St. Louis—(Business Wire)—August 17, 2004—Siboney Corporation (OTC BB: SBON) announced today results of operations for the second quarter and six-month period ended June 30, 2004.
Revenues for the second quarter ended June 30, 2004 were $3,648,784, an increase of $312,885 or 9.4% compared to $3,335,929 in the second quarter of 2003. Net income for the quarter was $904,166 after income tax expense of $573,229 compared to $793,027, after income tax expense of $500,000, reported for the second quarter of 2003, representing an increase of $111,139 or 14%.
For the six months ended June 30, 2004, the Company reported that revenues were $6,305,637, an increase of $1,440,280 or 29.6% compared to $4,865,357 reported for the first six months of 2003. Net income for the six-month period was $1,128,458 after income tax expense of $715,427, compared to net income of $551,041 after income expense of $350,000, an increase of $577,417 or 104% reported for the first six months of 2003.
Bodie Marx, President, commented: “The recently completed quarter was our best ever in terms of sales and net income, thanks largely to the continued success of our Orchard Software for Your State product line. We continue to believe that Orchard offers schools a cost-effective solution for the increasingly difficult demands for accountability and instructional improvement mandated by the No Child Left Behind Act. An increasing number of schools are benefiting from Orchard’s value in motivating students to master key skills and concepts stressed on key achievement tests.”
Tim Tegeler, Chairman, added: “We believe these results reflect our investments in product and people. We will continue to execute our strategy designed to increase our presence in the marketplace through product enhancement and innovative marketing programs, while maintaining satisfactory profit margins. The acceptance of our product by new customers, combined with our rate of repeat customers, appears to us to be evidence that we are positioned for future growth.”
| Three Months Ended June 30 | Nine Months Ended June 30 | |||
|---|---|---|---|---|
| 2004 | 2003 | 2004 | 2003 | |
| Revenues | $3,648,784 | $3,335,929 | $6,305,637 | $4,865,357 |
| Cost of Product Sales | $689,477 | $629,832 | $1,225,716 | $1,007,966 |
| Selling, General & Administrative Expenses | $1,702,207 | $1,406,802 | $3,456,513 | $2,942,780 |
| Income (Loss) from Operations | $1,257,100 | $1,299,295 | $1,623,408 | $914,611 |
| Income Tax (Expense) Benefit | ($573,229) | ($500,000) | ($715,427) | ($350,000) |
| Net Income (Loss) | $904,166 | $793,027 | $1,128,458 | $551,041 |
| Earnings (Loss) per Common Share—Basic | $0.05 | $0.05 | $0.06 | $0.03 |
| Earnings (Loss) per Common Share—Diluted | $0.05 | $0.05 | $0.06 | $0.03 |
| Weighted Average Number of Common Shares Outstanding—Basic | 17,595,007 | 17,300,454 | 17,593,234 | 17,094,701 |
| Weighted Average Number of Common Shares Outstanding—Diluted | 18,086,423 | 17,474,213 | 17,927,144 | 17,525,478 |
| Total Assets | $7,391,917 | $6,582,881 | $7,391,917 | $6,582,881 |
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.