
News Releases
Monday, November 16th, 2009
DecisionPoint Reports Strong Profit for Third Quarter 2009
Focus on Higher Margin Business and Cost Controls Continue to Drive Margin Growth
Foothill Ranch, CA — (November 16, 2009) –DecisionPoint Systems, Inc. (OTCBB:DNPI), a leading provider of Enterprise Mobility and RFID solutions, today announced operating results for the fiscal third quarter and nine months ended September 30, 2009.
Financial Highlights
• Third quarter revenues were $11.5 million
• Third quarter gross margins grew to 20.6%
• Third quarter operating income rose 32.6% compared to prior year’s period
• Third quarter net income was $165,000 or $0.01 per share compared to net profit of $26,000 for the same period last year
Nicholas Toms, Chief Executive Officer of DecisionPoint commented, “These are excellent results. We have achieved a net income of $165,000 or $0.01 per share by continuing to focus on higher margin business and tight cost controls. Strong gains in field mobility and managed services continue to drive margin improvements.
Third quarter 2009 revenues were $11.5 million compared to $13.3 million for the same period last year. For the nine months ended September 30, 2009, revenues were $35.2 million compared to $41.8 million for the same period last year. The decline was primarily attributable to challenging economic conditions during 2009.
Third quarter gross profit margins continued to improve sequentially to 20.6% versus 20.4% in the prior quarter and 19.2% for the same period last year. Tight cost controls have successfully decreased selling, general and administrative costs to $1.9 million for the third quarter compared with $2.2 million for the prior year’s period. As a result of these improvements, third quarter operating profits increased 32.6% to $429,000 from $324,000 in the same period last year.
Nine-month operating income increased 47% to $818,000, from $555,000 for the same period last year. Nine-month gross margins improved to 19.5% compared to 18.9% in the previous year’s period.
Third quarter net income was $165,000 or $0.01 per share, compared with $26,000 for the same period last year. Nine-month net loss improved to only $277,000 or (.02) per share, compared with a net loss of $1.1 million for the same period last year.
Recent Highlights
In September, DecisionPoint announced that the United States Air Force had issued a supplemental order for $623,000 for additional BITS (Barcode Inventory Tracking System) Kits bringing the value of the ongoing program for tracking "Go To War" equipment support units to $5.4 million.
In addition, the Company continued to close business for its MobileArc Field Mobility suite of products and services. Decision Point recently announced the completion of a $2.7 million mobile security solution rollout for the leading provider of security solutions in the U.S. This is one of over two dozen new field mobility contracts secured in the third quarter, representing an aggregate value of over $5 million in deployments scheduled over the next two to three quarters.
This success was facilitated by the launch of the MobileCare suite of post-deployment support services geared towards helping customers deploy and support mobile computing systems to field-based workforces. In addition, DecisionPoint drove increased awareness and education of mobility-based systems by revamping its website at www.decisionpt.com and launching a mobility systems-oriented blog, www.decisionpt.com/blog.
Business Outlook
“We are excited about our business outlook, as the momentum we have experienced in the first nine months of the year continues into the fourth quarter,” noted Toms. “Our pipeline of projects is approaching $100 million and we have had a 22% increase in our unearned revenue since last quarter. Our strategy is working and we look forward to the rest of the year.”
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.
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.
949.465.0065 x105 t
Laurel Moody
Corporate Profile, LLC
646.810.0608 t
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