St. Louis, MO—Siboney Corporation (OTC BB: SBON—news) announced today significant improvements in their results of operations for the second quarter and six-month period ended June 30, 1999.
Net revenues for the second quarter ended June 30, 1999, increased 34.4% to $1,075,763, compared to $800,644 in the second quarter of 1998. Net income for the quarter was $327,665, an increase of 118.8% over $149,756 reported for the second quarter of 1998.
For the six months ended June 30, 1999, the Company reported that revenues increased 45.1% to $1,918,617, as compared to $1,322,326 reported for the first six months of 1998. Net income for the six-month period increased 516% to $400,137 from $64,954 reported for the period in 1998.
The Company is engaged, through its Siboney Learning Group Division and Gamco Industries, Inc., in the publishing and distribution of educational software. The Company’s main business is publishing proprietary educational software in math, reading and language arts for students and teachers in grades kindergarten through grade 12.
The increases in revenues and earnings were achieved by the Company’s growing distribution to schools and its stream of new titles and new versions which are meeting schools’ needs for quality content on new computer platforms. 93% of Siboney Learning Group’s sales were generated by products developed and released in the last 24 months.
The Company also experienced across-the-board increases in all distribution channels, including its own inside sales team, a network of master territorial dealers, and leading national software catalog dealers. Of particular significance is the 149% increase in revenues generated by the Company’s Orchard Teacher’s Choice software, which offers a comprehensive curricular solution with universal management.
Bodie Marx, President of Siboney Learning Group, commented: “Our entire team is delighted by our progress. We have become a major player in the school software business thanks to an aggressive product expansion and careful management of distribution channels. We look forward to maintaining this very positive momentum.”
Tim Tegeler, Chairman and CEO of Siboney Corporation, added: “Like our first-quarter results, these second-quarter numbers reinforce that our investment in Siboney Learning Group is producing meaningful returns. We are very proud of the team we have assembled and their dedication to producing quality educational software and profitable operating results.”
| Six Months Ended June 30 | Three Months Ended June 30 | |||
|---|---|---|---|---|
| 1999 | 1998 | 1999 | 1998 | |
| Revenues | $ 1,918,617 | 1,311,326 | 1,075,673 | 800,644 |
| Cost of Product Sales | $ 289,942 | 176,239 | 140,825 | 100,584 |
| Selling, General, & Admin. Expenses | $ 1,188,702 | 1,066,791 | 573,375 | 537,638 |
| Income from Operations | $ 439,973 | 79,296 | 361,563 | 162,422 |
| Other Income (Expenses) | $ (39,836) | (14,342) | (33,898) | (12,666) |
| Net Income | $ 400,137 | 64,954 | 327,665 | 149,756 |
| Weighted Average Shares Outstanding | 16,519,659 | 16,517,193 | 16,520,959 | 16,517,193 |
| Income per share | $ .023 | $ .004 | $ .020 | $ .009 |
Contact:
Siboney Corporation, St. Louis
Tim Tegeler, 314-725-6141
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 due to various factors, including the level of education funding provided by federal and state governments, regulatory developments, product development and pricing strategies undertaken by our competitors and our ability to attract and retain key personnel. 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.