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I could not agree more
My first inclination is to agree with you, blue.
But, obviously something IS seriously wrong here. This is the second R/S they've done, btw. The first was a 1:10.
And I saw where they had a pretty sizeable financing deal done with Laurus Master Fund a couple years ago. That's never good to see.
I'm thinking the company got into serious financial trouble because of poor management and poor execution in consolidating the companies they bought. How bad, is the question.
And a BIG red flag has to go up over their decision to cease SEC reporting.
Lots of answers needed here.
I personally am going to be keeping a close eye on this, with such a substantial revenue stream ranging in the 70 million dollar range, this company is certainly undervalued with a 500,000 market capitalization
DynTek, Inc., through its subsidiary, DynTek Services, Inc., provides professional technology services to government, education, and mid-market commercial customers in the information technology markets in the United States. It operates in two segments, Information Technology (IT) Services and Business Process Outsourcing (BPO). The IT Services segment offers IT security solutions, including vulnerability assessments, risk assessments, and enterprise security assessments; converged networking solutions, such as design through implementation; application infrastructure solutions, including active directory design and Microsoft exchange migrations; access infrastructure solutions, including server-based computing, remote access, and other services; and general infrastructure support. It also offers hardware and software to its clients. This segment provides services through a combination of in-house engineers and consultants, and subcontracted third-party suppliers. The BPO segment provides child support enforcement services under contracts with state or county agencies. Its services include determining legally established paternity and support obligations; enforcing court or administrative orders for such obligations; locating absent responsible parents or other persons obligated for such payments and relevant assets that may be used to satisfy such obligations; and help desk customer service support. This segment provides services through in-house customer service representatives and attorneys, and third-party attorneys. The company was founded in 1989. It was formerly known as Universal Self Care, Inc. and changed its name to Tadeo Holdings, Inc. in 1998. Further, the company changed its name to TekInsight, Inc. in 1999 and DynTek, Inc. in 2001. DynTek is headquartered in Irvine, California.
There abouts. Takes a special talent to drive the sp below subpenny level, huh?
I'm not in it, btw. Just stumbled across the news while perusing the Pinksheet site.
Am I right does this company do 65 million in revenues?
I guess this wasn't what you were hoping for, huh? ) :
DynTek Announces 1-for-1,000 Reverse Stock Split
Irvine, CA - November 26, 2008 - DynTek, Inc. (DYNK.PK), a leading provider of professional technology services, announced today that its Board of Directors has approved a 1-for-1,000 reverse stock split of its outstanding shares of common stock, which DynTek expects to be effective December 8, 2008.
Reverse Stock Split
At the Annual Meeting of Stockholders held on November 13, 2008, DynTek's stockholders authorized the Board of Directors to effect a reverse stock split of DynTek's outstanding shares of common stock. On November 24, 2008, the Board of Directors approved the reverse stock split at a ratio of 1-for-1,000, which DynTek expects to take effect on December 8, 2008, or as soon thereafter as possible. As a result of the reverse stock split, each stockholder's shares will be automatically converted into one thousandth, or 0.1%, of the number of shares that he or she owned immediately before that date, and the number of shares outstanding will be reduced from approximately 161,746,000 shares to 161,746 shares. However, the reverse stock split will not affect any stockholder's percentage ownership of DynTek's shares, except to the extent that the reverse stock split would result in any stockholder owning a fractional share.
Stockholders that would otherwise be entitled to receive a fractional share as a result of the reverse stock split will, instead, receive a cash payment for the equivalent of $0.02 per pre-split share, which represents the fair market value of the common stock as determined by the Board of Directors.
Following the reverse stock split, DynTek's common stock will continue to trade on the Pink Sheets and stockholders will receive transmittal letters in the mail to be used to exchange their existing stock certificates for new stock certificates representing the number of shares of common stock into which their shares will be converted as a result of the reverse stock split and any cash payment to which they may be entitled in lieu of any fractional share. However, stockholders should not send in their stock certificates until they receive a transmittal letter, which will contain detailed instructions for exchanging their stock certificates for new stock certificates.
