Emtec Inc. Reports Results For The Quarter Ended December 31, 2004

Emtec Inc. Reports Fifth Consecutive Quarter Of Profitability


TRENTON, N.J., Feb. 15, 2005 (PRIMEZONE) -- Emtec Inc. (OTCBB:ETEC), a systems integrator providing technology solutions to enable customers to effectively use and manage data to grow their business, announced today its results for the third quarter ended December 31, 2004.

Net income for the three months ended December 31, 2004 was $81,590, or $0.01, per share compared to a net income of $320,326, or $0.04, per share for the comparable period in 2003, a decrease of 74.5%. This decrease in net income is mainly due to the non-renewal of an annual manufacturers' support service contract by one of our commercial customers and an increase in SG&A expenses due to a one-time charge of $470,000 associated with the sub-lease of our New York office. Without this one-time charge, net of income tax, our net income for the quarter ended December 31, 2004 would have been approximately $400,000, or $0.05, per share for the quarter ended December 31, 2004.

Net income for the nine months ended December 31, 2004, rose to $1.30 million, or $0.17, per share compared to a net income of $539,269, or $0.07, per share for the same period in 2003 -- for the comparable period in 2003, an increase of 141.3%. This increase in net income is mainly attributable to computer roll-out projects for various school districts in Georgia and Florida, and revenue growth in our commercial customer base as well as continuous cost containment efforts undertaken by the Company. The reported net income for the nine months ended December 31, 2004 includes a one-time charge of $470,000 associated with the sub-lease of our New York office. Without this one-time charge, net of income tax, our net income for the nine months ended December 31, 2004 would have been approximately $1.61 million, or $0.21, per share for the nine months ended December 31, 2004.

John Howlett, CEO of Emtec Inc., said, "I'm pleased about Emtec's prospects moving forward. With this consolidation and restructuring behind us, we can now focus on providing innovative customer solutions for the use and management of their data."

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. The company's areas of specialization in information technology include Communications (IP Telephony, Wireless Connectivity, Cabling, Network Infrastructure), Data Availability (Remote Access, Messaging, Management), Enterprise Computing (Enterprise Architecture, High Availability, Server Consolidation, Data Management), and Managed Services (Network Monitoring, Help Desk). Emtec's solutions are crafted to enable its customers to become more efficient and effective, thereby giving them a competitive advantage.



                          EMTEC, INC.
             CONSOLIDATED STATEMENTS OF OPERATIONS
                 Three Months Ended December 31,

                 2004         2003            Change           %
 ---------------------------------------------------------------------
 Revenues

 Procurement
  services   $ 21,208,639   $ 19,648,683   $  1,559,956      7.9%

 Service and
  consulting    3,751,018      4,969,881   $ (1,218,863)   -24.5%

 Geothermal        47,886         47,900   $        (14)     0.0%
               ----------     ----------
 Total
  Revenues     25,007,543     24,666,464   $    341,079      1.4%
 ---------     ----------     ----------

 Cost of
  Revenues
 Procurement
  services     18,701,165     17,686,595   $  1,014,570      5.7%

 Service and
  consulting    2,571,789      3,094,958   $   (523,169)   -16.9%

 Geothermal        20,741         61,167   $    (40,426)   -66.1%
               ----------     -----------
 Total Cost
  of Revenues  21,293,695      20,842,720  $    450,975      2.2%
 ------------  ----------     -----------
 Percent of
  revenues           85.1%          84.5%

 Gross Profit
 Procurement
  services      2,507,474       1,962,088  $    545,386     27.8%

 Service and
  consulting    1,179,229       1,874,923  $   (695,694)   -37.1%

 Geothermal        27,145         (13,267) $     40,412    304.6%
               ----------     -----------
 Total Gross
  Profit        3,713,848       3,823,744  $   (109,896)    -2.9%
 ------------  ----------     -----------
 Percent of
  revenue           14.9%           15.5%

