Argyle Security, Inc. on May 15, 2008, announced its financial results for the three months ended March 31, 2008. Revenues increased by 70% to $39.3 million as compared to $23.2 million in the previous year’s corresponding period. The company said that it wants to make acquisitions to expand the geographic reach of its Argyle Corrections business.

Argyle Security Inc. announced financial results for the first quarter ended March 31, 2008. For the quarter, the company reported actual revenues were $37.6 million. The company had no revenues in the first quarter of 2007. The operating loss was $0.3 million compared to an operating loss of $0.3 million in the first quarter of 2007. Net loss was $0.7 million, or $0.13 per share compared to net income of $52,000, or $0.01 per share in the first quarter of 2007. The 127% pro forma revenue increase in Argyle Corrections reflects the continued favorable industry trends, as well as ability to grow market share through the expansion of geographic reach and product lines. For the quarter, the company´s pro forma revenues increased by 70%, to $39.3 million, compared to $23.2 million for the same period last year. Pro forma revenues in Argyle Corrections Group rose by 127% to $31.8 million, driven largely by the addition of new products that enabled Argyle Corrections to capture a larger share of the rapidly growing corrections market. Pro forma revenues in Argyle Commercial Security declined by 18% to $7.6 million, largely due to a decline in service revenues. However, in the first quarter of 2007, Argyle Commercial Security recognized a $1.8 million service-revenue opportunity that made year-over-year service revenue comparisons difficult. Adjusted operating income was $1.4 million, or 3.4% of sales, compared to $0.8 million, or 3.3% of sales, in the first quarter of 2007. Pro forma adjusted EBITDA rose by 64% to $1.8 million, or 5% of adjusted pro forma revenues, compared to $1.1 million in the prior year period. Pro forma adjusted EBITDA included $0.6 million of non-cash compensation expense. Adjusted pro forma net income was $326,000, or $0.05 per diluted share, compared to adjusted pro forma net income of $115,000, or $0.02 per diluted share, in the prior-year period. For the year 2008, the company continues to expect pro forma revenues to be in the range of $128 million to $142 million and pro forma adjusted EBITDA margins to be in the range of 9% to 10%.

On 05/15/2008, Argyle Security, Inc. announced that they will be unable to file their next 10-Q by the deadline required by the SEC.