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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 12b-25
NOTIFICATION OF LATE FILING
(Check One): /X/ Form 10-K / / Form 20-F / / Form 11-K / / Form 10-Q
/ / Form N-SAR
For Period Ended: June 30, 1999
/ / Transition Report on Form 10-K
/ / Transition Report on Form 20-F
/ /Transition Report on Form 11-K
/ / Transition Report on Form 10-Q
/ / Transition Report on Form N-SAR
For the Transition Period Ended:
Commission File Number 1-11900
CUSIP Number 45812J 10 1
If the notification relates to a portion of the filing checked above, identify
the Item(s) to which the notification relates:
PART I - REGISTRANT INFORMATION
Integrated Security Systems, Inc.
8200 Springwood Drive, Suite 230
Irving, TX 75063
PART II - RULES 12b-25(b) AND (c)
If the subject report could not be filed without unreasonable effort or expense
and the registrant seeks relief pursuant to Rule 12b-25(b), the following should
be completed.
(a) The reasons described in reasonable detail in Part III of this
form could not be eliminated without unreasonable effort or
expense;
/ / (b) The subject annual report, semi-annual report, transition
report on Form 10-K, Form 20-F, 11-K or Form N-SAR, or portion
thereof, will be filed on or before the fifteenth calendar day
following the prescribed due date; or the subject quarterly report
of transition report on Form 10-Q, or portion thereof will be
filed on or before the fifth calendar day following the prescribed
due date; and
(c) The accountant's statement or other exhibit required by Rule
12b-25(c) has been attached if applicable.
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Part III - Narrative
The Company is currently awaiting financing information and is delaying
filing of the Form 10-KSB for possible disclosure implications. The Company
anticipates filing the Form 10-KSB on or before October 13, 1999.
Part IV - Other Information
(1) Name and telephone number of person to contact in regard to this
notification David H. Oden Haynes and Boone, LLP (214) 651-5560
(2) Have all other periodic reports required under Section 13 or 15(d) of
the Securities Exchange Act of 1934 or Section 30 of the Investment
Company Act of 1940 during the preceding 12 months or for such shorter
period than the registrant was required to file such report(s) been
filed? If answer is no, identify report(s). /X/ Yes / / No
(3) Is it anticipated that any significant change in results of operations
from the corresponding period for the last fiscal year will be
reflected by the earnings statements to be included in the subject
report or portion thereof? /X/ Yes / / No
For fiscal 1999 and 1998, financial results have been reclassified to reflect
the Company's disposition of its two non-core subsidiaries as discontinued
operations: Golston Company ("Golston") and Tri-Coastal Systems, Inc. ("TCSI").
Golston was sold by the Company in May of 1999 and TCSI was sold during August
1999.
Sales for fiscal 1999 increased 19.5% for continuing operations to $5.8 million
from $4.9 million for the previous year. This increase is mainly the result of
increased sales of perimeter security products, coupled with sales of railroad
safety barriers and Intelli-Site software projects. Gross margin also increased
for continuing operations during fiscal 1999 to 34.2% from 32.6% during fiscal
1998. The higher margins are reflective of the software product's impact on the
overall gross margin. If Golston and TCSI had not been reflected as discontinued
operations, sales for fiscal 1999 would have been $11 million.
Operating expenses from continuing operations increased to $6.4 million during
fiscal 1999 from $4.6 million in the previous fiscal year. This increase
includes a one-time expense of $.9 million for the dissolution of the
partnership that was originally formed to fund marketing and sales of the
Intelli-Site product. The Company has also incurred expenses of $.2 million
during fiscal 1999 to recruit and relocate new management, and over $.2 million
of general and administrative expenses associated with the repositioning of the
business. The remainder of the fiscal 1999 increase relates to increased
staffing levels necessary to fulfill orders on hand and accelerate the sales
process.
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Integrated Security Systems, Inc.
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(Name of Registrant as Specified in Charter)
has caused this notification to be signed on its behalf by the undersigned
hereunto duly authorized.
Date: September 28, 1999 By: Gerald K. Beckmann
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President and Chief Executive Officer
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