert and its proprietary TrackerPAL technologies and intervention solutions have received a great deal of recognition and public support, as illustrated by numerous articles and media coverage throughout Brazil, where the Company has successfully demonstrated and piloted its technologies for several state governments." (See media links below)
Surviving Parents Coalition's (SPC) "Ride for Their Lives" – Finally, SecureAlert has joined as a sponsor of Surviving Parents Coalition's (SPC) "Ride for Their Lives", where co-organizers, Ed Smart of Salt Lake City, Utah and Ahmad Rivazfar of Rochester, New York, will ride across the United States on bicycles with other volunteer riders. The purpose of the ride is to raise public awareness and funding to assist in stopping predatory crimes against children and young adults through the passage of new legislation and the enforcement of current laws already enacted.
The SPC is a non-profit organization, described by members as "an organization that no one wants to be a member of." Members are comprised of parents whose children have been abducted, sexually assaulted, murdered, recovered or are still missing. Many of their cases have made national headlines.
The four primary legislative issues that the SPC is focusing on are:
- DNA collection on felony arrest which would require offenders arrested for a felony to provide a DNA sample;
- Protect our Children Act of 2008 which would provide more resources for the investigation and interdiction of child exploitation cases;
- The Adam Walsh Act which sets minimum standards for national sex offender registration and notification, as well as provides for GPS tracking of sexual predators; 4) Not ONE More Child, which is a child safety education initiative that educates children to recognize, avoid, resist, and escape dangerous situations.
Real-time and intervention-driven GPS Offender Tracking technology, such as that provided by SecureAlert, is one such tool specifically supported by legislation. At least 39 states have enacted GPS or electronic monitoring provisions specific to sex offenders. However, even in states where legislation exists, oftentimes the GPS monitoring implementation is not the right type and falls short, or the agencies involved do not have sufficient resources to properly monitor offenders, as required. In some cases, sexual offenders are placed on "passive" monitoring, whereby infractions such as entering exclusion zones, including parks or school grounds, are not reported until long after they have been violated, and potentially after another crime has already been committed. In other cases, the infraction information gets to officers in a timelier manner, but due to budget cuts and other constraints, the assigned officers are backlogged with multiple priorities and large caseloads, preventing them from responding as efficiently as they would like to respond. In contrast, SecureAlert's TrackerPAL II(e) technology, enables SecureAlert's Intervention Monitoring Specialists to augment officers' efforts and to act as the first line of response when monitoring compliance violation alarms occur. This occurs on a real-time basis, increasing the chance of stopping an offender and changing the outcome of a situation, while they are in the act of violating, either intercepting them with law enforcement or altering their behavior by dissuading them from progressing prior to crime escalation.
To demonstrate how real-time GPS Offender Tracking is a viable and critical tool in enforcing current or pending legislation, Ed Smart will be wearing the TrackerPAL II(e) Offender Tracking Device (OTD) throughout the ride so that supporters may view how GPS Offender Tracking can track the 24/7 whereabouts of offenders. Ed Smart's progress through the ride may be found at the following Facebook™ link: http://apps.facebook.com/securealert/. For more information regarding Ride for Their Lives cross-country bike ride, please visit: http://www.ridefortheirlives.com For more information and/or to support the Surviving Parents Coalition, please visit: www.spcoalition.org
SecureAlert Inc. (OTCBB: SCRA) signed a deal through its distributor, BRK of Olympia, Washington, to provide Alaska Pre-Trial Services with a comprehensive Pre-Trial Defendant Services Program.
Monday, October 25, 2010 at 1:14PM
