Emtec, Inc. Announces 2nd Quarter and Six Months 2008 Results

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A F EMTEC, INC. LOGO EMTEC, INC. LOGO Emtec, Inc. logo. (PRNewsFoto/Emtec, Inc.)[RD] MARLTON, NJ UNITED STATES 04/14/2008

    MARLTON, N.J., April 15 /PRNewswire-FirstCall/ -- Emtec, Inc. (OCT
 Bulletin Board: ETEC) ("Emtec" or the "Company") announced today that for
 the quarter ended February 29, 2008, revenue was $44.07 million, a 7.1%
 increase from revenue of $41.15 million for the quarter ended February 28,
 2007, and gross profit was $4.97 million, a 14.2% increase from gross
 profit of $4.35 million for the quarter ended February 28, 2007. For the
 six months ended February 29, 2008, revenue was $118.71 million, an 11.9%
 increase from revenue of $106.09 million for the quarter ended February 28,
 2007, and gross profit was $13.62 million, a 30.8% increase from gross
 profit of $10.41 million for the six months ended February 28, 2007. For
 the six months ended February 29, 2008, earnings per share increased to
 $0.06 from $(0.19) for the six months ended February 28, 2007, while
 operating income increased by $6.06 million from $(3.90) million for the
 six months ended February 28, 2007 to $2.15 million.
 
     (Logo: http://www.newscom.com/cgi-bin/prnh/20080414/EMTECLOGO )
 
     The increase in revenue is primarily attributable to an overall
 increase in our client's information technology ("IT") spending
 particularly with departments of the United States Government and the
 education business. Operating income increased as a result of increased
 revenue, increased gross profit primarily attributable to higher
 engineering utilization and reduced SG&A as a result of the non-recurrence
 of certain charges that were recorded during the six months ended February
 28, 2007.
 
     "We are pleased to have achieved significant increases in our
 performance over the preceding periods and to have improved our earnings
 for the third successive quarter when considered on a year-over-year
 basis," said Dinesh Desai, Chairman, CEO, and President of Emtec. "With our
 recent acquisition of Luceo, Inc. which is accretive to our earnings per
 share, I am confident that our expansion into the software services area
 will continue our success."
 
     About Emtec:
 
     Emtec, Inc. established in 1964, is an information technology company,
 providing services and products to the federal, state, local, education and
 commercial markets. Areas of specific practices include enterprise
 architecture, data management, data center infrastructure and consulting
 and integration services.
 
     About Luceo:
 
     Luceo is an IT Services and consulting enterprise offering a wide array
 of customer-centric solutions. Areas of specific expertise include SAP,
 Java/J2EE, Microsoft, Database/UNIX, Systems Admin, and Data Warehousing.
 
     Certain statements in this document constitute "forward-looking
 statements" within the meaning of the Private Securities Litigation Reform
 Act of 1995. Such forward-looking statements involve known and unknown
 risks, uncertainties and other factors, which may cause the actual results,
 performance or achievements of the Company or industry results, to be
 materially different from any future results, performance, or achievements
 expressed or implied by such forward-looking statements. The Company's
 future operating results are dependent upon many factors, including but not
 limited to the Company's ability to: (i) obtain sufficient capital or a
 strategic business arrangement to fund its plan of operations when needed;
 (ii) build the management and human resources and infrastructure necessary
 to support the growth of its business; (iii) competitive factors and
 developments beyond the Company's control; and (iv) other risk factors
 discussed in the Company's periodic filings with the Securities and
 Exchange Commission which are available for review at www.sec.gov under
 "Search for Company Filings." We undertake no obligation to publicly update
 or revise any forward-looking statements to reflect changed assumptions,
 the occurrence of anticipated or unanticipated events, or changes to future
 results over time.
 
 

 
 
                                  EMTEC, INC.
                         SUMMARY FINANCIAL INFORMATION
 
                                 Three Months Ended
 
                               February 29,   February 28,
                                   2008           2007         Change       %
     Revenues                  $44,068,502    $41,154,373    $2,914,129    7.1%
 
     Gross profit                4,971,243      4,351,968       619,275   14.2%
     Percent of revenues             11.3%          10.6%
 
     Operating income             (346,539)    (4,172,848)    3,826,309   91.7%
     Percent of revenues             -0.8%         -10.1%
 
     Net income                  $(391,378)   $(2,695,744)   $2,304,366   85.5%
     Percent of revenues             -0.9%          -6.6%
 
 
 
                                  Six Months Ended
 
                               February 29,   February 28,
                                   2008           2007         Change      %
     Revenues                  $118,708,688  $106,093,516   $12,615,172   11.9%
 
     Gross profit                13,616,220    10,410,615     3,205,605   30.8%
     Percent of revenues              11.5%          9.8%
 
     Operating income (loss)      2,153,167    (3,897,233)    6,050,400  155.2%
     Percent of revenues               1.8%         -3.7%
 
     Net income (loss)             $854,824   $(2,662,693)   $3,517,517  132.1%
     Percent of revenues               0.7%         -2.5%
 
 
 

SOURCE Emtec, Inc.