Brekford Corp announced on Tuesday that it recorded solid first quarter results, providing clues for second half financial results. Looking past Tuesday’s announcement, investors can look forward to - potentially - a strong second half.
Revenues are expected to accelerate in the second half of 2012, as a result of previously announced contracts with the municipalities of Greenbelt and Denton, MD and Rivera Beach, FL. All of which will begin to contribute to the Company’s top line and add to the Company’s base business.
The Company’s profitability is forecasted to increase significantly in the second half. Despite frontloaded cost, the Company had a strong operational performance by posting better than expected gross and operating profit margins. The Company is growing very rapidly and doing a good job of controlling expenses. The coming surge in revenue will have a positive effect on the Company’s second half EPS
As was discussed in our recent interview with Brekford’s management team, the Company is quickly becoming an industry leader when it comes to innovation of cutting edge automated traffic safety solutions. Innovation is happening at a breakneck pace because the Company’s smaller size gives them an opportunity to innovate faster in comparison to their competitors.
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