NEWPORT BEACH, CA — (Marketwired) — 11/05/13 — (PINKSHEETS: DYNE), a leading provider of , today announced results for its fiscal year 2014 first quarter ended September 30, 2013.
DynTek reported revenues of $29,814,000 and gross profit of $5,485,000 for the first fiscal quarter ended September 30, 2013 compared to revenues of $36,351,000 and gross profit of $5,556,000 in the prior year first quarter ended September 30, 2012. Revenues and gross profit in the current year were in line with first quarter FY2014 expectations, including revenue increases in the Boston, Albany and Newport Beach districts totaling $2,600,000, offset by a decline over prior year in the New York City, New Jersey, Nevada and Florida districts due to timing of significant government, education, and commercial product orders last year totaling $9,200,000.
Total operating expenses were $4,744,000 in the first fiscal quarter ended September 30, 2013 compared to $4,454,000 in the prior year first quarter ended September 30, 2012. This 6.5% increase quarter over prior year quarter is primarily due to investments in additional sales representatives and the Company-s marketing efforts to support the growing Boston and Newport Beach districts.
DynTek reported EBITDA of $812,000 for the first fiscal quarter ended September 30, 2013, compared to $1,155,000 in the prior year first quarter, a decrease of $343,000 or 30% from $1,155,000 for the quarter ended September 30, 2012. Net income was $483,000 for the first fiscal quarter of 2014, or $0.22 per diluted share, a decrease of $301,000 or $0.16 per diluted share, over the net income of $784,000 or $0.38 per diluted share, in the first fiscal quarter of 2013.
“Our objective for Fiscal Year 2014 is to drive EBITDA growth across all of our core geographies and technology segments,” said Ron Ben-Yishay, DynTek-s chief executive officer. “We expect to see new opportunities develop as a result of our investment in areas such as managed services, as well as accelerated growth in our core cloud solutions from the data center to the device.”
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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