PR Newswire: news distribution, targeting and monitoring
2014

Emtec, Inc. Reports Results for Third Quarter Ended December 31, 2003

Net Income Increased by 141.76 % for the Quarter and by 201.71% for the Nine

Months, Compared to the Same Periods in 2002



Share with Twitter Share with LinkedIn
    MT. LAUREL, N.J., Feb. 17 /PRNewswire-FirstCall/ -- Emtec, Inc.
 (OTC Bulletin Board:   ETEC), a systems integrator providing technology
 solutions to enable customers to effectively use and manage data to grow their
 business, announced today its results for the third quarter ended December 31,
 2003.
     Net income for the three months ended December 31, 2003 rose by 141.76
 percent to $320,326, compared to a net loss of $(767,026) for the comparable
 period in 2002.
     Net income for the nine months ended December 31, 2003, rose to $539,269
 compared to a net loss of $(530,200) for the same period in 2002 - an increase
 of 201.71 percent.  Management attributed both of these increases in net
 income to the overall increase in installation services associated with
 computer roll-out projects for the various state agencies in the State of New
 Jersey and a school district in Georgia, as well as an increase in our
 manufacturers' support services contract revenues to one customer.
     John Howlett, CEO, Emtec, Inc., said, "Our rapidly growing net income in
 2003 was a result of our acquisitions in August 2002 of certain assets of
 Acentra Technologies, Inc. and Turnkey Computer Systems, Inc., which brought
 us substantial new groups of customers for our IT solutions, including a
 contract with the State of New Jersey.  Today, Emtec is building on that
 foundation.  In November 2003, we received Sun Microsystems' highest level of
 accreditation - iForce Strategic Technology Integrator.  In February 2004,
 Emtec was awarded a backdrop contract (#CMS553A) from the New York State
 Office of General Services to provide IT consulting and systems integration
 services to a variety of state government entities.  As a longtime provider of
 IT services to Fortune 1000 companies, we are becoming a solution of choice in
 the government and education markets, and this is adding strongly to our
 bottom line."
 
     Revenue Increases
     For the three months ended December 31, 2003, total revenues for the IT
 business, which includes services and consulting revenue and procurement
 revenues, increased by 9.44 percent or $2.12 million, to $24.62 million,
 compared to revenues of $22.49 million for the same period in 2002.  Services
 and consulting revenue increased by 25.11 percent, or $1.0 million, to $4.97
 million. This increase was attributed to the overall increase in installation
 services associated with computer roll-out projects for the various state
 agencies in the State of New Jersey and a school district in Georgia, as well
 as an increase in our manufacturers' support services contract revenues.  The
 increase in manufacturers support services contracts revenue is mainly
 attributable to a third-year renewal of an annual maintenance contract to one
 customer. Net revenue associated with this sale increased by approximately
 $410,000 for the quarter ended December 31, 2003.
     For the nine months ended December 31, 2003, total revenues for the IT
 business increased by 18.61 percent or $12.36 million, to $78.82 million
 compared to $66.46 million for the same nine months in 2002. The company
 attributed this increase primarily to the acquisitions of Acentra
 Technologies, Inc. and Turnkey Computer systems, Inc. in August 2002.  Also
 attributed to these acquisitions is the increase in services and consulting
 revenue, which rose by 20.64 percent, or $2.31 million, to $13.53 million for
 the nine-month period. An 18.19 percent rise in procurement revenues, to
 $65.29 million for the nine months, is also attributed to these acquisitions.
 
     Gross Profits
     For the three months ended December 31, 2003, aggregate gross profit for
 the IT business increased by 68.21 percent (or $1.56 million) to $3.84
 million. This increase was attributed to a 25.11 percent increase in services
 and consulting revenues.  As a percentage of total IT revenues, overall gross
 profit margin also increased to 15.59 percent of total IT revenues for the
 quarter, compared to 10.14 percent for the same quarter a year ago.  Gross
 profit for product sales during the three months increased by 6.63 percent.
 Gross profit for service and consulting increased by 325.17 percent, or $1.43
 million, to $1.87 million, compared with $440,986 for the same quarter in
 2002.
     For the nine months ended December 31, 2003, aggregate gross profit for IT
 business increased by 26.28 percent, or $2.24 million, to $10.77 million.  As
 a percentage of total IT revenues, overall gross profit margin for the nine-
 month period increased to 13.67 percent, up from 12.84 percent for the same
 period in 2002.  Gross profit for product sales decreased slightly by 0.12
 percent from results for the same period a year ago.  Gross profit for service
 and consulting increased by 95.05 percent, or $2.25 million, to $4.62 million
 for the nine months ended December 31, 2003.  This increase was attributed to
 the 20.64 percent increase in services and consulting revenues.
 
