NEWPORT BEACH, Calif., April 27, 2017 (GLOBE NEWSWIRE) -- DynTek, Inc. (OTC:DYNE), a leading provider of professional technology services, today announced results for its fiscal year 2017 third quarter ended March 31, 2017.
Third Fiscal Quarter 2017 Ended March 31, 2017
DynTek reported revenues of $41,495,000 for the third fiscal quarter ended March 31, 2017, an increase of $2,486,000 or 6.4%, from $39,009,000 in the prior year third quarter ended March 31, 2016. Gross profit was $7,500,000 for the third fiscal quarter ended March 31, 2017, an increase of $1,673,000 or 28.7%, from $5,827,000 in the prior year third quarter ended March 31, 2016. This quarter over prior year quarter revenue and gross profit increase is primarily due to a few large scale transactions in the New York district.
Total operating expenses were $5,528,000 in the third fiscal quarter ended March 31, 2017, an increase of $628,000 or 12.8%, as compared to $4,900,000 in the prior year third quarter ended March 31, 2016. This quarter over prior year quarter increase is primarily due to increased selling expenses to support increased revenues.
DynTek reported EBITDA of $2,047,000 for the third fiscal quarter ended March 31, 2017, an increase of $1,021,000 or 99.5%, as compared to $1,026,000 in the prior year third quarter which is attributed to the increased sales in the current quarter. Net income was $941,000 for the third fiscal quarter of 2017, or $0.38 per diluted share, an increase of $549,000, 140.1% and $0.12 per diluted share, over the net income of $392,000 and $0.17 per diluted share in the third fiscal quarter of 2016.
Year-to-Date Period Ended March 31, 2017
DynTek reported revenues of $107,321,000 for the nine months ended March 31, 2017, a decrease of $19,100,000 or 15.1%, from $126,421,000 in the prior nine months ended March 31, 2016. Gross profit was $18,505,000 for the nine months ended March 31, 2017, a decrease of $936,000 or 4.8%, from $19,441,000 in the prior year nine months ended March 31, 2016.
Total operating expenses were $15,612,000 in the nine months ended March 31, 2017, a decrease of $272,000 or 1.7%, as compared to $15,884,000 in the prior year nine months ended March 31, 2016.
DynTek reported EBITDA of $3,156,000 for the nine months ended March 31, 2017, a decrease of $700,000 or 18.1%, as compared to $3,856,000 in the prior year nine months. Net income was $1,123,000 for the nine months ended March 31, 2017, or $0.46 per diluted share, a decrease of $450,000, 28.6% and $0.23 per diluted share, from the net income of $1,573,000 and $0.69 per diluted share in the prior nine months ended March 31, 2016.
“Our team drove a strong quarter bolstered by closing several large government pipeline deals we have been tracking over the fiscal year," said Ron Ben-Yishay, DynTek’s chief executive officer. “As our clients continue to demand solutions tailored to their unique vertical - from hospitality to healthcare - we are focused on developing innovative solutions in areas such as Internet of Things, Cybersecurity and Cloud."
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.
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.
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|
|(Unaudited, in thousands, except share and per share data)|
|Quarter Ended March 31,||Nine Months Ended March 31,||Quarter Ended March 31,||Nine Months Ended March 31,|
|COST OF REVENUES|
|Cost of products||27,945||69,664||26,340||86,524|
|Cost of services||6,049||19,151||6,842||20,455|
|TOTAL COST OF REVENUES||33,994||88,815||33,182||106,980|
|General and administrative||1,113||2,984||954||3,087|
|Depreciation and amortization||42||133||46||134|
|TOTAL OPERATING EXPENSES||5,528||15,612||4,900||15,884|
|INCOME FROM OPERATIONS||1,972||2,893||927||3,557|
|OTHER INCOME (EXPENSE)|
|TOTAL OTHER EXPENSE||(424||)||(1,042||)||(274||)||(935||)|
|INCOME BEFORE INCOME TAXES||1,548||1,851||653||2,622|
|Income tax provision||(607||)||(728||)||(261||)||(1,049||)|
|NET INCOME PER SHARE:|
|WEIGHTED AVERAGE NUMBER OF SHARES:|
For more information, contact: Linda Ford DynTek, Inc. 949-271-6705 email@example.com
Source:DynTek Services, Inc.