NEWPORT BEACH, CA — (Marketwire) — 02/06/12 — (PINKSHEETS: DYNE), a leading provider of , today announced results for the quarter and six months ended December 31, 2011.
DynTek reported revenues of $25,699,000 for the second quarter ended December 31, 2011, an increase of 11% from $23,114,000 in the second quarter ended December 31, 2010. Gross profit decreased to $4,003,000 for the second quarter ended December 31, 2011, a decrease of $481,000 or 11% from $4,483,000 for the prior second fiscal quarter. Total operating expenses decreased to $3,546,000 in the second quarter ended December 31, 2011 compared to $3,575,000 in the prior second quarter ended December 31, 2010.
DynTek reported positive EBITDA of $510,000 for the second fiscal quarter ended December 31, 2011, a decrease of $449,000 or 47% from $959,000 for the prior second fiscal quarter ended December 31, 2010. Net income is $80,000 for the second fiscal quarter of 2012, a decrease of $239,000 or 75% from $319,000 for the second fiscal quarter of 2011.
DynTek reported revenues of $53,222,000 for the six months ended December 31, 2011, an increase of 3% from $51,798,000 in the six months ended December 31, 2010. Gross profit also increased to $9,450,000 for the six months ended December 31, 2011, an increase of $429,000 or 5% from $9,021,000 for the prior six months ended December 31, 2010. Total operating expenses increased to $7,601,000 in the six months ended December 31, 2011 compared to $7,249,000 in the prior six months ended December 31, 2010, primarily attributable to higher selling expense associated with higher revenues.
DynTek reported positive EBITDA of $1,941,000 for the six months ended December 31, 2011, an increase of $63,000 or 3% from $1,878,000 for the prior six months ended December 31, 2010. Net income is $686,000 for the six months ended December 31, 2011, down slightly from the net income of $700,000 for the prior six months ended December 31, 2010.
“DynTek continues to realize positive trends across all areas of our business,” said Ron Ben-Yishay, DynTek-s chief executive officer. “The technology solutions we provide are business-enabling, which allow organizations to enhance productivity and reduce expenses. As we move further into the second half of our fiscal year, we are focused on expanding our capabilities in adjacent technologies, such as storage, managed services and cloud offerings, as well as growing in net new geographic markets neighboring our regional headquarters.”
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.
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 and to and , DynTek provides professional technology solutions across the three core areas of our customers- technical environment: , , . DynTek-s multidisciplinary approach allows our clients to turn to a single source for their most critical technology requirements. For more information, visit .
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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.
Linda Ford
DynTek, Inc.
949-271-6705
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