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."
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 email@example.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.
CONSOLIDATED BALANCE SHEETS
Cash and cash equivalents
Accounts receivable, net
Prepaid expenses and other current assets
Deferred contract costs
Total current assets
Property and equipment, net
Equipment on lease, net
LIABILITIES AND STOCKHOLDERS' EQUITY
Notes payable, current
Total current liabilities
Note payable, long-term
Deferred rent, long-term
Total long-term liabilities
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
Additional paid in capital
Treasury stock, 400,000 shares at October 31, 2009 and April 30, 2010, respectively
Total stockholders' deficit
Total liabilities and stockholders' deficit
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
Six Months Ended
Cost of revenues
Selling and marketing
Research and product development
General and administrative
Severance and restructuring
Loss from operations
Other income (expense), net
Loss before income taxes
Provision for income taxes
Loss from continuing operations
Loss from discontinued operations, net of tax
Basic and diluted loss per share:
Basic and diluted loss per share
Weighted-average shares outstanding, basic and diluted
SOURCE SteelCloud, Inc.