St. Louis - (Business Wire) – August 11, 2006 - Siboney Corporation (OTC BB: SBON) announced today its results of operations for the second quarter and the six-month period ended June 30, 2006.
Revenues for quarter ended June 30, 2006 were $2,233,779, a decrease of $565,848 or 20.2% compared to $2,799,627 for the second quarter of 2005. Income before income taxes for the quarter ended June 30, 2006 was $67,273, a decrease of $384,161 or 85.1% compared to income before income taxes of $451,434 for the second quarter of 2005. Net income for the quarter ended June 30, 2006 was $74,273 ($.00 per basic and diluted share) after income tax benefit of $7,000, compared to net income of $196,434 ($.01 per basic and diluted share) after income tax expense of $255,000 reported for the second quarter of 2005.
For the six months ended June 30, 2006, the Company reported revenues of $3,729,183, a decrease of $844,319 or 18.5% compared to the first six months of 2005. Loss before income taxes for the six months ended June 30, 2006 was $541,855, compared to the loss before income taxes of $411,869 for the six months ended June 30, 2005. Net loss for the recently completed six-month period was $291,855 after an income tax benefit of $250,000, compared to a net loss of $164,869 after an income tax benefit of $247,000 for the six months ended June 30, 2005.
Bill Edwards, President of Siboney Learning Group, commented: “This year, we did not experience the seasonal increase in sales that traditionally occurs in our second quarter. Many customers delayed spending decisions which typically occur at the end of their June 30 budget cycle. We are focused on streamlining our sales process and product delivery in order to facilitate future sales. We have continued to implement cost-saving programs and adjusted our overhead structure in response to the decrease in funding for supplemental curriculum solutions. We remain committed to our strategic direction to become the value provider of choice for comprehensive and motivational educational software.”
| Three Months Ended June 30, | Six Months Ended June 30, | |||
|---|---|---|---|---|
| 2006 | 2005 | 2006 | 2005 | |
| Revenues | $2,233,779 |
$2,799,627 |
$3,729,183 | $4,573,502 |
| Cost of Product Sales | $506,810 |
$529,743 |
$940,082 |
$972,896 |
| Gross Profit | $1,726,969 | $2,269,884 | $2,789,101 | $3,600,606 |
| Selling, General & Administrative Expenses | $1,617,145 |
$1,810,578 |
$3,258,917 | $4,002,900 |
| Income (Loss) from Operations | $109,824 |
$459,306 |
$(469,816) |
$(402,294) |
| Other Expense | $(42,551) | $(7,872) | $(72,039) | $(9,575) |
| Income (Loss) before Income Taxes | $67,273 | $451,434 | $(541,855) | $(411,869) |
| Income Tax Benefit (Expense) | $7,000 | $(255,000) |
$250,000 |
$247,000 |
| Net Income (Loss) | $74,273 |
$196,434 |
$(291,855) |
$(164,869) |
| Earnings (Loss) per Common Share—Basic | $0.00 |
$0.01 |
$(0.02) |
$(0.01) |
| Earnings (Loss) per Common Share—Diluted | $0.00 |
$0.01 |
$(0.02) |
$(0.01) |
| Weighted Average Number of Common Shares Outstanding—Basic | 17,094,350 |
17,124,821 |
17,094,350 |
17,209,053 |
| Weighted Average Number of Common Shares Outstanding—Diluted | 17,113,202 |
17,323,781 |
17,094,350 |
17,209,053 |
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.