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
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of Soli...
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2017 New York. The 20th Cloud Expo and 7th @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Internet to enable us all to im...
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
"ReadyTalk is an audio and web video conferencing provider. We've really come to embrace WebRTC as the platform for our future of technology," explained Dan Cunningham, CTO of ReadyTalk, in this SYS-CON.tv interview at WebRTC Summit at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...