DecisionPoint Reports Record Operating Profit for Second Quarter 2009
Strong New Business Pipeline Supports Growth for Second Half
FOOTHILL RANCH, CA, Aug 20, 2009 (MARKETWIRE via COMTEX) -- DecisionPoint
Systems, Inc. (DNPI), a leading provider of Enterprise Mobility and RFID
solutions, today announced operating results for the fiscal second quarter and
six months ended June 30, 2009.
Financial Highlights
--Second quarter revenues were $12.0 million
--Second quarter gross margins grew to 20.4%
--Second quarter operating profits rose 149% compared to prior year's
period
--Second quarter net loss was $35,000 compared to net loss of $669,000
for the same period last year
Nicholas Toms, Chief Executive Officer of DecisionPoint, commented, "We are
delighted with the outstanding results. We have achieved record operating profit
and a major improvement in net results in a challenging market environment by
focusing on higher margin business and tight cost controls. Our revenue mix has
reflected this strategic shift to higher margin software and service revenues.
Strong gains in field mobility and managed services opportunities have validated
the investment we made in these two practice areas."
Second quarter 2009 operating revenues were $12.0 million, a sequential increase
compared with $11.7 million in the first quarter of 2009, and a decrease from
$15.4 million for the same period last year.
For the six months ended June 30, 2009, revenues were $23.7 million compared to
$28.5 million for the same period last year. The decline was primarily
attributable to the economic conditions during the early part of 2009.
Second quarter gross profit margins continued to improve sequentially to 20.4%
versus 17.5% in the prior quarter and 17.6% for the same period last year. Tight
cost controls successfully decreased selling, general and administrative costs to
$1.9 million for the second quarter compared with $2.5 million for the prior
year's period. As a result of these improvements, second quarter operating
profits increased 149% to $524,000 from $210,000 in the same period last year.
Six-month operating profit increased 69% to $389,000, from $231,000 for the same
period last year.
Second quarter net loss improved to $35,000, compared with a net loss of $669,000
for the same period last year.
Six-month net loss improved to only $442,000, compared with a net loss of $1.1
million for the same period last year.
Recent Highlights
DecisionPoint recently launched its Field Mobility program, which assists
customers in identifying and achieving faster Return on Investment in field-based
workforce automation, while mitigating risks of in-house deployment. The Field
Mobility program provides application software and tool sets from multiple
Independent Software Vendor (ISV) Partners in virtually every application
category. DecisionPoint designs, deploys and integrates these solutions using
proven methodology and industry recognized best practices, while managing every
aspect of the rollout, including support services and help desk.
An example of the field mobility program's success is the recent launch of a
mobile, automated patrol officer solution, PatrolLIVE, for security companies
with DwellingLIVE, a software provider of home and community solutions worldwide.
The enhanced PatrolLIVE solution allows security guards to consolidate all of
their functions on a single Motorola mobile device, while enabling them to add
tasks and be more productive. One of the most significant benefits for customers
is that they can see the patrol officer's activities in real time through the
PatrolLIVE customer portal on the Internet, which gives an extra sense of
security and peace of mind.
"We are pleased with the initial response to our field mobility program and the
value our customers are already achieving with delivery of customized and
enhanced end-to-end mobile solutions," noted Toms. "DwellingLIVE is just one of a
number of new customers we have secured recently. We have provided significant
business process improvements using broadband wireless technologies to several
new customers such as Wackenhut, West Marine, Winco Foods, Reagent Chemical, and
Scientific Games, among others. These projects alone represent more than $7
million in new revenues for us."
"We look forward to the remainder of 2009 and beyond. Our success in signing
significant new customer contracts and building on an already robust pipeline,
gives us continued optimism. We remain focused on profitable growth and expansion
of higher margin solutions and services," Toms concluded.
