Irving, Texas –
November 15, 2006 – Integrated Security Systems, Inc. (OTCBB
Symbol: IZZI) today announced improved results for the first
quarter of fiscal 2007. Overall, sales for the security products
manufacturer were up for the quarter year-over-year by over 20%.
Much of the difference was attributable to significant increases
in the road and bridge segment of the business combined with
growth in the Intelli-Site software division.
Gross margin for
the company also saw significant improvement from 27% for first
quarter 2006 to 36% for the same period in fiscal 2007. Much of
the margin improvement is a direct result of restructuring of
the B&B ARMR division which began in mid-2005 and involved the
closure of the company’s manufacturing operations in Norwood,
Louisiana. Performance was further enhanced by an operating
expense decrease of 36% from the prior year. This improvement in
overhead expense comes as a direct result of the restructuring.
Operating losses for the company were cut by nearly 80% over the
prior year first quarter.
“The
restructuring of the company is clearly taking hold,” notes ISSI
President and CEO Jay Foersterling. “We’ve made sweeping changes
to the business to improve profitability, and it is obvious that
those initiatives are succeeding.”
In summarizing
the improvement made in the business over the last twelve
months, Foersterling believes that the company is well
positioned for future growth and profitability. “Our initial
focus was on reducing costs while improving product quality and
customer service,” states Foersterling. “Now that we have made
significant strides in those areas, our focus will be on driving
top line growth.” Company management feels that the market
dynamics in the core security and anti-terrorist barrier
business have experienced significant change. According to
Foersterling, “The security barrier business of a few years ago
has matured. In the past, the emphasis was on installing
anything that would stop a vehicle, regardless of how it looks
or fits into the surrounding environment. Now, however, the
focus has increasingly moved toward a combination of aesthetics,
quality and value. These are areas in which we excel.”
“While the
Federal government still is a significant customer, we’re seeing
improved opportunities in the state and local governmental
sectors as well as in the industrial and commercial base, both
domestically and abroad,” says Foersterling. “These are markets
highly oriented toward product performance and value; our
competitive strengths.”
About ISSI
Headquartered in Irving, Texas, ISSI is a technology company
that provides products and services for homeland security
needs. ISSI also designs, develops and markets safety equipment
and security software to the commercial, industrial and
governmental marketplaces. 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 is a leading
provider of anti-terrorist barriers, traffic control and safety
systems within the road and bridge and perimeter security gate
industries. ISSI designs, manufactures and distributes warning
gates, lane changers, airport and navigational lighting and
perimeter security gates and operators. ISSI conducts its
design, development, manufacturing and distribution activities
through three wholly owned subsidiaries: B&B ARMR, Intelli-Site,
Inc. and DoorTek Corporation. For more information, please
visit
www.integratedsecurity.com,
www.bb-armr.com
www.bbroadway.com
www.intelli-site.com, or
www.doortek.com.
This information contains certain forward-looking statements.
It is important to note that ISSI'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.