Electronic Control Security, Inc. Announces Continuing Operating Profit for Third Quarter Fiscal 2010

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Clifton, NJ --(www.USEquityNews.com)-- 05/12/2010 - Electronic Control Security, Inc. (OTCBB: EKCS) (ECSI), a leading provider of electronic security system technologies to the government and private sectors, announced its results of operations for the nine months ended March 31, 2010.


Arthur Barchenko, President and CEO, stated, "We had net revenues of $2,923,381 for the nine months ended March 31, 2010 compared to $3,003,136 for the corresponding nine month period in 2009, a negligible decrease of approximately 2.7%. However, net revenues for the three month period ended March 31, 2010 totaled $1,287,677 representing a 127% increase over the $564,946 revenues for the third quarter of fiscal 2009. This increase in net revenues is primarily attributable to orders on contracts in-house for the U.S. Navy Ashore Program, the United Nations contract in Ethiopia and nuclear power station orders received during the November-December 2009 period."

Further, "Gross margins for the nine months ended March 31, 2010 were 62% compared to 31% of revenue for the corresponding nine month period in 2009. The increase in gross margins for the 2010 period is primarily attributable to a continuing shift in the order mix of equipment sales and support services. We continued to experience a decrease in material costs and an increase in productivity while obtaining a marked increase in higher gross margin design and engineering support service billings. Our gross margins in fiscal 2010 continue to improve compared to those in fiscal 2009."

Mr. Barchenko then stated, "The selling, general and administrative expenses for the nine months ended March 31, 2010 were $1,216,745 compared to $1,064,201 for the corresponding period in 2009. This increase is primarily attributable to costs relating to the U.S. Navy Ashore program and the U.N. project in Ethiopia, where the Company incurred significant increases in travel and personnel-related expenses, and to an increase in bad debts related to the clean-up of two government projects in the U.S. Although, the Company attempted to resolve these issues during this quarter, we felt that they would be uncollectible and elected to write off these receivables at this time."

For the nine months ended March 31, 2010, there was net income from operations of $461,859 compared to a loss of $(314,735) for the same period in 2009 due primarily to the receipt of higher gross margin orders and controlled selling, general and administrative expenses.

During the quarter ended March 31, 2010, the Company submitted proposals on major projects for Department of Defense and Department of Energy facilities and numerous nuclear power stations in the United States valued at approximately $12,750,000. These proposals are pending and awaiting approval, funding and award. We anticipate decisions relating to these proposals within the fourth quarter of fiscal 2010 and the first quarter of fiscal 2011.

About ECSI

ECSI is a global leader in perimeter security and a quality provider to the Department of Defense, Department of Energy, nuclear power stations, and other large commercial-industrial complexes. The Company designs, manufactures and markets physical electronic security systems for high profile, high threat environments utilizing risk assessment and analysis to determine and address the security needs of its customers. Teaming agreements with major system integrators enable ECSI to support the installation and aftermarket of its products in the U.S. and overseas. ECSI is located at 790 Bloomfield Avenue, Bldg. C-1, Clifton, NJ 07012. Tel: 973-574-8555; Fax: 973-574-8562. For more information on ECSI and its customers, please visit http://www.ecsiinternational.com.

ECSI INTERNATIONAL, INC. SAFE HARBOR STATEMENT: This press release contains forward-looking statements that involve substantial uncertainties and risks. These forward-looking statements are based upon our current expectations, estimates and projections about our business and our industry and reflect our beliefs and assumptions based upon information available to us at the date of this release. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including but not limited to, acceptance of our proposals, sufficiency of working capital, receipt and timing of collections from purchase orders, the availability of working capital, changes in economic conditions generally and in our industry specifically, changes in security technology, legislative or regulatory changes that affect us, changes in costs and the availability of goods and services, the introduction of competing products, changes in our operating strategy or development plans, sufficiency of cash reserves and the risks and uncertainties discussed under the heading "RISK FACTORS" in Item 1 of our Annual Report on Form 10-K for the fiscal year ended June 30, 2009 and in our other filings with the Securities and Exchange Commission. We undertake no obligation to revise or update any forward-looking statement for any reason.

Contact Information:
Natalie Schneider
973-574-8555

U.S. Equity News
Tel: (949) 517-2426
Email: info@usequitynews.com

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