HERNDON, Va., June 15 /PRNewswire-FirstCall/ -- SteelCloud, Inc. , an integrator of network-centric, embedded computing appliances, and professional services, today reported financial results for its second quarter 2009 which ended April 30, 2009.
First quarter revenues decreased 86% to approximately $1.2 million during the second quarter of fiscal 2009 as compared to $8.4 million during the second quarter in 2008. The net loss was approximately ($850,000) or ($0.06) per share for the second quarter in 2009 compared to net income of approximately $10,000 or $0.00 per share for the same period in 2008.
"While our second quarter was better than our first, the economy continues to impact our services and integration businesses," said Brian Hajost, SteelCloud President and CEO. "A great deal of effort has been expended to raise additional capital, restructure our company, and evaluate strategic alternatives for each of our businesses. We have received positive responses from potential investors for the progress we have made in strategically positioning our enhanced SteelWorks(R) Mobile product for BES 5.0 with our partners and potential partners."
Second Quarter Highlights: -- Cash balance at April 30, 2009 was approximately $538,000 -- Working capital was approximately $516,000 on April 30, 2009 -- Operating expenses decreased 28% from prior year Q2 Quarterly Conference Call
The Company will hold a conference call at 10:00 AM EDT on Tuesday, June 16, 2009 to discuss the second 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 for international callers, and reference SteelCloud. A recording of the earnings call will be available until 11:59 PM EDT, June 26, 2009, and will be accessible by dialing 866-939-0581 (USA) or 678-302-3540 and keying in 4804300#. Press 4 to listen, enter confirmation: 20090609415204#.
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: 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: SteelCloud's ability to obtain financing in the short term, risks associated with the integration of business following an acquisition, 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 SteelCloud's stock; and the risk factors set forth from time to time in SteelCloud'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, April 30, 2008 2009 ASSETS (unaudited) Current assets Cash and cash equivalents $752,351 $538,164 Accounts receivable, net 1,571,673 302,291 Inventory, net 521,920 461,227 Prepaid expenses and other current assets 130,446 157,612 Deferred contract costs - 25,000 Total current assets 2,976,390 1,484,294 Property and equipment, net 626,440 539,053 Equipment on lease, net 442,099 2,180 Other assets 7,020 12,109 Total assets $4,051,949 $2,037,636 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $718,316 $482,443 Accrued expenses 561,009 441,253 Notes payable, current 7,538 7,719 Unearned revenue 8,882 36,596 Total current liabilities 1,295,745 968,011 Long-term liabilities Notes payable, long-term 7,903 3,998 Other long-term 132,055 174,814 Total long-term liabilities 139,958 178,812 Stockholders' equity Preferred stock, $.001 par value: 2,000,000 shares authorized, no shares issued and outstanding at October 31, 2008 and April 30, 2009 - - Common stock, $.001 par value: 50,000,000 shares authorized, 15,138,376 and 15,342,376 shares issued at October 31, 2008 and April 30, 2009, respectively 15,138 15,342 Additional paid in capital 50,902,172 51,030,239 Treasury stock, 400,000 shares at October 31, 2008 and April 30, 2009 (3,432,500) (3,432,500) Accumulated deficit (44,868,564) (46,722,268) Total stockholders' equity 2,616,246 890,813 Total liabilities and stockholders' equity $4,051,949 $2,037,636 UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended Six Months Ended April 30, April 30, 2008 2009 2008 2009 Revenues Products $7,827,740 $958,263 $13,080,767 $1,306,165 Services 556,894 238,600 1,110,339 779,608 Total revenues 8,384,634 1,196,863 14,191,106 2,085,773 Cost of revenues Products 6,435,320 826,048 11,051,123 1,238,472 Services 480,204 166,709 920,513 613,558 Total cost of revenues 6,915,524 992,757 11,971,636 1,852,030 Gross profit 1,469,110 204,106 2,219,470 233,743 Selling and marketing 281,718 144,280 601,962 280,254 Research and product development 208,888 102,273 407,113 203,754 General and administrative 973,440 807,921 1,887,793 1,530,643 Severance and restructuring - - - 73,205 Income (loss) from operations 5,064 (850,368) (677,398) (1,854,113) Interest income, net 4,827 410 11,242 410 Income (loss) income before income taxes 9,891 (849,958) (666,156) (1,853,703) Provision for income taxes - - - - Net income (loss) $9,891 $(849,958) $(666,156) $(1,853,703) Income (loss) per share (basic and diluted): Basic and diluted (loss) income per share $0.00 $(0.06) $(0.05) $(0.13) Weighted-average shares outstanding: Basic 14,323,458 14,828,849 14,320,179 14,783,698 Diluted 14,667,606 14,828,849 14,320,179 14,783,698
SteelCloud
CONTACT: Tim Clemensen of SteelCloud, Inc., +1-212-843-9337,
tclemensen@rubensteinir.com
Web Site: http://www.steelcloud.com/
