Results in line with earlier announcement regarding Q1 revenues and profits
DULLES, Va., March 11 /PRNewswire-FirstCall/ -- SteelCloud Inc. (Nasdaq:
SCLD), a leading supplier of network security solutions, today announced
financial results for its 2004 fiscal first quarter, which ended January 31,
2004.
For the fiscal first quarter 2004, revenues from continuing operations
were $4,163,697 compared to $7,634,168 in fiscal first quarter 2003. The
Company recorded a net loss from continuing operations before taxes of
$1,619,341 for first quarter 2004 compared to net earnings from continuing
operations of $114,885 in the previous fiscal year first quarter. Net loss
per share was $.12 in fiscal first quarter 2004 compared to earnings of $.01
net per share in first quarter, 2003.
"As we reported previously, first quarter financial results due to order
delays have resulted in SteelCloud's first loss after five consecutive
profitable quarters," said Thomas P. Dunne, SteelCloud Chairman and CEO.
"However, second quarter orders across all SteelCloud business units are now
forecast to grow compared to the first quarter. We continue to invest in
transforming SteelCloud into a network security market force with our own
brand and position. To that end, our line of network security appliances is
growing in both breadth and depth as we expand our line of co-branded
appliances for the enterprise markets. Meanwhile, in conjunction with newly
acquired technology from Asgard Technologies, we are developing our own
proprietary network security products and services for the middle markets
while implementing broad new marketing programs."
Fiscal Year 2004, Q1 highlights:
-- Ended the quarter with $7,855,830 in cash
-- Announced and shipped SteelCloud Model AVG 1000 Plus Antivirus Gateway
appliance
-- Expanded Partnership Agreement with Computer Associates to create a
Premium appliance bundle featuring eTrust Secure Content Management
software
-- Completed benchmark testing for independent testing organization that
showed "SteelCloud eTrust appliances performance eclipsed those of the
leading competitor -- in one case by orders of magnitude."
-- Designed, developed and produced Extranet communications channels for
SteelCloud channel partners and customers
-- Shipped first security appliances to Europe
-- Increased services revenues by 15% over prior quarter
-- Increased deferred revenues to $1.8 Million
As previously announced, the Company will hold a conference call at 11:00
a.m. EST on Tuesday, March 16, 2004 to discuss the earnings release. Thomas
P. Dunne, Chairman and Chief Executive Officer of SteelCloud will host the
call. For investors interested in joining the conference call, please dial
1-800-245-1683; international callers dial 1-312-461-9409 and ask for the
SteelCloud conference call. Investors unable to participate in the live call
will be able to hear a recording of the conference call by dialing
1-800-839-6713; confirmation #6181386.
About SteelCloud
SteelCloud is a leading provider of network security solutions. The
company develops security solutions with some of the world's premiere software
and technology companies. With a 16-year history of delivering complex server
solutions to major corporate and public sector enterprises, the company has
won numerous awards for technical excellence and customer services.
SteelCloud's comprehensive engineering, product development, and support
infrastructure provides a unique capability for rapidly developing cost
effective, high performance, hardened network appliances. SteelCloud can be
reached at 703-450-0400. Additional information is available at
http://www.steelcloud.com.
"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 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: business conditions
and the amount of growth in the computer industry and general economy;
competitive factors; ability to attract and retain personnel, including key
sales and management personnel; the price of the Company's stock; and the risk
factors set forth from time to time in the Company's SEC reports, including
but not limited to its annual report on Form 10-K and its quarterly reports on
Forms 10-Q; and any reports on Form 8K. SteelCloud takes no obligation to
update or correct forward-looking statements.
STEELCLOUD, INC.
CONSOLIDATED BALANCE SHEET
October 31, January 31,
2003 2004
ASSETS (unaudited)
Current assets
Cash and cash equivalents $8,098,221 $7,855,830
Accounts receivable, net of allowance for
doubtful accounts of $293,000 and
$11,743 as of October 31, 2003
and January 31, 2004, respectively 5,332,549 3,488,162
Inventory, net 2,880,944 3,350,463
Deferred tax asset 400,000 --
Income tax receivable 55,392 55,392
Prepaid expenses and other current assets 184,420 206,469
Deferred contract cost 7,053 721,546
Total current assets 16,958,579 15,677,862
Property and equipment, net 477,111 422,546
Equipment on lease, net 335,935 278,482
Goodwill and other intangible assets, net 1,778,059 1,758,060
Deferred tax asset -- 400,000
Other assets 211,155 196,603
Total assets $19,760,839 $18,733,553
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $3,202,195 $1,299,279
Accrued expenses 1,369,145 1,506,155
Notes payable, current 96,133 14,637
Unearned revenue 293,363 1,813,666
Total current liabilities 4,960,836 4,633,737
Note payable, long-term 59,952 56,269
Other 6,415 --
Total long-term liabilities 66,367 56,269
Stockholders' equity
Common stock, $.001 par value:
50,000,000 shares authorized,
13,008,553 and 13,353,570 shares
issued and outstanding at
October 31, 2003 and January 31, 2004 13,009 13,354
Additional paid in capital 47,307,036 48,222,699
Treasury stock, 400,000 shares at October
31, 2003 and January 31, 2004,
respectively (3,432,500) (3,432,500)
Accumulated deficit (29,153,909) (30,760,006)
Total stockholders' equity 14,733,636 14,043,547
Total liabilities and stockholders' equity $19,760,839 $18,733,553
STEELCLOUD, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended
January 31,
2003 2004
Revenues
Products $6,880,390 $3,295,312
Services 753,778 868,385
Total revenues 7,634,168 4,163,697
Cost of revenues
Products 5,523,403 2,802,087
Services 568,428 569,116
Total cost of revenue 6,091,831 3,371,203
Gross profit 1,542,337 792,494
Selling and marketing 298,724 470,285
General and administrative 1,128,728 1,791,106
Research and product development -- 150,444
Income (loss) from continuing operations 114,885 (1,619,341)
Interest expense (income), net 5,840 (13,242)
Net income (loss) from continuing operations 109,045 (1,606,099)
Loss from discontinued operations (29,501) --
Net income (loss) $79,544 $(1,606,099)
Earnings (loss) per share (basic and
diluted):
Earnings (loss) from continuing
operations $0.01 $(0.12)
Discontinued operations -- --
Net earnings (loss) per share $0.01 $(0.12)
Weighted-average shares outstanding, basic 10,046,556 12,865,977
Weighted-average shares outstanding, diluted 10,412,839 12,865,977
SOURCE SteelCloud Inc.
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Related links:
http://www.steelcloud.com
CONTACT:
William D. Hughes for SteelCloud Inc.,
+1-703-450-0400, ext. 5124
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