NEWPORT BEACH, CA — (Marketwired) — 04/24/13 — (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.
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.
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.”
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.
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, 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.
For more information, contact:
Linda Ford
DynTek, Inc.
949-271-6705
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