Universal Guardian Q1 2007 Results and Investor UpdateUniversal Guardian Holdings, Inc. Press Release
FlashlightNews.org - 5/24/2007
Cobra StunLight infomercial call response and cost per call, have been greater than expected.
Universal Guardian's Cobra StunLight
NEWPORT BEACH, Ca. - Universal Guardian Holdings, Inc. (OTC Bulletin Board: UGHO), an emerging global leader in non-lethal protection products, integrated transportation and global supply chain security systems, and strategic security services to protect against terrorist, criminal, and security threats to governments and businesses worldwide, provides Q1 2007 results and an investor update.
"We have delivered consistent year over year revenue increases -- from $4.1 million in 2004, $14 million in 2005, $21.8 million in 2006 and we expect to deliver $37 million in 2007," stated Michael Skellern, CEO of Universal Guardian (www.universalguardian.com). "We have consistently narrowed operating losses while investing in research and development of our patented, patent pending products, and integrated asset visibility and security systems, which are now being launched into international markets," added, Mr. Skellern.
"Universal Guardian Services Group expected a $25 million government contract award in late 2006 that was ultimately re-bid and lost to a competitor in late March 2007, resulting in extraordinary mobilization costs that were reflected in our Q1 2007 financial results," stated Kevin Westcott, Universal Guardian's COO. "A significant portion of our G&A expenses in FY2006 and Q1 2007 can be attributed to our Cobra StunLight infomercial development and media costs, the development of our Total Asset Guardian RFID systems (www.tag3.com), as well as mobilization and demobilization costs of Universal Guardian Services Group. To date we have reduced our G&A expenses in each of our business units, and our corporate headquarters by more than $1 million," continued Mr. Westcott.
Since the close of Q1 2007, Universal Guardian Service Group has earned new and expanded contracts including AED for $6.7 million, MPRI for $1.5 million and PAE-HSC for $1.7 million.
"Universal Guardian's products, Cobra StunLight infomercial call response and cost per call, have been greater than expected. However we have experienced call-center capacity issues which have resulted in lower than projected Cobra StunLight™ sales of $157,836 versus our plan of $194,538. Accordingly, unit sales missed plan by 6.3% in Q1," stated Charlie Dey, Universal's Director of Marketing. "We have added a new call center and refined our infomercial, which is now beginning to show marked improvements, and we are confident that we can deliver more than $7 million in infomercial sales in 2007."
Universal Guardian Systems Group launched its subscription-based TAGeasy™ e-commerce Department of Defense (DoD) RFID system at the DoD RFID Summit in Washington, D.C. in April 2007 and has since signed up more than ten (10) new customers and received more than 100 new inquires. Universal's TAGstation™, its web-based RFID portal, has a pilot program scheduled with a major international retailer and planned distribution with a national packaging supplier to industry and government.
About Universal Guardian Holdings
Universal Guardian Holdings, Inc. (UGHO) and its subsidiaries provide a comprehensive range of security products, systems, and services designed to mitigate terrorist and security threats worldwide. Universal Guardian's global risks mitigation group includes strategic and tactical security services, integrated global supply chain visibility and security systems for government and industry, as well as non-lethal and tactical products for law enforcement, military, professional security and consumer markets. Universal Guardian companies features a wide variety of applications that provide cost-effective, end-to-end solutions and critical security services for government and multi-national businesses from operations on every continent.