Thanks to SBS on IHub who posted this nice summary..
For those new to HISC I found this article written last month by Lawrence C. Oakley at Wallstreetcorner.com very informative if you haven't seen it check it out it's very interesting.
Sorry its long but good.
wallstreetcorner.com
Q2 2005 (April, May, June)
SITUATION OF THE MONTH
Homeland Integrated Security Systems Inc.
(Pink Sheets: HISC)
Comment
I interviewed CEO Frank Moody. I haven’t seen a situation with as many very favorable attributes in a long time. In my opinion, this situation is a real winner. In addition to a product & associated service that has huge potential, HISC operates three technology retail stores in the Ashville area. That & some consulting resulted in revenues of $2,061,856 & a net operating profit of $585,666 for the year ended 12/31/2004.
I like situations where there is a base that generates a profit, & at the same time provides the wherewithal to complete & commercialize a set of extremely valuable emerging technology products.
Brief Overview
HISC’s proprietary technology & its rights to use patents to some of the most innovative & sophisticated seaport security products is the basis for my enthusiasm.
To add to that, CEO Moody said: “We are projecting a net pretax profit of $7 million in calendar 2005. Our initial target market is the 361 commercial seaports in the U.S. which are vulnerable to criminal penetration. Our goal for this company is quite simple. Continue to revolutionize Homeland Defense, & provide profits for our shareholders.”
The Technology Background
Moody & his team worked on a real-time tracking system for two years. The result is a product called the Cyber Tracker (it is equipped with a G.P.S. system), & completion of the development of its Third Generation Port Control Access System, just announced on
4/5/2005.
The new access control system will allow HISC to integrate the Cyber Tracker, its dispensing system, radiation detection, & a new software system that will increase security while also increasing commerce. HISC CTO Ian Riley says: “The third generation design will open new opportunities for HISC in the port security arena as well as allowing HISC to have a broader presence in other security markets."
CEO Moody commented: “The newly designed access control system, named "CYBER PASS," is the first system to use access control components while making use of our exclusive, real-time port vehicle tracking system."
My Layman’s Description
I’m sure you may have eaten at an Outback restaurant – they give you a little unit that buzzes you when your table is ready. That unit is about 5” in diameter & an inch thick. HISC’s Cyber Tracker is about the same size.
When a truck enters a seaport carrying a container, or is empty & arriving to pick up a container, the driver is given a Cyber Tracker & told to put it on his dash.
The system that is leased to the port allows the security people to know at all times exactly where the truck is, how fast it’s going, etc. In addition, the driver is photographed & his biometrics measured automatically as his truck is stopped at the gate for a few seconds. The system can be programmed to give a warning if one of several things happen – for example: -- if the truck goes within 1,000 feet of a restricted area, or if it stops for more than a few seconds or minutes, etc. In other words, a driver cannot get away with anything that may possibly be suspicious without being investigated within seconds by one of many security guards.
Another part of HISC’s products test whether radiation is present in a container – a truck with a container aboard that is delivering it to be shipped, is automatically checked as the truck moves away from the gate, or as it approaches the gate. Another radiation sensor can be mounted on the cranes that pick up the containers from the ship – if there is radiation within the container, that container will never touch U.S. soil.
Phase II testing is underway for the Savannah port project, incorporating a significant number of HISC’s tracking devices deployed, both on the port & in the immediate area surrounding the port. Phase II allows HISC to perform long-term data analysis for the port. Chairman James Bullock reports that: “The completion of the entire study will produce a comprehensive white paper outlining the benefits of the Cyber Tracker to the ports." The Savannah, GA port, incidentally, is the nation’s largest port that specializes in containers.
There are many more applications for this technology. For example, if your daughter of 18 years of age is going out for the evening, she can have a Cyber Tracker in her car, or on her person if she is in another car. Because HISC has a relationship with Nextel, her parent can at any time see exactly where she is, how fast the car is driving, where it stops & for how long, etc. If there is anything suspicious, the parents can get in their car & quickly drive to her exact location.
