|By Marketwired .||
|April 28, 2014 11:00 AM EDT||
NEWPORT BEACH, CA -- (Marketwired) -- 04/28/14 -- DynTek, Inc. (PINKSHEETS: DYNE), a leading provider of professional technology services, today announced results for its fiscal year 2014 third quarter and nine months ended March 31, 2014.
Year-to-Date Period Ended March 31, 2014
DynTek reported revenues of $107,114,000 and gross profit of $18,490,000 for the nine months ended March 31, 2014 compared to revenues of $95,648,000 and gross profit of $16,117,000 in the prior year nine months ended March 31, 2013. The $11,466,000 or 12% revenue growth, and the $2,373,000 or 15% gross profit growth, are primarily attributable to several multi-million dollar deals with government customers in the New York district and government and commercial customers in the Newport Beach district in the second quarter of fiscal 2014.
Total operating expenses were $14,805,000 for the nine months ended March 31, 2014 compared to $12,892,000 in the prior year nine months ended March 31, 2013. The $1,913,000 or 15% increase year over year is primarily due to sales commissions on higher revenue levels and investments in additional sales representatives.
DynTek reported EBITDA of $4,092,000 for the nine months ended March 31, 2014, compared to $3,472,000 in the prior year nine months ended March 31, 2013, an increase of $620,000 or 18% year over year. Net income was $2,768,000 for the nine months ended March 31, 2014, or $1.26 per diluted share, an increase of $178,000 or $0.03 per diluted share, over net income of $2,590,000 or $1.23 per diluted share, in the nine months ended March 31, 2013.
Third Fiscal Year 2014 Quarter Ended March 31, 2014
DynTek reported revenues of $26,834,00 and gross profit of $4,901,000 for the third fiscal quarter ended March 31, 2014 compared to revenues of $27,429,000 and gross profit of $5,047,000 in the prior year third fiscal quarter ended March 31, 2013. Total operating expenses were $4,424,000 in the third fiscal quarter ended March 31, 2014 compared to $4,208,000 in the prior year third quarter ended March 31, 2013.
DynTek reported EBITDA of $725,000 for the third fiscal quarter ended March 31, 2014, compared to $919,000 in the prior year third quarter, a decrease of $194,000 or 21%. Net income was $206,000 for the third fiscal quarter of 2014, or $0.09 per diluted share, a decrease of $656,000 or $0.32 per diluted share, over net income of $862,000 or $0.41 per diluted share, in the third quarter of 2013.
"We have had strong year-to-date growth across our regions and technology practices," said Ron Ben-Yishay, DynTek's chief executive officer. "We continue to focus on the growth and expansion of our cloud offerings and managed services, which present new and innovative ways for our customers to leverage technology as a service. In addition, as new security attacks continue to burden the market, we expect continued growth in our security services, which provide our customers with new, sophisticated lines of defense from next generation security threats."
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 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 Platforms, 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.
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, 2014 2014 2013 2013 ----------- ----------- ----------- ----------- REVENUES Product revenues $ 18,642 $ 83,315 $ 19,337 $ 70,908 Service revenues 8,192 23,799 8,093 24,740 ----------- ----------- ----------- ----------- TOTAL REVENUES 26,834 107,114 27,429 95,648 ----------- ----------- ----------- ----------- COST OF REVENUES Cost of products 15,675 69,662 15,877 59,816 Cost of services 6,258 18,962 6,505 19,715 ----------- ----------- ----------- ----------- TOTAL COST OF REVENUES 21,933 88,624 22,382 79,530 ----------- ----------- ----------- ----------- GROSS PROFIT 4,901 18,490 5,047 16,117 ----------- ----------- ----------- ----------- OPERATING EXPENSES: Selling 3,461 11,646 3,199 9,669 General and administrative 936 3,094 986 3,149 Depreciation and amortization 27 65 23 74 ----------- ----------- ----------- ----------- TOTAL OPERATING EXPENSES 4,424 14,805 4,208 12,892 ----------- ----------- ----------- ----------- INCOME FROM OPERATIONS 477 3,685 839 3,225 EBITDA 725 4,092 919 3,472 OTHER INCOME (EXPENSE): Interest expense (254) (681) (225) (693) Other income (expense), net - - 9 9 ----------- ----------- ----------- ----------- TOTAL OTHER EXPENSE (254) (681) (216) (684) ----------- ----------- ----------- ----------- INCOME BEFORE INCOME TAXES 223 3,004 623 2,541 Income tax (provision) benefit (17) (236) 239 48 ----------- ----------- ----------- ----------- NET INCOME $ 206 $ 2,768 $ 862 $ 2,590 =========== =========== =========== =========== NET INCOME PER SHARE: Basic $ 0.10 $ 1.30 $ 0.41 $ 1.24 =========== =========== =========== =========== Diluted $ 0.09 $ 1.26 $ 0.41 $ 1.23 =========== =========== =========== =========== WEIGHTED AVERAGE NUMBER OF SHARES: Basic 2,127,601 2,126,490 2,094,202 2,091,836 =========== =========== =========== =========== Diluted 2,216,261 2,188,860 2,121,708 2,112,829 =========== =========== =========== ===========
