St. Louis—(Business Wire)—November 15 , 2004—March 24, 2005 – Siboney Corporation (OTC BB: SBON) announced today its results of operations for the year ended December 31, 2004.
Revenues for 2004 were $10.2 million, a 16% increase from the $8.8 million reported in 2003. The Company’s net income decreased from $451,000 in 2003 to $101,172 in 2004, primarily due to litigation settlement expenses, increases in salaries and marketing expenses, and increases in the cost of product development.
Earnings per share were $.01 in 2004 compared to $.03 in 2003.
Tim Tegeler, Chairman and CEO of Siboney Corporation, commented: “In 2004, we were gratified to receive the two largest orders in Siboney Learning Group’s history, totaling over $1 million and representing approximately 10% of our revenues. We believe these orders validate our strategy of seeking to increase our average order size through product improvement. Unfortunately, in 2004 we also became involved in a lawsuit with a company that supplies software products we had licensed. We chose to settle the lawsuit to avoid the costs and distraction of extended litigation. The cost of that settlement combined with our related legal fees reduced our 2004 net income by approximately $700,000.”
| Year Ended December 31 | ||
|---|---|---|
| 2004 | 2003 | |
| Revenues | $10,182,717 | $8,752,789 |
| Cost of Product Sales | $2,255,153 | $2,039,147 |
| Selling, General & Administrative Expenses | $7,354,831 | $6,014,133 |
| Litigation Settlement Expense | $614,949 | ------------ |
| Income (Loss) from Operations | ($42,216) | $699,509 |
| Income Before Income Taxes | $190,172 | $685,110 |
| Income Tax Benefit (Expense) | ($89,000) | ($234,075) |
| Net Income (Loss) | $101,172 | $451,035 |
| Earnings (Loss) per Common Share—Basic | $0.01 | $0.03 |
| Earnings (Loss) per Common Share—Diluted | $0.01 | $0.03 |
| Weighted Average Number of Common Shares Outstanding—Basic | 17,524,049 | 17,343,407 |
| Weighted Average Number of Common Shares Outstanding—Diluted | 17,963,775 | 17,374,890 |
| Total Assets | $6,386,832 | $6,369,753 |
| Stockholders' Equity | 5,036,903 | 5,012,478 |
Contact:
Siboney Corporation, St. Louis
Tim Tegeler, 314/822-3163
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.