SOURCE: DynTek Services, Inc.

DynTek Services, Inc.

January 28, 2013 12:30 ET

DynTek Announces Results for the Second Fiscal Quarter and Year-to-Date Period Ended December 31, 2012

Company Continues Growth in Revenues and Earnings

NEWPORT BEACH, CA--(Marketwire - Jan 28, 2013) - DynTek, Inc. (PINKSHEETS: DYNE), a leading provider of professional technology services, today announced results for the quarter and six months ended December 31, 2012.

Second Fiscal Quarter Ended December 31, 2012

DynTek reported revenues of $31,868,000 for the second quarter ended December 31, 2012, an increase of 24% from $25,669,000 in the second quarter ended December 31, 2011. Gross profit increased to $5,514,000 for the second quarter ended December 31, 2012, an increase of $1,512,000 or 38% from $4,002,000 for the prior second fiscal quarter. Total operating expenses increased to $4,230,000 in the second quarter ended December 31, 2012 compared to $3,546,000 in the prior second quarter ended December 31, 2011, primarily attributable to higher selling expense associated with higher revenues.

DynTek reported positive EBITDA of $1,399,000 for the second fiscal quarter ended December 31, 2012, an increase of $889,000 or 174% from $510,000 for the prior second fiscal quarter ended December 31, 2011. Net income is $944,000 for the second fiscal quarter of 2013, an increase of $864,000 over the $80,000 for the second fiscal quarter of 2012.

Year-to-Date Period Ended December 31, 2012

DynTek reported revenues of $68,219,000 for the six months ended December 31, 2012, an increase of 28% from $53,222,000 in the six months ended December 31, 2011. Gross profit also increased to $11,070,000 for the six months ended December 31, 2012, an increase of $1,620,000 or 17% from $9,450,000 for the prior six months ended December 31, 2011. Total operating expenses increased to $8,684,000 in the six months ended December 31, 2012 compared to $7,601,000 in the prior six months ended December 31, 2011, primarily attributable to higher selling expense associated with higher revenues.

DynTek reported positive EBITDA of $2,554,000 for the six months ended December 31, 2012, an increase of $613,000 or 32% from $1,941,000 for the prior six months ended December 31, 2011. Net income is $1,728,000 for the six months ended December 31, 2012, an increase of $1,042,000 over the prior six months ended December 31, 2011. 

"DynTek is driving double and triple digit growth on both the top and bottom lines, highlighting that our investments are performing and we are controlling costs in line with growth," said Ron Ben-Yishay, DynTek's chief executive officer. "Our focus continues to be on sustaining our organic growth across all regions and technology areas through key investments in technical talent, sales and marketing and customer service."

EBITDA
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.

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 Platform, 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.

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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, 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.

DYNTEK, INC. AND SUBSIDIARY  
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  
(EBITDA presentation)  
(Unaudited, in thousands, except share and per share data)  
                         
    Quarter Ended December 31,     Six Months Ended December 31,     Quarter
 Ended December 31,
    Six Months Ended December 31,  
    2012     2012     2011     2011  
REVENUES                        
  Product revenues   $ 23,773     $ 51,571     $ 18,736     $ 37,933  
  Service revenues     8,095       16,647       6,933       15,289  
  TOTAL REVENUES     31,868       68,219       25,669       53,222  
                                 
COST OF REVENUES                                
  Cost of products     19,748       43,939       16,293       32,042  
  Cost of services     6,606       13,209       5,374       11,730  
  TOTAL COST OF REVENUES     26,354       57,148       21,667       43,772  
GROSS PROFIT     5,514       11,070       4,002       9,450  
                                 
OPERATING EXPENSES                                
  Selling     3,163       6,470       2,489       5,256  
  General and administrative     1,042       2,163       1,024       2,283  
  Depreciation and amortization     25       51       33       63  
  TOTAL OPERATING EXPENSES     4,230       8,684       3,546       7,601  
                                 
INCOME FROM OPERATIONS     1,285       2,386       456       1,849  
                                 
EBITDA     1,399       2,554       510       1,941  
                                 
OTHER INCOME (EXPENSE)                                
  Interest expense     (237 )     (468 )     (304 )     (552 )
TOTAL OTHER EXPENSE     (237 )     (468 )     (304 )     (552 )
                                 
INCOME BEFORE INCOME TAX PROVISION     1,048       1,919       152       1,297  
  Income tax provision     (104 )     (191 )     (72 )     (610 )
NET INCOME   $ 944     $ 1,728     $ 80     $ 686  
                                 
NET INCOME PER SHARE:                                
  Basic   $ 0.45     $ 0.83     $ 0.04     $ 0.35  
  Diluted   $ 0.45     $ 0.83     $ 0.04     $ 0.34  
                                 
WEIGHTED AVERAGE NUMBER OF SHARES:                                
  Basic     2,093,188       2,090,653       1,978,802       1,971,900  
  Diluted     2,093,188       2,090,653       2,035,766       2,023,589  

Contact Information

  • For more information, contact:
    Linda Ford
    DynTek, Inc.
    949-271-6705
    Email Contact