Business News

Emtec, Inc. Announces Second Quarter Results

Monday 20. April 2009 - Six-Month EBITDA $2.675 Million

Emtec, Inc. (OTC Bulletin Board: ETEC) (“Emtec” or the “Company”) announced today that for the quarter ended February 28, 2009, earnings before interest, taxes, depreciation and amortization expenses (“EBITDA”) was $215,568 compared to an EBITDA loss of $39,028 for the quarter ended February 28, 2008. For the six months ended February 28, 2009, EBITDA was $2.675 million compared to $2.761 million for the six months ended February 28, 2008. EBITDA represents a non-GAAP (Generally Accepted Accounting Principles) financial measure. A table reconciling this measure to net income (loss), the appropriate GAAP measure is included in this release.

For the quarter ended February 28, 2009, there was a slight improvement in net loss as the consolidated net loss was $385,017, a decrease of $6,361 over the net loss of $391,378 for the comparable quarter in the prior year. The six month figures remained positive with net income of $620,925, a decrease of $233,899 over the $854,824 of net income for the comparable six months of the prior year. Earnings per share for the six months ended February 28, 2009 was $0.04 per share, a decrease of $0.02 per share from the $0.06 per share for the comparable six months in the prior year.

Our Global Services Division’s revenues were $8.83 million for the three months ended February 28, 2009. Global Services Division consists of revenues from our recently acquired subsidiaries Luceo, eBAS, Aveeva and KOAN-IT. Our Global Services Division’s operating income for the three months ended February 28, 2009 was $242,552. Systems Division’s total revenues decreased $10.93 million, or 24.8%, to $33.13 million for the three months ended February 28, 2009, compared to $44.07 million for the three months ended February 28, 2008. Operating loss for our Systems Division for the three months ended February 28, 2009 increased by 71.5%, or $247,943, to $594,482, compared to $346,539 for the three months ended February 28, 2008. The decreases in revenues and operating income experienced in the Systems Division are primarily attributed to the current economic downturn and the deferral of some larger computer roll-out projects to future quarters.

“In spite of the challenges in the present economic environment, we continue to have successes in a number of areas,” said Dinesh Desai, Chairman and Chief Executive Officer of Emtec. “Our increased utilization of engineering associates in our Systems Division resulted in an increase in gross profit margin to 13.5% for the quarter compared to 11.3% for the comparable quarter a year ago. Additionally the positive contribution to earnings provided by Emtec Global Services continues to give us confidence that our acquisition strategy is on target.”