DynTek, Inc. (PINKSHEETS: DYNE), a leading
provider of professional technology services, today announced
results for the quarter and nine months ended March 31, 2013. The
unaudited interim condensed consolidated financial statements for
the quarter and year-to-date period are available under DYNE.PK.
Third Fiscal Quarter Ended March 31,
2013
DynTek reported revenues of $27,429,000 for the third quarter
ended March 31, 2013, an increase of $3,148,000, or 13%, from
$24,281,000 in the prior year third quarter ended March 31, 2012.
Gross profit increased to $5,047,000 for the third quarter ended
March 31, 2013, an increase of $542,000, or 12%, from $4,505,000
for the prior third fiscal quarter. Total operating expenses
increased to $4,208,000 in the third quarter ended March 31, 2013
compared to $3,911,000 in the prior third quarter ended March 31,
2012, primarily attributable to higher selling expense associated
with higher revenues.
DynTek reported EBITDA of $919,000 for the third fiscal quarter
ended March 31, 2013, an increase of $266,000, or 41%, from
$653,000 for the prior third fiscal quarter ended March 31, 2012.
Net income for the third fiscal quarter of 2013 was $862,000, or
$0.41 per diluted share, a decrease of $27,000 or $0.02 per diluted
share, over the net income for the third fiscal quarter of 2012 of
$889,000, or $0.43 per diluted share.
Year-to-Date Period Ended March 31,
2013
DynTek reported revenues of $95,648,000 for the nine months
ended March 31, 2013, an increase of $18,145,000, or 23%, from
$77,503,000 in the nine months ended March 31, 2012. Gross profit
also increased to $16,117,000 for the nine months ended March 31,
2013, an increase of $2,162,000, or 15%, from $13,955,000 for the
prior nine months ended March 31, 2012. Total operating expenses
increased to $12,892,000 in the nine months ended March 31, 2013
compared to $11,511,000 in the prior nine months ended March 31,
2012, primarily attributable to higher selling expense associated
with higher revenues.
DynTek reported EBITDA of $3,472,000 for the nine months ended
March 31, 2013, an increase of $877,000, or 34%, from $2,595,000
for the prior nine months ended March 31, 2012. Net income for the
nine months ended March 31, 2013 was $2,590,000, or $1.23 per
diluted share, an increase of $1,014,000 or $0.46 per diluted
share, over the prior nine months ended March 31, 2012 net income
of $1,576,000 or $0.77 per diluted share.
In March 2013, DynTek made a permitted repayment of $1,383,000
on its subordinated debt, which will reduce debt service costs in
future periods.
"Our investments in sales and technical talent, strategic
partnerships and business-enabling technologies are fueling our
healthy and steady growth," said Ron Ben-Yishay, DynTek's chief
executive officer. "Cloud-based solutions, managed services,
mobility and virtualization are no longer horizon technology
projects -- they have quickly become core to our customer's
business strategies. DynTek's strategic partner portfolio is
comprised of the leaders in these key growth markets, including
Microsoft, Cisco, Citrix, McAfee and more. In addition, we are
increasing our footprint across vertical industries, from education
and government to healthcare and finance, providing DynTek a well
balanced portfolio."
EBITDA The Company defines EBITDA as
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, 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)
Nine Nine
Quarter Months Quarter Months
Ended Ended Ended Ended
March 31, March 31, March 31, March 31,
2013 2013 2012 2012
---------- ---------- ---------- ----------
REVENUES
Product revenues $ 19,337 $ 70,908 $ 16,798 $ 54,731
Service revenues 8,093 24,740 7,483 22,772
---------- ---------- ---------- ----------
TOTAL REVENUES 27,429 95,648 24,281 77,503
---------- ---------- ---------- ----------
COST OF REVENUES
Cost of products 15,877 59,816 13,957 45,999
Cost of services 6,505 19,715 5,819 17,549
---------- ---------- ---------- ----------
TOTAL COST OF REVENUES 22,382 79,530 19,776 63,548
---------- ---------- ---------- ----------
GROSS PROFIT 5,047 16,117 4,505 13,955
---------- ---------- ---------- ----------
OPERATING EXPENSES
Selling 3,199 9,669 2,711 7,966
General and administrative 986 3,149 1,168 3,451
Depreciation and
amortization 23 74 32 94
---------- ---------- ---------- ----------
TOTAL OPERATING EXPENSES 4,208 12,892 3,911 11,511
---------- ---------- ---------- ----------
INCOME FROM OPERATIONS 839 3,225 594 2,444
EBITDA 919 3,472 653 2,595
OTHER INCOME (EXPENSE)
Interest expense (225) (693) (197) (750)
Other income (expense) 9 9 - -
---------- ---------- ---------- ----------
TOTAL OTHER EXPENSE (216) (684) (197) (750)
---------- ---------- ---------- ----------
INCOME BEFORE INCOME TAX 623 2,541 397 1,694
Income tax benefit
(provision) 239 48 492 (118)
---------- ---------- ---------- ----------
NET INCOME $ 862 $ 2,590 $ 889 $ 1,576
========== ========== ========== ==========
NET INCOME PER SHARE:
Basic $ 0.41 $ 1.24 $ 0.44 $ 0.79
========== ========== ========== ==========
Diluted $ 0.41 $ 1.23 $ 0.43 $ 0.77
========== ========== ========== ==========
WEIGHTED AVERAGE NUMBER OF
SHARES:
Basic 2,094,202 2,091,836 2,033,325 1,992,375
========== ========== ========== ==========
Diluted 2,121,708 2,112,829 2,045,842 2,042,545
========== ========== ========== ==========
For more information, contact: Linda Ford DynTek, Inc.
949-271-6705 Email Contact
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