SeeThruEquity Issues Update Note on COPsync Highlighting Continued Success of Subscription Business Growth
NEW YORK, NY / CRWEPRESSRELEASE / September 17, 2015 /SeeThruEquity, a leading New York City based independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced that it has issued a company note on COPsync, Inc. (OTCMKTS:COYN), a company that operates the largest law enforcement mobile data information system and interoperability network in the U.S. and sells a unique real-time threat alert system for schools and other at-risk facilities that connects facilities under threat to the nearest law enforcement patrol units and the local dispatch center in seconds.
The note is available here: COYN Company Note – September 2015. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack’s. The report will be available on these platforms. The firm also contributes its estimates to Thomson Estimates, the leading estimates platform on Wall Street.
“COPsync expects more bookings growth going forward as the company is reaping benefits from a recently completed optimization of its sales process including the targeting of metropolitan law enforcement agencies and the expansion of the company’s direct sales force in Texas. Outside of Texas, COPsync uses indirect sales efforts to expand the company’s footprint,” commented Ajay Tandon, CEO of SeeThruEquity. “We are maintaining our price target of $0.57 per share.”
Highlights of note are as follows:
Continued progress building subscription business
COPsync reported a double-digit increase in its all-important Software License / Subscription business, which represents a growing base of high margin recurring revenue for the company. Although overall revenue declined due to weakness in the Hardware business segment, in 2Q15 Software License / Subscription revenues came in at $747,313, up 11% sequentially and 15.5% from 2Q14 levels of $644,675. After growing by 10% in 2014, COPsync Hardware and Installation revenues have declined by 45% YoY in the first half of 2015E. Management has noted that Hardware and installation revenues are influenced by one time events, and that the company is focused on expanding its recurring revenue streams in the Software License / Subscription business. Overall revenue in the quarter grew 6.5% sequentially to $1.25mn versus $1.17mn in 1Q15, and was down 21% versus 2Q14 due to lower Hardware and installation revenues.
Strong bookings highlight improving sales traction
Importantly COPsync management reported that 2Q15 was one of the strongest quarters for new bookings in the company’s history. The company reported sales order bookings of $1.45mn, an increase of 222% over 1Q15, and the best period for COPsync since 2Q13. Management indicated that it expects continued growth in bookings going forward as the company has recently completed an optimization of its sales process including new personnel and an increased focus on larger, metropolitan law enforcement agencies. COPsync has a two-pronged go-to-market sales strategy combining: 1) a focused, direct sales effort in Texas with the objective of bringing substantially all of the Texas local law enforcement agencies and schools onto the COPsync Network and the CS911 threat alert network; and 2) indirect sales efforts outside of Texas to expand the company’s footprint.
On September 2, 2015, the company announced a new customer win in Rhode Island, with Central Falls Public Schools becoming the first in the state to implement the COPsync911 alert system. The win expands COPsync’s already growing presence in the Northeastern United States, and we note that COPsync already has customers in New Hampshire, Massachusetts, and, New York. The company also continues to build its presence elsewhere, with customers in California, North Carolina, Texas and Louisiana.
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About COPsync, Inc.
COPsync, Inc. operates the largest law enforcement mobile data information system and interoperability network in the U.S. The COPsync Network enables officers to report and share actionable, mission-critical data and communicate in real-time and collect for outstanding misdemeanor warrants in real-time at the point of incident. Officers are also able to obtain instant access to local, state and federal law enforcement databases. The Network’s companion COPsync911 system enables campuses, government buildings, energy, telecommunications and other potentially at-risk facilities to automatically and silently send threat alerts directly to local law enforcement officers in their patrol cars and local dispatch in the event of crisis, thereby protecting schools, school children and others. The COPsync Network also eliminates manual processes and increases officer productivity by enabling officers to electronically write tickets, accident reports, DUI forms, arrest forms and incident and offense reports. The COPsync Network saves lives, reduces unsolved crimes and assists in apprehending criminals and interdicting criminal behavior – through such features as a nationwide officer safety alert system, GPS/auto vehicle location and distance-based alerts for crimes in progress, such as school crisis situations, child abductions, bank robberies and police pursuits. The company also sells VidTac(R), an in-vehicle, software-driven video system for law enforcement.
SeeThruEquity is an equity research and corporate access firm focused on companies with less than $1 billion in market capitalization. The research is not paid for and is unbiased. The company does not conduct any investment banking or commission based business. SeeThruEquity is approved to contribute its research to Thomson One Analytics (First Call), Capital IQ, FactSet, Zacks, and distribute its research to its database of opt-in investors. The company also contributes its estimates to Thomson Estimates, the leading estimates platform on Wall Street.
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