SteelCloud Announces Second Quarter Fiscal 2010 Results

Jun 22, 2010, 08:30 ET from SteelCloud, Inc.

ASHBURN, Va., June 22 /PRNewswire-FirstCall/ -- SteelCloud, Inc. (Pink Sheets: SCLD) a leading integrator of mobility computing appliance solutions and BlackBerry® Elite Alliance Member, today announced its financial results for the quarter ended April 30, 2010, its second quarter of the 2010 fiscal year.

Revenues increased by approximately 41%, or $132,699, to $455,679 for the three month period ended April 30, 2010, as compared to $322,980 for the same period in fiscal 2009.  The loss from continuing operations decreased by approximately 5% to ($709,474) or ($0.04) per share for the three month period ended April 30, 2010, as compared to ($744,289) or ($0.05) per share for the same period of fiscal 2009.

Second Quarter Highlights:

  • Gross profit increased by 54% to $178,324 in the second quarter of fiscal year 2010 from $115,421 in the same period of fiscal year 2009.
  • Gross profit increased to 39% of revenue in the second quarter of fiscal year 2010 from 36% of revenue in the same period of fiscal year 2009.
  • Net loss decreased 17% to $709,474 in the second quarter of fiscal year 2010 from $849,958 in the same period of fiscal year 2009.
  • The Company raised $200,000 form Caledonia Capital.
  • In April, the Company was a Bronze Sponsor of the premier annual BlackBerry event, WES2010.
  • Greatly expanded its U.S. and international hosting partner network, adding nearly 100 new partners during the quarter.
  • More than doubled its monthly hosting license recurring revenue base to a run-rate of over $1,000,000 per year.
  • Introduced its new SteelWorks® XPRESS™ appliance for the BlackBerry Enterprise Server Express at the WES2010 conference.
  • Introduced its visual migration tool, SteelWorks Transporter+™, to facilitate easy user migration to the latest BlackBerry Enterprise Server technology.
  • Expanded its marketing initiatives to include programs for carriers and new resellers.
  • Right-sized its offices to new facilities in order to better match the Company's staffing levels and business model.

"Opportunities for SteelCloud's products and services continue to expand," said Brian Hajost, SteelCloud's President and CEO.  "SteelCloud had a great WES2010 show in April with an excellent reception to our new SteelWorks XPRESS offering.  With the imminent release of the DISA STIG for BES 5, we expect our FedMobile appliance business to increase as we move towards the federal year end in September.  We are starting to see the impact of the Company's more focused mobility business strategy and we plan to add sales and marketing staff as the year progresses."

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 licenses to companies worldwide that provide 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 the BlackBerry solution 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,

April 30,

2009

2010

(unaudited)

ASSETS

Current assets

Cash and cash equivalents

$

60,650

$

63,730

Accounts receivable, net

147,203

213,484

Inventory, net

10,587

17,065

Prepaid expenses and other current assets

141,259

94,076

Deferred contract costs

33,830

-

Total current assets

393,529

388,355

Property and equipment, net

166,754

23,767

Equipment on lease, net

1,456

743

Other assets

5,374

2

Total assets

$

567,113

$

412,867

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts payable

$

577,197

$

765,332

Accrued expenses

174,763

345,949

Notes payable, current

217,919

-

Total current liabilities

969,879

1,111,281

Long-term liabilities

Note payable, long-term

-

400,000

Deferred rent, long-term

269,332

255,840

Other long-term

1,129

-

Total long-term liabilities

270,461

655,840

Stockholders' equity

Preferred stock, $.001 par value: 2,000,000 shares authorized, no shares issued and outstanding at October 31, 2009 and April 30, 2010

Common stock, $.001 par value: 80,000,000 shares authorized, 15,993,501 and 19,745,001 shares issued at October 31, 2009 and April 30, 2010, respectively

15,994

19,745

Additional paid in capital

51,348,405

51,749,623

Treasury stock, 400,000 shares at October 31, 2009 and April 30, 2010, respectively

(3,432,500)

(3,432,500)

Accumulated deficit

(48,605,126)

(49,691,122)

Total stockholders' deficit

(673,227)

(1,354,254)

Total liabilities and stockholders' deficit

$

567,113

$

412,867

STEELCLOUD, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended

April 30,

Six Months Ended

April 30,

2009

2010

2009

2010

Revenue

322,980

455,679

878,559

820,957

Cost of revenues

207,559

277,355

665,282

485,446

Gross profit

115,421

178,324

213,277

335,511

Selling and marketing

114,193

115,315

215,864

218,007

Research and product development

54,915

97,086

98,232

150,733

General and administrative

691,012

626,402

1,295,088

1,265,881

Severance and restructuring

-

-

73,205

-

Loss from operations

(744,699)

(660,479)

(1,469,112)

(1,299,110)

Interest expense

(154)

(40,000)

(1,393)

(111,460)

Other income (expense), net

564

(8,995)

1,803

324,576

Loss before income taxes

(744,289)

(709,474)

(1,468,702)

(1,085,994)

Provision for income taxes

-

-

-

-

Loss from continuing operations

(744,289)

(709,474)

(1,468,702)

(1,085,994)

Loss from discontinued operations, net of tax

(105,669)

-

(385,001)

-

Net loss

$

(849,958)

$

(709,474)

$

(1,853,703)

$

(1,085,994)

Basic and diluted loss per share:

 Continuing operations

$

(0.05)

$

(0.04)

$

(0.10)

$

(0.07)

   Discontinued operations

(0.01)

-

(0.03)

-

Basic and diluted loss per share

$

(0.06)

$

(0.04)

$

(0.13)

$

(0.07)

Weighted-average shares outstanding, basic and diluted

14,828,849

16,938,316

14,783,698

16,467,327

SOURCE SteelCloud, Inc.



RELATED LINKS

http://www.steelcloud.com