St. Louis - (Business Wire) – May 15, 2006 - Siboney Corporation (OTC BB: SBON) announced today its results of operations for the quarter ended March 31, 2006.
Revenues for quarter ended March 31, 2006 were $1,495,404, a decrease of $278,471 or 15.7% compared to $1,773,875 for the first quarter of 2005.
Loss before income taxes for the quarter ended March 31, 2006 was $609,128, a decrease of $254,175 or 29.4% compared to loss before income taxes of $863,303 for the first quarter of 2006.
Net loss for the first quarter was $366,128 ($.02 per basic and diluted share) after income tax benefit of $243,000, compared to a net loss of $361,303 ($.02 per basic and diluted share) after income tax benefit of $502,000 reported for the first quarter of 2005.
Bill Edwards, President of Siboney Learning Group, commented: “The first quarter is traditionally our slowest sales quarter. Our sales channels are focused on selling our recently updated products and we are beginning to see the impact of cost-saving programs implemented over the past quarter. These efforts are designed to better align revenues and expenses during a slowdown in funding for supplemental curriculum solutions. We remain committed to our strategic direction to become the value provider of comprehensive and motivational educational software.”
| Three Months Ended March 31 | ||
|---|---|---|
| 2006 | 2005 | |
| Revenues | $1,495,404 | $1,773,875 |
| Cost of Product Sales | $433,272 | $443,153 |
| Gross Profit | $1,062,132 | $1,330,722 |
| Selling, General & Administrative Expenses | $1,641,772 | $2,192,322 |
| Income (Loss) from Operations | $(579,640) | $(861,600) |
| Other Expense | $(29,488) | ($1,703) |
| Loss before Income Taxes | $(609,128) | $(863,303) |
| Income Tax Benefit | $243,000 | $502,000 |
| Net Income (Loss) | $(366,128) | $(361,303) |
| Earnings (Loss) per Common Share—Basic and Diluted | $(0.02) | $(0.02) |
| Weighted Average Number of Common Shares Outstanding—Basic and Diluted | 17,094,350 | 17,357,266 |
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.