DecisionPoint Systems, Inc., a leading provider and integrator of Enterprise Mobility and Wireless Applications, provided preliminary financial results for the quarter ended March 31, 2014.
-Revenue Jumps 21%;
-Gross Profit Margin Increases by 90 Basis Points
-SG&A Expense Reduced by 26%
Preliminary Financial Highlights of First Quarter 2014:
-Revenue at $16.7 million increased 21% over the $13.8 million reported for Q1/2013
-Gross margin increased approximately 90 basis points to 21.4% over the 20.5% gross margin reported for Q1/2013
-SG&A expense decreased 26% to $3.7 million from the $5.0 million reported for Q1/2013
-Adjusted EBITDA of $731,000 reflecting a strong improvement over the loss of $1.013 million in Q1/2013
-Positive cash flow from operations showed an improvement of $1.4 million reaching $560,000 compared to negative ($837,000) for Q1/2013
For the quarter ended March 31, 2014, the Company announced, on a preliminary basis, revenues of $16.7 million, compared to $13.8 million for the first quarter of 2013, a 21% increase over the prior year. For the quarter ended March 31, 2014, the Company preliminarily announced a net loss of $113,000 for the period compared to a net loss of $2.1 million for Q1/2013, and a net loss after taking into account dividend payments and imputed dividends on the Company's Preferred shares outstanding of $442,000 or $0.04 loss per common share, compared with a net loss of $2.3 million or $0.27 loss per common share for the year-earlier period.
DecisionPoint expects to report its final results in the near future, after its independent accountants have finished their review procedures. There can be no assurance that the final results will be identical to, or as strong as, the preliminary results.
CEO Nicholas Toms commented, "The strong year-over-year growth gives us a good start for 2014, which we believe will be a good year for the Company and for our shareholders. The improving economy, together with expense reductions that we effected in the final months of 2013 and the further integration of the companies we previously acquired, have made it possible for us to achieve much better bottom-line results as well.
"We are pleased that our gross profit margin increased compared to last year's first quarter. We reduced our SG&A expense by 26%, to $3.7 million, versus $5.0 million in the first quarter of 2013, reducing our operating loss to $143,000, compared to a loss of $2.2 million in last year's first quarter. As you move down our P&L, our net loss before taxes was $91,000, down quite significantly from the $2.4 million loss for last year's first quarter.