Science Dynamics Year-End
Revenue up 163% to $4.2M Company Expects Positive EBITDA
in Q1 ’06; Contract Backlog Up to More Than $16M Pennsauken, NJ, April 18, 2006 -- Science
Dynamics Corporation (OTC Bulletin Board: 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
(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. 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.
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