Loading, Please Wait...

CST: 21/07/2019 09:51:24   

DynTek Announces Results for the Third Quarter Fiscal Year 2019

89 Days ago

Company reporting 28% increase in Revenue, 50% increase in EBITDA and >100% increase in Net Earnings

IRVINE, Calif., April 22, 2019 (GLOBE NEWSWIRE) -- DynTek, Inc. (DYNE.OTC), a leading provider of professional technology services, today announced results for its third fiscal quarter ended March 31, 2019. 

Financial & Business Highlights

Third Quarter, 2019 Ended March 31, 2019

  • Revenues increased 28.3% to $44.5 million
  • Gross profit increased 24.5% to $8.2 million
  • Total operating expenses increased 25.0% to $6.7 million
  • Net earnings increased >100% to $1 million
  • Diluted earnings per share increased to $0.42
  • EBITDA increased 50.3% to $2.0 million

Nine Months Ended March 31, 2019

  • Revenues increased 21.7% to $146.8 million
  • Gross profit increased 17.8% to $25.6 million
  • Total operating expenses increased 1.8% to $19.6 million
  • Net earnings increased >100% to $4.1 million
  • Diluted earnings per share increased to $0.57
  • EBITDA increased 57.8% to $7.0 million

Management Comment

Third quarter results reflect a 28.3% growth in revenue, primarily in security and data center solutions. Gross Profit rose 24.5% to $8.2 million. EBITDA rose 50.3% from $1.4 million to $2.0 million, driven primarily by the increase in gross profit, while controlling expenses.

In our nine months year to date, we achieved significant year-on-year growth in revenue and gross profit, due in part to increased volume. Our year to date EBITDA and net earnings growth reflects control over selling and operating expenses as revenues continue to rise. General and Administration expenses for the first nine months of FY19 compared to prior year, when adjusted for the prior year stock option buyback charge of $1.4 million which was reclassed to Equity at FY18 year end, reflect a 6.9% increase, while net earnings on a comparative basis were 34% higher than prior year earnings.

“As our top line revenue continues to grow at a double-digit pace, our focus has remained on controlled and astute investments in our sales, technical and operational resources in order to maximize profitability,” said Ron Ben-Yishay, DynTek’s chief executive officer. “We are developing offerings that drive economies of scale and efficiencies internally and for our clients such as our recently announced Security Operations Center, cloud computing solutions and other managed services.”

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
As a national systems integrator and risk management partner, DynTek delivers exceptional, cost-effective professional IT consulting services, end-to-end IT solutions, managed IT services, and IT product sales to state and local government, educational, healthcare and enterprise customers in the largest IT markets nationwide. Our broad range of technical expertise and vendor partnerships allow us to deliver solutions that support digital business transformation including IT Security, Digital Infrastructure, Modern Workplace, Data Center and Cloud solutions. 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 onLinkedIn

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,
  PYQ Ended
March 31,
  PYTD Nine Months Ended
March 31,
    2019     2019   2018   2018
                   
REVENUES                  
Product revenues    $   36,253     $   121,564     $   26,334     $   96,875  
Service revenues        8,275         25,211         8,366         23,737  
TOTAL REVENUES        44,529         146,775         34,701         120,612  
                   
COST OF REVENUES                  
Cost of products        29,155         99,624         20,793         78,632  
Cost of services        7,138         21,535         7,294         20,227  
TOTAL COST OF REVENUES        36,293         121,159         28,087         98,859  
GROSS PROFIT        8,236         25,616         6,614         21,753  
                   
                   
                   
                   
OPERATING EXPENSES:                  
Selling        4,565         14,260         4,089         13,727  
General and administrative        2,083         5,090         1,278         5,468  
Depreciation and amortization        106         287         34         99  
TOTAL OPERATING EXPENSES        6,754         19,637         5,402         19,295  
                   
INCOME FROM OPERATIONS        1,481         5,979         1,212         2,458  
                   
EBITDA       2,034         6,957         1,353         4,409  
                   
OTHER INCOME (EXPENSE):                  
Interest expense        30         (111)         (107)         (441)  
TOTAL OTHER EXPENSE        30         (111)         (107)         (441)  
                   
  INCOME BEFORE INCOME TAXES        1,511         5,868         1,105         2,018  
Income tax  provision       506         1,770         990         1,354  
                   
NET INCOME   $   1,005     $   4,098     $   115     $   664  
                   
NET INCOME PER SHARE:                  
  Basic   $   0.44     $   1.78     $   0.05     $   0.29  
  Diluted   $   0.42     $   1.71     $   0.05     $   0.28  
                   
WEIGHTED AVERAGE NUMBER OF SHARES:                  
  Basic       2,304,692         2,304,692         2,286,124         2,275,230  
  Diluted       2,405,233         2,395,456         2,373,533         2,361,818  
                   

For more information, contact:
Linda Ford
DynTek, Inc.
949-271-6705
linda.ford@dyntek.com

Is your business listed correctly on America’s largest city directory network of 1,000 portals?