How about SCLD... 10M shares out, 7M float. .04 eps vs .01.
DULLES, Va., Jun 6, 2002 /PRNewswire-FirstCall via COMTEX/ -- SteelCloud Inc.
(Nasdaq: SCLD), a leader in the development of turnkey network appliance
solutions, today reported its tenth straight quarterly operating profit for its
second quarter ended April 30, 2002. Quarterly revenues increased to
approximately $8.1 million from $7.3 million in the same period of FY 2001 (it
should be noted that, in the second quarter, the Company deferred recognition of
$1.7 million in revenue). Quarterly income increased 170% to $349,306 from
$129,590 in the same period in FY 2001. Basic earnings per share increased to
$0.04 from $0.01.
"We are extremely encouraged by strides the Company has made with new customers
in the appliance marketplace and the ever improving strength of our balance
sheet," explained Thomas P. Dunne, Chairman and Chief Executive Officer. "The
Company ended the quarter debt free with positive cash flow of $4.4 million for
the six month period. The combination of good financial strength combined with
our increasing customer base will drive our success in the coming year."
Second Quarter Highlights:
* SteelCloud generated $2.1 million in positive cash flow from operations
for the quarter.
* Total gross margin for the quarter increased 24%, to $2.2 million in
FY2002 from $1.8 million in 2001.
* U.S. revenue for the second quarter in 2002 grew by 73% as compared to
the same period in 2001.
* Due to an accounting treatment, the Company deferred recognition of
$1.7 million in product revenue and associated costs for which it has
delivered, title has passed and been paid, without recourse. The
Company will recognize the deferred revenue in subsequent quarters.
* SteelCloud announced two new OEM agreements during the quarter with
shipments to begin in its third fiscal quarter.
* The Company began shipment of products under the $10.5 million contract
awarded to it by Lockheed Martin in January.
As previously announced, the Company will also hold a conference call at 11:00
a.m. EST on Thursday, June 6, 2002 to discuss the earnings release. Thomas
Dunne, Chairman, and Chief Executive Officer of SteelCloud will host the call.
For those investors interested in joining the conference call, please dial
1-800-211-3767, for international calls dial 1-312-461-9296 and reference
"SteelCloud." A recording of the earnings conference call will be available
until June 11, 2002, and is accessible by dialing 1-800-839-6713, for
international calls dialing 1-402-220-2306 and keying in 5120500. SteelCloud
will file its quarterly 10Q report to the SEC prior to June 14, 2002.
About SteelCloud
SteelCloud is a leading provider of server appliances to technology companies
and organizations that develop, implement, and support e-business infrastructure
solutions. The company continues to build on its solid 14-year history,
delivering 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 info@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.
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
STEELCLOUD, INC.
CONSOLIDATED BALANCE SHEETS
October 31, April 30,
2001 2002
ASSETS (unaudited)
Current assets
Cash and cash equivalents $313,054 $1,475,709
Accounts receivable, net 6,201,621 3,548,795
Inventory, net 5,099,436 5,119,743
Income tax receivable 1,400,424 82,250
Deferred contract cost - 1,465,167
Prepaid expenses and other current assets 173,695 133,454
Total current assets 13,188,230 11,825,118
Property and equipment, net 319,944 298,848
Equipment on lease, net 597,202 383,958
Goodwill and other intangible assets, net 2,770,572 2,573,464
Investments 150,000 75,000
Other assets 108,599 97,622
Total assets $17,134,547 $15,254,010
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $3,293,030 $1,220,186
Accrued expenses 2,277,993 2,798,146
Notes payable, current 114,985 635,600
Unearned revenue 213,385 1,807,477
Total current liabilities 5,899,393 6,461,409
Notes payable, long-term - 247,942
Line of credit - long-term 3,836,754 -
Stockholders' equity
Common stock, $.001 par value: 50,000,000
shares authorized, 10,214,545 and
10,404,447 shares issued at October 31,
2001 and April 30, 2002, respectively; 10,215 10,404
Additional paid in capital 39,079,397 39,389,654
Treasury stock, at cost, 400,000 shares; (3,432,500) (3,432,500)
Accumulated deficit (28,258,712) (27,422,899)
Total stockholders' equity 7,398,400 8,544,659
Total liabilities and stockholders' equity $17,134,547 $15,254,010
The accompanying notes are an integral part of these consolidated financial
statements.
STEELCLOUD, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended Six Months Ended
April 30, April 30,
2001 2002 2001 2002
(restated)
Net revenues $7,328,384 $8,077,208 $14,517,283 $17,763,433
Cost of revenue 5,519,503 5,847,147 10,960,065 13,012,034
Gross profit 1,808,881 2,230,061 3,557,218 4,751,399
Selling and marketing 219,648 254,697 380,412 574,420
General and
administrative 1,273,238 1,415,347 2,556,780 2,984,408
Amortization of goodwill 98,554 98,554 197,108 197,108
Income from operations 217,441 461,463 422,918 995,463
Interest expense, net 23,955 11,893 122,210 62,342
Other expense, net 26,396 100,264 26,396 96,109
Income from operations
before income taxes 167,090 349,306 274,312 837,012
Provision for income taxes - - - 1,200
Net income 167,090 349,306 274,312 835,812
Dividends to preferred 37,500 - 75,000 -
stockholders
Cumulative effect of
change in accounting
principle - - 576,001 -
Net income (loss)
attributable to common
stockholders $129,590 $349,306 $(376,689) $835,812
Basic earnings (loss) per
share $0.01 $0.04 $(0.04) $0.08
Diluted earnings (loss) per
share $0.01 $0.03 $(0.04) $0.08
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SOURCE SteelCloud Inc.
CONTACT: For investor or marketing information: Brian Hajost of
SteelCloud Inc., +1-703-450-0400, ext. 5240, or for financial
please access the web site at steelcloud.com
URL: steelcloud.com
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