Mr. Dave Owen
Chairman and CEO
ICOP Digital, Inc.
www.ICOP.com
Nasdaq: ICOP
SecuritySolutionsWatch.com: Thank you for joining
us today, Dave. There have been many exciting developments at ICOP recently:
deals with Homeland Security, a Montana State Contract, and the partnership
with Raytheon, among others. Before we drill down into those subjects,
we understand that you have been Chairman, President and CEO of various
banks and in investment banking with Stephens, Inc. Please tell us about
your background.
Dave Owen: I have over 50 years' experience in business
having owned and operated banks in the Kansas City area and subsequently
working for several years at Stephens Inc., Investment Bank headquartered
in Little Rock, AR prior to becoming Chairman and CEO of ICOP. The experience
in the financial industry has served me well in my current capacity. In
addition I served my home state of Kansas as State Senator and Lt. Governor.
SecuritySolutionsWatch.com: The US Department of Homeland Security was a major "win" for ICOP. Please tell us about the business potential here
Dave Owen: The sale to the US Department of Homeland
Security was very significant. Nineteen vendors competed for this business
and we are extremely proud of this win. Our systems were deployed in 104
Border Security pursuit vehicles. These 104 cars are spread across all
42 points of entry along the US - Mexico Border. This initial order represents
only 5% of the total Border Patrol fleet. Border Security is scheduled
to procure over 2,000 new vehicles in Federal FY '11 positioning us for
significant growth from this account as we move forward.
SecuritySolutionsWatch.com: Congratulations also on various
contracts at the State Government level. So far this year, we have read
with great interest about your success stories in Montana, Florida, Alabama,
Newark, Minnesota, and Texas. Care to elaborate?
Dave Owen: The success we are having is in direct relationship
to the quality and durability of our equipment and the relationships we
have worked hard to develop with key accounts and strategic targets. For
example, ICOP has a very strong position in the State of Montana. Twenty-two
percent of the law enforcement departments in Montana are already outfitted
with ICOP equipment, and this contract will help to expand our presence
there. We always keep in mind that we are recording evidence that impacts
people's lives and our products are designed accordingly. Law enforcement
officials and other security related organizations across the country
and around the world have responded very favorably as a result. With some
of our recent high-profile wins, we are positioned to gain more traction
with large agencies from both State and Federal levels.
SecuritySolutionsWatch.com: We also learned through recent announcement about some key wins with Military accounts. Can you tell us more about these?
Dave Owen: ICOP mobile video systems
have been deployed to 11 Air Force Bases in the Southern US, stretching
from Arizona to Florida. The units will be installed in vehicles operated
by the Air Force Security Forces at their respective bases. The initial
order was valued at over $200,000, with up to $1.4M in total fleet deployment.
The sale originated at Randolph Air Force base, a long standing ICOP customer
for both police and fire vehicles.
SecuritySolutionsWatch.com: May we have an overview of ICOP’s key strategic partnerships and how they are progressing?
Dave Owen: The strength of our partnerships is just one of the strategies we have worked to carefully build over time. In fact, we recently secured an initial order from Langley Air Force Base in Virginia through one of our key strategic channel partners, again, for use by the Air Force Security Forces. We also won a large agency located right here in our own backyard, Olathe Police Department through that same relationship, in head to head competition with one of our largest competitors. In addition, we have a co-marketing agreement with Sprint and participate in many tradeshows with them to show the compatibility of our ICOP Live streaming product and its efficiency using the Sprint 4G network.
SecuritySolutionsWatch.com: Let's turn to the international
market for a moment. What's the latest on your penetration in the Saudi
Arabia market? Any other international markets heating up for ICOP?
Dave Owen: We are currently the only in-car video company
who has sold its products to the Ministry of Interior (MOI) in that country
through our distributor, DDIT. There are several additional tenders from
the MOI that we expect to see in the coming months. We are gaining traction
in the South America market as well.
SecuritySolutionsWatch.com: In today's challenging economy, it is
no small feat that your domestic sales increased 16.3% over the same six
(6) month period in 2009 and that 54% of the units sold during the second
quarter were to new ICOP customers. How does the balance of 2010 look
and what are the prospects for 2011 top line and bottom line?
Dave Owen: We are very encouraged with the sales pipeline
we are seeing at this time. We have built a very solid domestic base with
our product and with the international markets opening for us we believe
we are on a very sustainable growth pattern as we approach the 4th quarter
of 2010 and into 2011.
SecuritySolutionsWatch.com: Thanks again for joining us today, Dave. Are there any other subjects you'd like to discuss?
Dave Owen: The security industry is a very fast growing
sector of our economy due to the uncertain world we live in. We have worked
diligently to stay ahead of the curve with several new product developments
that our team recently showcased at the International Association of Chiefs
of Police (IACP) Conference held in October in Orlando, Florida. Some
of these developments include a new .0004 lux camera that provides a near
infrared (IR) video image, our new wireless upload capabilities of recorded
video files, providing industry leading speeds and throughput and the
addition of Solid State Hard Drives, that can store up to 128 GB of video
and audio data. We feel we have a mission to provide first responders,
with the very best equipment possible. Our team is constantly thinking
about what we can do to better our products in light of the critical situations
in which they are depended by our customers.
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