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DynTek Announces Results for Fiscal Year 2014(Marketwire Via Acquire Media NewsEdge) NEWPORT BEACH, CA -- (Marketwired) -- 09/15/14 -- 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, 2014. The 2014 audited financial statements and notes thereto are available on the OTC website under our symbol, DYNE. Fiscal Year Ended June 30, 2014 DynTek reported revenues of $145,957,000 for the year ended June 30, 2014, an increase of $15,610,000, or 12% from $130,347,000 for the prior year ended June 30, 2013. Gross profit increased to $25,026,000 for the year ended June 30, 2014, an increase of $3,196,000, or 15%, from $21,830,000 for the prior year ended June 30, 2013. Total operating expenses were $20,398,000 for the year ended June 30, 2014 compared to $17,859,000 for the prior year ended June 30, 2013, primarily attributable to higher selling expenses associated with higher revenues and higher stock compensation expense. DynTek reported EBITDA of $5,550,000 for the year ended June 30, 2014, an increase of $1,036,000, or 23% from $4,514,000 for the prior year ended June 30, 2013. Net income for the year ended June 30, 2014 was $1,778,000 or $0.79 per diluted share, a decrease of $1,599,000 or $0.81 per diluted share, over the prior year ended June 30, 2013 net income of $3,377,000 or $1.60 per diluted share, primarily related to a large non-cash deferred income tax provision related to the use of net operating losses. Fourth Fiscal Quarter Ended June 30, 2014 DynTek reported revenues of $38,843,000 for the fourth quarter ended June 30, 2014, an increase of $4,143,000, or 12% from $34,700,000 for the prior year fourth quarter ended June 30, 2013. Gross profit for the fourth quarter ended June 30, 2014 was $6,535,000, an increase of $822,000, or 14%, from $5,713,000 for the prior year fourth quarter. Operating expenses increased by $627,000 to $5,594,000 in the fourth quarter ended June 30, 2014 compared to $4,967,000 in the prior year fourth quarter, primarily attributable to higher selling expenses associated with higher revenues and higher stock compensation expense. DynTek reported EBITDA of $1,458,000 for the fourth quarter ended June 30, 2014, an increase of $416,000, or 40% from $1,042,000 for the prior fourth fiscal quarter ended June 30, 2013. Net loss for the fourth fiscal quarter of 2014 was $990,000, or $0.44 per diluted share, a decrease of $1,782,000 or $0.81 per diluted share, over the net income for the prior year fourth fiscal quarter of $792,000, or $0.37 per diluted share, primarily related to a large non-cash deferred income tax provision related to the use of net operating losses. "The DynTek team continues to drive double digit top line and EBITDA growth by expanding our practice breadth in our key clients, new customer acquisitions and developing new geographical territories," said Ron Ben-Yishay, DynTek's chief executive officer. "In Fiscal Year 2015 we expect to derive additional growth through the development of solution offerings to support emerging technologies and customer demand, such as cloud computing and managed services." EBITDAThe 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 DynTekDynTek 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 StatementsThis 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 Fiscal Year Quarter Fiscal Year Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2014 2014 2013 2013 ----------- ----------- ----------- ----------- REVENUES Product revenues $ 29,743 $ 113,058 $ 25,689 $ 96,596 Service revenues 9,099 32,899 9,011 33,751 ----------- ----------- ----------- ----------- TOTAL REVENUES 38,843 145,957 34,700 130,347 ----------- ----------- ----------- ----------- COST OF REVENUES Cost of products 25,406 95,068 21,974 81,790 Cost of services 6,901 25,863 7,012 26,727 ----------- ----------- ----------- ----------- TOTAL COST OF REVENUES 32,307 120,931 28,987 108,517 ----------- ----------- ----------- ----------- GROSS PROFIT 6,535 25,026 5,713 21,830 ----------- ----------- ----------- ----------- OPERATING EXPENSES Selling 3,852 15,498 3,577 13,247 General and administrative 1,708 4,801 1,367 4,518 Depreciation and amortization 34 99 22 96 ----------- ----------- ----------- ----------- TOTAL OPERATING EXPENSES 5,594 20,398 4,967 17,861 ----------- ----------- ----------- ----------- INCOME FROM OPERATIONS 941 4,627 746 3,970 EBITDA 1,458 5,550 1,042 4,514 OTHER INCOME (EXPENSE) Interest expense (323) (1,005) (203) (896) Other income (expense) - - - 6 ----------- ----------- ----------- ----------- TOTAL OTHER EXPENSE (323) (1,005) (203) (890) ----------- ----------- ----------- ----------- INCOME BEFORE INCOME TAX 618 3,622 543 3,080 Income tax provision (benefit) 1,608 1,844 (249) (297) ----------- ----------- ----------- ----------- NET INCOME (LOSS) $ (990) $ 1,778 $ 792 $ 3,377 =========== =========== =========== =========== NET INCOME (LOSS) PER SHARE: Basic $ (0.46) $ 0.84 $ 0.38 $ 1.61 =========== =========== =========== =========== Diluted $ (0.44) $ 0.79 $ 0.37 $ 1.60 =========== =========== =========== =========== WEIGHTED AVERAGE NUMBER OF SHARES: Basic 2,135,934 2,128,851 2,094,202 2,092,368 =========== =========== =========== =========== Diluted 2,230,804 2,248,771 2,121,859 2,115,339 =========== =========== =========== =========== For more information, contact: Linda Ford DynTek, Inc. 949-271-6705 Email Contact Source: DynTek Services, Inc. |