SOURCE: Cyber Digital, Inc.

November 12, 2007 11:54 ET

Cyber Digital Reports Record Results for the Second Quarter Ended September 30, 2007

Net Revenues of $1.68 Million in Company's First Full Quarter Generating Sales

HAUPPAUGE, NY--(Marketwire - November 12, 2007) - Cyber Digital, Inc. (OTCBB: CYBD), which uses its own proprietary hardware and software to create and distribute digital voice switches and high performance internet protocol (IP) broadband systems, and through recent acquisitions, has also established itself as a Competitive Local Exchange Carrier, or "CLEC," today announced its financial results for the second quarter ended September 30, 2007.

Second Quarter 2007, Six Month Period, Performance Highlights:

--  $1.68 million Net Revenue
--  $675,863 Gross Profit
--  Gross Margin of Approximately 40%
--  Net Loss of $447,048, $.013 Per Share
    

Net revenues were generated from our recently acquired communications service provider subsidiaries ("CLECs") on June 1, 2007. These subsidiaries provide communications services to approximately 10,000 small business and residential subscribers in the states of New York, New Jersey and Pennsylvania.

Financial Results for Six Months Ended September 30, 2007:

Net revenue for the period ended September 30, 2007 was $1,682,735 as compared to no revenue for the same period ended September 30, 2006. As there was no revenue for the second quarter of fiscal 2006 there was no reported gross profit or cost of sales for the period.

Gross profit for the period ended September 30, 2007 was $675,863 corresponding to 40% as a percentage of sales.

Selling, general and administrative expenses increased from $293,549 in the period ended September 30, 2006 to $809,930 in the period ended September 30, 2007, representing an increase of $516,381 or approximately 176%, principally due to the selling, general and administrative expenses of services subsidiaries.

Operating EBITDA increased by $159,482 to $(146,567) in the period ended September 30, 2007 from $(306,049) in the period ended September 30, 2006.

Net loss from operations in the period ended September 30, 2007 was $(447,048) or $(.013) per share as compared with a loss of $(392,909) or $(.012) per share in the period ended September 30, 2006.

Cash and cash equivalents including marketable securities were $226,695 and $2,755 for the periods ended September 30, 2007 and September 30, 2006, respectively.

In announcing the Company's financial results, J. C. Chatpar, President and CEO of Cyber Digital, stated, "Our first two acquisitions were completed in June 2007 and began contributing revenue immediately, then continued to build throughout the quarter. We anticipate the overall performance of these operations will improve as we are able to integrate our systems into the operations."

Mr. Chatpar went on to say, "We are aggressively pursuing a traditional roll-up strategy in the highly fragmented, recently deregulated CLEC market sector. With an end-to-end solution, we are ideally positioned as the natural acquirer of CLECs. Leveraging the benefits of being a public entity, we will utilize a combination of cash, stock and debt to make these acquisitions, establish a nation-wide network and then implement our hardware and software systems to improve the efficiency and profitability of the network."

About Cyber Digital, Inc.

Cyber Digital, Inc. ("CYBD") uses its own proprietary hardware and software to create and distribute digital voice switches and high performance internet protocol (IP) broadband systems. Through recent acquisitions, the Company has also established itself as a Competitive Local Exchange Carrier, or "CLEC," providing communications services to approximately 10,000 small business and residential subscribers in the states of New York, New Jersey and Pennsylvania.

Today, CYBD is aggressively pursuing a traditional roll-up strategy in the highly fragmented, recently deregulated CLEC market sector. With an end-to-end solution, CYBD is ideally positioned as the natural acquirer of CLECs. Leveraging the benefits of being a public entity, CYBD will utilize a combination of cash, stock and debt to make these acquisitions, establish a nation-wide network and then implement its hardware and software protocols to improve the efficiency and profitably of the network.

For more information, visit www.cyberdigitalinc.com

This press release contains forward-looking statements, pursuant to the "safe harbor" provisions as fully described in Cyber Digital's filings with the Securities and Exchange Commission.

Contact Information

  • Investor Relations Contacts:
    Lorin Cohen
    or
    Jeffrey Friedland
    Friedland Corporate Investor Services, LLC
    866-356-0651