 Operating Expenses

 Sales,
  General &
  Administra-
   tive
   Expenses    3,517,096       3,350,077   $    167,019      5.0%

 Interest
  Expense        47,686           75,333   $    (27,647)   -36.7%
               ----------     -----------

 Total
  Operating
  Expenses     3,564,782       3,425,410   $    139,372      4.1%
               ----------     -----------
 Percent of
  revenue           14.3%           13.9%

 Income
  Before
  Income Tax     149,066         398,334   $  (249,268)     -62.6%


 Income Tax
  Expense         67,476          78,008   $    (10,532)    -13.5%
               ----------     -----------

 Net Income  $    81,590    $    320,326   $   (238,736)    -74.5%
               ==========     ==========     ==========     ======
 Income
  Per
  Share
  Basic      $      0.01    $       0.04
 ------        ==========      ==========

 Income Per
  Share
  Diluted    $      0.01    $       0.04
 ---------     ==========      ==========


                        EMTEC, INC.
          CONSOLIDATED STATEMENTS OF OPERATIONS
               Nine Months Ended December 31,

                 2004            2003         Change                %
 ---------------------------------------------------------------------
 Revenues

 Procurement
  services   $ 71,355,830   $ 65,286,512   $ 6,069,318           9.3%
 Service and
  consulting   11,251,763     13,533,973   $(2,282,210)        -16.9%
 Geothermal       139,921        140,873   $      (952)         -0.7%
              -----------    -----------   -----------
 Total
  Revenues     82,747,514     78,961,358   $ 3,786,156           4.8%
 ---------    -----------    -----------

 Cost of
  Revenues

 Procurement
  services     63,402,197     59,127,426   $ 4,274,771           7.2%
 Service and
  consulting    7,706,300      8,917,374   $(1,211,074)        -13.6%
 Geothermal        54,817         91,249   $   (36,432)        -39.9%
              -----------    -----------
 Total Cost
  of Revenues  71,163,314     68,136,049   $ 3,027,265           4.4%
 ------------ -----------    -----------
  Percent of
  revenues          86.0%          86.3%

 Gross Profit
 Procurement
  services      7,953,633      6,159,086   $ 1,794,547          29.1%
 Service and
  consulting    3,545,463      4,616,599   $(1,071,136)        -23.2%
 Geothermal        85,104         49,624   $    35,480          71.5%
              -----------    -----------
 Total Gross
  Profit       11,584,200     10,825,309   $   758,891           7.0%
 -----------  -----------    -----------
 Percent of
  revenue           14.0%          13.7%

 Operating
  Expenses
 Sales,
  General &
  Administra-
   tive
  Expenses      9,355,359      9,934,891   $  (579,532)         -5.8%

 Interest
  Expense         145,243        247,885   $  (102,642)        -41.4%
              -----------    -----------
 Total
  Operating
  Expenses      9,500,602     10,182,776   $  (682,174)         -6.7%
 ----------   -----------    -----------
 Percent of
  revenue           11.5%          12.9%

 Income Before
  Income Tax    2,083,598        642,533    $ 1,441,065        224.3%


 Income Tax
  Expense         782,476        103,264    $   679,212        657.7%
              -----------    -----------

 Net Income   $ 1,301,122    $   539,269    $   761,853        141.3%
              ===========    ===========    ===========        ======
 Income Per
  Share Basic $      0.18    $      0.08
 ------------ ===========    ===========
 Income Per
  Share
  Diluted     $      0.17    $      0.07
 ----------   ===========    ===========

Safe Harbor Statement

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."



   HTML: http://newsroom.eworldwire.com/wr/021405/11419.htm
   PDF: http://newsroom.eworldwire.com/pdf/021405/11419.pdf
   ONLINE NEWSROOM: http://newsroom.eworldwire.com/2581.htm
   LOGO: http://newsroom.eworldwire.com/2581.htm

            

Mot-clé


Coordonnées