Hmmm, earnings...wuddya know!!
biz.yahoo.com
SteelCloud Announces Strong Fiscal Year Results
DULLES, Va., Jan. 22 /PRNewswire-FirstCall/ -- SteelCloud, Inc. (Nasdaq: SCLD - news), a leader in the development of turnkey network appliance solutions, today announced its second straight year of profitability, for its fiscal year ended October 31, 2001. The Company achieved annual EBITDA (earnings before interest, taxes, depreciation and amortization) of $3,106,490 and net income to common shareholders before the cumulative effect of a change in accounting principle of $1,623,042 or $.16 per basic share (net income to common shareholders after the cumulative effect of a change in accounting principle totaled $1,047,041 or $.10 per basic share). Total annual revenues were $30,138,379, while revenues for the fourth quarter were $8,417,670, an increase of 17% over the Company's third quarter revenues of $7,203,426.
``The significant progress made by the Company, in every aspect of our business over the last year, is generating the recent strong renewed interest in our stock,'' commented Thomas Dunne, Chairman and Chief Executive Officer of SteelCloud. ``The network security market remains the shining star of the tech sector, and the one most effectively implemented on an appliance delivery model. We expect that our increased sales emphasis in this area will provide a significant payback to the Company. As projected earlier, we see continued growth in our first fiscal quarter ending January 31, 2002 and expect to enter our second quarter with a significant backlog.''
Fiscal Year 2001 Highlights:
* Total revenue for the year was approximately $30 million, a 25%
decrease from $39.8 million in fiscal year 2000. Total gross margin
for the year, however, increased 7% to $7.6 million from $7.1 million
in 2000.
* Revenue from our network appliance products increased by more than 162%
in 2001.
* Gross margin, as a percentage of sales, increased by 42%, from 17.9%
last year to 25.4% in 2001.
* In 2001 SteelCloud generated approximately $2.1 million in positive
cash flow from operations.
* Working capital increased 27% to $7.3 million.
* On August 2, 2001 the company completed the redemption of its Series A
Convertible Preferred Stock for $2.5 million in cash resulting in a
fourth quarter addition to net income to common shareholders for the
company.
* SteelCloud became fully requalified on the Nasdaq National Market as of
September 10, 2001.
As previously announced, the Company will also hold a conference call at 11:00 a.m. EST on Tuesday, January 22 to discuss the earnings release and to provide guidance for future quarters. Thomas Dunne, Chairman, and Chief Executive Officer of SteelCloud will host the call. For those investors interested in joining the conference call, please dial 1-800-344-6783 and reference 336581 as the conference passcode. A recording of the earnings conference call will be available until January 29, 2002, and is accessible by dialing 1 800-839-6713 and keying in 4774797. SteelCloud will file its annual audited 10K report to the SEC at the end of January 2002.
About SteelCloud
SteelCloud is a leading provider of turnkey server appliances to software companies and organizations that develop, implement, and support e-business infrastructure solutions. The company continues to build on its solid 14-year history, delivering over 25,000 complex server solutions to major corporate and public sector enterprises, including some of the world's largest software and IT companies. SteelCloud's comprehensive engineering, product development, and support infrastructure provides a unique capability for rapidly developing cost effective, high performance customer-centric network appliances. SteelCloud can be reached at 703-450-0400. Additional information is available at steelcloud.com or by e-mail at ir@steelcloud.com.
``Safe Harbor'' statement under the Private Securities Litigation Reform Act of 1995: Except for historical information, all of the statements, expectations and assumptions contained in the foregoing are forward looking statements that involve a number of risks and uncertainties. It is possible that the assumptions made by management are not necessarily the most likely and may not materialize. In addition, other important factors that could cause actual results to differ materially include the following: business conditions and the amount of growth in the computer industry and general economy; competitive factors; ability to attract and retain personnel, including key sales and management personnel; the price of the Company's stock; and the risk factors set forth from time to time in the Company's SEC reports, including but not limited to its annual report on Form 10-K and its quarterly reports on Forms 10-Q; and any reports on Form 8-K. SteelCloud takes no obligation to update or correct forward-looking statements.
STEELCLOUD, INC.
CONSOLIDATED BALANCE SHEETS
OCTOBER 31,
2000 2001
ASSETS
Current assets:
Cash and cash equivalents $363,958 $313,054
Accounts receivable, net of allowance
for doubtful accounts of $100,000 and
$112,000 as of October 31, 2000 and 2001,
respectively 10,851,270 6,201,621
Inventory, net 4,318,936 5,099,436
Deferred tax asset 1,326,745
Income tax receivable 230,681 1,400,424
Prepaid expenses and other current assets 191,897 173,695
Total current assets 17,283,487 13,188,230
Property and equipment, net 819,798 319,944
Equipment on lease, net 1,443,704 597,202
Goodwill and other intangible assets, net 3,164,789 2,770,572
Investments 150,000 150,000
Other assets 143,193 108,599
Total assets $23,004,971 $17,134,547
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $7,886,342 $3,293,030
Accrued expenses 2,753,361 2,277,993
Accrued litigation costs 343,087 -
Notes payable, current portion 431,597 114,985
Unearned revenue 135,690 213,385
Total current liabilities 11,550,077 5,899,393
Notes payable, long-term portion 115,290 -
Line of credit, long term 2,483,203 3,836,754
Stockholders' equity:
Preferred stock $.001 par value; 2,000,000
shares authorized, 3,000 shares issued and
2,850 outstanding; aggregate liquidation
preference of $2,945,417 at October 31, 2000 3 -
Common stock, $.001 par value; 20,000,000
shares authorized, 9,806,962 and
10,214,545 shares issued and outstanding
at October 31, 2000 and 2001, respectively 9,807 10,215
Additional paid-in capital 41,584,844 39,079,397
Treasury stock, 400,000 shares at
October 31, 2000 and 2001, respectively (3,432,500) (3,432,500)
Accumulated deficit (29,305,753) (28,258,712)
Total stockholders' equity 8,856,401 7,398,400
Total liabilities and stockholders' equity $ 23,004,971 $ 17,134,547
STEELCLOUD, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
YEARS ENDED OCTOBER 31,
2000 2001
Net revenues $ 39,766,393 $ 30,138,379
Costs of revenues 32,636,410 22,509,978
Gross profit 7,129,983 7,628,401
Selling and marketing 1,035,698 755,184
General and administrative 5,285,767 5,086,460
Amortization of goodwill 394,216 394,216
Income from operations 414,302 1,392,541
Other income (expense):
Interest income 34,276 88,485
Interest expense (654,329) (336,128)
Gain on sale of assets 228,062 -
Other, net 93,354 (26,396)
Net income from operations 115,665 1,118,502
Provision for income taxes 65,000 104,776
Net income before extraordinary gain and
cumulative effect of change in accounting
principle 50,665 1,013,726
Extraordinary gain - early extinguishment
of debt 750,000 -
Cumulative effect of change in accounting
principle - 576,001
Net income $800,665 $437,725
Dividends to preferred stockholders (624,828) (112,500)
Increase to income available to common
stockholders from repurchase of
preferred stock - 721,816
Net income available to common stockholders $175,837 $1,047.041
Earnings per share, basic
Earnings (loss) before extraordinary gain
and cumulative change in accounting principle $(.06) $.16
Extraordinary gain .08
Cumulative effect of change in accounting
principle (.06)
Net earnings per share $.02 $.10
SOURCE: SteelCloud, Inc. |
