St. Louis, MO—Siboney Corporation (OTC BB: SBON) announced today results of operations for the third quarter and nine-month period ended September 30, 2002.
For the nine months ended September 30, 2002, the Company reported that revenues were $6,857,462, an increase of $486,667 or 7.6% compared to $6,370,795 reported for the first nine months of 2001. Net income for the nine-month period was $608,827, a decrease of $677,894 or 52.7% from net income of $1,286,721 for the first nine months of 2001.
Revenues for the third quarter ended September 30, 2002 were $1,915,641, a decrease of $35,422 or 1.8%, compared to $1,951,063 in the third quarter of 2001. Net income for the quarter was $72,688 compared to $19,035 reported for the third quarter of 2001.
The provision for income taxes of $365,900 recognized in the third quarter of 2002 represented the Company’s current realization of its net deferred tax asset which related primarily to the carryforwards of net operating losses incurred in prior years. The Company expects its available net operating loss carryforwards will be sufficient to offset any obligation to pay federal income taxes through 2002. The Company did not report a provision for income taxes in 2001 as its utilization of the prior years’ net operating loss in those periods was offset by a reduction in the deferred tax asset valuation allowance.
Tim Tegeler, Chairman and CEO, added: “Given the slowdown of revenues in the educational software publishing industry due to concerns about budget cutbacks in the K-12 markets, we are pleased to report an increase of revenues for our first nine months. These results reinforce our commitment to new product development. Lower net income was a result of the current year provision for income taxes not recognized in the prior year period, as well as increased cost of product sales, most notably in amortization of development expense. We have also increased spending on technical support as we must provide for our growing number of customers and products.”
| Nine Months Ended September 30 | Three Months Ended September 30 | |||
|---|---|---|---|---|
| 2002 | 2001 | 2002 | 2001 | |
| Revenues | $ 6,857,462 | 6,370,795 | 1,915,641 | 1,951,063 |
| Cost of Product Sales | $ 1,531,426 | 1,044,799 | 464,728 | 434,117 |
| Selling, General, & Admin. Expenses | $ 4,314,050 | 3,974,002 | 1,373,152 | 1,482,095 |
| Income from Operations | $ 1,011,986 | 1,351,994 | 77,761 | 34,851 |
| Provisions for Income Taxes | $ 365,900 | — | (5,100) | — |
| Net Income | $ 608,827 | 1,286,721 | 72,688 | 19,035 |
| Earnings per Common Share —Basic | $0.04 | 0.08 | 0.00 | 0.00 |
| Earning per Common Share —Diluted | $0.03 | 0.07 | 0.00 | 0.00 |
| Weighted Ave Number of Common Shares Outstanding —Basic | 16,781,251 | 16,683,274 | 16,792,139 | 16,707,719 |
| Weighted Ave Number Of Common Shares Outstanding —Diluted | 17,500,454 | 17,552,569 | 17,401,030 | 17,711,719 |
| Total Assets | $5,954,766 | $5,514,827 | $5,954,766 | $5,514,827 |
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.