HANOVER, MD--(Marketwired - May 16, 2016) -  Brekford Corp. (OTCQX: BFDI), a leading public safety and security technology service provider of automated traffic safety enforcement ("ATSE") solutions, parking enforcement solutions, and an end-to-end suite of technology equipment for public safety vehicle services, today announced its operating results for the first quarter of 2016.

First Quarter Financial Highlights

• Revenue declined to approximately $3.1 million, compared to $5.1 million in the same period of 2015;
• Gross profit margin increased to 19.9%, compared to 18.0% in the same period of 2015;
  • ATSE services gross margin increased to 70.0%, compared to 68.0% in the same period of 2015;
  • Vehicle services gross margin decreased to 7.4%, compared to 10.6% in the same period of 2015;
• Operating expenses decreased to $891,201, compared to $1.0 million in the same period of 2015;
• Net loss increased to $554,285, compared to $127,108 in the same period of 2015.

First Quarter Operational Highlights

• Initiated ATSE operations in Brice, Ohio and New Rochelle, New York;
• Deployed next generation solar powered portable red light camera system in New Rochelle, New York;
• Awarded contract from Calvert County, Maryland to provide turnkey automated speed enforcement services;
• Submitted proposals to provide ATSE services in Washington D.C., Bogota Colombia, Asuncion Paraguay, San Pedro Mexico and Monterrey Mexico;
• Launched first Panasonic Arbitrator® BWC (body-worn camera) program in the state of Maryland (St. Mary's County, Maryland);
• Initiated body camera pilot project in Charleston, South Carolina.

Management Comments

"Operating results for the first quarter of 2016 were below expectations, following the excellent progress on our turnaround plan in 2015," commented Rod Hillman, President and Chief Operating Officer of Brekford Corp. "Lower sales of rugged IT and electronic ticketing products, coupled with couple lower gross margins in our overall vehicle services portfolio, contributed to the reported net loss. Some key purchase orders were not completed due to timing of product supply, and we experienced delays in executing our plan for new customer acquisition designed to offset the cyclical nature of existing customer repeat orders. Our vehicle services sales order pipeline remains strong with a backlog exceeding $2.5 million, despite the reduced first quarter revenues. We expect renewed growth in vehicle services as our expanded market strategy targets new clients in Washington D.C., Virginia, Delaware, and federal government agencies."

"Brekford has continued to make significant progress on our overall execution strategy with respect to ATSE services, body cameras, technology development, and expansion of our vehicle services sales order pipeline. We launched ATSE operations in Brice, Ohio and New Rochelle, New York, and were recently awarded a speed camera contract in Calvert County, Maryland that will begin operations in the second quarter. We are also awaiting results on a number of submitted ATSE proposals in both the U.S. and Latin America, including the capital cities of Colombia and Paraguay, two large cities in Mexico, and Washington, D.C. The sales cycle for ATSE programs can be very long; however, we are confident that our contracted recurring revenue model will lead to sustained growth for the Company. We are driving these efforts with a strong focus on proprietary technology development including a solar powered portable red light camera, a compact mobile speed camera, licensed versions of our industry leading iP360 citation management system and the industry's first commercially viable distracted driving camera," concluded Hillman.

C.B. Brechin, Brekford's Chief Executive Officer, added, "Our first quarter results are not indicative of the solid strides Brekford has made in laying the framework for growth. As a leading public safety and security solutions provider, I am confident that broadening our geographic footprint, expanding our product and service offerings, and focusing on business development efforts will lead to long-term value for our customers and shareholders."

About Brekford Corp.

Brekford Corp. provides state-of-the art public safety technology and automated traffic enforcement solutions to municipalities, the U.S. military, various federal entities and other public safety agencies throughout the United States. Its services include automated speed and red light camera enforcement programs, parking enforcement solutions and an end-to-end suite of technology and equipment for public safety vehicle upfitting. Brekford's combination of upfitting services, cutting-edge technology, and automated traffic enforcement services offers a unique 360-degree solution for law enforcement agencies and municipalities.

The Company is headquartered in Hanover, Maryland, and its common stock is traded on the OTC Markets under the symbol "BFDI." Additional information on Brekford can be accessed online at www.brekford.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of that term in Section 21E of the Securities Exchange Act of 1934, as amended. Words such as "anticipate," "expect," "project," "intend," "plan," "believe," "target," "aim," "should," and words and terms of similar substance and any financial projections used in connection with any discussion of future plans, strategies, objectives, actions, or events identify forward-looking statements. Forward-looking statements include, among others, those concerning our expected financial performance and strategic and operational plans, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. These statements are based on the beliefs of our management as well as assumptions made by and information currently available to us and reflect our current views concerning future events. As such, they are subject to risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, among many others: the risk that any projections, including earnings, revenues, expenses, synergies, margins or any other financial items that form the basis for management's plans and assumptions are not realized; a reduction in industry profit margin; requirements or changes affecting the business in which we are engaged; our ability to successfully implement new strategies; operating hazards; competition and the loss of key personnel; changing interpretations of generally accepted accounting principles; continued compliance with government regulations; changing legislation and regulatory environments; and the general volatility of the market prices of our securities and general economic conditions. Readers are referred to the documents filed by Brekford Corp. with the SEC, specifically the Company's most recent reports filed on Form 10-K and Forms 10-Q, which further identify important risks, trends and uncertainties which could cause actual results to differ materially from the forward-looking statements in this press release. Brekford Corp. expressly disclaims any obligation to update any forward-looking statements.

