DecisionPoint Systems Reports Second Quarter and Six-Month Results

IRVINE, Calif., Aug. 8, 2014 /PRNewswire/ -- DecisionPoint™ Systems, Inc. (OTCQB: DPSI), a leading provider and integrator of Enterprise Mobility, Wireless Applications and RFID solutions, today reported financial results for the second quarter and six months ended June 30, 2014.

Financial Highlights of Q2 and the first half of 2014:

• Revenue of $16.5 million increased 12.2% over the $14.7 million reported for Q2 of 2013
• Gross margin in Q2 of 2014 decreased to 22.9% compared to 24.2% in Q2 of 2013
• SG&A expense decreased 23% to $3.4 million from the $4.5 million reported for Q2 of 2013
• Adjusted EBITDA of $0.9 million was $1.0 million higher than Q2 of 2013
• Term debt continued to be paid down, and stood at $2.9 million at June 30, 2014 vs $3.4 million at December 31, 2013
• Positive cash flow from operations for the six months showed an improvement of $0.9 million reaching $1.1 million compared to $0.2 million for the first six months of 2013
• Cash on hand more than doubled to $1.4 million vs $641,000 at December 31, 2013

For the quarter ended June 30, 2014, revenue was $16.5 million, a climb of about 12.2% from the comparable quarter of 2013 when revenue was $14.7 million, and a $4.7 million, or 16.6% increase in revenue for the six months ended June 30, 2014 over the comparable six months of 2013.  Gross profit for the quarter was $3.8 million, compared to $3.6 million for the same period ended June 30, 2013, an increase of 6.1%. Gross profit was $7.4 million for the six months ended June 30, 2014, compared to $6.4 million for the same period ended June 30, 2013, an increase of 15.1%. The Net Loss was $19,000 in the second quarter, better than the loss of $1.1 million in the second quarter of 2013.  On an EPS basis, the loss per share was $0.03, compared to $0.15 loss per share in the second quarter of 2013.

SG&A expense declined by $1.1 million to $3.4 million due primarily to restructuring and other cost savings, compared to $4.5 million in the second quarter of 2013, and the operating income was $0.4 million in this year's second quarter vs a loss of $0.9 million in the second quarter of 2013, due primarily to improved margins and cost savings.  Adjusted EBITDA (a non-GAAP measurement that management uses to measure progress) for the second quarter of 2014 was $899,000, a $1.0 million improvement from prior year.

Larry Yelin, Chairman of the Board, commented, "The first half of 2014 has continued the relatively slow economic recovery, which seems to have been gaining some momentum recently.  Companies seem more willing to invest capital expenditures in information technology and communications that help them raise productivity; that is a favorable trend for the type of cost-saving technology that we provide.  By moving decisions closer to the customer or end-user, we try to help our customers offer speedier and more customer-aware service than they could when the majority of decisions reside solely at headquarters.  Whether it is organizing inventory in a giant warehouse, high-end clothing in a posh retail store, or checking in a rental car at an airport – we help our customers make the experience easier and faster for everyone.  When they increase productivity, each employee generates more ROI.

"Fortunately it seems that these trends will continue as the macro environment becomes more sturdy," Yelin said. "With fewer people unemployed, new job creation picking up speed, housing values increasing, wages improving, and 401(k) accounts gaining in value, the time is opportune for businesses to focus on improving consumer sentiment, especially in the high-end retailers who form the backbone of our retail segment."

CFO Michael Roe said that the Company continued to pay down term debt, decreasing to $2.9 million, from $3.4 million at December 31, 2013.  Overall debt, including the lines of credit increased by $224,000 from December 31, 2013 to June 30, 2014. Net cash provided by operations for the first six months of the current year was $1.1 million, compared to $200,000 for the like period of 2013. Interest expense for the six months of 2014 was $429,000, down from $483,000 for the first six months of 2013, due primarily to a reduction in the amount of principal owed.  Cash on hand was at a recent high as of June 30, having reached $1.4 million, more than doubling the balance of $641,000 at December 31, 2013.

Conference Call:

The Company's management team will host a conference call to discuss its results for second quarter ended June 30, 2014 today, at 10:00 am ET.

Participants should dial into the call ten minutes before the scheduled time using the following numbers: 1-877-300-8521 (USA) or +1-412-317-6026 (international) to access the call.

Audio Webcast:

There will also be a simultaneous live webcast through the Company's website, www.decisionpt.com and selecting the investor tab. Participants should register on the website approximately ten minutes prior to the start of the webcast.

Replay:

An audio replay of the conference call will be available for seven days and can be accessed by dialing 1-877-870-5176 (USA) or +1-858-384-5517 (international) and using passcode 10050555.

For those unable to attend to the live webcast, it will be archived shortly following the event for 30 days in the Investors section of the Company's website.

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

Under The Private Securities Litigation Reform Act of 1995: 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 achievement in the future to differ materially from forecasted results, performance, and achievement.  These 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 these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events or changes in the Company's plans or expectation.

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).  The Company's management believes this non-GAAP measure provides investors with a better understanding of how the results relate to the Company's historical performance.  The additional adjusted information is not meant to be considered in isolation or as a substitute for GAAP financials.  Management believes that these adjusted measures reflect the essential operating activities of the Company.  A reconciliation of non-GAAP financial measures appears below:

SOURCE DecisionPoint Systems, Inc.