NEWPORT BEACH, CA--(Marketwired - Jan 28, 2014) - DynTek, Inc. (
Second Fiscal Year 2014 Quarter Ended December 31, 2013
DynTek reported revenues of $50,466,000 and gross profit of $8,105,000 for the second fiscal quarter ended December 31, 2013 compared to revenues of $31,868,000 and gross profit of $5,514,000 in the prior year second fiscal quarter ended December 31, 2012. The $18,598,000 or 58% revenue growth, and the $2,591,000 or 47% gross profit growth, quarter over prior year quarter, are primarily attributable to the simultaneous closing of several multi-million dollar deals with government customers in the New York district and government and commercial customers in the Newport Beach district in the second quarter of fiscal year 2014.
Total operating expenses were $5,639,000 in the second fiscal quarter ended December 31, 2013 compared to $4,230,000 in the prior year second quarter ended December 31, 2012. The $1,409,000 or 33% increase quarter over prior year quarter is due primarily to sales commissions on higher revenue levels.
DynTek reported EBITDA of $2,555,000 for the second fiscal quarter ended December 31, 2013, compared to $1,399,000 in the prior year second quarter, an increase of $1,156,000 or 82%. Net income was $2,079,000 for the second fiscal quarter of 2014, or $0.95 per diluted share, an increase of $1,135,000 or $0.50 per diluted share, over net income of $944,000 or $0.45 per diluted share, in the second quarter of 2013.
Year-to-Date Period Ended December 31, 2013
DynTek reported revenues of $80,280,000 and gross profit of $13,590,000 for the six months ended December 31, 2013 compared to revenues of $68,219,000 and gross profit of $11,070,000 in the prior year six months ended December 31, 2012. The $12,061,000 or 17% revenue growth, and the $2,520,000 or 23% gross profit growth, quarter over prior year quarter, are primarily attributable to several multi-million dollar deals with government customers in the New York district and government and commercial customers in the Newport Beach district in the second quarter of FY2014.
Total operating expenses were $10,382,000 for the six months ended December 31, 2013 compared to $8,684,000 in the prior year six months ended December 31, 2012. The $1,698,000 or 16% increase year over year is due to sales commissions on higher revenue levels and investments in additional sales representatives.
DynTek reported EBITDA of $3,367,000 for the six months ended December 31, 2013, compared to $2,554,000 in the prior year six months ended December 31, 2012, an increase of $813,000 or 32% year over year. Net income was $2,562,000 for the six months ended December 31, 2013, or $1.18 per diluted share, an increase of $834,000 or $0.35 per diluted share, over net income of $1,728,000 or $0.83 per diluted share, in the six months ended December 31, 2012.
"Our strong financial position, industry domain expertise, maturity of our practices, and technical and sales excellence puts DynTek in a position to compete for and win larger transactions, such as the deals we closed this quarter," said Ron Ben-Yishay, DynTek's chief executive officer. "This quarter our EBITDA growth outpaced our top line revenue growth, which is a testament to our focus on high-value, high-margin business and operational efficiency. DynTek's core cloud computing solutions help our customers satisfy their key business initiatives, such as improved productivity, reduced operating expenses and enhanced competitive differentiation. We are seeing tremendous ROI in our investments in cloud offerings because these solutions deliver ROI to our customer base."
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.
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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.
| DYNTEK, INC. AND SUBSIDIARY | |||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
| (EBITDA presentation) | |||||||||||||||||
| (Unaudited, in thousands, except share and per share data) | |||||||||||||||||
| Quarter Ended December 31, | Six Months Ended December 31, | Quarter Ended December 31, | Six Months Ended December 31, | ||||||||||||||
| 2013 | 2013 | 2012 | 2012 | ||||||||||||||
| REVENUES | |||||||||||||||||
| Product revenues | $ | 43,097 | $ | 64,673 | $ | 23,773 | $ | 51,571 | |||||||||
| Service revenues | 7,369 | 15,607 | 8,095 | 16,647 | |||||||||||||
| TOTAL REVENUES | 50,466 | 80,280 | 31,868 | 68,219 | |||||||||||||
| COST OF REVENUES | |||||||||||||||||
| Cost of products | 36,130 | 53,987 | 19,748 | 43,939 | |||||||||||||
| Cost of services | 6,231 | 12,703 | 6,606 | 13,209 | |||||||||||||
| TOTAL COST OF REVENUES | 42,361 | 66,690 | 26,354 | 57,148 | |||||||||||||
| GROSS PROFIT | 8,105 | 13,590 | 5,514 | 11,070 | |||||||||||||
| OPERATING EXPENSES: | |||||||||||||||||
| Selling | 4,405 | 8,186 | 3,163 | 6,470 | |||||||||||||
| General and administrative | 1,212 | 2,158 | 1,042 | 2,163 | |||||||||||||
| Depreciation and amortization | 20 | 37 | 25 | 51 | |||||||||||||
| TOTAL OPERATING EXPENSES | 5,639 | 10,382 | 4,230 | 8,684 | |||||||||||||
| INCOME FROM OPERATIONS | 2,466 | 3,208 | 1,285 | 2,386 | |||||||||||||
| EBITDA | 2,555 | 3,367 | 1,399 | 2,554 | |||||||||||||
| OTHER INCOME (EXPENSE): | |||||||||||||||||
| Interest expense | (212 | ) | (428 | ) | (237 | ) | (468 | ) | |||||||||
| TOTAL OTHER EXPENSE | (212 | ) | (428 | ) | (237 | ) | (468 | ) | |||||||||
| INCOME BEFORE INCOME TAXES | 2,255 | 2,781 | 1,049 | 1,919 | |||||||||||||
| Income tax provision | (176 | ) | (219 | ) | (104 | ) | (191 | ) | |||||||||
| NET INCOME | $ | 2,079 | $ | 2,562 | $ | 945 | $ | 1,728 | |||||||||
| NET INCOME PER SHARE: | |||||||||||||||||
| Basic | $ | 0.98 | $ | 1.21 | $ | 0.45 | $ | 0.83 | |||||||||
| Diluted | $ | 0.95 | $ | 1.18 | $ | 0.45 | $ | 0.83 | |||||||||
| WEIGHTED AVERAGE NUMBER OF SHARES: | |||||||||||||||||
| Basic | 2,125,934 | 2,125,934 | 2,093,188 | 2,090,653 | |||||||||||||
| Diluted | 2,177,661 | 2,172,323 | 2,093,188 | 2,090,653 | |||||||||||||
Contact Information:
For more information, contact:
Linda Ford
DynTek, Inc.
949-271-6705