Science Dynamics Issues
Letter to Shareholders Company Expects to be EBITDA
Positive in Q1 ‘06, Contract Backlog More Than $14M Pennsauken, NJ, January 18, 2005 -- Science
Dynamics Corporation (OTC Bulletin Board: SIDY), a provider of advanced
technological solutions to the Department of Defense, key government agencies
and commercial markets, issued the following letter from CEO Paul Burgess: To Our Shareholders and Investors, I am pleased to report that we made progress on a number of
key initiatives in 2005. As we look forward, we have every reason to believe
2006 will be significantly stronger in terms of strengthening our company
financially and positioning us for future success. The past year was critical in making the transition from an
inmate telephony company to an organization providing advanced technological
solutions to government and commercial markets. Acquiring Systems Management Engineering, Inc. (SMEI) early in
the year was instrumental in enabling us to significantly expand our
proprietary technology and technical expertise in telecommunications and
information technology. We have completely and successfully integrated SMEI and
SciDyn operations. We’re already
realizing SG&A synergies between the two organizations and anticipate
further benefits throughout the new year.
Most importantly, the acquisition enabled us to leverage the
capabilities of both companies in product development and customer reach which,
combined with the cost efficiencies, moves us closer to profitability. I expect SciDyn to be EBITDA positive in Q1 of 2006. We have increased our contractual
engagements with the federal government from task-based contracts to multi-year
contracts. Our contract backlog has increased to over $14 million. We’ve made significant progress in
strengthening the balance sheet and intend to continue our refinancing
efforts. We’re also looking to access
capital that minimizes shareholder dilution and can be managed with an eye on
the company’s cash flow. November in particular was a significant month for Science
Dynamics. We successfully renegotiated the terms of an outstanding secured
convertible term note and realized significant savings. In addition to deferring over $420,000 in
past due principal payments, we were also able to waive almost $260,000 in
interest owed and eliminate $600,000 in potential damages. That same month we also established a line
of credit with Presidential Financial to provide us with working capital as
needed to grow the software solutions business. These efforts combined give us
additional financial resources and flexibility to help expand our service. While we don’t have our 2005 year-end financial results
yet, we were encouraged by the $1,119,135 in revenues we realized in Q3 of
2005, an 86% increase over the previous year. Revenues for the nine months ended
September 30, 2005 of $3,248,699 represented an 87% increase in the comparable
period in 2004. I believe this top-line
growth underscores the success of our acquisition strategy and highlights the
positive contribution made by SMEI. Our
priorities in 2006 are to further ramp up sales, integrate accretive
acquisitions and improve the bottom line. We also intend to increase our visibility this year, both
on Wall Street and within the federal software solutions space. Our team is driven to increase shareholder
value through both organic growth and acquisitions throughout the year. With
regards to our acquisition strategy, we will continue to pursue profitable
companies with proprietary products and services we can sell to our existing
customers and which have synergies with our existing business. I am encouraged that the stock recently traded at
significantly higher volumes. As our
company’s financial position continues to improve, we expect the market
valuation to match the improved results.
I may take advantage of recent prices to buy shares in the open
market. As always, I appreciate the support of our long-term
shareholders, directors and employees.
I will continue to work hard throughout the new year to increase our
company’s value. Paul Burgess CEO and President 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 both 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
(305) 451-1888, e-mail: info@hawkassociates.com.
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. The uncertainties and risks include, but are not limited to,
the acquisition by Science Dynamics Corporation of Systems Management
Engineering, Inc. and the successful operation of Systems Management
Engineering, Inc. post-acquisition, additional potential acquisitions of
Science Dynamics Corporation and the ability of Science Dynamics Corporation to
effectively execute its business plan and develop a successful business. 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. Web site: http://www.scidyn.com/ Home
| Products | News
& Events | Solution Partners
| About SciDyn ©2004 Science Dynamics Corporation. All
Rights Reserved.
|
