Welcome!

News Feed Item

DynTek Announces Results for the Third Quarter and Year-to-Date Period Ended March 31, 2014

NEWPORT BEACH, CA -- (Marketwired) -- 04/28/14 -- DynTek, Inc. (PINKSHEETS: DYNE), a leading provider of professional technology services, today announced results for its fiscal year 2014 third quarter and nine months ended March 31, 2014.

Year-to-Date Period Ended March 31, 2014

DynTek reported revenues of $107,114,000 and gross profit of $18,490,000 for the nine months ended March 31, 2014 compared to revenues of $95,648,000 and gross profit of $16,117,000 in the prior year nine months ended March 31, 2013. The $11,466,000 or 12% revenue growth, and the $2,373,000 or 15% gross profit growth, are primarily attributable to several multi-million dollar deals with government customers in the New York district and government and commercial customers in the Newport Beach district in the second quarter of fiscal 2014.

Total operating expenses were $14,805,000 for the nine months ended March 31, 2014 compared to $12,892,000 in the prior year nine months ended March 31, 2013. The $1,913,000 or 15% increase year over year is primarily due to sales commissions on higher revenue levels and investments in additional sales representatives.

DynTek reported EBITDA of $4,092,000 for the nine months ended March 31, 2014, compared to $3,472,000 in the prior year nine months ended March 31, 2013, an increase of $620,000 or 18% year over year. Net income was $2,768,000 for the nine months ended March 31, 2014, or $1.26 per diluted share, an increase of $178,000 or $0.03 per diluted share, over net income of $2,590,000 or $1.23 per diluted share, in the nine months ended March 31, 2013.

Third Fiscal Year 2014 Quarter Ended March 31, 2014

DynTek reported revenues of $26,834,00 and gross profit of $4,901,000 for the third fiscal quarter ended March 31, 2014 compared to revenues of $27,429,000 and gross profit of $5,047,000 in the prior year third fiscal quarter ended March 31, 2013. Total operating expenses were $4,424,000 in the third fiscal quarter ended March 31, 2014 compared to $4,208,000 in the prior year third quarter ended March 31, 2013.

DynTek reported EBITDA of $725,000 for the third fiscal quarter ended March 31, 2014, compared to $919,000 in the prior year third quarter, a decrease of $194,000 or 21%. Net income was $206,000 for the third fiscal quarter of 2014, or $0.09 per diluted share, a decrease of $656,000 or $0.32 per diluted share, over net income of $862,000 or $0.41 per diluted share, in the third quarter of 2013.

"We have had strong year-to-date growth across our regions and technology practices," said Ron Ben-Yishay, DynTek's chief executive officer. "We continue to focus on the growth and expansion of our cloud offerings and managed services, which present new and innovative ways for our customers to leverage technology as a service. In addition, as new security attacks continue to burden the market, we expect continued growth in our security services, which provide our customers with new, sophisticated lines of defense from next generation security threats."

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 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.

Follow Us Online:
Twitter: @DynTek
DynTek on Facebook
DynTek on LinkedIn

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    Nine Months    Quarter    Nine Months
                            Ended        Ended        Ended        Ended
                          March 31,    March 31,    March 31,    March 31,
                             2014         2014         2013         2013
                         -----------  -----------  -----------  -----------

REVENUES
  Product revenues       $    18,642  $    83,315  $    19,337  $    70,908
  Service revenues             8,192       23,799        8,093       24,740
                         -----------  -----------  -----------  -----------
  TOTAL REVENUES              26,834      107,114       27,429       95,648
                         -----------  -----------  -----------  -----------

COST OF REVENUES
  Cost of products            15,675       69,662       15,877       59,816
  Cost of services             6,258       18,962        6,505       19,715
                         -----------  -----------  -----------  -----------
  TOTAL COST OF REVENUES      21,933       88,624       22,382       79,530
                         -----------  -----------  -----------  -----------
GROSS PROFIT                   4,901       18,490        5,047       16,117
                         -----------  -----------  -----------  -----------

OPERATING EXPENSES:
  Selling                      3,461       11,646        3,199        9,669
  General and
   administrative                936        3,094          986        3,149
  Depreciation and
   amortization                   27           65           23           74
                         -----------  -----------  -----------  -----------
  TOTAL OPERATING
   EXPENSES                    4,424       14,805        4,208       12,892
                         -----------  -----------  -----------  -----------

INCOME FROM OPERATIONS           477        3,685          839        3,225

EBITDA                           725        4,092          919        3,472

OTHER INCOME (EXPENSE):
Interest expense                (254)        (681)        (225)        (693)
Other income (expense),
 net                               -            -            9            9
                         -----------  -----------  -----------  -----------
  TOTAL OTHER EXPENSE           (254)        (681)        (216)        (684)
                         -----------  -----------  -----------  -----------

INCOME BEFORE INCOME
 TAXES                           223        3,004          623        2,541
Income tax (provision)
 benefit                         (17)        (236)         239           48
                         -----------  -----------  -----------  -----------

NET INCOME               $       206  $     2,768  $       862  $     2,590
                         ===========  ===========  ===========  ===========

NET INCOME PER SHARE:
  Basic                  $      0.10  $      1.30  $      0.41  $      1.24
                         ===========  ===========  ===========  ===========
  Diluted                $      0.09  $      1.26  $      0.41  $      1.23
                         ===========  ===========  ===========  ===========

WEIGHTED AVERAGE NUMBER
 OF SHARES:
  Basic                    2,127,601    2,126,490    2,094,202    2,091,836
                         ===========  ===========  ===========  ===========
  Diluted                  2,216,261    2,188,860    2,121,708    2,112,829
                         ===========  ===========  ===========  ===========


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

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, wil...
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Enterprises have forever faced challenges surrounding the sharing of their intellectual property. Emerging cloud adoption has made it more compelling for enterprises to digitize their content, making them available over a wide variety of devices across the Internet. In his session at 19th Cloud Expo, Santosh Ahuja, Director of Architecture at Impiger Technologies, will introduce various mechanisms provided by cloud service providers today to manage and share digital content in a secure manner....
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
To leverage Continuous Delivery, enterprises must consider impacts that span functional silos, as well as applications that touch older, slower moving components. Managing the many dependencies can cause slowdowns. See how to achieve continuous delivery in the enterprise.