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Paradigm Holdings, Inc. (fka PDHO) RSS Feed

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EMAIL FROM IR::

Keith,
 
The Company has approximately 47 million common shares outstanding.  In addition, the Company has approximately 150 million warrants and stock options to purchase common shares outstanding.  Finally, the Company has approximately 6,200 shares of preferred stock outstanding.  Please don’t hesitate to review our website or contact me for additional information.  Thank you.
 
Richard Sawchak
Senior Vice President and CFO
Paradigm Solutions

======================================================================================================================

 Paradigm Solutions, our greatest strength is our employees. We believe that motivating our employees to excel in their personal goals improves job satisfaction and elevates job performance.
We have earned the loyalty of our employees through our commitment to:

  • Upward mobility
  • Professional development
  • Employee empowerment
  • Excellent compensation and reward programs
  • A corporate culture fostered by integrity and respect
  • Dynamic leadership and strong management practices
Our success is based on our ability to dedicate the highest level of talent and service to meet the needs and goals of our clients. We have a recruitment department that understands each client's needs and environment, ensuring optimal selection of qualified staff. Our comprehensive recruitment process entails a thorough screening of candidates for required character attributes and technical qualifications.

Paradigm employees continually strengthen their knowledge and capabilities through participation in Company developmental programs including involvement in the implementation of enhanced quality management principles and policies, and in certification programs such as the Project Management Professional.

What this means to our clients is the most competent and experienced team, workforce stability, and retention of critical resources.

For Paradigm, this means providing service excellence and delighting our clients.
The Paradigm Team
At Paradigm Solutions, our greatest strength is our employees. We believe that motivating our employees to excel in their personal goals improves job satisfaction and elevates job performance.
We have earned the loyalty of our employees through our commitment to:
  • Upward mobility
  • Professional development
  • Employee empowerment
  • Excellent compensation and reward programs
  • A corporate culture fostered by integrity and respect
  • Dynamic leadership and strong management practices
Our success is based on our ability to dedicate the highest level of talent and service to meet the needs and goals of our clients. We have a recruitment department that understands each client's needs and environment, ensuring optimal selection of qualified staff. Our comprehensive recruitment process entails a thorough screening of candidates for required character attributes and technical qualifications.

Paradigm employees continually strengthen their knowledge and capabilities through participation in Company developmental programs including involvement in the implementation of enhanced quality management principles and policies, and in certification programs such as the Project Management Professional.

What this means to our clients is the most competent and experienced team, workforce stability, and retention of critical resources.

For Paradigm, this means providing service excellence and delighting our clients.
Contact:          
Richard Sawchak
Paradigm Solutions Corporation
Tel: (240) 283-3404
 
For Immediate Release
 
 
Paradigm Holdings Provides Business Update and
Reports Financial Results for the Second Quarter of 2010
 
Rockville, Maryland – August 11, 2010 – Paradigm Holdings, Inc. (OTCBB: PDHO) (“Paradigm” or the “Company”), a provider of comprehensive information technology and cybersecurity solutions for federal government enterprises, today provided an update for the second quarter ended June 30, 2010.
 
Second Quarter 2010 Highlights:
 
Ø Revenues of $7.5 million
Ø Gross profit of $1.8 million with gross margin expansion of 196 basis points to 23.4%
Ø EBITDA of $0.5 million
Ø Net loss of $0.05 per share driven in part by non-cash charge to the fair value of put warrants
 
Peter B. LaMontagne, Paradigm President and CEO, stated, “Despite revenue levels that are consistent with the prior three quarters, we are pleased with Q2 financial results, especially our new contract wins and backlog expansion, which we believe are key indicators of revenue growth. During the second quarter, contract wins with new customers in our cybersecurity and mission critical infrastructure practice areas led to new bookings of $27 million that increased our total backlog to approximately $88 million. We are also strongly encouraged by the continued increases in gross margin which confirm that we are executing our growth strategy without compromising profitability, both by maintaining cost controls and pursuing business which generally carries higher margins.”
 