Such a consumer application is totally feasible, because the Cyber Tracker will be available at a price that almost anybody can afford. Obviously, the potential revenue stream is substantial.
Recent News
5/5/2005: A New Milestone in Cell Phone Capability -- HISC entered into an agreement with ActSoft, a Tampa-based GPS software company.
The significance of this move is that it could be the foundation of another milestone in cell phone growth.
Cell phones will be able to have real-time GPS navigation capability – that will accelerate cell phone growth just as some of the other major capability introductions have done.
The agreement calls for ActSoft to provide both web-based & client-based GPS software applications for Homeland Integrated Security Systems, Inc.'s patent pending Cyber Tracker, which will be available for use on wireless networks in more than 170 countries worldwide. HISC will be providing the first 'Push-To-Talk,' tamper-proof Personal Tracking Device (PTD) available on a mass-distribution basis at an affordable cost.
HISC management expects sales to exceed $125 million over the next three years.
Tom Mitchell, CEO of ActSoft stated: “This agreement will allow us to enter the direct retail sales market on a global basis. This is an exciting opportunity for both companies.''
Utilizing ActSoft's Comet Tracker web-based software will allow HISC’s Cyber Tracker to be available through retail outlets, with plans for deployment in North America by Q4 of 2005.
HISC utilizes Motorola's newest board, the (MOT) IO-200, in its Cyber Tracker. In addition to ActSoft's web-based Comet Tracker software, the multi-platform board will allow HISC to begin International retail sales in 2006. ActSoft, Inc. is a developer of transportation management & wireless GPS tracking software. Its products include Comet Tracker, a mobile management solution that tracks time, tasks, jobs, & workers using GPS-enabled cell phones. Check www.comettracker.com.
5/3/2005: HISC completed Phase II of the Savannah Port Project. HISC CRO Ian Riley said: “Phase II was designed to test system capacity and long term data collection, as well as hardware and software performance. Phase II has exceeded all our expectations.''
The project is being conducted in conjunction with Georgia Tech & the Maritime Logistics Innovation Center (MLIC). It consists of three phases. Phase I, which was completed, was designed to confirm service performance & satellite strength. Phase III will consist of GIS mapping & software finalizations. It will incorporate tracking devices deployed both on the port & in the immediate area surrounding the port.
Following Phase III, HISC will participate with Georgia Tech & MLIC in documenting the results in a “White Paper,'' which will be distributed to over 350 major ocean ports, & over 175 major commercial river ports, as well as major airports & other secured facilities.
HISC COO Fred Wicks stated: “Our experience on the Garden City Port has demonstrated that our hardware & software systems will meet or exceed all expectations. The strength of the tests has proven that we have a mature concept that can be applied in a variety of markets. We expect to rapidly expand our marketing efforts & dramatically increase sales.''
4/28/2005: HISC will apply to the OTC Bulletin Board. CEO Frank A. Moody, II said: “Our SEC attorney& auditors have completed the SB-2 & will be making the application within the next few weeks. We expect this will enhance shareholder value as we become fully reporting & begin to file full disclosure documents with the Securities and Exchange Commission.”
Financial Status
HISC’s year-end, unaudited financials for the period ended 12/31/2004 reported a net profit of over $550,000 for the year-end. Sales for the year were $2,061,856 with gross profit of $1,585,051. Expenses for the year were less than $1,000,000 & the company reported a net operating profit of $585,666.
Recommendation
I recommend HISC for both mid-term & long-term appreciation potential. I suggest that you carefully look into it – my opinion is that it has one of the greatest long-term appreciation potentials of any I’ve written about in the past 20 years.
Contact
HISC operates from 1 Town Square Blvd. Suite 347, Asheville, NC 28803. For more information, call its IR firm @ 866-843-2775, or check www.hissusa.com.
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