St. Louis - (Business Wire) - November 11, 2005 - Siboney Corporation (OTC BB: SBON) announced today results of operations for the third quarter and nine-month period ended September 30, 2005.
Revenues for the third quarter ended September 30, 2005 were $1,435,446, a decrease of $494,646 or 25.6% compared to $1,930,092 in the third quarter of 2004. Net loss for the quarter was $546,733 after income tax benefit of $174,000 compared to a net loss of $664,677 after income tax benefit of $444,193, reported for the third quarter of 2004, representing a decrease of $117,944 or 17.7%.
For the nine months ended September 30, 2005, the Company reported that revenues were $6,008,948, a decrease of $2,226,781 or 27.0% compared to $8,235,729, reported for the first nine months of 2004. Net loss for the nine-month period was $711,602 after income tax benefit of $421,000, compared to net income of $463,781 after income tax expense of $271,234, a decrease of $1,175,383 or 253.4% reported for the first nine months of 2004.
Bill Edwards, President of Siboney Learning Group, commented: "We continue to experience a slowdown in sales due to an interruption of customer order patterns as a result of introducing our flagship Gold Star product late in the sales cycle for the 2005/2006 school year. We are in the final stages of upgrading many of our curriculum titles and preparing them for release over the next few months."
| Three Months Ended September 30, | Six Months Ended September 30, | |||
|---|---|---|---|---|
| 2005 | 2004 | 2005 | 2004 | |
| Revenues | $1,435,446 |
$1,930,092 |
$6,008,948 |
$8,235,729 |
| Cost of Product Sales | $529,364 |
$429,001 |
$1,502,260 |
$1,654,717 |
| Selling, General & Administrative Expenses | $1,616,200 |
$2,003,819 |
$5,619,100 |
$5,460,332 |
| Litigation Settlement Expense |
$615,000 | $615,000 | ||
| Income (Loss) from Operations | $(710,118) |
$(1,117,728) |
$(1,112,412) |
$505,680 |
| Income Tax (Expense) Benefit | $174,000 | $444,193 |
$421,000 |
$(271,234) |
| Net Income (Loss) | $(546,733) |
$(664,677) |
$(711,602) |
$463,781 |
| Earnings (Loss) per Common Share—Basic | $(0.03) |
$(0.04) |
$(0.04) |
$0.03 |
| Earnings (Loss) per Common Share—Diluted | $(0.03) |
$(0.04) |
$(0.04) |
$0.03 |
| Weighted Average Number of Common Shares Outstanding—Basic | 17,030,419 |
17,560,908 |
17,149,291 |
17,582,348 |
| Weighted Average Number of Common Shares Outstanding—Diluted | 17,244,960 |
18,108,073 |
17,556,828 |
18,008,820 |
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.