Science Dynamics Q1 Revenue up 53% to $1.3M
Reports Positive EBITDA
Monday May 22, 3:03 pm ET
Technology Services Revenue Up 108% Year-Over-Year to $918,000
PENNSAUKEN, N.J., May 22 /PRNewswire-FirstCall/ -- Science Dynamics Corporation (OTC Bulletin Board: SIDY - News), a provider of advanced technological solutions to key government agencies and enterprise customers, announced today the company's results for the quarter ended March 31, 2006.
Sales for the quarter increased by 53% to $1,341,807, compared to $874,570 in the first three months of 2005. The increase in revenue was due primarily to technology services segment revenue growth of 108% to $917,917 from $441,123 the prior year. First quarter revenues for the technology product segment declined by 2% to $423,890, compared to $433,447 in 2005. For the quarter, the company reduced its net loss to $49,676, or $0.00 per share, from a net loss of $789,562, or $0.01 a share in 2005. The results of Science Dynamics' subsidiary SMEI, acquired in February 2005, were partially included in the results from the March 31, 2005 quarterly period.
CEO Paul Burgess said, "The first quarter of this year was significant for Science Dynamics for several reasons. Our most noteworthy event was realizing positive EBITDA of $173,329 for the quarter, a direct result of the cost efficiencies and operating improvements we achieved after completing the integration of SMEI. In addition, we obtained a waiver of default fees during the renegotiation of a previous financing and closed on $1.4 million in equity financing. Combined with our total contract backlog of more than $16 million, we believe each of these events plays an important role in moving the company closer to profitability."
Science Dynamics Chief Financial Officer Joe Noto said, "Our first quarter results reflect the success we have achieved in expanding our revenue streams to focus on advanced technology services, which comprised 68% of revenues. We are also realizing significant SG&A synergies, as reflected by a 44% decline in those expenses year-over-year on a pro-forma basis after adjusting the year-ago quarter to account for SMEI expenses from January 1, 2005. On a segmented basis, technology product margins for the quarter were 70.1% versus 71.6% in the comparable period last year, while technology service margins increased this quarter to 47.9% from 46.9% in the first three months of 2005. We are satisfied with these first quarter results but remain committed to growing our revenue base, opportunistically expanding our operations and improving the bottom line."
About Science Dynamics Corporation
Science Dynamics Corporation (SciDyn) is a provider of advanced information and communications technology to the government and commercial markets. The company's technology services division designs, deploys and manages advanced technological solutions at key government agencies and mid- to large-sized enterprises. SciDyn's technology products division consists of several core proprietary platforms used to develop customized software applications with military grade security in multiple vertical markets. For more information, visit scidyn.com .
An investment profile about Science Dynamics may be found at hawkassociates.com .
For investor relations information regarding Science Dynamics, contact Frank Hawkins or Julie Marshall, Hawk Associates, at (305) 451-1888, e-mail: info@hawkassociates.com . An online investor relations kit including copies of press releases, current price quotes, stock charts and other valuable information for investors may be found at hawkassociates.com and americanmicrocaps.com . |
