NEWPORT BEACH, CA — (Marketwire) — 09/26/12 — (PINKSHEETS: DYNE) a leading provider of , today announced results for its fourth fiscal quarter and fiscal year ended June 30, 2012. The 2012 audited consolidated financial statements and notes thereto are available under DYNE.PK.
DynTek reported revenues of $39,860,000 for the fourth quarter ended June 30, 2012, an increase of 5% from $37,854,000 in the fourth quarter ended June 30, 2011. Gross profit increased to $6,707,000 for the fourth quarter ended June 30, 2012, an increase of $1,046,000 or 18% from $5,661,000 for the prior fourth fiscal quarter. Total operating expenses increased to $5,696,000 in the fourth fiscal quarter ended June 30, 2012 compared to $4,662,000 in the prior fourth quarter ended June 30, 2011.
DynTek reported positive EBITDA of $1,397,000 for the fourth fiscal quarter ended June 30, 2012, an increase of $35,000 or 3% from $1,362,000 for the prior fourth fiscal quarter ended June 30, 2011. Net income is $812,000 for the fourth fiscal quarter of 2012, a decrease of $3,019,000 or 79% from $3,831,000 from the fourth fiscal quarter of 2011. The decrease in net income is primarily due to a $2,863,000 income tax benefit recorded in the fourth fiscal quarter of 2011 from a release of deferred tax asset valuation allowance.
DynTek reported revenues of $117,363,000 for the year ended June 30, 2012, a decrease of 5% from $123,801,000 in the year ended June 30, 2011. Gross profit slightly decreased to $20,662,000 for the year ended June 30, 2012, a decrease of $51,000 or 0.2% from $20,713,000 for the prior year ended June 30, 2011. The year over year revenue reduction was primarily attributable to a significant multi million dollar one-time deal that impacted revenue by $15,176,000 in fiscal year 2011. Total operating expenses increased to $17,207,000 in fiscal year ended June 30, 2012 compared to $16,192,000 in the prior year ended June 30, 2011.
DynTek reported positive EBITDA of $3,991,000 for the year ended June 30, 2012, a decrease of $1,058,000 or 21% from $5,049,000 for the prior year ended June 30, 2011. Net income is $2,388,000 for the fiscal year ended June 30, 2012, a decrease from the net income of $5,633,000 for the prior year ended June 30, 2011. Decrease in net income is primarily due to a $2,741,000 tax benefit recorded in the prior fiscal year from a release of deferred tax asset valuation allowance.
“We had a strong fiscal year 2012, delivering a 37% growth in revenue from fiscal year 2010,” said Ron Ben-Yishay, DynTek-s chief executive officer. “When factoring in large, one-time deals realized in fiscal year 2011, our core business stream is growing at an aggressive clip. We anticipate increasing demand in fiscal 2013 as organizations continue the adoption of new Microsoft product releases, such as Windows Server 2012, System Center 2012, Lync and more, and as organizations continue to invest in technology projects around virtualization, security and the data center. In addition, our managed services offering is growing at a rapid pace and we expect that as it continues to mature, this offering will be a key catalyst to our growth in the upcoming year.”
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 .
Twitter:
DynTek on
DynTek on
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
You must be logged in to post a comment Login