Science Dynamics Year-End Revenue Up 163% to $4.2M
April 18, 2006 10:30:29 (ET)
PENNSAUKEN, N.J., April 18, 2006 /PRNewswire-FirstCall via COMTEX/ -- Science Dynamics Corporation (SIDY, Trade), a provider of advanced technological solutions to key government agencies and enterprise customers, announced today the company's year-end results for 2005.
Sales for the fiscal year increased by 163% to $4,235,269, compared to $1,609,717 in the 2004 fiscal year. Technology service revenues increased to $3,011,227 from $415,000 the prior year due primarily to the acquisition of SMEI in February 2005. Technology product revenues for 2005, derived predominantly from the Commander product lines, were $1,224,042, compared to $1,194,717 in 2004. For 2005 the company recorded a net loss of $863,103, or $0.01 per share, compared to a net loss of $767,099, or $0.02 a share in 2004.
CEO Paul Burgess said, "2005 was a transformative year for Science Dynamics. Our top-line growth was directly related to the successful acquisition and integration of SMEI, which enabled us to dramatically expand our service revenue and customer base. I believe it also proves the viability of our acquisition plans and proprietary technological platforms. We made significant progress in strengthening the balance sheet and intend to continue our refinancing efforts. Our priorities in 2006 are to drive sales growth, integrate accretive acquisitions and improve the bottom line. While we are still completing our Q1 '06 results, we expect to be EBITDA positive for the first quarter of 2006."
Science Dynamics Chief Financial Officer Joe Noto said, "Our contract services backlog with various agencies of the U.S. Department of Defense now stands at approximately $16 million, subject to available funding by the government. Overall, our 2005 results reflected a major shift in the company's focus from providing primarily products to a mix of products and advanced services to a much broader customer base. Our cost of sales was a higher percentage of 2005 revenues than the previous year due mainly to the inclusion of operating results of SMEI, an IT services business that we acquired in February 2005. To a lesser extent, our margins were impacted unfavorably due to several higher-margin, one-time development contracts included in our 2004 results. We also expect to see the full-year benefits of synergies in our 2006 results from rationalizations made in our SG&A expenses in the latter part of 2005. Going forward, we expect to further increase our operating leverage as we achieve organic growth and continue to pursue our acquisition strategy. We completed several key milestones in the last year, and we will continue to focus on strengthening our financials in support of our goals for 2006."
About Science Dynamics Corporation
Headquartered in Pennsauken, N.J., Science Dynamics Corporation is a provider of advanced technological solutions to the Department of Defense, key government agencies and commercial markets. The company has nearly 25 years of experience in designing, deploying and managing highly secure advanced software and telecommunications solutions for federal government departments, agencies and mid- to large-sized enterprises. Science Dynamics Corporation's telecommunications solutions are installed in over 30,000 ports throughout 18 countries worldwide. For more information, visit scidyn.com .
About Systems Management Engineering, Inc.
Science Dynamics owns 82% of SMEI. SMEI has developed advanced data management applications, Internet server technology and information systems that it markets to public and private sectors. SMEI's product, Aquifer, helps its customers reduce development time for projects, manage the deployment of applications across the Internet to desktops around the world and implement military-grade security on all systems where the applications are deployed. For more information about SMEI, visit sysmanagement.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 .
Forward-Looking Statements: Certain statements made in this press release by Science Dynamics Corporation are forward-looking statements. Although such statements are based on current expectations, they are subject to a number of future uncertainties and risks, and actual results may differ materially. Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made. Statements made in this document that are not purely historical are forward- looking statements, including any statements as to beliefs, plans, expectations, anticipations or intentions regarding the future. Science Dynamics Corporation assumes no obligation to update information concerning the forward-looking statements contained herein.
SOURCE Science Dynamics Corporation
Frank Hawkins or Julie Marshall, both of Hawk Associates, +1-305-451-1888, or
info@hawkassociates.com, for Science Dynamics Corporation |
