SCLD ==> BLOWOUT EARNINGS ALERT +40% REVS!!! ==> SteelCloud Announces Fiscal Third Quarter Results
Monday September 12, 6:56 pm ET
Revenues Increase by 40%; Company Continues to Invest in New Technology
HERNDON, Va., Sept. 12 /PRNewswire-FirstCall/ -- SteelCloud, Inc. (Nasdaq: SCLD - News), a leading supplier of ready-to-deploy server appliances, security solutions and professional IT services, today announced financial results for its 2005 fiscal third quarter, which ended July 31, 2005. Revenues for the quarter were $9,209,240, a 40% increase compared to $6,600,296 in fiscal third quarter of 2004. The fiscal 2005 third quarter net income was $21,087 compared to a net loss of $1,076,927 in the third quarter of 2004. Net income per share was $.01 compared to a loss of $.08 per share in 2004.
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Nine-month, year-to-date revenues totaled $27,956,871, an increase of 69% over the first nine months of 2004. Net income for the nine-month period totaled $803,689 compared to a loss of $2,998,955 for 2004. Year-to-date gross margins (as a percentage of revenue) was approximately 26%, an increase from 22% over the same period in 2004.
"Revenue results for the nine months and third quarter are encouraging and a significant improvement year-over-year," said Thomas P. Dunne, SteelCloud Chairman and CEO. "The balance sheet is the strongest in the company's history and will provide the resources necessary to execute our business plan. Although revenues and profits are up, margins quarter-over-quarter, did not meet the company's plan. The margins are attributable to product mix and not price pressure in any given business lines. In the upcoming months we will address margin improvement in each of our business lines."
Mr. Dunne went on to say, "We continue to invest in SteelCloud intellectual property, with our Audit Compliance System (ACS) and new software for our server appliances. The investments are being made now to fuel future revenue growth, improve gross profits, and grow our intellectual property base."
Fiscal 2005 Third Quarter Highlights:
* Cash balance in Q3 increased by approximately $2.1 million from Q2.
The Company ended the quarter with over $8,000,000 in cash. The
company has generated approximately $5 million in cash year-to-date in
FY2005.
* Revenues in Q3 grew approximately 40% compared to the third quarter
2004. Revenues increased by 69% compared to the same nine-month period
in 2004.
* Lockheed Martin awarded SteelCloud its STAR Supplier Award. The
Company also received an award for its outstanding efforts on one of
Lockheed Martin's United States Postal Service programs.
* New technology investments included:
- Continuing research and development on the SteelCloud Audit
Compliance System (ACS).
- Work on the Company's new Blade Server initiative for which the
Company received its first order in Q3.
- Developing proprietary appliance software that allows for seamless
installation and configuration of Microsoft Windows-based
application software. This SteelCloud software will be delivered
in a server/appliance platform for a new OEM customer in the
Company's fiscal 4th quarter.
* On September 22 and 23, the Company will be demonstrating its new
Audit Compliance System (ACS) at the Metropolitan Pavilion in New York
City.
As previously announced, the Company will hold a telephone conference call at 10:00 a.m. EDT on Tuesday, September 13, 2005, to discuss the release. Thomas P. Dunne, SteelCloud Chairman and Chief Executive Officer, will host the call. For investors interested in joining the telephone conference call, please dial 1-800-381-2652; for international calls dial 1-312-461-9296 and reference SteelCloud. A recording of the earnings will be available until 11:59 p.m., September 23, 2005 and will be accessible by dialing 1-800-839-6713 (USA) or 1-402-220-2306 (International) and keying in 7351309.
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