Siboney Corporation (OTC BB: SBON) announced today significant improvements in their results of operations for the second quarter and six month period ended June 30, 2000.
Net revenues for the second quarter ended June 30, 2000 were $1,793,162, an increase of $717,399 or 66.7%, compared to $1,075,763 in the second quarter of 1999. Net income for the quarter was $862,460, an increase of $534,795 or 163 % over $327,665 reported for the second quarter of 1999.
For the six months ended June 30, 2000, the Company reported that revenues were $2,800,289, an increase of $881,672 or 46%, compared to $1,918,617 reported for the first six months of 1999. Net income for the six month period was $1,035,747, an increase of $635,610 or 158.8% over $400,137 reported for the period in 1999.
The Company is engaged, through Siboney Learning Group, Inc. (“SLG”), a wholly-owned subsidiary, in the publishing and distribution of educational software, primarily for schools. Prior to July 1, 2000, Siboney Learning Group offered two product lines: GAMCO Educational Software (“GAMCO”), which provides highly motivational curriculum-based single titles and series, and Orchard: Teacher’s Choice Software (“Orchard”), which offers schools a comprehensive, curriculum-based solution with universal management.
On July 1, 2000 the Company purchased the publishing assets and corporate name of Teacher Support Software (“TSS”). Teacher Support Software is a 20 year old company which has specialized in publishing educational software that help teachers help struggling students.
The increase in revenues for the three month period ended June 30, 2000 was due primarily to a 147% increase in sales of Orchard: Teacher’s Support Software. The Company received several large orders for Orchard software from major school districts that had previously used or piloted Orchard in their schools. Sales of GAMCO titles also increased due primarily to sales of new titles introduced within the past twelve months along with steady sales of older products.
The increase in net income for the quarter was due primarily to the increase in revenues combined with an increase in gross margins from 84.9% to 86.4% as the Company continues to sell higher margin software licenses, including Orchard.
Bodie Marx, President of Siboney Learning Group, commented: “This record-setting quarter speaks to the momentum we have built in sales and product development over the past few years. Our entire team is pleased by the growing acceptance of Orchard and the increasing number of schools using Orchard very successfully.”
Tim Tegeler, Chairman and CEO of Siboney Corporation, added: “We are very proud of the accomplishments of the Siboney Learning Group team thus far in 2000. The growth in both revenues and net income reflects the hard work and dedication each and every one of our people who, along with our fine network of dealers, have contributed to our success. We are also proud to be a company that is producing real time results, demonstrating to stockholders our management’s capability to achieve commendable growth and positive financial results. As well as being a company with a bright future, we are a company of success today.”
| Six Months Ended June 30 | Three Months Ended June 30 | |||
|---|---|---|---|---|
| 2000 | 1999 | 2000 | 1999 | |
| Revenues | $ 2,800,289 | 1,918,617 | 1,793,162 | 1,075,673 |
| Cost of Product Sales | $ 347,844 | 289,942 | 214,875 | 140,825 |
| Selling, General, & Admin. Expenses | $ 1,419,482 | 1,188,702 | 717,786 | 573,375 |
| Income from Operations | $ 1,032,963 | 439,973 | 860,501 | 361,563 |
| Other Income (Expenses) | $ 2,784 | (39,836) | 1,959 | (33,898) |
| Net Income | $ 1,035,747 | 400,137 | 862,460 | 361,563 |
| Weighted Average Shares Outstanding | 16,530,144 | 16,519,659 | 16,530,444 | 16,520,959 |
| Income per share | $ .06 | $ .023 | $ .05 | $ .02 |
Contact:
Siboney Corporation, St. Louis
Bodie Marx, 314/909-1670 x110
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.