     SG&A Expenses
     For the three-month period, sales, general, and administrative expenses
 increased by 11.08 percent, or $334,068, to $3.35 million for the three months
 ended December 31, 2003. For the nine-month period, SG&A expenses increased by
 10.13 percent, or $914,085, to $9.93 million.  These increases are primarily a
 result of the new businesses of the company, mentioned above. Without the
 acquisitions of Acentra Technologies, Inc. and Turnkey computer Systems, Inc.,
 the SG&A expenses would have decreased by approximately 11.41 percent of $1.03
 million, to $7.99 million for the nine months ended December 31, 2003 compared
 with $9.02 million for the nine months ended December 31, 2002.  This decrease
 is attributable to the elimination of non-productive sales staff, reduction in
 sales commission compensation plans, and eliminated duplication of non-
 essential administrative support services.
 
     About Emtec
     Emtec, Inc. established in 1981, provides high-end computer systems and
 services to Fortune 1000 clients ranging in size from $50 million to $500
 million in revenues.  The Company specializes in evaluating and providing
 solutions for data management including Enterprise Management, Managed
 Services (monitoring/maintenance/helpdesk), and Data Management (storage and
 protection of data). With the recent acquisitions of Intellispan (Help Desk),
 Acentra (systems and services) and Turnkey Computer Systems (managed building
 services), Emtec has broadened its engineering and services capabilities.
 
     For additional information please contact Consulting For Strategic
 Growth 1, Ltd, at 800-625-2236.
 
     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 Emtec, Inc. ("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."
 Consulting For Strategic Growth I, Ltd. ("CFSG") has a month-to-month
 relationship with Emtec, Inc. to provide consulting, business advisory,
 investor relations, public relations and corporate development services to the
 Company for fees to be determined.  In connection with these services, CFSG
 prepares press releases, corporate profiles, and other publications on behalf
 of and regarding the Company.  Independent of CFSG's receipt of cash
 compensation from Emtec, CFSG may choose to purchase the common stock of Emtec
 and thereafter liquidate those securities at any time it deems appropriate to
 do so.
 
 
                                  EMTEC, INC.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (unaudited)
 
                             Three Months Ended          Nine Months Ended
                                December 31,                December 31,
                             2003         2002           2003          2002
     Revenues:
      Procurement
       services        $ 19,648,683  $ 18,522,103    $ 65,286,512  $ 55,237,353
      Service and
       consulting         4,969,881     3,972,432      13,533,973    11,218,523
      Geothermal             47,900        45,353         140,873       127,705
 
        Total Revenues   24,666,464    22,539,888      78,961,358    66,583,581
 
     Cost of Revenues:
      Procurement
       services          17,686,595    16,681,947      59,127,426    49,070,806
      Service and
       consulting         3,094,958     3,531,446       8,917,374     8,851,590
      Geothermal             61,167        18,154          91,249        53,783
 
       Total Cost
        of Revenues      20,842,720    20,231,547      68,136,049    57,976,179
     Gross Profit:
      Procurement
       services           1,962,088     1,840,156       6,159,086     6,166,547
      Service and
       consulting         1,874,923       440,986       4,616,599     2,366,933
      Geothermal            (13,267)       27,199          49,624        73,922
 
       Total Gross
        Profit            3,823,744     2,308,341      10,825,309     8,607,402
     Operating Expenses:
      Selling, general
       and
       administrative     3,350,077     3,016,008       9,934,891     9,020,806
      Interest               75,333        59,359         247,885       106,926
 
       Total Operating
        Expenses          3,425,410     3,075,367      10,182,776     9,127,732
 
     Income (Loss)
      Before Income Tax
      Expense               398,334      (767,026)        642,533     (520,330)
 
     Income tax expense      78,008             -         103,264         9,870
 
     Net Income
      (Loss)              $ 320,326    $ (767,026)     $  539,269   $ (530,200)
 
     Net Income (Loss)
      Per Share Basic     $     .04    $     (.11)     $      .08   $     (.07)
 
     Net Income (Loss)
      Per Share Diluted   $     .04    $     (.11)     $      .07   $     (.07)
 
     Weighted Average
      Number Of
      Shares Outstanding
      {Basic}             7,197,628     7,080,498       7,118,680     7,080,498
 
     Weighted Average
      Number Of
      Shares Outstanding
      {Diluted}           7,504,498     7,080,498       7,470,137     7,080,498
 
      Contacts:
 
      Stanley Wunderlich
      Consulting For Strategic Growth 1, Ltd.
      Public Relations
      Corporate Development Consultants
      Tel: 800-625-2236
      Fax: 212-697-0910
      E-mail: cfsg@consultant.com
 
      John Howlett
      Chief Executive Officer
      Emtec, Inc.
      Tel: 856-235-8787
      Fax: 856-235-2932
      E-mail: john_howlett@emtecinc.com
      Web site: www.emtecinc.com
 
 

SOURCE Emtec, Inc.

Featured Video

Journalists and Bloggers

Visit PR Newswire for Journalists for releases, photos, ProfNet experts, and customized feeds just for Media.

View and download archived video content distributed by MultiVu on The Digital Center.

Share with Twitter Share with LinkedIn
 

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

 
 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

 
 

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.

 

Online Member Center

Not a Member?
Click Here to Join
Login
Search News Releases
Advanced Search
Search
  1. PR Newswire Services
  2. Knowledge Center
  3. Browse News Releases
  4. Contact PR Newswire
  5. Send a News Release