News

DecisionPoint Reports Record Operating Profit for Second Quarter 2009

Strong New Business Pipeline Supports Growth for Second Half

FOOTHILL RANCH, CA (August 19, 2009 — Marketwire) – DecisionPoint Systems, Inc. (OTCBB: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. (OTCBB: 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 http://www.decisionpt.com/news.php.

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.

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