St. Louis, MO—Siboney Corporation (OTC BB:SBON) announced a dramatic improvement in both revenues and profitability for its first quarter. Revenues for the period ended March 31, 1999 were $842,854 compared to $521,682, a 62% gain over the same period in 1998.
These improved results were led by the Company’s Siboney Learning Group division, which enjoyed a quarterly record for sales of its educational software to schools. The increase in revenues was due to record sales of the Orchard Teachers’ Choice Software and GAMCO educational software product lines.
The Company reported net income for the period of $72,472 compared to a loss for the quarter ended March 31, 1998 of $84,802. Gross margins were 82.4% for the quarter versus 85.5% during the same quarter of 1998. This decrease in gross margins was due to higher sales of newly licensed products which require the Company to pay royalties based upon net sales.
Tim Tegeler, Chairman of Siboney Corporation, stated: "We are off to a terrific start as we are seeing the results of our investments in product development and new marketing strategies. We expect to continue our success through the balance of the year."
Bodie Marx, President of Siboney Learning Group, added: "Our entire management team is working hard to maximize sales while controlling expenses. Since the first quarter is traditionally mediocre for school publishers, we are obviously gaining market share thanks to our new and upgraded products and improved sales networks."
Siboney Learning Group sells educational software to schools that helps students master key skills and concepts stressed in textbooks and on standardized tests.
Any forward-looking statement is necessarily subject to significant uncertainties and risks. The words "believes", "anticipates", "intends", "expects" and similar expressions are intended to identify forward-looking statements. Actual results could be materially different. The Company undertakes no obligation to publicly release the results of any revisions to these forward looking statements which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
| Quarter Ending March 31 | ||
|---|---|---|
| 1999 | 1998 | |
| Revenues | $ 842,854 | 521,682 |
| Cost of Product Sales | $ 149,117 | 75,655 |
| Selling, General, and Admin. Expenses | $ 615,327 | 529,153 |
| Profit (loss) from operations | $ 78,410 | (83,126) |
| Other Income (Expense) | $ (5,938) | (1,676) |
| Net Profit (Loss) | $ 72,472 | (84,802) |
| Profit (Loss) per share | $ .004 | (.005) |
Contact:
Siboney Corporation, St. Louis
Tim Tegeler, 314/725-6141
Any forward-looking statement is necessarily subject to significant uncertainties and risks. The words “believes”, “anticipates”, “intends”, “expects” and similar expressions are intended to identify forward-looking statements. Actual results could be materially different due to various factors, including the level of education funding provided by federal and state governments, regulatory developments, product development and pricing strategies undertaken by our competitors and our ability to attract and retain key personnel. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.