DecisionPoint Systems Reports Results For Third Quarter And Nine Months Ended September 30, 2014; Adjusted EBITDA Up Year-Over-Year For Q3 And 9 Month Periods; Announces New Chairman And Interim CEO

IRVINE, Calif., Nov. 11, 2014 /PRNewswire/ -- DecisionPoint™ Systems, Inc. (OTCQB: DPSI; DPSIP), a leading provider and integrator of Enterprise Mobility, Wireless Applications and RFID solutions, today reported financial results for the third quarter and nine months ended September 30, 2014.  The Company also announced that Robert Schroeder has been elected Chairman of the Board of Directors, and that Director James F. DeSocio will serve as Interim CEO, pending the selection of a new CEO pursuant to an executive search currently being conducted.

Management
Mr. Schroeder, previously designated interim Chairman, was elected Chairman by the Board subsequent to the annual meeting of stockholders.  Mr. DeSocio agreed to serve as Interim CEO, bringing 20 years of enterprise software sales experience to the position.  Brief biographies of both Mr. Schroeder and Mr. DeSocio are appended to this news release.

Mr. Schroeder commented, "Some significant changes occurred during the third quarter at DecisionPoint, most notably the departure of the former CEO, and the election of new Directors who bring a wealth of experience and accomplishments to the Company."

"DecisionPoint is fortunate to have Jim DeSocio on our board and serve as our interim CEO. We intend to strengthen DecisionPoint, by bringing in a CEO who will drive revenue in enterprise mobility, wireless applications and RFID technology.  We also intend to bolster the balance sheet, increase cash generation, and put the Company back on the growth track it was on prior to the third quarter.  As we work towards these goals, Jim is ideally suited to take interim leadership of the Company, and I look forward to working with him, and with the entire new Board.  Taglich Brothers has made a commitment to DecisionPoint, and as major shareholders, that commitment is important to DecisionPoint's future."

Mr. Schroeder said that although the decision has been made not to accompany the third-quarter results with the traditional conference call, the Company intends to resume conference calls with webcasts when a permanent CEO is in place. 

Results

Financial Highlights

• Third consecutive quarter of positive Adjusted EBITDA, an improvement of $500,000 from the third quarter of 2014 compared to the third quarter of 2013
• Nine month Adjusted EBITDA up $3.0 million year over year
• Debt lower by $0.9 million than at December 31, 2013

Revenues for the third quarter were $14.1 million with a net loss of $563,000, compared to revenues of $17.6 million in the third quarter of 2013 with a net loss of $167,000. On an EPS basis, the loss per share was $0.07, compared to a $0.04 loss per share in the third quarter of 2013.  Adjusted EBITDA (a non-GAAP measurement that management uses to measure progress) was $459,000 for the quarter ended September 30, 2014, almost $500,000 higher than the negative $40,000 in the third quarter of 2013.

For the nine months ended September 30, 2014, the strength of the first six months brought the period to a net gain in revenues, reporting $47.4 million versus $46.1 million for the same period last year.  The net loss for the nine months ended September 30, 2014 was $700,000, a strong improvement over the loss of $3.4 million for the same period last year.  On an EPS basis, the loss per share was $0.14, compared to a $0.44 loss per share for the nine months ended September 30, 2013.  Adjusted EBITDA was $1.8 million for the nine-month period this year, compared to a negative $1.2 million for the same period in 2013, an increase of $3.0 million.

SG&A expense in the third quarter of 2014 declined by $1.5 million to $3.0 million, compared to $4.5 million in the third quarter of 2013.  For the nine months ended September 30, 2014, SG&A expenses declined by $3.8 million, or 27% over the prior year's comparable period. We continue to see the benefits of the restructuring and other cost saving initiatives undertaken in late 2013 and 2014. 

The Company ended the third quarter of 2014 with $1.5 million in cash, compared to $641,000 at December 31, 2013.  Current debt was $878,000, down from $1.5 million at December 31, 2013 and long term debt was $1.7 million, also down from $2.0 million at December 31, 2013.  Net cash provided by operations during the first nine months of 2014 was $2.2 million, versus a cash burn during the same period last year of $2.2 million, for a total improvement of $4.4 million.

Mr DeSocio commented, "DecisionPoint has the products and services to improve productivity of employees across the enterprise.  The products have been workplace-tested and proven by large and well-known companies across a wide spectrum of industrial segments.  I believe that the Company has the right products, the right people, and the right prospects to be a much larger and prosperous company.  I look forward to working with the DecisionPoint team."

