For
more information, contact:
Linda
Ford
DynTek, Inc.
949-271-6705
linda.ford@dyntek.com
DynTek Announces Results for the
Second Fiscal Quarter
and Year-to-Date Period Ended
December 31, 2012
Company Continues Growth in Revenues
and Earnings
Newport Beach, CA – January 28, 2013 – DynTek, Inc. (DYNE.PK), a leading provider of
professional technology
services, today announced results for the quarter and six
months ended December 31, 2012.
Second Fiscal Quarter Ended December
31, 2012
DynTek reported revenues of
$31,868,000 for the second quarter ended December 31, 2012, an
increase of 24% from $25,669,000 in the second quarter ended
December 31, 2011.
Gross profit increased to $5,514,000 for the second quarter ended
December 31, 2012, an increase of $1,512,000 or 38% from $4,002,000
for the prior second fiscal quarter. Total operating expenses
increased to $4,230,000 in the second quarter ended December 31,
2012 compared to $3,546,000 in the prior second quarter ended
December 31, 2011, primarily attributable to higher selling expense
associated with higher revenues.
DynTek reported positive EBITDA of
$1,399,000 for the second fiscal quarter ended December 31, 2012,
an increase of $889,000 or 174% from $510,000 for the prior second
fiscal quarter ended December 31, 2011. Net income is $944,000 for
the second fiscal quarter of 2013, an increase of $864,000 over the
$80,000 for the second fiscal quarter of 2012.
Year-to-Date Period Ended December
31, 2012
DynTek reported revenues of
$68,219,000 for the six months ended December 31, 2012, an increase
of 28% from $53,222,000 in the six months ended December 31,
2011. Gross profit
also increased to $11,070,000 for the six months ended December 31,
2012, an increase of $1,620,000 or 17% from $9,450,000 for the
prior six months ended December 31, 2011. Total operating expenses
increased to $8,684,000 in the six months ended December 31, 2012
compared to $7,601,000 in the prior six months ended December 31,
2011, primarily attributable to higher selling expense associated
with higher revenues.
DynTek reported positive EBITDA of
$2,554,000 for the six months ended December 31, 2012, an increase
of $613,000 or 32% from $1,941,000 for the prior six months ended
December 31, 2011. Net income is $1,728,000
for the six months ended December 31, 2012, an increase of
$1,042,000 over the prior six months ended December 31,
2011.
“DynTek is driving double and triple
digit growth on both the top and bottom lines, highlighting that
our investments are performing and we are controlling costs in line
with growth,” said Ron Ben-Yishay, DynTek’s chief executive
officer. “Our focus
continues to be on sustaining our organic growth across all regions
and technology areas through key investments in technical talent,
sales and marketing and customer service.”
EBITDA
The Company defines EBITDA as net
income from operations before interest, taxes, depreciation and
amortization, and stock-based compensation. Other companies may
calculate EBITDA differently. Although EBITDA is a widely used
financial indicator of a company's ability to service debt, it is
not a recognized measure for financial statement presentation under
generally accepted accounting procedures (GAAP). EBITDA should not
be considered in isolation or as superior or as an alternative to
net income or to cash flows from operating activities as determined
in accordance with GAAP. Nonetheless, the Company believes that
EBITDA provides useful supplemental information for investors and
others to measure operating performance, especially in situations
where a company has significant non-cash operating expenses that
are not indicative of core business operating results. EBITDA is
widely used in the IT services industry to analyze comparable
company performance, and management of the Company also uses
EBITDA, in addition to GAAP information, as a measure of operating
performance for assessing its business units.
About
DynTek
DynTek
is a leading provider of professional technology services to
mid-market companies, such as state and local governments,
educational institutions and commercial entities in the largest IT
markets nationwide. From virtualization and cloud computing to unified communications
and collaboration, DynTek provides professional
technology solutions across the three core areas of our customers’
technical environment: Infrastructure/Data
Center,
Microsoft
Platform,
End Point
Computing.
DynTek's multidisciplinary approach allows our clients to turn to a
single source for their most critical technology requirements. For
more information, visit http://www.dyntek.com.
