Emtec, Inc. Announces Third Quarter Results
July 15, 2010 03:15 PM Eastern Daylight Time
MARLTON, N.J.--(EON: Enhanced Online News)--Emtec, Inc. (OTCBB: ETEC) (“Emtec” or the “Company”)
announced today that for the quarter ended May 31, 2010, revenue and gross profit increased by 9% and 6%
respectively when compared to the quarter ended May 31, 2009.
Revenue increased to $53.5 million in the third quarter of fiscal 2010 from $49.2 million in the third quarter of fiscal
2009, an increase of $4.3 million. Gross profit increased to $8.1 million in from $7.6 million in third quarter of fiscal
2009 an increase of $435,000. Earnings before interest, taxes, depreciation and amortization expenses (“EBITDA”)
decreased to $676,000 from $1.3 million a decrease of $625,000 for the three months ended May 31, 2010.
Adjusted EBITDA, which is defined by management as net income before interest, taxes, depreciation, amortization,
retention bonuses, non-essential overhead, stock based compensation, executive recruiting fees, severance,
discretionary bonuses, merger related professional fees and the recovery of prior year expenses (“Adjusted
EBITDA”), decreased to $1.3 million from $1.5 million, a decrease of by $235,000. Net income for the three
months ended May 31, 2010 decreased to a slight loss of $35,000 from a $273,000 profit, a decrease of
$308,000. The decreases in EBITDA, net income, and Adjusted EBITDA are primarily attributable to a longer than
anticipated economic downturn in the Company’s commercial and state and local government business, the after
effect of a yearlong reduction in billing rates by commercial customers and investments made in new management to
position the Company to take advantage of services growth when the economy recovers. A reconciliation of
EBITDA and Adjusted EBITDA to net income (loss) is attached to this press release.
EBITDA and Adjusted EBITDA are key financial metrics used by the Company’s Board of Directors and
management to evaluate and measure the Company’s