NEWPORT BEACH, CA--(Marketwire - May 3, 2012) - DynTek, Inc. (
Third Fiscal Quarter Ended March 31, 2012
DynTek reported revenues of $24,281,000 for the third quarter ended March 31, 2012, a decrease of 29% from $34,149,000 in the third quarter ended March 31, 2011. Gross profit decreased to $4,505,000 for the third quarter ended March 31, 2012, a decrease of $1,527,000 or 25% from $6,032,000 for the prior third fiscal quarter. The year over year revenue reduction was primarily attributable to a significant multi-million dollar one-time deal that impacted revenue by $14,871,000 in the third quarter of fiscal year 2011. Total operating expenses decreased to $3,911,000 in the third fiscal quarter ended March 31, 2012 compared to $4,282,000 in the prior third quarter ended March 31, 2011.
DynTek reported positive EBITDA of $653,000 for the third fiscal quarter ended March 31, 2012, a decrease of $1,156,000 or 64% from $1,809,000 for the prior third fiscal quarter ended March 31, 2011. Net income is $889,000 for the third fiscal quarter of 2012, a decrease of $212,000 or 19% from $1,101,000 for the third fiscal quarter of 2011.
Year-to-Date Period Ended March 31, 2012
DynTek reported revenues of $77,503,000 for the nine months ended March 31, 2012, a decrease of 10% from $85,948,000 in the nine months ended March 31, 2011. Gross profit also decreased to $13,955,000 for the nine months ended March 31, 2012, a decrease of $1,098,000 or 7% from $15,053,000 for the prior nine months ended March 31, 2011. The year over year revenue reduction was primarily attributable to a significant multi-million dollar one-time deal that impacted revenue by $14,871,000 in the third quarter of fiscal year 2011. Total operating expenses slightly decreased to $11,511,000 in the nine months ended March 31, 2012 compared to $11,532,000 in the prior nine months ended March 31, 2011.
DynTek reported positive EBITDA of $2,595,000 for the nine months ended March 31, 2012, a decrease of $1,092,000 or 30% from $3,687,000 for the prior nine months ended March 31, 2011. Net income is $1,576,000 for the nine months ended March 31, 2012, down slightly from the net income of $1,801,000 for the prior nine months ended March 31, 2011.
"Our core business remains strong in our major geographies and technical disciplines, and notwithstanding the multi-million dollar one-time deal we realized in the third quarter of fiscal year 2011, we are driving organic growth," said Ron Ben-Yishay, DynTek's chief executive officer. "We are currently working on multiple measures to fuel our organic growth through geographic expansion and the cultivation of new service lines, such as managed services."
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.
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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 March 31, | Nine Months Ended March 31, |
Quarter Ended March 31, | Nine Months Ended March 31, |
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| 2012 | 2012 | 2011 | 2011 | ||||||||||
| REVENUES | |||||||||||||
| Product revenues | $ | 16,798 | $ | 54,731 | $ | 26,548 | $ | 63,029 | |||||
| Service revenues | 7,483 | 22,772 | 7,601 | 22,919 | |||||||||
| TOTAL REVENUES | 24,281 | 77,503 | 34,149 | 85,948 | |||||||||
| COST OF REVENUES | |||||||||||||
| Cost of products | 13,957 | 45,999 | 22,348 | 53,003 | |||||||||
| Cost of services | 5,819 | 17,549 | 5,769 | 17,892 | |||||||||
| TOTAL COST OF REVENUES | 19,776 | 63,548 | 28,117 | 70,895 | |||||||||
| GROSS PROFIT | 4,505 | 13,955 | 6,032 | 15,053 | |||||||||
| OPERATING EXPENSES | |||||||||||||
| Selling | 2,711 | 7,966 | 3,192 | 8,168 | |||||||||
| General and administrative | 1,168 | 3,451 | 1,058 | 3,264 | |||||||||
| Depreciation and amortization | 32 | 94 | 32 | 100 | |||||||||
| TOTAL OPERATING EXPENSES | 3,911 | 11,511 | 4,282 | 11,532 | |||||||||
| INCOME FROM OPERATIONS | 594 | 2,444 | 1,750 | 3,521 | |||||||||
| EBITDA | 653 | 2,595 | 1,809 | 3,687 | |||||||||
| OTHER INCOME (EXPENSE) | |||||||||||||
| Interest expense | (197 | ) | (750 | ) | (543 | ) | (1,598 | ) | |||||
| TOTAL OTHER EXPENSE | (197 | ) | (750 | ) | (543 | ) | (1,598 | ) | |||||
| INCOME BEFORE INCOME TAXES | 397 | 1,694 | 1,207 | 1,923 | |||||||||
| Income tax benefit (provision) | 492 | (118 | ) | (106 | ) | (122 | ) | ||||||
| NET INCOME | $ | 889 | $ | 1,576 | $ | 1,101 | $ | 1,801 | |||||
| NET INCOME PER SHARE: | |||||||||||||
| Basic | $ | 0.44 | $ | 0.79 | $ | 0.57 | $ | 0.93 | |||||
| Diluted | $ | 0.43 | $ | 0.77 | $ | 0.56 | $ | 0.91 | |||||
| WEIGHTED AVERAGE NUMBER OF SHARES: | |||||||||||||
| Basic | 2,033,325 | 1,992,375 | 1,927,915 | 1,927,915 | |||||||||
| Diluted | 2,045,842 | 2,042,545 | 1,972,534 | 1,970,828 | |||||||||
Contact Information:
For more information, contact:
Linda Ford
DynTek, Inc.
949-271-6705