Contact Information: CONTACT: Pfeiffer High Investor Relations, Inc. Geoff High 303-393-7044
Law Enforcement Associates to Delay 10-K Filing
| Quelle: Law Enforcement Associates
YOUNGSVILLE, NC--(Marketwire - April 15, 2008) - Law Enforcement Associates Corporation
(LEA) (AMEX : AID ), today announced it will be unable to file its fiscal
2007 Form 10-K on a timely basis. The delay has resulted from
complications related to the completion of the Company's year-end audit.
Specifically, the issues are related to valuations of LEA's patents and its
fourth-quarter acquisition of the assets of Advanced Vehicle Systems LLC.
The Company has been working diligently with its auditors and Audit
Committee and expects to complete the audit this week and file its 10-K no
later than Friday, April 25, 2008.
LEA anticipates reporting net sales for fiscal 2007 of approximately $6.7
million as compared with $7.5 million for fiscal 2006. It also anticipates
reporting a net loss of approximately $790,000 versus a net loss of $3,000
in the previous year. The decline in revenue and increased net loss is
primarily attributable to the Company making the decision to bring its
sales staff in-house versus utilizing independent outside sales people. As
a result, more than half of the sales staff were new hires in 2007. The
Company also recognized higher than expected operating expenses related to
the introduction of the Graffiti Cam. However, based upon improved sales
results for the quarter ended March 31, 2008, the Company does not
anticipate that last year's declining financial trends will continue.
The Company anticipates reporting total assets at December 31, 2007, of
approximately $6.7 million as compared with $6.0 million at the end of the
previous year, while total liabilities will be approximately $1.1 million
as compared with $631,000 in the prior year. The anticipated increase in
liabilities is largely attributable to increases in trade accounts payable
and the Company's line of credit in preparation for a large Federal
Government order received during the fourth quarter. However, the revenue
related to this order will not be recognized until the first quarter of
2008. The Company also anticipates reporting stockholders' equity of
approximately $4.3 million as compared with $5.4 million at the end of
2006.
Paul Feldman, president, said, "While we are disappointed with our 2007
financial results, the performance of our new sales force and the overall
direction of the Company is positive. Our new Graffiti Cam surveillance
system has generated enormous interest and strong preliminary sales
results. We also continue to achieve strong sales of our Bird Dog GPS
tracking system. We believe that the reintroduction of the AID Vehicle
Division also will have a positive impact on our future revenues, as it has
already generated $400,000 in sales since its launch in October 2007. In
light of these developments, we anticipate a turnaround in our first
quarter financial results, which we expect will be profitable."
About Law Enforcement Associates Corporation
LEA is a leading security and surveillance technology company that
manufactures and markets a diverse product line to the worldwide law
enforcement, military, security and corrections markets. The company's
Audio Intelligence Devices (AID) division has been serving the law
enforcement sector for more than 30 years and is one of the most respected
names in the surveillance equipment industry. LEA's products are used by a
wide variety of government and non-governmental agencies, as well as public
and private companies. These include military bases, nuclear facilities,
embassies, government installations, oil refineries, United Nations and
NATO locations. The company enjoys close working relationships with other
prominent players in the security and surveillance industry, such as Smith
& Wesson, one of the world's largest manufacturers of quality firearms and
firearm safety/security products; and FLIR Systems, Inc., a world leader in
the design, manufacture and marketing of thermal imaging and stabilized
camera systems. LEA's products have been used at high-profile events such
as the Summer & Winter Olympics, Super Bowl, U.S. Golf Championship, and
the Democratic and Republican National Conventions. Its products include
the Under Vehicle Inspection System (UVIS), Smith & Wesson-branded UVIS
Swift, EDK123 (Explosive Detection Kit), Bloodhound and Birddog GPS
Tracking Systems, Graffiti Cam, Letter-bomb Visualizer Spray, and a wide
variety of Audio & Video Surveillance Equipment. Headquartered in
Youngsville, N.C., the company has been featured in many industry
publications and websites. For more information, please visit
www.leacorp.com.
Forward-Looking Information:
The statements in this news release contain forward-looking information
within the meaning of the Private Securities Litigation Reform Act of 1995.
Statements that use words such as "believe," "anticipate," "estimate,"
"intend," "could," "plan," "expect," "project," "predict," "forecast,"
"outlook," "potential," "continue," "may," "future," "can," "enhance," and
"should," or the negative of these, as well as similar expressions, can be
used to identify forward-looking statements. Such forward-looking
statements involve certain risks, assumptions and uncertainties, including
the inability to generate and secure the necessary product sales, or the
lack of acceptance of the company's products by its customers. In each case
actual results may differ materially from such forward-looking statements.
The company does not undertake to publicly update or revise its
forward-looking statements even if experience or future changes make it
clear that any projected results (expressed or modified) will not be
realized.