DynTek, Inc. (PINKSHEETS: DYNE), a leading
provider of professional technology services, today announced
results for the quarter and nine months ended March 31, 2012.
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.
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.
DYNTEK, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(EBITDA presentation)
(Unaudited, in thousands, except share and per share data)
Quarter Nine Months Quarter Nine Months
Ended Ended Ended Ended
March 31, March 31, March 31, March 31,
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
========== =========== ========== ===========
For more information, contact: Linda Ford DynTek, Inc.
949-271-6705 Email Contact
Dyntek (CE) (USOTC:DYNE)
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