TRENTON, N.J., Aug. 16, 2004 (PRIMEZONE) -- Emtec Inc. (OTCBB:ETEC), a systems integrator providing technology solutions to enable customers to effectively use and manage data to grow their business, today announced its results for the quarter ended June 30, 2004.
Income before income tax expense increased by 137.53%, or $548,967, to $948,139 for the quarter ended June 30, 2004 compared to income before income tax expense of $399,172 for the quarter ended June 30, 2003. Net income for the quarter ended June 30, 2004, rose to $603,139 or $0.08 per share compared to a net income of $357,891 or $0.05 per share for the quarter ended June 30, 2003. Management attributed this increase in net income to computer roll-out projects for various school districts in Georgia and Florida as well as continuous cost containment efforts undertaken by the Company.
About Emtec Inc.
Emtec Inc. established in 1981, is a systems integrator focused on providing technology solutions that enable its customers to effectively use and manage their data to grow their businesses. Our areas of specialization in information technology services include enterprise computing, data communications, data access, network design, enterprise backup and storage consolidation, managed services and staff augmentation. Emtec's solutions are crafted to enable our customers to become more efficient and effective, thereby giving them a competitive advantage.
EMTEC, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Quarter Ended June 30,
2004 2003 Change %
Revenues
Procurement
services $24,760,466 $23,730,729 $1,029,737 4.34%
Service and
consulting 3,803,741 4,702,026 $ (898,285) -19.10%
Geothermal 42,628 47,585 $ (4,957) -10.42%
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Total Revenues 28,606,835 28,480,340 $ 126,495 0.44%
-------------- ----------- -----------
Cost of Revenues
Procurement
services 21,968,266 21,691,493 $ 276,773 1.28%
Service and
consulting 2,653,471 3,067,780 $ (414,309) -13.51%
Geothermal 17,785 17,484 $ 301 1.72%
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Total Cost of
Revenues 24,639,522 24,776,757 $ (137,235) -0.55%
------------- ----------- -----------
Percent of
revenues 86.13% 87.00%
Gross Profit
Procurement
services 2,792,200 2,039,236 $ 752,964 36.92%
Service and
consulting 1,150,270 1,634,246 $ (483,976) -29.61%
Geothermal 24,843 30,101 $ (5,258) -17.47%
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Total Gross
Profit 3,967,313 3,703,583 $ 263,730 7.12%
----------- ----------- -----------
Percent of
revenue 13.87% 13.00%
Operating
Expenses
Sales, General &
Administrative
Expenses 2,980,344 3,205,245 $ (224,901) -7.02%
Interest Expense 38,830 99,166 $ (60,336) -60.84%
----------- -----------
Total Operating
Expenses 3,019,174 3,304,411 $ (285,237) -8.63%
--------------- ----------- -----------
Percent of
revenue 10.55% 11.60%
Income (Loss)
Before Income
Tax 948,139 399,172 $ 548,967 137.53%
Income Tax
Expense
(Benefit) 345,000 41,281 $ 303,719 735.74%
----------- -----------
Net Income
(Loss) $ 603,139 $ 357,891 $ 245,248 68.53%
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Income (Loss) Per
Share (Basic And
Diluted) $ 0.08 $ 0.05
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Certain statements in this document constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Emtec, Inc. (the" Company"), or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to obtain sufficient capital or a strategic business arrangement to fund its plan of operations when needed and build the management and human resources and infrastructure necessary to support the growth of its business as well as competitive factors and developments beyond the Company's control; and other risk factors discussed in the Company's periodic filings with the Securities and Exchange Commission which are available for review at www.sec.gov under "Search for Company Filings."
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