SteelCloud Announces First Quarter Fiscal 2010 Results
ASHBURN, Va., March 19 /PRNewswire-FirstCall/ -- SteelCloud, Inc. (OTC Bulletin Board: SCLD), a leading developer of mobility computing appliance solutions, today announced financial results for its first quarter 2010 fiscal year which ends October 31, 2010.
Revenues decreased by approximately 34.3%, or $190,300, to $365,278 for the three-month period ended January 31, 2010, as compared to $555,579 for the same period in fiscal 2009. The net loss from continuing operations was decreased 47.9% to approximately ($377,000) or ($0.02) per share for the first quarter of fiscal 2010 compared to a net loss from continuing operations of approximately ($724,000) or ($0.05) per share for the same period of fiscal 2009.
First Quarter Highlights:
- Gross profit increased 60% to $157,187 in the first quarter of fiscal year 2010 from $97,856 in the same period of fiscal year 2009
- Gross margin increased to 43.0% of revenue in the first quarter of fiscal year 2010 from 17.6% of revenue in the same period of fiscal year 2009
- Net loss decreased 62% to $376,520 in the first quarter of fiscal year 2010 from $1,003,745 in the same period of fiscal year 2009
- Sold non-mobility related portion of SteelCloud's consulting business producing a gain of $140,000
- Announced expanded distribution of SteelWorks® through Ingram Micro
- Expanded hosting license agreements with Research In Motion to include 106 countries
- Expanded SteelWorks® appliance offerings with introduction of Dell OEM Model 2400
- Introduced SteelWorks FLEX+ expanding our appliance offerings to our hosting partners by combining our appliance with a hosted BlackBerry® Enterprise Server license
- Released SteelWorks® FedMobile™ DoD STIG compliant appliance for the BlackBerry Enterprise Server 5.0
"In the first quarter of our current fiscal year, we finalized our transformation to a mobility technology company built around our own intellectual property," said Brian Hajost, SteelCloud's President and CEO. "We continue to face financial challenges, but I am encouraged by the recent SEC approval of our registration statement. We expanded our distribution channels for SteelWorks and made great progress in penetrating the worldwide BlackBerry hosted service provider market. We believe that the BlackBerry Enterprise Server Express product that RIM has just released will be a market changer, which we expect to take full advantage of with some exciting new appliances to be released in the second quarter."
The foregoing reference to the registration statement on Form S-1 is included only for informational purposes in connection with this Press Release and does not constitute an offer to sell or a solicitation of an offer to buy any securities of SteelCloud.
Conference Call
The Company will hold a conference call at 10:00 AM on Monday, March 22, 2010 to discuss the release. Brian Hajost, SteelCloud President and Chief Executive Officer, will host the call. For investors interested in listening to the earnings call, please dial 866-939-3921, for international calls dial 678-302-3550 and reference SteelCloud. A recording of the earnings call will be available until 11:59 PM ET, April 20, 2010 and will be accessible by dialing 866-939-0581 (USA) or 678-302-3540 (International) and keying in 4804300#. Press 4 to listen, enter confirmation: 20100318425900#.
About SteelCloud
SteelCloud is a developer of SteelWorks® mobility computing appliance solutions. SteelCloud designs and architects specialized appliance solutions for mobile computing technologies including BlackBerry® Enterprise Server. SteelCloud delivers integrated hardware/software appliance solutions, to commercial and government enterprises, that focus on ease of deployment, policy compliance, and high availability. Additionally, SteelCloud distributes BlackBerry software licensing to companies worldwide that provided BlackBerry hosting services. Over its 20-year history, SteelCloud has won numerous awards for technical excellence and customer satisfaction. SteelCloud can be reached at (703) 674-5500. Additional information is available at www.steelcloud.com or by email at [email protected].
The BlackBerry and RIM families of related marks, images and symbols are the exclusive properties and trademarks of Research In Motion Limited.
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: Except for historical information, all of the statements, expectations and assumptions contained in the foregoing press release are forward looking statements that involve a number of risks and uncertainties. It is possible that the assumptions made by management are not necessarily the most likely and may not materialize. In addition, other important factors that could cause actual results to differ materially include the following: SteelCloud's ability to obtain financing in the short term, general business conditions and the amount of growth in Blackberry market and general economy; competitive factors; ability to attract and retain personnel, including key sales and management personnel; the price of SteelCloud's stock; and the risk factors set forth from time to time in SteelCloud's SEC reports, including but not limited to its Annual Report on Form 10-K; its Quarterly Reports on Forms 10-Q; and Current Reports on Form 8K. SteelCloud undertakes no obligation to update or correct forward-looking statements.
STEELCLOUD, INC.
CONSOLIDATED BALANCE SHEETS
October 31, January 31,
2009 2010
---- ----
ASSETS (unaudited)
Current assets
Cash and cash equivalents $60,650 $44,288
Accounts receivable, net 147,203 207,922
Inventory, net 10,587 13,217
Prepaid expenses and other current
assets 141,259 157,820
Deferred contract costs 33,830 -
------ ------
Total current assets 393,529 423,247
Property and equipment, net 166,754 24,176
Equipment on lease, net 1,456 1,094
Other assets 5,374 2,245
----- -----
Total assets $567,113 $450,762
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $577,197 $602,391
Accrued expenses 174,763 189,811
Notes payable, current 217,919 378,593
------- -------
Total current liabilities 969,879 1,170,795
Long-term liabilities
Deferred rent, long-term 269,332 262,586
Other long-term 1,129 1,129
----- -----
Total long-term liabilities 270,461 263,715
Stockholders' equity
Preferred stock, $.001 par value:
2,000,000 shares authorized, no
shares issued and outstanding at
October 31, 2009 and January 31,
2010 – –
Common stock, $.001 par value:
80,000,000 shares authorized,
15,993,501 and 16,040,001 shares
issued at October 31, 2009 and
January 31, 2010, respectively 15,994 16,040
Additional paid in capital 51,348,405 51,414,359
Treasury stock, 400,000 shares at
October 31, 2009 and January 31,
2010 (3,432,500) (3,432,500)
Accumulated deficit (48,605,126) (48,981,647)
----------- -----------
Total stockholders' equity (673,227) (983,748)
-------- --------
Total liabilities and stockholders'
equity $567,113 $450,762
======== ========
See accompanying notes in the company's Form 10-Q for the quarter ended
January 31, 2010.
STEELCLOUD, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
January 31,
2009 2010
---- ----
Revenues 555,579 365,278
Cost of revenues 457,723 208,091
------- -------
Gross profit 97,856 157,187
Selling and marketing 101,671 102,692
Research and product development 43,317 53,647
General and administrative 604,076 639,479
Severance and restructuring 73,205 -
------ ------
Loss from operations (724,413) (638,631)
Interest expense (1,239) (71,460)
Other income, net 1,239 333,571
----- -------
Loss before income taxes (724,413) (376,520)
Provision for income taxes – –
--- ---
Loss from continuing operations (724,413) (376,520)
Loss from discontinued operations,
net of tax (279,332) -
------- -------
Net loss (1,003,745) (376,520)
========== ========
Basic and diluted income (loss) per
share:
Continuing operations $(0.05) $(0.02)
Discontinued operations (0.02) -
----- ---
Basic and diluted income (loss) per share $(0.07) $(0.02)
====== ======
Weighted–average shares outstanding,
basic and diluted 14,739,200 15,611,897
========== ==========
See accompanying notes in the company's Form 10-Q for the quarter ended
January 31, 2010.
SOURCE SteelCloud, Inc.
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