Science Dynamics Q1
Revenue up 53% to $1.3M; Reports Positive EBITDA Technology Services Revenue Up
108% Year-Over-Year to $918,000 Pennsauken, NJ, May 23, 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 results for the quarter ended March 31, 2006. Sales for the quarter
increased by 53% to $1,341,807, compared to $874,570 in the first three months
of 2005. The increase in revenue was due primarily to technology services
segment revenue growth of 108% to $917,917 from $441,123 the prior year. First
quarter revenues for the technology product segment declined by 2% to $423,890,
compared to $433,447 in 2005. For the
quarter the company reduced its net loss to $49,676, or $0.00 per share, from a
net loss of $789,562, or $0.01 a share in 2005. The results of Science
Dynamics’ subsidiary SMEI, acquired in February 2005, were partially included
in the results from the March 31, 2005 quarterly period. CEO Paul Burgess said, “The first
quarter of this year was significant for Science Dynamics for several reasons.
Our most noteworthy event was realizing positive EBITDA of $173,329 for the
quarter, a direct result of the cost efficiencies and operating improvements we
achieved after completing the integration of SMEI. In addition, we obtained a
waiver of default fees during the renegotiation of a previous financing and
closed on $1.4 million in equity financing.
Combined with our total contract backlog of more than $16 million, we believe
each of these events plays an important role in moving the company closer to
profitability.” Science Dynamics Chief Financial
Officer Joe Noto said, “Our first quarter results reflect the success we have
achieved in expanding our revenue streams to focus on advanced technology
services, which comprised 68% of revenues.
We are also realizing significant SG&A synergies, as reflected by a
44% decline in those expenses year-over-year on a pro-forma basis after
adjusting the year-ago quarter to account for SMEI expenses from January 1,
2005. On a segmented basis, technology
product margins for the quarter were 70.1% versus 71.6% in the comparable
period last year, while technology service margins increased this quarter to
47.9% from 46.9% in the first three months of 2005. We are satisfied with these first quarter results but remain
committed to growing our revenue base, opportunistically expanding our
operations and improving the bottom line.” About Science Dynamics
Corporation Science Dynamics Corporation (SciDyn) is a
provider of advanced information and communications technology to the
government and commercial markets. The company’s technology services division
designs, deploys and manages advanced technological solutions at key government
agencies and mid- to large-sized enterprises.
SciDyn’s technology products division consists of several core
proprietary platforms used to develop customized software applications with
military grade security in multiple vertical markets. For more information, visit http://www.scidyn.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. Home
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