DynTek Announces Results for the First Quarter Fiscal Year 2014
06 November 2013 - 6:18AM
Marketwired
DynTek Announces Results for the First Quarter Fiscal Year 2014
NEWPORT BEACH, CA--(Marketwired - Nov 5, 2013) - DynTek,
Inc. (PINKSHEETS: DYNE), a leading provider of professional
technology services, today announced results for its fiscal year
2014 first quarter ended September 30, 2013.
DynTek reported revenues of $29,814,000 and gross profit of
$5,485,000 for the first fiscal quarter ended September 30, 2013
compared to revenues of $36,351,000 and gross profit of $5,556,000
in the prior year first quarter ended September 30, 2012. Revenues
and gross profit in the current year were in line with first
quarter FY2014 expectations, including revenue increases in the
Boston, Albany and Newport Beach districts totaling $2,600,000,
offset by a decline over prior year in the New York City, New
Jersey, Nevada and Florida districts due to timing of significant
government, education, and commercial product orders last year
totaling $9,200,000.
Total operating expenses were $4,744,000 in the first fiscal
quarter ended September 30, 2013 compared to $4,454,000 in the
prior year first quarter ended September 30, 2012. This 6.5%
increase quarter over prior year quarter is primarily due to
investments in additional sales representatives and the Company's
marketing efforts to support the growing Boston and Newport Beach
districts.
DynTek reported EBITDA of $812,000 for the first fiscal quarter
ended September 30, 2013, compared to $1,155,000 in the prior year
first quarter, a decrease of $343,000 or 30% from $1,155,000 for
the quarter ended September 30, 2012. Net income was $483,000 for
the first fiscal quarter of 2014, or $0.22 per diluted share, a
decrease of $301,000 or $0.16 per diluted share, over the net
income of $784,000 or $0.38 per diluted share, in the first fiscal
quarter of 2013.
"Our objective for Fiscal Year 2014 is to drive EBITDA growth
across all of our core geographies and technology segments," said
Ron Ben-Yishay, DynTek's chief executive officer. "We expect
to see new opportunities develop as a result of our investment in
areas such as managed services, as well as accelerated growth in
our core cloud solutions from the data center to the device."
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 Platforms, 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.
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DYNTEK, INC. AND SUBSIDIARY |
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|
(EBITDA presentation) |
|
(Unaudited, in thousands, except share and per share
data) |
|
|
|
|
|
|
|
|
|
|
Quarter Ended September 30, |
|
|
Quarter Ended September 30, |
|
|
|
2013 |
|
|
2012 |
|
|
|
|
|
|
|
|
|
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REVENUES |
|
|
|
|
|
|
|
|
|
Product revenues |
|
$ |
21,576 |
|
|
$ |
27,799 |
|
|
Service revenues |
|
|
8,238 |
|
|
|
8,552 |
|
|
TOTAL
REVENUES |
|
|
29,814 |
|
|
|
36,351 |
|
|
|
|
|
|
|
|
|
|
COST OF REVENUES |
|
|
|
|
|
|
|
|
|
Cost
of products |
|
|
17,857 |
|
|
|
24,192 |
|
|
Cost
of services |
|
|
6,472 |
|
|
|
6,603 |
|
|
TOTAL
COST OF REVENUES |
|
|
24,329 |
|
|
|
30,795 |
|
GROSS PROFIT |
|
|
5,485 |
|
|
|
5,556 |
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
|
Selling |
|
|
3,781 |
|
|
|
3,307 |
|
|
General and administrative |
|
|
946 |
|
|
|
1,121 |
|
|
Depreciation and amortization |
|
|
17 |
|
|
|
26 |
|
|
TOTAL
OPERATING EXPENSES |
|
|
4,744 |
|
|
|
4,454 |
|
|
|
|
|
|
|
|
|
|
INCOME FROM OPERATIONS |
|
|
741 |
|
|
|
1,102 |
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
|
812 |
|
|
|
1,155 |
|
|
|
|
|
|
|
|
|
|
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(215 |
) |
|
|
(231 |
) |
|
Other
income (expense), net |
|
|
|
|
|
|
|
|
TOTAL OTHER EXPENSE |
|
|
(215 |
) |
|
|
(231 |
) |
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME TAXES |
|
|
526 |
|
|
|
871 |
|
|
Income tax provision |
|
|
(43 |
) |
|
|
(87 |
) |
NET INCOME |
|
$ |
483 |
|
|
$ |
784 |
|
|
|
|
|
|
|
|
|
|
NET INCOME PER SHARE: |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.23 |
|
|
$ |
0.38 |
|
|
Diluted |
|
$ |
0.22 |
|
|
$ |
0.38 |
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE NUMBER OF SHARES: |
|
|
|
|
|
|
|
|
|
Basic |
|
|
2,125,934 |
|
|
|
2,088,118 |
|
|
Diluted |
|
|
2,152,732 |
|
|
|
2,088,118 |
|
|
|
|
|
|
|
|
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For more information, contact: Linda Ford DynTek, Inc.
949-271-6705 Email Contact
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