Richard Sawchak, Chief Financial Officer, stated, “We continue to believe that a diligent focus on cost and working capital management will ultimately translate into higher operating margins, greater free cash flow and debt reduction. Our second quarter results continue to prove this thesis, and we believe we are poised to continue building on the momentum we have achieved this year.”
 
The Company’s EBITDA was $0.5 million during the quarter ended June 30, 2010, as compared to approximately $0.3 million for the same period of 2009. The Company defines EBITDA as earnings before interest, taxes, changes in the fair value of put warrants, depreciation and amortization, stock compensation and restructuring expenses which include the basket allowed under our senior credit facility and other actual restructuring costs. EBITDA is not a measure of performance calculated in accordance with accounting principles generally accepted in the United States (“GAAP”), and should not be considered in isolation of, or as a substitute for, earnings as an indicator of operating performance or cash flows from operating activities as a measure of liquidity. The Company believes the presentation of EBITDA is relevant and useful by enhancing the readers’ ability to understand the Company’s operating performance. The Company’s management utilizes EBITDA as a means to measure performance. The Company’s measurements of EBITDA may not be comparable to similarly titled measures reported by other companies. The table below reconciles EBITDA, a non-GAAP measure, to net loss for the three and six months ended June 30, 2010 and 2009.
 
 
 
Quarter Ended June 30
 
Six Months
Ended June 30
 
 
 
2010
 
 
2009
 
 
2010
 
 
2009
 
Net Loss
$
(1,995,572
)
$
(1,470,669
)
$
(2,535,850
)
$
(2,098,348
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
    Interest Expense, net
 
623,799
 
 
498,928
 
 
1,178,998
 
 
848,747
 
    Income Tax Benefit
 
158,759
 
 
(149,398
)
 
201,634
 
 
(223,692
)
    Change in FV of Put Warrants
 
1,371,746
 
 
957,934
 
 
1,358,554
 
 
1,000,825
 
    Depreciation & Amortization
 
107,717
 
 
129,824
 
 
212,273
 
 
242,203
 
    Stock Compensation
 
80,871
 
 
234,140
 
 
164,488
 
 
395,607
 
    Restructuring Expense
 
130,426
 
 
75,000
 
 
217,312
 
 
325,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBITDA
$
477,746
 
$
275,759
 
797,409
 
$
490,342
 
 
 
Revenue for the second quarter of 2010 was $7.5 million, compared to $8.7 million for the second quarter of 2009. The decline in revenue for the three months is attributable to a decrease in our federal repair and maintenance contract revenue of $1.6 million, which is partially offset by an increase in our federal service contract revenue of $0.4 million. The decrease in repair and maintenance revenue is attributable to a reduction in revenue on one federal contract due to a reduction in scope, and the increase in service contract revenue is mainly attributable to the expansion of existing service contracts and recent contract wins in the cyber security area. Net loss for the second quarter of 2010 was $2.0 million or $0.05 per share versus a net loss of $1.5 million or $0.04 per share in the second quarter of 2009. The increase in net loss for the three months is mainly attributable to changes in the fair value of put warrants and higher interest expenses which were partially offset by higher operating profit.
 
The Company had a $0.4 million working capital deficit and $3.6 million outstanding on its line of credit with Silicon Valley Bank as of June 30, 2010.
 
For additional details, please refer to the Company’s quarterly report on Form 10-Q as filed with the SEC.
 
About Paradigm Holdings, Inc.
 
Paradigm Holdings, Inc., (www.paradigmsolutions.com) is a provider of information technology (IT) and business solutions for U.S. Federal Government enterprises. Paradigm specializes in comprehensive information assurance solutions involving cyber security and forensics as well as continuity of operations and disaster recovery planning. The Company also provides systems engineering and IT infrastructure support solutions. Headquartered in Rockville, Maryland, the Company currently employs approximately 200 people.
 
 
INVESTOR KIT (PDF)
 
 
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