DecisionPoint Systems Reports Preliminary Fourth Quarter and Fiscal 2009 Results
Annual EBITDA Expected to Increase 82% to $2.0 million, Driven by Gross Margin Expansion to 20.2% from 18.9% in 2008
FOOTHILL RANCH, CA — March 17, 2010 – DecisionPoint Systems, Inc. (OTCBB: DNPI), a leading data collection systems integrator, reported preliminary financial results for the fourth quarter and fiscal year ended December 31, 2009.
Revenues in the fourth quarter 2009 are estimated to increase 14% to $13.1 million from $11.5 million in the same period a year ago. The increase was primarily attributable to general economic improvement and significant growth in field mobility.
For the full year 2009, revenues are estimated to decrease 9% to $48.3 million from $53.3 million in 2008. The decrease was primarily attributable to general economic conditions in the twelve month period through the third quarter 2009 as a result of reduced capital expenditures across the Company’s customer base which was partially offset by growing field mobility.
Gross profit in the fourth quarter 2009 is estimated to increase 32% to $2.9 million from $2.2 million in the same period a year ago. Gross margin percentage in the fourth quarter 2009 is estimated to increase to 21.9% from 19.2% in the same period a year ago.
For the full year 2009, gross profit is expected to decrease 4% to $9.7 million from $10.1 million in 2008 as a result of the aforementioned decrease in revenue for the current year. Gross margin percentage for the full year 2009 is expected to increase to 20.2% from 18.9% for the full year 2008.
EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization, including non-cash stock-based compensation) in the fourth quarter is expected to increase 175% to $1.1 million from $0.4 million in the same period a year ago. For the full year 2009, EBITDA is expected to increase 82% to $ 2.0 million from $1.1 million in 2008 (see discussion about the presentation of EBITDA, a non-GAAP term, below).
“2009 was a transformative year for DecisionPoint,” said Nic Toms, DecisionPoint’s CEO, “as we changed the direction of the company to focus on higher margin, customer-driven mobile wireless and RFID software and service solutions. In fact, Q4 marked our third consecutive quarter of year-over-year EBITDA growth and second sequential quarter of profitability. From an operational perspective, we achieved what we set out to accomplish in 2009: diversification of our revenue and customer base, margin expansion, and a return to profitability.“
“Our success in signing significant new customer contracts and expanding an already robust pipeline provides us continued optimism for fiscal 2010. We remain focused on profitable growth and expansion of higher margin solutions and services,” said Toms.
About DecisionPoint Systems, Inc.
DecisionPoint Systems (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 the latest in wireless, mobility, and RFID technologies. For more information on DecisionPoint Systems, go to www.decisionpt.com.
Use of Non-GAAP Financial Information
EBITDA is not a financial measure calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”) and should not be considered as an alternative to net income, operating income or any other financial measures so calculated and presented, nor as an alternative to cash flow from operating activities as a measure of the company’s liquidity. DecisionPoint Systems defines EBITDA as net income/(loss) before interest expense; taxes; depreciation; amortization; and non-cash stock-based compensation. Other companies (including the company’s competitors) may define EBITDA differently. The company presents EBITDA because it believes it to be an important supplemental measure of performance that is commonly used by securities analysts, investors and other interested parties in the evaluation of companies in a similar industry. Management also uses this information internally for forecasting and budgeting. It may not be indicative of the historical operating results of DecisionPoint Systems nor is it intended to be predictive of potential future results. Investors should not consider EBITDA in isolation or as a substitute for analysis of results as reported under GAAP. See “Reconciliation of GAAP Income (Loss) to EBITDA (Loss)” in the company’s fourth quarter and fiscal year 2008 press release for further information on this non-GAAP measure and reconciliation of EBITDA to GAAP net loss.
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.
Donald W. Rowley
Chief Financial Officer
DecisionPoint Systems, Inc.
Tel 949-465-0065 x105
Investor Relations Contacts:
Scott Liolios or Matt Glover
Liolios Group, Inc.