St. Louis - (Business Wire) – March 27, 2006 - Siboney Corporation (OTC BB: SBON) announced today its results of operations for the year ended December 31, 2005.
Revenues for 2005 were $7.5 million, a 26% decrease from the $10.2 million reported in 2004. Net loss for the year ended December 31, was $1,236,394 after income tax benefit of $772,000 compared to net income for 2004 of $101,172 after income tax expense of $89,000.
Bill Edwards, President of Siboney Learning Group, commented: “We faced many challenges in 2005 which contributed to a decrease in revenues without a corresponding decrease in expenses. Our sales productivity was impeded by a soft market for education technology coupled with the delayed introduction of the newest version of our popular Orchard software series, Gold Star. At the same time, we utilized a significant amount of development, sales and marketing resources to release 18 new curriculum titles and upgrade/enhance over two-thirds of our Orchard software titles. We remain committed to our strategic direction to become the value provider of comprehensive and motivational educational software.”
| Year Ended December 31 | ||
|---|---|---|
| 2005 | 2004 | |
| Revenues | $7,544,703 | $10,182,717 |
| Cost of Product Sales | $2,105,973 | $2,255,153 |
| Gross Profit | $5,438,730 | $7,927,564 |
| Selling, General & Administrative Expenses | $7,407,951 | $7,354,831 |
| Litigation Settlement Expense | ---------- | $614,949 |
| Income (Loss) from Operations | $(1,969,221) | ($42,216) |
| Income Tax Benefit (Expense) | $772,000 | ($89,000) |
| Net Income (Loss) | $(1,236,394) | $101,172 |
| Earnings (Loss) per Common Share—Basic | $(0.07) | $0.01 |
| Earnings (Loss) per Common Share—Diluted | $(0.07) | $0.01 |
| Weighted Average Number of Common Shares Outstanding—Basic | 17,094,350 | 17,524,049 |
| Weighted Average Number of Common Shares Outstanding—Diluted | 17,094,350 | 17,963,775 |
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 as a result of various uncertainties. Factors that could cause actual results to differ materially from the forward-looking statements include, but are not limited to, the following: (1) risks related to our customers’ dependence on government funding to purchase the Company’s products; (2) risks associated with our ability to compete with well-established and well-funded competitors; (3) risks associated with the constant changes in the technologies used to build and deliver the Company’s products; (4) the Company’s ability to retain key personnel; (5) the Company’s ability to motivate its independent dealer representatives to sell the Company’s products; (6) changes in the market acceptance and demand for curriculum-based educational software; (7) risks associated with acceptance of statistical studies; and (8) risks associated with our ability to access capital to finance our business. 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.