HERNDON, Va., March 16 /PRNewswire-FirstCall/ -- SteelCloud, Inc. , an integrator of network-centric, embedded computing appliances, and professional services, today reported financial results for its first quarter 2009 which ended January 31, 2009.
First quarter revenues decreased 85% to approximately $900,000 during the first quarter of fiscal 2009 as compared to $5.8 million during the first quarter in 2008. The net loss was approximately ($1 million) or ($0.07) per share for the first quarter in 2009 compared to a net loss of ($676,000) or ($0.05) per share for the same period in 2008.
"The economy has impacted virtually every area of our business," said Brian Hajost, SteelCloud CEO and President. "I joined the Company at the end of Q1 to realign the Company's revenue generating capability as well as explore and implement a merger or acquisition strategy. My efforts are focused on preserving and enhancing shareholder value and could also include responsible funding. While I am guarded overall, I am pleased with some of our recent tractions, including two design wins in our integration business and the significant increase in activity with the SteelWorks Mobile product."
First Quarter Financial Highlights: -- Cash balance at January 31, 2009 was approximately $1.2 million -- Generated positive cash flow from operating activities of $436,000 -- Monetized certain long-term assets for approximately $462,000 -- Working capital was approximately $780,000 on January 31, 2009 -- Operating expenses decreased 28% from prior year Q1 Quarterly Conference Call
The Company will hold a conference call at 10:00 AM EDT on Tuesday, March 17, 2009 to discuss the first quarter results. Brian Hajost, SteelCloud President and Chief Executive Officer, will host the call. For investors interested in listening to the earnings call, please dial 866-939-3921, or 678-302-3550 and reference SteelCloud. A recording of the earnings call will be available until 11:59 PM EDT, March 27, 2009, and will be accessible by dialing 866-939-0581 (USA) or 678-302-3540 and keying in 2009030949212#. Press 4 to listen, enter confirmation: 1883485#.
About the Company
SteelCloud is a manufacturer of embedded integrated computing systems for the industrial automation marketplace. SteelCloud designs and manufactures specialized servers and appliances for federal integrators, software vendors and volume users. For both the government and commercial markets SteelCloud delivers integration services and software focused on risk management and network management solutions. SteelCloud's ISO 9001:2000 certified Quality Management System provides procedures for continuous quality improvement in all aspects of its business. Over its nearly 20-year history, SteelCloud has won numerous awards for technical excellence and customer satisfaction. SteelCloud can be reached at (703) 674-5500. Additional information is available at http://www.steelcloud.com/. E-mail:
"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 8K. SteelCloud takes no obligation to update or correct forward-looking statements.
CONDENSED CONSOLIDATED BALANCE SHEET October 31, January 31, 2008 2009 ASSETS (unaudited) Current assets Cash and cash equivalents $752,351 $1,187,435 Accounts receivable, net 1,571,673 395,356 Inventory, net 521,920 440,335 Prepaid expenses and other current assets 130,446 117,302 Deferred contract costs - 25,000 Total current assets 2,976,390 2,165,428 Property and equipment, net 626,440 578,236 Equipment on lease, net 442,099 389,089 Other assets 7,020 13,344 Total assets $4,051,949 $3,146,097 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $718,316 $411,283 Accrued expenses 561,009 545,867 Notes payable, current 7,538 7,628 Unearned revenue 8,882 424,186 Total current liabilities 1,295,745 1,388,964 Long-term liabilities Notes payable, long-term 7,903 5,962 Other long-term 132,055 131,021 Total long-term liabilities 139,958 136,983 Stockholders' equity Preferred stock, $.001 par value: 2,000,000 shares authorized, no shares issued and outstanding at October 31, 2008 and January 31, 2009 - - Common stock, $.001 par value: 50,000,000 shares authorized, 15,138,376 and 15,213,376 shares issued at October 31, 2008 and January 31, 2009, respectively 15,138 15,213 Additional paid in capital 50,902,172 50,909,746 Treasury stock, 400,000 shares at October 31, 2008 and January 31, 2009 (3,432,500) (3,432,500) Accumulated deficit (44,868,564) (45,872,309) Total stockholders' equity 2,616,246 1,620,150 Total liabilities and stockholders' equity $4,051,949 $3,146,097 UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended January 31, 2008 2009 Revenues Products $5,253,027 $347,902 Services 553,445 541,008 Total revenues 5,806,472 888,910 Cost of revenues Products 4,615,803 412,424 Services 440,309 446,849 Total cost of revenues 5,056,112 859,273 Gross profit 750,360 29,637 Selling and marketing 320,244 135,974 Research and product development 198,225 101,481 General and administrative 914,353 722,722 Severance and restructuring - 73,205 Loss from operations (682,462) (1,003,745) Interest income, net 6,415 - Loss before income taxes (676,047) (1,003,745) Provision for income taxes - - Net loss (676,047) (1,003,745) Loss per share (basic and diluted): Basic and diluted loss per share $(0.05) $(0.07) Weighted-average shares outstanding, basic and diluted 14,316,934 14,739,200
