DynTek Announces Results for Fiscal Year 2013

Company Reports Annual Growth in Revenues and EBITDA

Marketwired

NEWPORT BEACH, CA--(Marketwired - Sep 23, 2013) - DynTek, Inc. (PINKSHEETS: DYNE), a leading provider of professional technology services, today announced results for its fourth fiscal quarter and fiscal year ended June 30, 2013. 

Fiscal Year Ended June 30, 2013

DynTek reported revenues of $130,347,000 for the year ended June 30, 2013, an increase of $12,984,000, or 11%, from $117,363,000 for the prior year ended June 30, 2012. Gross profit increased to $21,830,000 for the year ended June 30, 2013, an increase of $1,168,000, or 6%, from $20,662,000 for the prior year ended June 30, 2012. Total operating expenses were $17,861,000 for the year ended June 30, 2013 compared to $17,207,000 for the prior year ended June 30, 2012, primarily attributable to higher selling expenses associated with higher revenues. 

DynTek reported EBITDA of $4,514,000 for the year ended June 30, 2013, an increase of $523,000, or 13%, from $3,991,000 for the prior year ended June 30, 2012. Net income for the year ended June 30, 2013 was $3,377,000 or $1.60 per diluted share, an increase of $989,000 or $0.45 per diluted share, over the prior year ended June 30, 2012 net income of $2,388,000 or $1.15 per diluted share.

Fourth Fiscal Quarter Ended June 30, 2013

DynTek reported revenues of $34,700,000 for the fourth quarter ended June 30, 2013, a decrease of $5,160,000, or 13%, from $39,860,000 in the prior year fourth quarter ended June 30, 2012. Gross profit for the fourth quarter ended June 30, 2013 was $5,713,000, a decrease of $994,000, or 15%, from $6,707,000 for the prior year fourth quarter. The lower revenue and gross profit is primarily a variance in the number of product orders closed in Q4 2013 which are expected to close in Q1 of the new FY2014. Total operating expenses decreased by $729,000 to $4,967,000 in the fourth quarter ended June 30, 2013 compared to $5,696,000 in the prior year fourth quarter, reflective of lower revenue.

DynTek reported EBITDA of $1,042,000 for the fourth quarter ended June 30, 2013, a decrease of $355,000, or 25%, from $1,397,000 for the prior fourth fiscal quarter ended June 30, 2012. Net income for the fourth fiscal quarter of 2013 was $792,000, or $0.37 per diluted share, a decrease of $20,000 or $0.03 per diluted share, over the net income for the prior year fourth fiscal quarter of $812,000, or $0.40 per diluted share.

"The DynTek team produced solid results in the fourth quarter which contributed to stellar results in FY2013 in terms of revenue growth, profitability, customer satisfaction and industry accolades," said Ron Ben-Yishay, DynTek's chief executive officer. "As our customers look to us to support explosive data growth, cloud initiatives and the consumerization of IT, DynTek has the methodologies, best practices, technology partnerships and talented team of IT professionals in place to facilitate this business and IT transformation. In addition, we are extremely proud of the industry recognition and validation our team received this past year including Microsoft Global Partner of the Year - Public Sector, Education; McAfee Government, Health and Education Partner of the Year; CRN Fast Growth 150 and more."

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 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.

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)  
                         
    Quarter Ended June 30, 2013     Fiscal Year Ended June 30, 2013     Quarter Ended June 30, 2012     Fiscal Year Ended June 20, 2012  
REVENUES                                
  Product revenues   $ 25,689     $ 96,596     $ 31,347     $ 86,078  
  Service revenues     9,011       33,751       8,513       31,285  
  TOTAL REVENUES     34,700       130,347       39,860       117,363  
                                 
COST OF REVENUES                                
  Cost of products     21,974       81,790       26,651       72,650  
  Cost of services     7,012       26,727       6,502       24,051  
  TOTAL COST OF REVENUES     28,987       108,517       33,154       96,701  
GROSS PROFIT     5,713       21,830       6,707       20,662  
                                 
OPERATING EXPENSES                                
  Selling     3,577       13,247       3,799       11,765  
  General and administrative     1,367       4,518       1,866       5,317  
  Depreciation and amortization     22       96       31       125  
  TOTAL OPERATING EXPENSES     4,967       17,861       5,696       17,207  
                                 
INCOME FROM OPERATIONS     746       3,970       1,011       3,455  
                                 
EBITDA     1,042       4,514       1,397       3,991  
                                 
OTHER INCOME (EXPENSE)                                
  Interest expense     (203 )     (896 )     (189 )     (939 )
  Other income (expense)     -       6       -       -  
TOTAL OTHER EXPENSE     (203 )     (890 )     (189 )     (939 )
                                 
INCOME BEFORE INCOME TAX     543       3,080       822       2,516  
  Income tax (benefit) provision     (249 )     (297 )     10       128  
NET INCOME   $ 792     $ 3,377     $ 812     $ 2,388  
                                 
NET INCOME PER SHARE:                                
  Basic   $ 0.38     $ 1.61     $ 0.40     $ 1.17  
  Diluted   $ 0.37     $ 1.60     $ 0.40     $ 1.15  
                                 
WEIGHTED AVERAGE NUMBER OF SHARES:                                
  Basic     2,094,202       2,092,368       2,033,325       2,033,325  
  Diluted     2,121,859       2,115,339       2,047,149       2,073,837  
Contact:
For more information, contact:
Linda Ford
DynTek, Inc.
949-271-6705
Email Contact

Rates

View Comments (0)