LAS VEGAS, Aug. 10 /PRNewswire-FirstCall/ -- Datascension, Inc. (OTC Bulletin Board: DSEN), a global outsourcing solutions company, today announced financial results for the Company's second quarter ended June 30, 2009.
For the quarter ended June 30, 2009, the Company recorded positive earnings up $875,325 over the prior year period as the Company's turnaround plan continued to build momentum. Total net revenues decreased to $3,814,623, from $4,691,116, a decline of $876,493 or approximately 18.7% year-over-year and 2.3% sequential increase over the first quarter results. Cost of goods sold decreased to $3,043,746 from $4,413,487, a reduction of $1,369,741, or approximately 31.0%, from the prior year period. For the quarter ended June 30, 2009, the Company generated a gross profit of $770,877 compared to $277,629 for the quarter ended June 30, 2008, an increase of $493,248 or 178%.
The Company generated net income of $201,434 for the three months ended June 30, 2009, compared to a net loss of ($673,891) for the three months ended June 30, 2008, an increase in net income of $875,325.
Total selling, general and administrative expenses decreased by $179,354, or 26.8%, to $490,974 for the three months ended June 30, 2009, from $670,328 in the prior year period. The decrease in expenses is mainly due to reductions in executive salaries combined with a reduction in marketing and administrative costs.
Interest expense declined by $82,811, or 37.5%, to $137,962 for the three months ended June 30, 2009, as compared to $220,773 for the three months ended June 30, 2008. The decrease in interest expense was primarily attributable to the payoff of several loans and reduced borrowing under its new receivable financing agreement with Wells Fargo Business Credit.
Basic and diluted income per share was $0.01 for the quarter ended June 30, 2009, as compared to basic and diluted loss per share of ($0.02) for the quarter ended June 30, 2008. The company reported operational net cash flow of $193,647, as compared to ($243,647) in the prior period, a significant increase of $437,294 over the prior year period attributable to the effectiveness of the turnaround plan. As of June 30, 2009, the Company had cash and cash equivalents of $139,080.
"In a global economic environment that continues to remain challenging, DSEN delivered solid second-quarter business results," DSEN Chairman and CEO Lou Persico said. "I'm proud of our strong financial performance, which we have continued to achieve in concert with our ability to continuously improve the level of quality of the services we offer to our clients. I am pleased with the DSEN team's execution in this tough environment. We are working through the recession by aggressively controlling costs and driving efficiencies through our operations while continuing to invest for future growth. While we are not immune to the effects of the economy, I am confident in the strength of our business portfolio and soundness of our approach."
Moving forward, the Company intends to invest in the long-term health of the business in order to be positioned to capture the growth opportunities created by the economic recovery and the ongoing shifts of its dynamic business. The new Datascension website is a prominent example of the Company's efforts to innovate and create an expanded service offering by analyzing customer needs and rebranding the Company accordingly. The Company plans to continue to identify important strategic initiatives to create value for our customers and shareholders.
ABOUT DATASCENSION, INC.
Datascension, Inc. is a multi faceted data collection, contact center and business operations provider. This global outsourcing solutions company with operations in Las Vegas, Nevada, Anaheim, California, San Jose and Limon, Costa Rica is committed to customer service, quality and on-time project management. Its dedication to providing both value and excellence for its clients, employees and shareholders continually fosters its excellent reputation within the industry. Datascension is positioning itself to be the forerunner in the fields of Market Research Data Collection, Contact Center Services and Business Operations Provider services.
For additional information, please visit the Company's website at http://www.datascension.com/.
Safe Harbor Statement
This press release and other written reports and oral statements made from time to time by the Company may contain so-called "forward-looking statements," all of which are subject to risks and uncertainties. You can identify these forward-looking statements by their use of words such as "expects," "plans," "will," "estimates," "forecasts," "projects" and other words of similar meaning. You can identify them by the fact that they do not relate strictly to historical or current facts. These statements are likely to address the Company's growth strategy, financial results and product and development programs. You must carefully consider any such statement and should understand that many factors could cause actual results to differ from the Company's forward-looking statements. These factors include inaccurate assumptions and a broad variety of other risks and uncertainties, including some that are known and some that are not. No forward-looking statement can be guaranteed and actual future results may vary materially.
The Company does not assume the obligation to update any forward-looking statement. You should carefully evaluate such statements in light of factors described in the Company's filings with the SEC, especially on Forms 10-K, 10-Q and 8-K. In various filings, the Company has identified important factors that could cause actual results to differ from expected or historic results. You should understand that it is not possible to predict or identify all such factors. Consequently, you should not consider any such list to be a complete list of all potential risks or uncertainties.
Datascension, Inc.
CONTACT: David Lieberman, Chief Financial Officer of Datascension, Inc.,
+1-702-233-6785, David.Lieberman@datascension.com
Web Site: http://www.datascension.com/