About DynTek
DynTek is a leading provider of professional technology services to mid-market customers, such as state and local governments, educational institutions and commercial entities in the largest IT markets nationwide. DynTek offers technology practices in IT security, advanced network infrastructure, voice over internet protocol ("VOIP"), and access infrastructure. DynTek's multi-disciplinary approach allows its clients to turn to a single source for their most critical technology requirements. For more information, visit www.dyntek.com.
I hope we see some of our followers back with us soon.
I am Hoping the company has some new news in the near future
I hope to see some of the boards followers back soon.
DynTek Announces Preliminary Results for Fourth Quarter and Fiscal Year 2006
Thursday July 27, 2:10 pm ET
Company Expects Positive Adjusted EBITDA in Fourth Fiscal Quarter
IRVINE, Calif., July 27 /PRNewswire-FirstCall/ -- DynTek, Inc. (OTC Bulletin Board: DYNK - News), a leading provider of professional technology solutions, today announced preliminary, un-audited financial results for its fourth quarter and fiscal year ended June 30, 2006.
Based on a preliminary review of its fourth quarter results and excluding one-time and non-cash expenses, the company is expecting to report positive adjusted EBITDA of approximately $610,000 for the three months ended June 30, 2006, as compared to negative adjusted EBITDA of approximately $3.1 million for the same period in the prior fiscal year.
The company expects to realize approximately $24.3 million in revenue, of which approximately $23.9 million was comprised of sales from the company's core IT services segment. This represents an increase of approximately 26% within the IT services segment over the same period in the prior fiscal year, and an increase of approximately 77% within the IT services segment over the immediately preceding quarter ended March 31, 2006.
Revenue for the fiscal year 2006 is projected to increase to approximately $80.8 million, as compared to revenue of $76.5 million for the prior fiscal year.
The company expects gross profit to increase to approximately $4.2 million for the three months ended June 30, 2006, as compared to $3.8 million for the three months ended June 30, 2005. Selling, general and administrative expenses are expected to decrease to approximately $3.6 million during the three months ended June 30, 2006, as compared to $6.9 million during the same period in the prior fiscal year.
Net loss for the three months ended June 30, 2006 is expected to be approximately $6.4 million, as compared to a net loss of $11.9 million inclusive of a goodwill impairment charge of approximately $6.9 million for the three months ended June 30, 2005. The company is still evaluating whether any goodwill impairment charges may be necessary for the three months ended June 30, 2006. The loss during the three months ended June 30, 2006 includes interest expense of approximately $1.5 million (including a non-cash portion of approximately $1.1 million), depreciation and amortization expense of $639,000 and an approximate $5.2 million non-cash loss on the extinguishment of debt obligations; offset by a one time gain on the sale of our Business Process Outsourcing segment of $275,000. The net loss of $11.9 million in the 2005 period included interest expense of $933,000 (including a non-cash portion of $548,000), depreciation and amortization expense of $898,000, a goodwill impairment charge of $6.9 million and losses on investments of $487,000 and losses on marketable securities of $250,000; offset by gains on the extinguishment of debt of $336,000 and proceeds of $253,000 from discontinued operations.
"The past fiscal year was a year of capital restructuring and operational alignment, as demonstrated with our March 8, 2006 recapitalization and subsequent organizational changes," said Casper Zublin, Jr., DynTek's chief executive officer. "We believe we have created the core foundation in which to build the business, and in the process build shareholder value. Our ability to achieve EBITDA positive results in the fourth quarter is a major operating milestone that we feel is a significant signpost in our development."
Zublin continued, "In fiscal year 2007, we plan to continue to implement on our strategic business plan, which involves achieving operating density in our core geographies, further development of the company's vertical markets and enhancement of our technology practices through both organic growth and acquisitions."
