DynTek Announces Results for the First Quarter Fiscal Year 2013

NEWPORT BEACH, CA--(Marketwire - Oct 29, 2012) -  DynTek, Inc. (PINKSHEETS: DYNE), a leading provider of professional technology services, today announced results for its fiscal year 2013 first quarter ended September 30, 2012. 

DynTek reported revenues of $36,351,000 for the first fiscal quarter ended September 30, 2012, an increase of 32%, or $8,799,000 over revenues of $27,552,000 in the prior year first quarter. The Company reported EBITDA of $1,155,000 for the first fiscal quarter ended September 30, 2012, a decrease of $273,000 or 19% from $1,428,000 for the quarter ended September 30, 2011. Net income was $784,000 for the first fiscal quarter of 2013, an increase of 29% or $177,000 from net income of $607,000 in the first fiscal quarter of 2012. 

Gross profit increased 2% to $5,556,000 for the first quarter ended September 30, 2012, an increase of $109,000 over gross profit of $5,447,000 for the prior year quarter. Total operating expenses increased 9.9% to $4,454,000 in the first fiscal quarter ended September 30, 2012 compared to $4,054,000 in the prior year first quarter ended September 30, 2011. The ratio of operating expenses to total revenues declined from 14.7% to 12.3% in the same period.

"Our objective for Fiscal Year 2013 is to drive consistent 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 desktop."

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.