CFO Michael Roe commented, "We continue to keep an eye on expenses, and to use our internal cash flow to pay down debt.  In the third quarter of 2014, SG&A expenses continued to trend downward by $400,000 from the second quarter.  I look forward to working with Jim DeSocio as interim CEO, whose years of experience will be a huge advantage for DecisionPoint."

Robert Schroeder, Director Chairman
Mr. Schroeder was elected to the Board of Directors of the Company on November 18, 2013. He is Vice President of Investment Banking at Taglich Brothers, Inc. and specializes in advisory services and capital raising for small public and private companies. Mr. Schroeder has also served at Taglich Brothers as Senior Equity Analyst publishing sell-side research on publicly traded companies. Mr. Schroeder has been with Taglich since 1993. Prior to joining Taglich, Mr. Schroeder served in various positions in the brokerage and public accounting industries. Mr. Schroeder received a B.S. degree in accounting and economics from New York University. He currently serves on the board of directors of Air Industries Group, a publicly traded manufacturer of aerospace parts and assemblies. He also currently serves on the board of publicly traded Intellinetics, Inc., a provider of cloud-based enterprise content management solutions. He became interim Chairman of the Board of DecisionPoint as of the close of business on October 3, 2014.

James F. DeSocio, Interim CEO
Mr. DeSocio became a director as of the close of business on October 3, 2014. He has more than 20 years of international enterprise software sales experience. As Executive Vice President of Field Operations at XRS Corporation, he was responsible for enterprise license revenue, professional services sales and implementation and business development and partner programs. During his tenure, XRS successfully launched its new enterprise Fleet Management software, XRS (the product), and sold to and implemented product and service offerings for hundreds of new customers. Prior to XRS, Mr. DeSocio served as Executive Vice President of Global Sales and Business Development at Antenna Software. From Dec 2007 through June 2012, Mr. DeSocio grew Antenna's annual bookings fourfold. Mr. DeSocio also served as Chief Executive Officer of Riskclick Inc., a venture-funded startup focused on developing a cloud-based underwriting solution for the property and casualty insurance market. Over a three-year period, Mr. DeSocio raised an $8 million round of funding, solidified the company product and customer bases and in July 2007 led the sale of Riskclick to Skywire Software, which was subsequently sold to Oracle in June 2008. Mr. DeSocio has also held various roles with Lawson, now Infor, over a twelve-year period, including Executive Vice President of Worldwide Field Operations, in which role he was responsible for all company revenue, and leader of its successful IPO. Mr. DeSocio holds a business administration degree from Rutgers University.

About DecisionPoint™ Systems, Inc.
DecisionPoint Systems, Inc. delivers improved productivity and operational advantages to its clients by helping them move their business decision points closer to their customers.  They do this by making enterprise software applications accessible to the front-line worker anytime, anywhere.  DecisionPoint utilizes all the latest wireless, mobility, and RFID technologies.

For more information about DecisionPoint Systems, Inc., visit www.decisionpt.com.

Forward-Looking Statements
Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Act of 1995.  Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company's actual results, performance and achievements in the future to differ materially from forecasted results, performance, and achievements.  Known risks and uncertainties are described in the Company's periodic filings with the Securities and Exchange Commission.  The Company undertakes no obligation to publicly release the results of any revisions to its forward-looking statements to reflect events or circumstances after the date hereof, including without limitation unanticipated events or changes in the Company's plans or expectations.

Contacts:

DecisionPoint Systems, Inc.
Michael Roe
Chief Financial Officer
(949) 465-0065

Allen & Caron, Inc.
Rudy Barrio (investors)
[email protected]
(212) 691-8087

Len Hall (media)
[email protected]
(949) 474-4300

-FINANCIAL TABLES FOLLOW-

 Non-GAAP Financial Measures:

To supplement the Company's consolidated financial statements presented on a GAAP basis, the Company has provided non-GAAP financial information; namely, earnings before interest, taxes, depreciation and amortization (EBITDA) and adjusted EBITDA.  The Company's management believes adjusted EBITDA provides investors with a better understanding of how the Company's current results relate to the Company's historical performance.  Management also believes that adjusted EBITDA reflects the essential operating activities of the Company. The non-GAAP financial measures provided are not meant to be considered in isolation or as a substitute for GAAP financials. A reconciliation of non-GAAP financial measures to GAAP measures appears below:

SOURCE DecisionPoint Systems, Inc.

Related Links

http://www.decisionpt.com