NEWPORT BEACH, Calif., Aug. 31, 2017 (GLOBE NEWSWIRE) -- DynTek, Inc. (OTC.DYNE), a leading provider of professional technology services, today announced results for its fourth fiscal quarter and for fiscal year ended June 30, 2017. The 2017 audited financial statements and notes thereto are available on the OTC website under our symbol, DYNE.
Fiscal Year Ended June 30, 2017
DynTek reported revenues of $162,053,000 for the year ended June 30, 2017, a decrease of $14,879,000 or 8.4%, from $176,932,000 in the prior year ended June 30, 2016. Gross profit of $27,063,000 for the year ended June 30, 2017 decreased $1,641,000 or 5.7% as compared to $28,704,000 in the prior year ended June 30, 2016. Gross margin increased 5 basis points in FY2017 from 16.2% to 16.7%. The year over year revenue and gross profit decrease is primarily attributable to non-recurring large scale product transactions with government and education customers in the North East.
Total operating expenses were $21,314,000 in the year ended June 30, 2017, a decrease of $1,745,000 or 7.6%, as compared to $23,059,000 in the prior year ended June 30, 2016. This decrease over prior year is primarily due to decreased selling expense in relation to lower revenue and earnings, and lower stock compensation expense due to the timing and recognition of stock compensation.
DynTek reported EBITDA of $6,107,000 for the year ended June 30, 2017, a decrease of $454,000 or 6.9%, as compared to $6,561,000 in the prior year. Net income was $2,498,000 for the year ended June 30, 2017, or $1.05 per diluted share, a decrease of $417,000, or 14.3%, and $0.22 per diluted share, over the net income of $2,915,000 and $1.27 per diluted share in the year ended June 30, 2016.
“Our goal in Fiscal Year 2018 is to continue to grow both our government and commercial account base, with a strong focus on recurring revenue streams from managed services and multi-year agreements,” said Ron Ben-Yishay, DynTek’s chief executive officer. “Our team is comprised of an unrivaled group of technologists that work to keep our clients on the forward edge in areas such as Internet of Things, cloud-based services and cybersecurity. We have seen especially strong growth in our cybersecurity solutions, driven by customer needs to protect their infrastructure, data, employees and customers from expanding threat vectors.”
Fourth Fiscal Quarter Ended June 30, 2017
DynTek reported revenues of $54,733,000 for the fourth fiscal quarter ended June 30, 2017, an increase of $4,222,000 or 8.3%, from $50,511,000 in the prior fourth quarter ended June 30, 2016. Gross profit was $8,558,000 for the fourth fiscal quarter ended June 30, 2017, a decrease of $704,000 or 7.6%, from $9,262,000 in the prior year fourth quarter ended June 30, 2016. The quarter over prior year quarter decline in gross profit is primarily attributable to the lower price and mix of large product orders.
Total operating expenses were $5,701,000 in the fourth fiscal quarter ended June 30, 2017, a decrease of $1,474,000 or 20.5%, as compared to $7,175,000 in the prior year fourth quarter ended June 30, 2016. This decrease quarter over prior year quarter is primarily due to decreased selling expense in relation to lower revenue, and lower stock compensation expense related to the timing and recognition of stock compensation.
DynTek reported EBITDA of $2,951,000 for the fourth fiscal quarter ended June 30, 2017, an increase of $247,000 or 9.1%, as compared to $2,704,000 in the prior year fourth quarter. Net income was $1,375,000 for the fourth fiscal quarter of 2017, or $0.58 per diluted share, an increase of $34,000 or 2.5%, over the net income of $1,341,000 and $0.58 per diluted share in the fourth fiscal quarter of 2016.
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 principles (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 |
|Fiscal Year Ended |
|Fiscal Year Ended|
|COST OF REVENUES|
|Cost of products||39,230||108,895||34,517||121,041|
|Cost of services||6,945||26,095||6,732||27,187|
|TOTAL COST OF REVENUES||46,175||134,990||41,249||148,228|
|General and administrative||1,290||4,274||1,947||5,034|
|Depreciation and amortization||34||167||45||180|
|TOTAL OPERATING EXPENSES||5,701||21,314||7,175||23,059|
|INCOME FROM OPERATIONS||2,857||5,749||2,087||5,645|
|OTHER INCOME (EXPENSE)|
|TOTAL OTHER EXPENSE||(198||)||(1,240||)||(251||)||(1,186||)|
|INCOME BEFORE INCOME TAXES||2,659||4,510||1,836||4,459|
|Income tax provision||(1,284||)||(2,012||)||(495||)||(1,544||)|
|NET INCOME PER SHARE:|
| WEIGHTED AVERAGE NUMBER |
For more information, contact: Linda Ford DynTek, Inc. 949-271-6705 email@example.com