NEW YORK, NY / ACCESSWIRE / April 19, 2016 / 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. (COYN), a company that operates the nation’s only law enforcement real-time, in-car information sharing and data communication 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 April 2016 Update Note. 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.
“On its conference call with investors COYN management suggested that its overall bookings should be up nicely in 2016, due to expanding sales efforts at the company. We also expect COYN to benefit in new sales bookings from its recent capital raise, which allows the company the flexibility to be more aggressive in pursuing new business. If last year is any indication, we expect new billings to begin at a lower level in 1Q16 and build throughout the year. This also aligns with comments made by management on its call that it may take some time for new sales personnel, particularly in new areas, to convert prospects to bookings,” commented Ajay Tandon, CEO of SeeThruEquity. “We are maintaining our price target of $8.73 per share.”
Highlights of note are as follows:
– Record Revenue: COPsync reported record 2015 revenues of $6.1mn, up from $5.9mn in 2014. We were impressed the company was able to grow revenues despite shifting its focus from hardware sales to recurring subscription-based software sales.
– Software/Subscription sales grew by 24.4% YoY and lay the foundation for continued profitable growth given their recurring nature and the high incremental margins as the business grows.
– Following its NASDAQ listing and $10.6mn equity raise, COYN now has a strong balance sheet with sufficient dry powder to fund growth initiatives both in its core Texas market as well as nationally.
Strong results to end the year, growth expected in 2016
COYN generated record company revenues in 2015 despite transitioning to a subscription-focused sales model, with revenues climbing to 6.1mn for the year. The sales model transition took place during Q15, and it was apparent that the strategy was gaining traction by year-end. Indeed, COPsync ended the year with strong momentum – 2H15 revenues of $3.2mn were 37% higher than 2H14. The fourth quarter was particularly strong at $2.4mn in revenues. COYN results were particularly strong in licensing/subscription sales, which represent a key strategic area for the company given their higher margins and the recurring revenue base inherent in the model as subscription revenues build. These subscription revenues grew by 24.4% for the year and 32.7% during the second half of the year.
Outlook for growth in 2016; compelling value
Our conversations with management pointed to an optimistic outlook for COPsync in 2016 as the company adds to its sales team, which is expected to more than double from mid-2015 levels. With the completion of the recent $10.6mn financing COYN finds itself with a solid balance sheet allowing for the company to invest in a two-pronged strategy: 1) trying to reach a tipping point with adoption in its home state of Texas, and 2) beginning a national sales strategy that could support growth for years to come.
We also note the recent fundraising activities in combination with a recent selloff in shares has created an attractive valuation, with COYN’s net cash on hand representing approximately half its market cap. This leaves share trading at approximately 1x our updated 2016E revenue estimate of $9.0mn, adjusting for the cash on its balance sheet.
New business collaborations with GTX Corp, LIFEWatch USA have intriguing potential
On April 11, 2016, COPsync announced a new co-marketing agreement with GTX Corp (GTXO), a global provider of a Personal Location Services (PLS) platform using wearable technologies. Under the agreement, the companies will work together to make new business introductions, initially targeting law enforcement agencies, care facilities, and hospitals. Each of COPsync and GTX have high hopes for growth over the next several years, and there is clearly a market overlap in the advanced, technology-driven real time services provided by the companies. We are encouraged by the announcement, and see the potential for new revenue from this collaboration.
In another interesting new announcement, on April 14, 2016, COPsync announced that it had entered into a joint technology agreement with LIFEWatch USA, a leading provider of Personal Emergency Response Systems (PERS). The companies will work together to develop, market, and distribute a new line of a hand-held devices that can be used to trigger a COPsync911 alert remotely. We see this as an incremental positive for COPsync, given that management has articulated a desire to increase the functionality of its software-as-a-service capabilities and distribution. The device enables persons under threat to trigger an emergency alert through the COPsync threat-alert system, in addition to triggering an alert via desktop computer or mobile device.
Please review important disclosures at www.seethruequity.com.
About COPsync, Inc.
COPsync, Inc. (COYN) is a technology company that improves communication between and among law enforcement officers and agencies from differing jurisdictions to help them prevent and respond more quickly to crime. The COPsync Network connects law enforcement officers and agencies to a common communications system, which gives officers instant access to actionable, mission-critical data and enables them to share information and communicate in real-time with other officers and agencies, even those hundreds and thousands of miles away. The Network’s companion, COPsync911 threat alert system, enables schools, courts, hospitals, 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 in the event of a crisis, thereby speeding first responder response times and saving minutes when seconds count. The COPsync Network saves officer and citizen 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 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 company also sells VidTac(R), an in-vehicle, software-driven video system for law enforcement.
For more information, visit www.copsync.com and www.copsync911.com.