The Company defines EBITDA as net income (loss) before interest, taxes, depreciation and amortization, goodwill impairment charges, and non-cash expense for securities. Other companies may calculate EBITDA differently. Although EBITDA is a widely used financial indicator of a company's ability to service debt, it is not a recognized measure for financial statement presentation under GAAP. EBITDA should not be considered in isolation or as superior or as an alternative to net income (loss) or to cash flows from operating activities as determined in accordance with generally accepted accounting procedures. Nonetheless, the Company believes that EBITDA can be a useful supplemental tool for investors and others to measure operating performance, especially in situations where a company has significant non-cash operating expenses. EBITDA is widely used in the IT services industry to analyze comparable company performance, and management of the Company also uses EBITDA, in addition to GAAP information, as a measure of operating performance for assessing its business units as well as completed and potential acquisitions.
DYNTEK, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Adjusted EBITDA Presentation
Preliminary, Unaudited, Prior to Impairment Charges
(in thousands)
Three Months Ended
June 30,
2006 2005
Total revenues 24,310 22,725
Total cost of revenues 20,138 18,881
GROSS PROFIT 4,172 3,844
Total operating expenses 3,562 6,919
Adjusted EBITDA 610 (3,075)
Operating depreciation and amortization 639 898
Goodwill impairment --* 6,871
LOSS FROM OPERATIONS (29) (10,844)
OTHER INCOME (EXPENSE):
Loss on extinguishment of debt (5,199) 336
Gain on marketable securities -- (250)
Interest expense (1,445) (933)
Other income (expense) 275 (487)
Interest income -- 10
Total other income (expense) (6,369) (1,324)
Income Tax 25
LOSS FROM CONTINUING OPERATIONS $(6,398) $(12,168)
DISCONTINUED OPERATIONS
Gain on disposal of discontinued operations -- 253
NET LOSS $(6,398) $(11,940)
*Impairment charges are yet to be determined
About DynTek
DynTek is a leading provider of professional technology services to mid-market customers, such as state and local governments, educational institutions and commercial entities in the largest IT markets nationwide. The company offers technology practices in IT security, advanced network infrastructure, voice over internet protocol ("VOIP"), and access infrastructure. DynTek's multi-disciplinary approach allows our clients to turn to a single source for their most critical technology requirements. For more information, visit www.dyntek.com.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that certain statements in this release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve known and unknown risks, uncertainties and other factors. Such uncertainties and risks include, among others, success in reaching target markets for services and products in a highly competitive market and the ability to maintain existing and attract future customers; the ability to finance and sustain operations, including the ability to comply with the terms of working capital facilities and/or other term indebtedness of the Company, and to extend such obligations when they become due, or to replace them with alternative financing; the ability to raise equity capital in the future; the ability to achieve profitability despite historical losses from operations; the ability to maintain business relationships with IT product vendors and the ability to procure products as necessary; the size and timing of additional significant orders and their fulfillment; the continuing desire of and available budgets for state and local governments to outsource to private contractors; the ability to successfully identify and integrate acquisitions; the retention of skilled professional staff and certain key executives; the performance of the Company's government and commercial technology services; the continuation of general economic and business conditions that are conducive to outsourcing of IT services; the ability to maintain trading on the NASD OTC Bulletin Board or other markets in the future; and such other risks and uncertainties included in our Annual Report on Form 10-K filed on September 29, 2005, our Quarterly Reports on Form 10-Q filed on November 14, 2005, February 21, 2006 and May 22, 2006, and other SEC filings. The Company has no obligation to publicly release the results of any revisions, which may be made to any forward-looking statements to reflect anticipated or unanticipated events or circumstances occurring after the date of such statements.
--------------------------------------------------------------------------------
Source: DynTek, Inc.
anyone here, seems time for a bounce dont you think
this thing got murdered over the past 6 months, something will come of this, they will release news and it will bounce, i dont own it yet but i'm considering
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