Revisions to Press Release and Earnings Call Relating to Fiscal 2009 Results
HERNDON, Va., Feb. 11 /PRNewswire-FirstCall/ -- SteelCloud, Inc. (OTC Bulletin Board: SCLD), a leading developer of mobility computing appliance solutions, today announced a revision to the financial results it reported in its press release dated January 28, 2010 and in its earnings call which was held on the same date relating to its 2009 fiscal year which ended on October 31, 2009.
The revisions relate to certain charges which were recorded as general administrative expense, and which, upon subsequent evaluation, the Company determined were more appropriately recorded as losses from discontinued operations. "The revisions are limited to the Operating Loss from Continued Operations, Loss from Continued Operations and Loss from Discontinued Operations which we reported in our Press Release and Earnings Call on January 28, 2010," said Brian Hajost, the Company's Chief Executive Officer. "Our financial statements for the fiscal year ended October 31, 2009, which we filed with our Form 10-K with the Securities and Exchange Commission on February 5, 2010, include the revised figures."
A revised Consolidated Statement of Operations is included with this press release.
About SteelCloud
SteelCloud is a developer of 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 and its Quarterly Reports on Forms 10-Q; and Current Reports on Form 8K. SteelCloud takes no obligation to update or correct forward-looking statements.
STEELCLOUD, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Twelve Months Ended
October 31,
-----------
2008 2009 2009
(As reported
on January (As
28, 2010) Revised)
Revenues
Products $1,905,228 $319,970 $319,970
Services 2,680,526 1,199,929 1,199,929
--------- --------- ---------
Total revenues 4,585,754 1,519,899 1,519,899
Cost of revenues
Products 1,583,484 176,758 176,758
Services 2,159,753 892,053 892,053
--------- ------- -------
Total cost of revenues 3,743,237 1,068,811 1,068,811
Gross profit 842,517 451,088 451,088
Selling and marketing 928,156 486,942 486,942
Research and product
development 234,371 233,312 233,312
General and administrative 3,528,248 2,809,730 2,533,836
Severance and restructuring - 73,205 73,205
--- ------ ------
Operating loss from
continuing operations (3,848,258) (3,152,101) (2,876,207)
Other income (expense), net 8,542 (64,657) (64,657)
----- ------- -------
Income (loss) from
continuing operations
before income taxes (3,839,716) (3,216,758) (2,940,864)
---------- ---------- ----------
Income tax benefit 397,868 - -
Income (loss) from
continuing operations (3,441,848) (3,216,758) (2,940,864)
Discontinued Operations:
Gain (loss) on sale of
discontinued operations,
net of tax - 69,945 69,945
Income (loss) from
discontinued operations,
net of tax 682,286 (589,749) (865,643)
------- -------- --------
682,286 (519,804) (795,698)
Total income (loss) from
discontinued operations
Net loss $(2,759,562) $(3,736,562) $(3,736,562)
SOURCE SteelCloud, Inc.
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