Easley, SC – (MARKET WIRE) – August 12, 2009 – Computer Software Innovations, Inc. (OTCBB: CSWI), CSI Technology Outfitters(TM) ("CSI") today announced its financial results for the second quarter and six months ended June 30, 2009.
Financial Highlights:
• Revenues of $13.8 Million for the Second Quarter of 2009;
• Gross Profit of $3.3 Million for the Second Quarter of 2009;
• Operating Income of $0.5 Million for the Second Quarter of 2009;
• Return to profitability with estimated future cost savings of $1.0 million annually.
Financial Results:
CSI posted revenue of approximately $13.8 million for the second quarter ended June 30, 2009, down approximately $3.8 million or 22% compared to the second quarter of 2008. The revenue decrease was due to a $3.8 million or 28% decrease in technology sales primarily from decreased sales of interactive classroom and infrastructure solutions, while software sales remained relatively flat, edging up slightly.
Gross profit for the second quarter of 2009 was approximately $3.3 million, a decrease of approximately $1.4 million or 30% in comparison with the second quarter of 2008 due to the revenue decline in the technology segment coupled with a significant portion of personnel costs being fixed, and increased software costs including amortization charges for asset write-ups and lower margins from acquired operations. Operating income for the quarter was approximately $0.5 million, a decrease resulting from the lower gross profit of $1.3 million or 72% compared to operating income of $1.8 million for the same period in the prior year.
CSI posted net income for the quarter ended June 30, 2009 of approximately $0.2 million or $0.03 earnings per basic share and $0.02 earnings per diluted share, compared to net income of approximately $1.0 million and $0.21 earnings per basic share and $0.08 earnings per diluted share for the same period last year. The decrease was a result of the decrease in operating income, primarily from the decreased revenues and increased expenses for investment toward deeper penetration of CSI’s expanded geographic footprint and delay in realizing a benefit from the Version3 acquisition.
CSI posted revenue of approximately $22.7 million, a decrease of approximately $7.0 million or 24% in comparison with the first six months of 2008. This net decrease included a $7.2 million decrease in technology solutions sales, partially offset by a $0.3 million increase in software applications segment sales.
Gross profit for the first six months was approximately $5.0 million, a decrease of $2.6 million or 34% compared to 2008. The gross margin decreased from 25.8% in 2008 to 22.2% in 2009 due to the decline in the technology segment coupled with a significant portion of personnel costs being fixed. Operating loss for the first six months was approximately $0.4 million compared to operating income of $2.6 million for the same period in 2008. Net loss was $0.4 million or a loss of $0.07 per basic and diluted share as compared to net income of $1.4 million or earnings of $0.30 per basic share and $0.12 per diluted share for the same period in 2008.
Nancy Hedrick, CEO of CSI stated, “We are pleased that we were able to return to profitability in Q2 2009. While our public sector clients continue to face budget constraints over prior years, we have seen sales activity improve in Q2 and early Q3. And we continue to closely monitor our fixed costs to mirror our revenue. We began the implementation of cost reduction efforts projected to save approximately $1.0 million (net of tax) annually. As in prior quarters, our team has stepped up and met the challenges of the current economy. ”
Earnings before interest, taxes, depreciation and amortization (“EBITDA”) decreased $1.2 million to $1.1 million for the quarter ended June 30, 2009, and decreased $2.8 million to $0.8 million for the six months ended June 30, 2009. The decrease in EBITDA was primarily due to the decrease in net income over the prior year after reductions of the related tax effects of those decreases in net income. (EBITDA is a non-GAAP financial measure. See reconciliation to GAAP measure net income (loss) which follows below.)
Conference Call Reminder for Today
The Company will host a conference call today, Wednesday, August 12, 2009 at 4:15 Eastern Time to discuss the Company's financial and operational results for second quarter 2009, which ended June 30, 2009.
Conference Call Details
Date: Wednesday, August 12, 2009
Time: 4:15 p.m. (EST)
Dial-in Number: 1-877-941-8609
International Dial-in Number: 1-480-629-9813
It is recommended that participants phone-in approximately 5 to 10 minutes prior to the start of the 4:15 p.m. call. A replay of the conference call will be available approximately 3 hours after the completion of the call for 30 days, until September 11, 2009. To listen to the replay, dial 1-800-406-7325 if calling within the U.S., 1-303-590-3030 if calling internationally and enter the pass code 4121601.
The call is also being webcast and may be accessed at CSI's website at www.csioutfitters.com. The webcast will be archived and accessible until September 11, 2009 on the Company website.
About Computer Software Innovations, Inc.
CSI provides software and technology solutions to public sector markets. The 21st Century School solution has established the company as a major technology provider to the southeast education market. The 21st Century School is a seamless integration of instruction, collaboration, and network solutions that has been a significant factor in doubling company revenue in the past three years to over $58 million and increasing education revenue to approximately 90% of total revenue. The CSI solution portfolio encompasses proprietary accounting software specialized for the public sector, lesson planning and identity lifecycle management software, SharePoint development, network infrastructure and end device solutions, IP telephony and IP convergence applications, network management solutions and services, and interactive classroom technologies. More information about CSI (OTCBB: CSWI.OB) is available at www.csioutfitters.com.
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