Follow Us
Online:
Twitter:
@DynTek
DynTek on Facebook
DynTek
on LinkedIn
Forward
Looking Statements
This
press release contains certain forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Investors are cautioned that forward-looking statements
made in this press release, such as statements relating to the
effect that the adoption of the revolving line of credit will have
on our business and our intended use of funds borrowed under the
revolving line of credit, involve known and unknown risks and
uncertainties that could cause actual results to materially differ
from the forward-looking statements. Such risks and
uncertainties include,
among others, our success in reaching target markets for services
and products in a highly competitive market; our ability to
maintain existing customers and attract future customers; our
ability to finance and sustain operations, including our ability to
comply with the terms of the revolving line of credit and the
Company’s other existing and future indebtedness; our ability to
achieve profitability and positive cash flow from operations; our
ability to maintain business relationships with IT product vendors;
the size and timing of additional significant orders for our
products and services and our ability to fulfill such orders; the
continuing desire of state and local governments to outsource to
private contractors and the availability of budgets to place orders
for our products and services; our ability to retain skilled
professional staff and certain key executives; the performance of
our government and commercial technology services; and the
continuation of general economic and business conditions that are
conducive to outsourcing of IT services. We have no obligation to
publicly revise any forward-looking statements to reflect
anticipated or unanticipated events or circumstances occurring
after the date of such statements.
DYNTEK, INC. AND SUBSIDIARY
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
|
(EBITDA presentation)
|
(Unaudited, in thousands, except share and per share
data)
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended December 31,
|
|
Six Months Ended December 31,
|
|
Quarter
Ended December
31,
|
|
Six Months Ended December 31,
|
|
|
2012
|
|
2012
|
|
2011
|
|
2011
|
REVENUES
|
|
|
|
|
|
|
|
|
Product revenues
|
|
$23,773
|
|
$51,571
|
|
$18,736
|
|
$37,933
|
Service revenues
|
|
8,095
|
|
16,647
|
|
6,933
|
|
15,289
|
TOTAL REVENUES
|
|
31,868
|
|
68,219
|
|
25,669
|
|
53,222
|
|
|
|
|
|
|
|
|
|
COST OF REVENUES
|
|
|
|
|
|
|
|
|
Cost of products
|
|
19,748
|
|
43,939
|
|
16,293
|
|
32,042
|
Cost of services
|
|
6,606
|
|
13,209
|
|
5,374
|
|
11,730
|
TOTAL COST OF REVENUES
|
|
26,354
|
|
57,148
|
|
21,667
|
|
43,772
|
GROSS PROFIT
|
|
5,514
|
|
11,070
|
|
4,002
|
|
9,450
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
Selling
|
|
3,163
|
|
6,470
|
|
2,489
|
|
5,256
|
General and administrative
|
|
1,042
|
|
2,163
|
|
1,024
|
|
2,283
|
Depreciation and amortization
|
|
25
|
|
51
|
|
33
|
|
63
|
TOTAL OPERATING EXPENSES
|
|
4,230
|
|
8,684
|
|
3,546
|
|
7,601
|
|
|
|
|
|
|
|
|
|
INCOME FROM OPERATIONS
|
|
1,285
|
|
2,386
|
|
456
|
|
1,849
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
1,399
|
|
2,554
|
|
510
|
|
1,941
|
|
|
|
|
|
|
|
|
|
OTHER INCOME (EXPENSE)
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(237)
|
|
(468)
|
|
(304)
|
|
(552)
|
TOTAL OTHER EXPENSE
|
|
(237)
|
|
(468)
|
|
(304)
|
|
(552)
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME TAX
PROVISION
|
|
1,048
|
|
1,919
|
|
152
|
|
1,297
|
Income tax
provision
|
|
(104)
|
|
(191)
|
|
(72)
|
|
(610)
|
NET INCOME
|
|
$944
|
|
$1,728
|
|
$80
|
|
$686
|
|
|
|
|
|
|
|
|
|
NET INCOME PER SHARE:
|
|
|
|
|
|
|
|
|
Basic
|
|
$0.45
|
|
$0.83
|
|
$0.04
|
|
$0.35
|
Diluted
|
|
$0.45
|
|
$0.83
|
|
$0.04
|
|
$0.34
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE NUMBER OF
SHARES:
|
|
|
|
|
|
|
|
|
Basic
|
|
2,093,188
|
|
2,090,653
|
|
1,978,802
|
|
1,971,900
|
Diluted
|
|
2,093,188
|
|
2,090,653
|
|
2,035,766
|
|
2,023,589
|
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