For more information,
contact:
Linda
Ford
DynTek, Inc.
949-271-6705
linda.ford@dyntek.com
DynTek Announces Results for
the Third Fiscal Quarter
and Year-to-Date Period Ended
March 31, 2013
Company Repeats Growth in
Revenues and EBITDA
Newport
Beach, CA – April 24, 2013 – DynTek,
Inc. (DYNE.PK), a leading provider of professional technology services,
today announced results for the
quarter and nine months ended March 31, 2013. The unaudited interim condensed
consolidated financial statements for the quarter and year-to-date
period are available under DYNE.PK.
Third
Fiscal Quarter Ended March 31, 2013
DynTek reported revenues of
$27,429,000 for the third quarter ended March 31, 2013, an increase
of $3,148,000, or 13%, from $24,281,000 in the prior year third
quarter ended March 31, 2012. Gross profit increased to
$5,047,000 for the third quarter ended March 31, 2013, an increase
of $542,000, or 12%, from $4,505,000 for the prior third fiscal
quarter. Total
operating expenses increased to $4,208,000 in the third quarter
ended March 31, 2013 compared to $3,911,000 in the prior third
quarter ended March 31, 2012, primarily attributable to higher
selling expense associated with higher revenues.
DynTek reported EBITDA of $919,000
for the third fiscal quarter ended March 31, 2013, an increase of
$266,000, or 41%, from $653,000 for the prior third fiscal quarter
ended March 31, 2012. Net income for the third
fiscal quarter of 2013 was $862,000, or $0.41 per diluted share, a
decrease of $27,000 or $0.02 per diluted share, over the net income
for the third fiscal quarter of 2012 of $889,000, or $0.43 per
diluted share.
Year-to-Date Period Ended March 31,
2013
DynTek reported revenues of
$95,648,000 for the nine months ended March 31, 2013, an increase
of $18,145,000, or 23%, from $77,503,000 in the nine months ended
March 31, 2012. Gross
profit also increased to $16,117,000 for the nine months ended
March 31, 2013, an increase of $2,162,000, or 15%, from $13,955,000
for the prior nine months ended March 31, 2012. Total operating expenses
increased to $12,892,000 in the nine months ended March 31, 2013
compared to $11,511,000 in the prior nine months ended March 31,
2012, primarily attributable to higher selling expense associated
with higher revenues.
DynTek reported EBITDA of
$3,472,000 for the nine months ended March 31, 2013, an increase of
$877,000, or 34%, from $2,595,000 for the prior nine months ended
March 31, 2012.
Net income for the nine months ended March 31, 2013 was $2,590,000,
or $1.23 per diluted share, an increase of $1,014,000 or $0.46 per
diluted share, over the prior nine months ended March 31, 2012 net
income of $1,576,000 or $0.77 per diluted share.
In March 2013, DynTek made a
permitted repayment of $1,383,000 on its subordinated debt, which
will reduce debt service costs in future periods.
“Our investments in sales and
technical talent, strategic partnerships and business-enabling
technologies are fueling our healthy and steady growth,” said Ron
Ben-Yishay, DynTek’s chief executive officer. “Cloud-based solutions, managed
services, mobility and virtualization are no longer horizon
technology projects – they have quickly become core to our
customer’s business strategies. DynTek’s strategic partner
portfolio is comprised of the leaders in these key growth markets,
including Microsoft, Cisco, Citrix, McAfee and more. In addition,
we are increasing our footprint across vertical industries, from
education and government to healthcare and finance, providing
DynTek a well balanced portfolio.”
EBITDA
The Company defines EBITDA as 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, 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 March 31,
|
|
Nine Months Ended March 31,
|
|
Quarter Ended March 31,
|
|
Nine Months Ended March 31,
|
|
|
2013
|
|
2013
|
|
2012
|
|
2012
|
REVENUES
|
|
|
|
|
|
|
|
|
|
Product revenues
|
|
$19,337
|
|
$70,908
|
|
$16,798
|
|
$54,731
|
|
Service revenues
|
|
8,093
|
|
24,740
|
|
7,483
|
|
22,772
|
|
TOTAL REVENUES
|
|
27,429
|
|
95,648
|
|
24,281
|
|
77,503
|
|
|
|
|
|
|
|
|
|
|
|
COST OF REVENUES
|
|
|
|
|
|
|
|
|
|
Cost of products
|
|
15,877
|
|
59,816
|
|
13,957
|
|
45,999
|
|
Cost of services
|
|
6,505
|
|
19,715
|
|
5,819
|
|
17,549
|
|
TOTAL COST OF REVENUES
|
|
22,382
|
|
79,530
|
|
19,776
|
|
63,548
|
|
GROSS PROFIT
|
|
5,047
|
|
16,117
|
|
4,505
|
|
13,955
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
Selling
|
|
3,199
|
|
9,669
|
|
2,711
|
|
7,966
|
|
General and administrative
|
|
986
|
|
3,149
|
|
1,168
|
|
3,451
|
|
Depreciation and amortization
|
|
23
|
|
74
|
|
32
|
|
94
|
|
TOTAL OPERATING EXPENSES
|
|
4,208
|
|
12,892
|
|
3,911
|
|
11,511
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM OPERATIONS
|
|
839
|
|
3,225
|
|
594
|
|
2,444
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
919
|
|
3,472
|
|
653
|
|
2,595
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME (EXPENSE)
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(225)
|
|
(693)
|
|
(197)
|
|
(750)
|
|
Other
income
(expense)
|
|
9
|
|
9
|
|
-
|
|
-
|
|
TOTAL OTHER EXPENSE
|
|
(216)
|
|
(684)
|
|
(197)
|
|
(750)
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME TAX
|
|
623
|
|
2,541
|
|
397
|
|
1,694
|
|
Income tax benefit (
provision)
|
|
239
|
|
48
|
|
492
|
|
(118)
|
|
NET INCOME
|
|
$862
|
|
$2,590
|
|
$889
|
|
$1,576
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME PER SHARE:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$0.41
|
|
$1.24
|
|
$0.44
|
|
$0.79
|
|
Diluted
|
|
$0.41
|
|
$1.23
|
|
$0.43
|
|
$0.77
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE NUMBER OF
SHARES:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
2,094,202
|
|
2,091,836
|
|
2,033,325
|
|
1,992,375
|
|
Diluted
|
|
2,121,708
|
|
2,112,829
|
|
2,045,842
|
|
2,042,545
|
|
Dyntek (CE) (USOTC:DYNE)
Historical Stock Chart
From Jun 2024 to Jul 2024
Dyntek (CE) (USOTC:DYNE)
Historical Stock Chart
From Jul 2023 to Jul 2024