SteelCloud Announces Fiscal 2009 Results

Jan 28, 2010, 16:00 ET from SteelCloud, Inc.

HERNDON, Va., Jan. 28 /PRNewswire-FirstCall/ -- SteelCloud, Inc. (OTC Bulletin Board: SCLD), a leading developer of mobility computing appliance solutions, today announced financial results for its 2009 fiscal year which ended October 31, 2009.

Annual revenues from continuing operations decreased 67% to approximately $1.5 million during fiscal 2009 as compared with approximately $4.6 million during fiscal 2008.  The net loss from continuing operations was approximately ($3,217,000) for fiscal 2009 compared to a net loss from continuing operations of approximately ($3,442,000) for fiscal 2008.  Net loss from discontinued operations was approximately ($520,000) in fiscal 2009 compared to income from discontinued operations of approximately $682,000 in fiscal 2008.

"Significant effort was spent in 2009 refocusing the Company in order to achieve the full potential of our BlackBerry offerings," said Brian Hajost, SteelCloud's President and CEO.  "SteelCloud faced significant economic and financial challenges in 2009, many of which SteelCloud still faces today, including the need to raise additional capital.  That given, we made remarkable progress in reducing overhead and laying a foundation for future growth and profitability.  We released a significantly upgraded SteelWorks product, established new partnerships and channels, and entered the international arena -- an area which we believe is ripe for growth for mobility technology.  We believe that we are  beginning to establish a reliable recurring revenue stream that will stabilize the Company's future results."

Conference Call

The Company will hold a conference call at 5:00 PM ET on Thursday, January 28, 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, February 28, 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: 20100126425132#.

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 info@steelcloud.com.

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 BALANCE SHEETS
    
                                                           OCTOBER 31,
                                                       2008            2009
                                                       ----            ----
    ASSETS
    Current assets:
     Cash and cash equivalents                      $752,351         $60,650
     Accounts receivable, net of allowance for
      doubtful accounts of $36,000 and $0 as of
      October 31, 2008 and 2009, respectively      1,571,673         147,203
     Inventory, net                                  521,920          10,587
     Prepaid expenses and other current assets       130,446         141,259
     Deferred contract costs                               -          33,830
                                                         ---          ------
    Total current assets                           2,976,390         393,529
    
    Property and equipment, net                      626,440         166,754
    Equipment on lease, net                          442,099           1,456
    Other assets                                       7,020           5,374
                                                       -----           -----
    Total assets                                  $4,051,949        $567,113
                                                  ==========        ========
    
    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities:
     Accounts payable                               $718,316        $577,197
     Accrued expenses                                561,009         174,493
     Notes payable, current portion                    7,538         217,919
     Unearned revenue                                  8,882             270
                                                      -----             ---
    Total current liabilities                      1,295,745         969,879
     Notes payable, long-term portion                  7,903               -
     Other                                           132,055         270,461
                                                     -------         -------
    Total long-term liabilities                      139,958         270,461
    Stockholders' equity:
    Preferred stock, $.001 par value;
     2,000,000 shares authorized, 0 and 0
     shares issued and outstanding at October
     31, 2008 and 2009, respectively
                                                           -               -
    Common stock, $.001 par value; 80,000,000
     shares authorized 15,138,376 and
     15,993,501 shares issued at October 31,
     2008 and 2009, respectively                      15,138          15,994
    Additional paid-in capital                    50,902,172      51,348,405
    Treasury stock, 400,000 shares at October
     31, 2008 and 2009, respectively              (3,432,500)     (3,432,500)
    Accumulated deficit                          (44,868,564)    (48,605,126)
                                                 -----------     -----------
    Total stockholders' equity                     2,616,246        (673,227)
                                                   ---------        --------
    Total liabilities and stockholders' equity    $4,051,949        $567,113
                                                  ==========        ========
    
                            
    
    
                                STEELCLOUD, INC.
                   CONSOLIDATED STATEMENTS OF OPERATIONS
    
                                                Twelve Months Ended
                                                      October 31,
                                                2008                2009
    Revenues
       Products                           $1,905,228            $319,970
       Services                            2,680,526           1,199,929
                                           ---------           ---------
    Total revenues                         4,585,754           1,519,899
    
    Cost of revenues
       Products                            1,583,484             176,758
       Services                            2,159,753             892,053
                                           ---------             -------
    Total cost of revenues                 3,743,237           1,068,811
    
    Gross profit                             842,517             451,088
    
    Selling and marketing                    928,156             486,942
    Research and product development         234,371             233,312
    General and administrative             3,528,248           2,809,730
    Severance and restructuring                    -              73,205
                                                 ---              ------
    
     Operating loss from continuing
      operations                          (3,848,258)         (3,152,101)
    
    Other income (expense), net                8,542             (64,657)
                                               -----             -------
    
    Loss from continuing operations
     before income taxes                  (3,839,716)         (3,216,758)
                                          ----------          ----------
    
    Income tax benefit                       397,868                   -
    
    Loss from continuing operations       (3,441,848)         (3,216,758)
                                                   -              69,945
    Discontinued Operations:
    Income from discontinued operations,
     net of tax
    Income (loss) from discontinued
     operations, net of tax                  682,286            (589,749)
                                             -------            --------
                                             682,286            (519,804)
    Income (loss) from discontinued
     operations
    
    Net loss                             $(2,759,562)        $(3,736,562)

SOURCE SteelCloud, Inc.



RELATED LINKS

http://www.steelcloud.com