Six-Month EBITDA $2.675 Million MARLTON, N.J., April 17
/PRNewswire-FirstCall/ -- Emtec, Inc. (OTC Bulletin Board: ETEC)
("Emtec" or the "Company") announced today that for the quarter
ended February 28, 2009, earnings before interest, taxes,
depreciation and amortization expenses ("EBITDA") was $215,568
compared to an EBITDA loss of $39,028 for the quarter ended
February 28, 2008. For the six months ended February 28, 2009,
EBITDA was $2.675 million compared to $2.761 million for the six
months ended February 28, 2008. EBITDA represents a non-GAAP
(Generally Accepted Accounting Principles) financial measure. A
table reconciling this measure to net income (loss), the
appropriate GAAP measure is included in this release. (Logo:
http://www.newscom.com/cgi-bin/prnh/20080414/EMTECLOGO ) For the
quarter ended February 28, 2009, there was a slight improvement in
net loss as the consolidated net loss was $385,017, a decrease of
$6,361 over the net loss of $391,378 for the comparable quarter in
the prior year. The six month figures remained positive with net
income of $620,925, a decrease of $233,899 over the $854,824 of net
income for the comparable six months of the prior year. Earnings
per share for the six months ended February 28, 2009 was $0.04 per
share, a decrease of $0.02 per share from the $0.06 per share for
the comparable six months in the prior year. Our Global Services
Division's revenues were $8.83 million for the three months ended
February 28, 2009. Global Services Division consists of revenues
from our recently acquired subsidiaries Luceo, eBAS, Aveeva and
KOAN-IT. Our Global Services Division's operating income for the
three months ended February 28, 2009 was $242,552. Systems
Division's total revenues decreased $10.93 million, or 24.8%, to
$33.13 million for the three months ended February 28, 2009,
compared to $44.07 million for the three months ended February 28,
2008. Operating loss for our Systems Division for the three months
ended February 28, 2009 increased by 71.5%, or $247,943, to
$594,482, compared to $346,539 for the three months ended February
28, 2008. The decreases in revenues and operating income
experienced in the Systems Division are primarily attributed to the
current economic downturn and the deferral of some larger computer
roll-out projects to future quarters. "In spite of the challenges
in the present economic environment, we continue to have successes
in a number of areas," said Dinesh Desai, Chairman and Chief
Executive Officer of Emtec. "Our increased utilization of
engineering associates in our Systems Division resulted in an
increase in gross profit margin to 13.5% for the quarter compared
to 11.3% for the comparable quarter a year ago. Additionally the
positive contribution to earnings provided by Emtec Global Services
continues to give us confidence that our acquisition strategy is on
target." About Emtec: Emtec, Inc. established in 1964, is a systems
integrator, providing services and products to the federal, state,
local, education and commercial markets. Emtec operates two
business segments: Emtec Systems Division and Emtec Global
Services. Emtec's Systems Division provides IT transformation &
optimization consulting, business service management, enterprise
architecture, data management and integration services. Emtec
Global Services expertise includes software development, software
consulting, business analysis, quality assurance, and testing. For
more information visit http://www.emtecinc.com/. Forward-looking
Statement: Certain statements in this document constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements involve known and unknown risks, uncertainties and other
factors, which may cause the actual results, performance or
achievements of the Company or industry results, to be materially
different from any future results, performance, or achievements
expressed or implied by such forward-looking statements. The
Company's future operating results are dependent upon many factors,
including but not limited to the Company's ability to: (i) obtain
sufficient capital or a strategic business arrangement to fund its
plan of operations when needed; (ii) build the management and human
resources and infrastructure necessary to support the growth of its
business; (iii) competitive factors and developments beyond the
Company's control; and (iv) other risk factors discussed in the
Company's periodic filings with the Securities and Exchange
Commission which are available for review at http://www.sec.gov/
under "Search for Company Filings." We undertake no obligation to
publicly update or revise any forward-looking statements to reflect
changed assumptions, the occurrence of anticipated or unanticipated
events, or changes to future results over time. EMTEC, INC. SUMMARY
FINANCIAL INFORMATION Three Months Ended Six Months Ended
------------------ ---------------- February 28, February 29,
February 28, February 29, 2009 2008 2009 2008 ------------
------------ ------------ ------------ Revenues $41,961,290
$44,068,502 $111,980,400 $118,708,688 Gross profit 6,126,400
4,971,243 14,920,386 13,616,220 Percent of revenues 14.6% 11.3%
13.3% 11.5% Operating income (loss) (351,930) (346,539) 1,577,786
2,153,167 Percent of revenues -0.8% -0.8% 1.4% 1.8% Net income
(loss) $(385,017) $(391,378) $620,925 $854,824 ========= =========
======== ======== Net income (loss) per common share - Basic and
Diluted $(0.03) $(0.03) $0.04 $0.06 ------ ------ ----- -----
EBITDA (Earnings Before Interest, Taxes, Depreciation and
Amortization Expense) Three Months Ended Six Months Ended
------------------ ---------------- February 28, February 29,
February 28, February 29, 2009 2008 2009 2008 ------------
------------ ------------ ------------ Net income (loss) $(385,017)
$(391,378) $620,925 $854,824 EBITDA Adjustments: Provision for
income taxes (230,801) (221,993) 439,645 712,281 Interest expense
269,930 315,720 523,993 652,743 Interest income - other (6,290)
(48,888) (11,188) (66,663) Depreciation and amortization 567,746
307,511 1,101,645 608,014 ------- ------- --------- ------- EBITDA
$215,568 $(39,028) $2,675,020 $2,761,199 ------ ======== ========
========== ==========
http://www.newscom.com/cgi-bin/prnh/20080414/EMTECLOGODATASOURCE:
Emtec, Inc. CONTACT: John P. Howlett, Vice Chairman Emeritus,
Emtec, Inc., +1-908-338-0043, Web Site: http://www.emtecinc.com/
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