Brekford Corp.
Condensed Consolidated Statements of Operations (Unaudited)
			Three Months Ended March 31,
			2016				2015
NET REVENUE			$	3,081,126			$	5,146,179
COST OF REVENUE				2,468,870				4,220,587
GROSS PROFIT				612,256				925,592
OPERATING EXPENSES
	Salaries and related expenses			479,860				540,221
	Selling, general and administrative expenses			411,341				461,385
TOTAL OPERATING EXPENSES				891,201				1,001,606
LOSS FROM OPERATIONS				(278,945	)			(76,014	)
OTHER (EXPENSE) INCOME
	Interest expense			(152,028	)			(97,882	)
	Change in fair value in derivative liability			(840	)			46,788
	Loss on extinguishment of debt			(122,472	)			--
TOTAL OTHER (EXPENSE) INCOME				(275,340	)			(51,094	)
NET LOSS			$	(554,285	)		$	(127,108	)
OTHER COMPREHENSIVE LOSS - foreign currency translation				(1,473	)			--
COMPREHENSIVE LOSS				(555,758	)			(127,108	)
LOSS PER SHARE - BASIC			$	(0.01	)		$	(0.00	)
LOSS PER SHARE - DILUTED			$	(0.01	)		$	(0.00	)
WEIGHTED AVERAGE NUMBER OF SHARESOUTSTANDING - BASIC				45,297,869				44,625,236
WEIGHTED AVERAGE NUMBER OF SHARESOUTSTANDING - DILUTED				45,297,869				44,625,236

Brekford Corp.
Condensed Consolidated Balance Sheets (Unaudited)
				March 31, 2016				December 31, 2015
ASSETS
CURRENT ASSETS
	Cash			$	544,514			$	580,400
	Accounts receivable, net of allowance $0 at March 31, 2016 and December 31, 2015, respectively				2,548,823				3,781,263
	Unbilled receivables				385,721				304,470
	Prepaid expenses				53,258				71,740
	Inventory				554,246				606,471
Total current assets					4,086,562				5,344,344
Property and equipment, net					216,066				223,347
Other non-current assets					103,828				179,208
TOTAL ASSETS				$	4,406,456			$	5,746,899
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
	Accounts payable and accrued expenses			$	1,698,999			$	2,979,131
	Accrued payroll and related expenses				78,924				98,000
	Line of credit, net of fees				1,762,160				1,402,380
	Term loan - current portion, net of fees				104,167				166,667
	Deferred revenue				127,208				95,233
	Customer deposits				10,071				36,070
	Obligations under other notes payable - current portion				29,477				29,277
	Derivative liability				99,876				99,036
	Other liabilities				46,979				46,979
Total current liabilities					3,957,861				4,952,773
LONG - TERM LIABILITIES
	Notes payable - stockholders				500,000				500,000
	Other notes payable - net of current portion, net of fees				14,187				21,660
	Deferred rent, net of current portion				44,874				44,923
	Convertible promissory notes, net of debt discounts and issuance costs of $284,484 and $418,730 at March 31, 2016 and December 31, 2015, respectively				255,517				221,269
Total long-term liabilities					814,578				787,852
TOTAL LIABILITIES					4,772,439				5,740,625
STOCKHOLDERS' (DEFICIT) EQUITY
	Preferred stock, par value $0.0001 per share; 20,000,000 shares authorized; none issued and outstanding				--				--
	Common stock, par value $0.0001 per share; 150,000,000 shares authorized; 46,138,064 and 45,151,254 issued and outstanding, at March 31, 2016 and December 31, 2015, respectively				4,614				4,515
	Additional paid-in capital				11,133,431				10,951,491
	Treasury Stock, at cost 10,600 shares at March 31, 2016 and December 31, 2015 respectively				(5,890	)			(5,890	)
	Accumulated deficit				(11,496,665	)			(10,942,380	)
	Other comprehensive loss				(1,473	)			(1,462	)
		TOTAL STOCKHOLDERS' (DEFICIT) EQUITY			(365,983	)			6,274
		TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY		$	4,406,456			$	5,746,899