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Electronic Control Security, Inc. Announces Fiscal 2011 Year-End Profitability


September 28, 2011 - Clifton, NJ

Electronic Control Security, Inc. (OTCBB: EKCS) (ECSI), a leading provider of a broad line of electronic security system technologies to the government and private sectors, announced financial results for the fiscal year ended June 30, 2011.

Arthur Barchenko, President and CEO, stated, "We achieved our profitability objective during fiscal 2011 as a leading security technology manufacturer and support service provider to the large system integrators, dealers/installers and, in certain cases, the end users i.e. nuclear power stations.

"We achieved net revenues of $3,958,941 for fiscal year 2011 as compared to $4,513,737 for fiscal year 2010, representing a decrease of approximately 12%. The decrease in net revenues during 2011 as compared to 2010 is attributable to the delays encountered by the Government related to the Navy contract in which we are a subcontractor. The delays in the review and approval process and the implemented design changes had a negative $2 million impact on sales for this fiscal year."

Mr. Barchenko further stated that the Navy project, which was delayed during fiscal 2011, has been released and that delivery commenced during the first quarter of fiscal 2012.

Gross margins for 2011 were 50% as compared to 55% of revenue for the 2010 period. The decrease in gross margin for the fiscal year ended June 30, 2011 compared to the corresponding period in 2010 is primarily attributable to a change in the order mix of equipment sales and support services. Although we experienced a small decrease in material cost, we experienced an increase in design and engineering support service costs which, combined, resulted in the decrease in gross margins for Fiscal 2011.

Selling, general and administrative expenses decreased 20% in the 2011 period to $1,413,240 from $1,771,923 in 2010. The decrease is attributable to enhanced collection of receivables, thus eliminating any unforeseen write-offs during this period.

Net profit before dividends for fiscal 2011 was $530,130 compared to $382,858 in fiscal 2010. This resulted in an earnings per share of $.04 for fiscal 2011 versus $.02 for fiscal 2010.

"During fiscal 2011, the Company submitted proposals on projects for Department of Defense facilities and certain nuclear power stations in the United States and Southeast Asia valued at approximately $16,750,000. We anticipate decisions relating to these proposals during the second quarter of fiscal 2012.

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 changes in economic conditions generally and in our industry specifically, changes in security technology, legislative or regulatory changes that affect us, the availability of working capital, timing of purchase orders, acceptance of company proposals, changes in costs and the availability of goods and services, the introduction of competing products, changes in our operating strategy or development plans, our ability to attract and retain qualified personnel, changes in our acquisition and capital expenditure 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, 2011 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.

For contact:
Natalie Schneider
973-574-8555

MarketWire

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