St. Louis - (Business Wire) – August 16, 2005 - Siboney Corporation (OTC BB: SBON) announced today results of operations for the second quarter and six-month period ended June 30, 2005.
Revenues for the second quarter ended June 30, 2005 were $2,799,627, a decrease of $849,157 or 23.3% compared to $3,648,784 in the second quarter of 2004. Net income for the quarter was $196,434 after income tax expense of $255,000 compared to $904,166 after income tax expense of $573,229, reported for the second quarter of 2004, representing a decrease of $707,732 or 78.3%.
For the six months ended June 30, 2005, the Company reported that revenues were $4,573,502, a decrease of $1,732,135 or 27.5% compared to $6,305,637, reported for the first six months of 2004. Net loss for the six-month period was $164,869 after income tax benefit of $247,000, compared to $1,128,458 after income tax expense of $715,427, a decrease of $1,293,327 or 114.6% reported for the first six months of 2004.
Bill Edwards, President of Siboney Learning Group, commented: "Significant investments are being made to create innovative new products that meet the demands of the No Child Left Behind mandate and that complement our comprehensive product offerings. In addition, we are in the process of updating many of our existing titles with exciting new motivational content. We will be releasing these new products in the fourth quarter of 2005 and early 2006."
| Three Months Ended June 30, | Six Months Ended June 30, | |||
|---|---|---|---|---|
| 2005 | 2004 | 2005 | 2004 | |
| Revenues | $2,799,627 | $3,648,784 | $4,573,502 | $6,305,637 |
| Cost of Product Sales | $529,743 | $689,477 | $972,896 | $1,225,716 |
| Selling, General & Administrative Expenses | $1,810,578 | $1,702,207 | $4,002,900 | $3,456,513 |
| Income (Loss) from Operations | $459,306 | $1,257,100 | ($402,294) | $1,623,408 |
| Income Tax (Expense) Benefit | ($255,000) | ($573,229) | $247,000 | ($715,427) |
| Net Income (Loss) | $196,434 | $904,166 | ($164,869) | $1,128,458 |
| Earnings (Loss) per Common Share—Basic | $0.01 | $0.05 | ($0.01) | $0.06 |
| Earnings (Loss) per Common Share—Diluted | $0.01 | $0.05 | ($0.01) | $0.06 |
| Weighted Average Number of Common Shares Outstanding—Basic | 17,124,821 | 17,595,007 | 17,209,053 | 17,593,234 |
| Weighted Average Number of Common Shares Outstanding—Diluted | 17,323,781 | 18,086,423 | 18,161,161 | 17,927,144 |
Contact:
Siboney Corporation, St. Louis
Bill Edwards, 314-822-5615
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. Factors that could cause actual results to differ materially from the forward-looking statements include, but are not limited to, the following: (1) customers' dependence on government funding to purchase the Company's products; (2) constant changes in the technologies used to build and deliver the Company's products; (3) well-established and well-funded competitors; (4) the Company's ability to retain key personnel; (5) the Company's dependence upon its independent dealer representatives to sell the Company's products; (6) changes in the market acceptance and demand for curriculum-based educational software; and (7) the risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. 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.