About DecisionPoint Systems
DecisionPoint Systems, Inc. (DNPI) delivers improved productivity and operational
advantages to its clients by helping them move their business decision points
closer to their customers. They do this by making enterprise software
applications accessible to the front-line worker anytime, anywhere. DecisionPoint
utilizes all the latest wireless, mobility, and RFID technologies. For more
information on DecisionPoint Systems visit decisionpt.com 
Under The Private Securities Litigation Reform Act of 1995: Except for historical
information contained herein, the statements in this news release are
forward-looking statements that are made pursuant to the safe harbor provisions
of the Private Securities Act of 1995. Forward-looking statements involve known
and unknown risks and uncertainties, which may cause a company's actual results,
performance and achievement in the future to differ materially from forecasted
results, performance, and achievement. These risks and uncertainties are
described in the Company's periodic filings with the Securities and Exchange
Commission. The Company undertakes no obligation to publicly release the results
of any revisions to these forward-looking statements that may be made to reflect
events or circumstances after the date hereof, or to reflect the occurrence of
unanticipated events or changes in the Company's plans or expectation.
June 30, 2009December 31,
(unaudited)2008
--------------------------
Current assets
Cash and cash equivalents$504,160$944,941
Accounts receivable, net5,388,2348,069,039
Inventory, net1,492,5442,643,466
Deferred costs3,717,0793,705,483
Prepaid expenses27,97625,059
--------------------------
Total current assets11,129,99315,387,988
Property and equipment, net63,84678,161
Other assets
Other assets, net115,31897,875
Goodwill4,860,6634,860,663
--------------------------
Total other assets4,975,9814,958,538
--------------------------
Total assets$16,169,820$20,424,687
==========================
Current liabilities
Revolving credit facility$1,848,765$3,377,208
Current portion of debt1,048,3501,953,800
Accounts payable8,097,9837,864,693
Accrued liabilities2,986,7994,032,667
Unearned revenue6,949,6908,690,151
Current portion of deferred compensation36,10336,103
--------------------------
Total current liabilities20,967,69025,954,622
Long-term liabilities
Deferred compensation, net of current
portion199,484235,587
Debt, net of current portion-2,866,024
--------------------------
Total liabilities21,167,17429,056,233
Commitments and contingencies
Stockholders' equity (deficit)
Convertible preferred stock, $0.001 par
value, authorized 10,000,000 shares, 975
and none shares issued and outstanding,
respectively1-
Common stock, $0.001 par value, authorized
100,000,000 shares, 28,000,000 and
12,243,224 shares issued and outstanding,
respectively28,00012,243
Additional paid-in capital6,196,1412,192,146
Accumulated deficit(10,023,577)(9,581,209)
Unearned ESOP shares(1,198,414)(1,254,726)
--------------------------
Total stockholders' deficit(4,997,849)(8,631,546)
--------------------------
Total liabilities and stockholders'
equity$16,169,325$20,424,687
==========================
For the Three MonthsFor the Six Months
Ended June 30,Ended June 30,
2009200820092008
------------------------------------------------
Net sales$ 12,033,956$ 15,395,405$ 23,698,382$ 28,492,490
Cost of sales9,575,57612,686,82219,200,02423,166,004
------------------------------------------------
Gross profit2,458,3802,708,5834,498,3585,326,486
Selling, general
and administrative
expense1,934,7182,498,1244,110,3065,095,864
------------------------------------------------
Operating income523,662210,459388,052230,622
Other income
(expense):
Other expense,
net(248,675)(504,747)(222,151)(615,297)
ESOP
contribution,
net(28,156)(26,752)(56,312)(53,504)
Interest expense(203,808)(348,027)(472,921)(657,686)
------------------------------------------------
Total other
expense(480,639)(879,526)(751,384)(1,326,487)
Net income (loss)
before income
taxes43,023(669,067)(363,332)(1,095,865)
Provision for
income taxes77,541-78,5412,200
------------------------------------------------
Net loss$(34,518) $(669,067) $(441,873) $ (1,098,065)
================================================
Net Earnings per
Share -
Basic and diluted $(0.00) $(0.05) $(0.03) $(0.09)
================================================
Weighted Average
Shares Outstanding
-
Basic and diluted16,909,89112,243,22414,576,55712,243,224
================================================
Contacts:
Donald W. Rowley
Chief Financial Officer
DecisionPoint Systems, Inc.
Tel: 949-465-0065 x.105
Laurel Moody
Corporate Profile, LLC
Tel: 646-810-0608
SOURCE: DecisionPoint Systems, Inc.
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