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Science Dynamics Co. SIDY), a provider of advanced technological
solutions to key government agencies and enterprise customers, announced today
the company's year-end results for 2005.
Sales for the fiscal year increased by 163% to $4,235,269, compared to
$1,609,717 in the 2004 fiscal year. Technology service revenues increased to
$3,011,227 from $415,000 the prior year due primarily to the acquisition of
SMEI in February 2005. Technology product revenues for 2005, derived
predominantly from the Commander product lines, were $1,224,042, compared to
$1,194,717 in 2004. For 2005 the company recorded a net loss of $863,103, or
$0.01 per share, compared to a net loss of $767,099, or $0.02 a share in 2004.
CEO Paul Burgess said, "2005 was a transformative year for Science
Dynamics. Our top-line growth was directly related to the successful
acquisition and integration of SMEI, which enabled us to dramatically expand
our service revenue and customer base. I believe it also proves the viability
of our acquisition plans and proprietary technological platforms. We made
significant progress in strengthening the balance sheet and intend to continue
our refinancing efforts. Our priorities in 2006 are to drive sales growth,
integrate accretive acquisitions and improve the bottom line. While we are
still completing our Q1 '06 results, we expect to be EBITDA positive for the
first quarter of 2006."
Science Dynamics Chief Financial Officer Joe Noto said, "Our contract
services backlog with various agencies of the U.S. Department of Defense now
stands at approximately $16 million, subject to available funding by the
government. Overall, our 2005 results reflected a major shift in the company's
focus from providing primarily products to a mix of products and advanced
services to a much broader customer base. Our cost of sales was a higher
percentage of 2005 revenues than the previous year due mainly to the inclusion
of operating results of SMEI, an IT services business that we acquired in
February 2005. To a lesser extent, our margins were impacted unfavorably due
to several higher-margin, one-time development contracts included in our 2004
results. We also expect to see the full-year benefits of synergies in our 2006
results from rationalizations made in our SG&A expenses in the latter part of
2005. Going forward, we expect to further increase our operating leverage as
we achieve organic growth and continue to pursue our acquisition strategy. We
completed several key milestones in the last year, and we will continue to
focus on strengthening our financials in support of our goals for 2006."
About Science Dynamics Corporation
Headquartered in Pennsauken, N.J., Science Dynamics Corporation is a
provider of advanced technological solutions to the Department of Defense, key
government agencies and commercial markets. The company has nearly 25 years of
experience in designing, deploying and managing highly secure advanced
software and telecommunications solutions for federal government departments,
agencies and mid- to large-sized enterprises. Science Dynamics Corporation's
telecommunications solutions are installed in over 30,000 ports throughout
18 countries worldwide. For more information, visit http://www.scidyn.com .
About Systems Management Engineering, Inc.
Science Dynamics owns 82% of SMEI. SMEI has developed advanced data
management applications, Internet server technology and information systems
that it markets to public and private sectors. SMEI's product, Aquifer, helps
its customers reduce development time for projects, manage the deployment of
applications across the Internet to desktops around the world and implement
military-grade security on all systems where the applications are deployed.
For more information about SMEI, visit
http://www.sysmanagement.com .
An investment profile about Science Dynamics may be found at
http://www.hawkassociates.com/sciencedynamics/profile.htm .
For investor relations information regarding Science Dynamics, contact
Frank Hawkins or Julie Marshall, Hawk Associates, at [phone], e-mail:
[e-mail] . An online investor relations kit including copies of
press releases, current price quotes, stock charts and other valuable
information for investors may be found at http://www.hawkassociates.com and
http://www.americanmicrocaps.com .
Forward-Looking Statements: Certain statements made in this press release
by Science Dynamics Corporation are forward-looking statements. Although such
statements are based on current expectations, they are subject to a number of
future uncertainties and risks, and actual results may differ materially. Any
forward-looking statements are made pursuant to the Private Securities
Litigation Reform Act of 1995 and, as such, speak only as of the date made.
Statements made in this document that are not purely historical are forward-
looking statements, including any statements as to beliefs, plans,
expectations, anticipations or intentions regarding the future. Science
Dynamics Corporation assumes no obligation to update information concerning
the forward-looking statements contained herein.
SOURCE Science Dynamics Corporation


Contact Information:
Frank Hawkins or Julie Marshall, both of Hawk Associates, [phone], or [e-mail], for Science Dynamics Corporation

WebSite:
http://www.americanmicrocaps.com