SteelCloud Announces Third Quarter Fiscal 2010 Results

ASHBURN, Va., Sept. 14 /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 July 31, 2010, its third quarter of the 2010 fiscal year.

Revenues increased by approximately 97%, or $272,716, to $554,421 for the three month period ended July 31, 2010, as compared to $281,705 for the same period in fiscal 2009.  The loss from continuing operations decreased by approximately 63% to ($258,849) or ($0.01) per share for the three month period ended July 31, 2010, as compared to ($700,001) or ($0.05) per share for the same period of fiscal 2009.

Recent Highlights:

• Gross profit increased by 64% to $195,449 in the third quarter of fiscal year 2010 from $119,206 in the same period of fiscal year 2009.
• Net loss decreased 71% to $258,849 in the third quarter of fiscal year 2010 from $898,434 in the same period of fiscal year 2009.
• Significantly strengthened its financial position in July by raising $2M in new capital.
• Continued the expansion of its BlackBerry Hosting Partner base, which now exceeds 180 partners.
• Delivered its first SteelWorks FedMobile appliance to DoD customers.
• Announced its new virtual FedMobile software appliance for the industry-leading VMware environment.

"We have made significant progress with our first customer deliveries of FedMobile and the continued expansion of our BlackBerry hoster base," said Brian Hajost, SteelCloud's President and CEO.  "Virtualized environments are a huge and growing portion of DoD infrastructures.  I am excited that we have developed a new BlackBerry solution for VMware customers.  With our successful raising of capital in July, SteelCloud has completed a financial transformation that allows us to dedicate one hundred percent of our energies to our mobility business.  Additionally, we will also continue to critically evaluate all of our non-revenue generating expenses."

About SteelCloud

SteelCloud is a developer of mobility computing appliance solutions.  SteelCloud designs and architects specialized appliance and virtual 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.  SteelCloud is a member of the VMware Technology Alliance Partner (TAP) program.  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 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 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 risks and other 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 8-K. SteelCloud takes no obligation to update or correct forward-looking statements.

SOURCE SteelCloud, Inc.