Sep 28, 2010
SANTA MONICA, Calif., Sept. 28 /PRNewswire-FirstCall/ -- Derycz Scientific, Inc. (OTC Bulletin Board: DYSC), a company that is pioneering a fresh way of facilitating the flow of information from content publishers to enterprise customers and their constituents, today reported financial and operating results for the fiscal year ended June 30, 2010.
Financial highlights include the following:
"The past fiscal year was exceptionally rewarding for Derycz Scientific. We grew revenues by 70% while significantly expanding our customer base and publisher agreements, and adding to our technology solutions through new business relationships," said Peter Derycz, President and CEO of Derycz Scientific. "Among our notable recent accomplishments, our main operating subsidiary signed a multi-year contract as the exclusive provider of reprints and ePrints for the prestigious Journal of the American Medical Association and nine additional specialty journals published by the American Medical Association.
"We achieved our goal of narrowing our loss compared with the prior year, even with our decision to increase our sales and marketing, information technology and administrative teams during the past year. We intend to continue monitoring staffing and make appropriate additions to support further growth.
"We expect another year of significant revenue growth for fiscal 2011," added Mr. Derycz. "Because our customers are spending cautiously in the current economic environment, we are focusing heavily on customer satisfaction and referrals, new customer acquisition and on new products and services to achieve this growth. We also see the need for aggressive pricing to support growth, which should result in gross margin remaining unchanged or down slightly. Our marketing and advertising expense for the current fiscal year are expected to be in the $500,000 range, representing a modest increase from fiscal 2010. We also expect that our cash resources will be sufficient to sustain current operations for the coming year."
Fiscal 2010 Financial Results
For fiscal 2010, revenues increased 70% to $24.9 million from $14.7 million in fiscal 2009. Revenues from the company's wholly owned subsidiary Reprints Desk increased 67% to $22.0 million from $13.2 million in fiscal 2009. Pools Press, which is now a wholly owned subsidiary, contributed the remaining revenues in both periods. Gross margin decreased from 17% during the year ended June 30, 2009 to 15% for the year ended June 30, 2010. The company expects gross margin percentage to remain relatively stable, but it will depend on the relative sales of various products, which have differing margins.
General and administrative expenses were $3.6 million for fiscal 2010, compared with $3.3 million in fiscal 2009. Marketing and advertising expenses were $440,000, compared with $158,000 in the prior year. For fiscal 2010, the company reported a net loss of $307,000, or $0.02 per share, compared with a net loss of $1.1 million, or $0.08 per share, for fiscal 2009.
As of June 30, 2010, the company had cash and cash equivalents of $1.9 million, essentially unchanged from June 30, 2009.
Fiscal Fourth Quarter Financial Results
For the fiscal 2010 fourth quarter, revenues increased 51% to $6.4 million, from $4.2 million in the fiscal 2009 fourth quarter. Financial information for the fourth quarter of fiscal 2010 should be read in conjunction with the fiscal 2010 Financial Results set forth above and our Annual Report on Form 10-K, filed today with the Securities and Exchange Commission.
Derycz Scientific management will host an investment-community conference call today beginning at 5:00 p.m. Eastern time (2:00 p.m. Pacific time) to discuss these results and answer questions. To participate in the call please dial (800) 374-0746 for domestic callers, or +1 (706) 634-1575 for international callers. For instructions and access for listening to the conference call live via the Internet, individuals can visit the company's website at www.deryczscientific.com.
A webcast replay will be available on the Derycz Scientific website for 90 days. A telephone replay will be available for 48 hours following the conclusion of the call by dialing (800) 642-1687 for domestic callers, or +1 (706) 645-9291 for international callers, and entering reservation code 13482902.
About Derycz Scientific®
Derycz Scientific, Inc. develops companies, products, services and systems that facilitate the re-use of published content in a manner that helps organizations achieve their marketing, communication and research goals effectively and in compliance with copyright law and regulatory rules. Its subsidiary companies include Reprints Desk and Pools Press. Reprints Desk offers a one-stop solution for reprints, ePrints and single articles, and has delivered millions of articles worldwide. Reprints Desk is an innovator in content retrieval and ePrint delivery, and its services are designed to help make effective use of published articles in a copyright-compliant manner. Pools Press has excelled in the reprint market for more than 30 years. It provides professionally printed articles from medical and technical journals; prints booklets, catalogs, pamphlets, direct mail pieces, newsletters and all business stationery; and works with publishers who wish to outsource a portion of or all of their reprints business. For more information, please visit www.deryczscientific.com.
Certain matters discussed in this press release may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such matters involve risks and uncertainties that may cause actual results to differ materially, including the following: changes in economic conditions; general competitive factors; acceptance of the company's products in the market; the company's success in technology and product development; the company's ability to execute its business model and strategic plans; and all the risks and related information described from time to time in the company's filings with the Securities and Exchange Commission ("SEC"), including the financial statements and related information contained in the company's Annual Report on Form 10-K filed today with the SEC. The company assumes no obligation to update the cautionary information in this release.
SOURCE Derycz Scientific, Inc.