SCLD has been performing well since it earnings release (follows) and given this statement today by their CEO that earnings growth looks like it willl continue...stock is hanging around .95/1.00:
(COMTEX) B: SteelCloud Reaffirms its Commitment to Nasdaq
B: SteelCloud Reaffirms its Commitment to Nasdaq
DULLES, Va., Aug 29, 2001 /PRNewswire via COMTEX/ -- SteelCloud, Inc. (Nasdaq:
SCLD), a leader in the development of turnkey network appliance solutions, today
announced that it has concluded its initial meeting with the Nasdaq Listing
Qualifications Panel to discuss requirements for maintaining its National Nasdaq
listing. Nasdaq requires a listed company to maintain a minimum public float,
net tangible asset balance, and a $1.00 share bid price. The company is
currently in compliance with all Nasdaq National Market requirements other than
the minimum bid price condition. The company has submitted a compliance plan to
Nasdaq and is confident that it will be able to maintain its Nasdaq National
listing.
"The board of directors is committed to maintaining our National Nasdaq
listing," commented Thomas Dunne, Chairman and Chief Executive Officer of
SteelCloud. "Although market conditions have depressed many good Nasdaq stocks,
the Company believes that the Nasdaq National Market provides the best exposure
for our company and the best liquidity for our investors. During the last 9
months, SteelCloud's stock performance was significantly impacted by the
potential dilution from our convertible preferred stock. In order to remove the
black cloud of the preferred shares dilution, the company recently completed the
redemption of the Series A Preferred Convertible Stock. Subsequent to the
redemption, our stock has risen 89% as of the close of the market yesterday. We
are confident that our strategy of vigorously pursuing the turnkey network
appliance markets and our improving margins and profits will result in the
continued recovery of our stock."
On August 2, 2001 the company completed the redemption of the Series A
Convertible Preferred stock for $2.5 million cash. This transaction will result
in a double-digit one-time earnings per share gain in our fourth quarter ending
October 31, 2001. On August 16, 2001, the company announced its third quarter
results including a 291% gain in earnings over the same period in 2000. "As we
go into our fourth quarter, I am confident that we will surpass our earnings
results from last year and post our eighth straight quarterly profit," added
Kevin Murphy, Vice President of Finance of SteelCloud. "Our order flow and
backlog confirm these expectations."
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 20,000 complex server solutions to major corporate and
public sector enterprises, including some of the world's largest software and IT
companies. SteelCloud's ISO 9002 manufacturing facility in Puerto Rico, combined
with its engineering and support infrastructure at its Dulles, Virginia
headquarters, provide 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 www.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.
For financial information please access our web site at www.steelcloud.com
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SOURCE SteelCloud, Inc.
CONTACT: Brian Hajost of SteelCloud, +1-703-450-0400, ext. 5240
URL: steelcloud.com
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Copyright (C) 2001 PR Newswire. All rights reserved.
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*** end of story ***
(PR NEWSWIRE) SteelCloud Bucks Tech Trend - Posts Strong Results
SteelCloud Bucks Tech Trend - Posts Strong Results
Q3 Net Profit Increases 291%
DULLES, Va., Aug. 16 /PRNewswire/ -- SteelCloud Inc. (Nasdaq: SCLD), a
leader in the development of turnkey network appliance solutions, today
reported its seventh straight quarterly profit for the third quarter ended
July 31, 2001. EBITDA increased 94% to $818,277 over its second quarter
results and net income before preferred dividends increased 225% to $543,830.
Net profit applicable to common shares increased from $129,590, or $.01 basic
earnings per share in Q2 to $506,330 or $.05 basic earnings per share this
quarter.
"The company continues to focus on being a dominant force in delivering
network appliance solutions to world-class software and technology partners,"
explained Thomas P. Dunne, Chairman and Chief Executive Officer. "Although
revenue remained flat from Q2 to Q3, we are increasing our lucrative OEM
appliance revenue, while de-emphasizing some of our legacy business that
contributes lower margins and consumes valuable corporate resources. The
result is a sustainable platform for SteelCloud's strategic growth. Our
shareholders are just beginning to see the fruits of this business plan."
Third Quarter Highlights:
* Total revenue for the quarter was $7.2 million, a 30% decrease from
$10.3 million in the third quarter of 2000. Total gross margin for the
quarter, however, increased to $1.9 million from $1.8 million in 2000.
* Revenue from its network appliance products increase by more than 250%
from the same quarter last year.
* Gross margin, as a percentage of sales, increased by more than 50%,
from 17.4% last year to 26.4% this quarter.
* SteelCloud has generated $2.8 million in positive cash flow from
operations in the first three quarters of this fiscal year.
* On August 2, 2001 the company completed its previously announced
redemption of its Series A Convertible Preferred Stock for $2.5 million
in cash resulting in a fourth quarter gain for the company.
* SteelCloud signed up two new OEM appliance customers this quarter and
completed the development and began shipping a new high-performance
Linux appliance for one of its existing major software partners.
* The Company recruited Brian H. Hajost, as executive vice president to
drive its sales and marketing programs.
"Execution begins with delivering satisfaction to the customer, and I am
happy to report that all of our major customers increased their business with
us last quarter," added Edward Spear, President and Chief Operating Officer.
"Although SteelCloud is certainly being affected by the current state of the
economy, we begin our fourth quarter with the strongest backlog we have had in
three years."
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 15,000 complex server solutions to major corporate
and public sector enterprises, including some of the world's largest software
and IT companies. SteelCloud's ISO 9002 manufacturing facility in Puerto
Rico, combined with its engineering and support infrastructure at its Dulles
Virginia headquarters, provide 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. |