For more information, contact:
“We help people build clusters, in the classical sense of the cluster. We help people put a full stack on top of every single one of those machines. We do the full bare metal install," explained Greg Bruno, Vice President of Engineering and co-founder of StackIQ, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 19, 2014 09:00 AM EST Reads: 1,042
"Our premise is Docker is not enough. That's not a bad thing - we actually love Docker. At ActiveState all our products are based on open source technology and Docker is an up-and-coming piece of open source technology," explained Bart Copeland, President & CEO of ActiveState Software, in this SYS-CON.tv interview at DevOps Summit at Cloud Expo®, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 19, 2014 09:00 AM EST Reads: 1,855
The cloud is becoming the de-facto way for enterprises to leverage common infrastructure while innovating and one of the biggest obstacles facing public cloud computing is security. In his session at 15th Cloud Expo, Jeff Aliber, a global marketing executive at Verizon, discussed how the best place for web security is in the cloud. Benefits include: Functions as the first layer of defense Easy operation –CNAME change Implement an integrated solution Best architecture for addressing network-l...
Dec. 19, 2014 09:00 AM EST Reads: 1,021
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 19, 2014 09:00 AM EST Reads: 993
Verizon Enterprise Solutions is simplifying the cloud-purchasing experience for its clients, with the launch of Verizon Cloud Marketplace, a key foundational component of the company's robust ecosystem of enterprise-class technologies. The online storefront will initially feature pre-built cloud-based services from AppDynamics, Hitachi Data Systems, Juniper Networks, PfSense and Tervela. Available globally to enterprises using Verizon Cloud, Verizon Cloud Marketplace provides a one-stop shop fo...
Dec. 19, 2014 08:00 AM EST Reads: 1,839
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, p...
Dec. 19, 2014 07:00 AM EST Reads: 2,137
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover ...
Dec. 19, 2014 06:30 AM EST Reads: 2,118
ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ -- IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada...
Dec. 19, 2014 04:00 AM EST Reads: 1,941
SYS-CON Events announced today that AIC, a leading provider of OEM/ODM server and storage solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. AIC is a leading provider of both standard OTS, off-the-shelf, and OEM/ODM server and storage solutions. With expert in-house design capabilities, validation, manufacturing and production, AIC's broad selection of products are highly flexible and are conf...
Dec. 19, 2014 04:00 AM EST Reads: 1,765
Leysin American School is an exclusive, private boarding school located in Leysin, Switzerland. Leysin selected an OpenStack-powered, private cloud as a service to manage multiple applications and provide development environments for students across the institution. Seeking to meet rigid data sovereignty and data integrity requirements while offering flexible, on-demand cloud resources to users, Leysin identified OpenStack as the clear choice to round out the school's cloud strategy. Additional...
Dec. 19, 2014 02:00 AM EST Reads: 1,874
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete...
Dec. 18, 2014 09:45 PM EST Reads: 940
“DevOps is really about the business. The business is under pressure today, competitively in the marketplace to respond to the expectations of the customer. The business is driving IT and the problem is that IT isn't responding fast enough," explained Mark Levy, Senior Product Marketing Manager at Serena Software, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 18, 2014 08:00 PM EST Reads: 1,195
Mobile commerce traffic is surpassing desktop, yet less than 20% of sales in the U.S. are mobile commerce sales. In his session at 15th Cloud Expo, Dan Franklin, Segment Manager, Commerce, at Verizon Digital Media Services, defined mobile devices and discussed how next generation means simplification. It means taking your digital content and turning it into instantly gratifying experiences.
Dec. 18, 2014 12:00 PM EST Reads: 1,081
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com...
Dec. 18, 2014 10:30 AM EST Reads: 2,266