St. Louis - (Business Wire) – November 14, 2006 - Siboney Corporation (OTC BB: SBON) announced today its results of operations for the third quarter and the nine-month period ended September 30, 2006.
Revenues for quarter ended September 30, 2006 were $1,289,135, a decrease of $146,311 or 10.2% compared to $1,435,446 for the third quarter of 2006. Loss before income taxes for the quarter ended September 30, 2006 was $569,981, a decrease of $150,752 or 20.9% compared to loss before income taxes of $720,733 for the third quarter of 2005. Net loss for the quarter ended September 30, 2006 was $348,981 ($.02 per basic and diluted share) after income tax benefit of $221,000, compared to net loss of $546,733 ($.03 per basic and diluted share) after income tax benefit of $174,000 reported for the third quarter of 2005.
For the nine months ended September 30, 2006, the Company reported revenues of $5,018,318, a decrease of $990,630 or 16.5% compared to the first nine months of 2005. Loss before income taxes for the nine months ended September 30, 2006 was $1,111,835, compared to the loss before income taxes of $1,132,602 for the nine months ended September 30, 2005. Net loss for the recently completed nine-month period was $640,835 after an income tax benefit of $471,000, compared to a net loss of $711,602 after an income tax benefit of $421,000 for the nine months ended September 30, 2005.
Bill Edwards, President of Siboney Learning Group, commented: “Our third quarter is typically a slow sales quarter due to the summer break and beginning of the school year. Toward the end of the third quarter, we began to realize the full impact of our operating cost reduction initiatives. Customer interest in our products is growing, although spending decisions continue to be delayed. We are focused on our sales process and product delivery in order to facilitate future sales.”
| Three Months Ended September 30, | Nine Months Ended September 30, | |||
|---|---|---|---|---|
| 2006 | 2005 | 2006 | 2005 | |
| Revenues | $1,289,135 |
$1,435,446 |
$5,018,318 | $6,008,948 |
| Cost of Product Sales | $444,039 |
$529,364 |
$1,384,122 | $1,502,260 |
| Gross Profit | $845,096 | $906,082 | $3,634,196 | $4,506,688 |
| Selling, General & Administrative Expenses | $1,353,443 |
$1,616,200 |
$4,612,358 |
$5,619,100 |
| Loss from Operations | $(508,347) |
$(710,118) |
$(978,162) |
$(1,112,412) |
| Other Expense | $(61,634) | $(10,615) | $(133,673) | $(20,190) |
| Loss before Income Taxes | $(569,981) | $(720,733) | $(1,111,835) | $(1,132,602) |
| Income Tax Benefit | $221,000 | $174,000 | $471,000 |
$421,000 |
| Net Loss | $(348,981) |
$(546,733) |
$(640,835) |
$(711,602) |
| Loss per Common Share—Basic | $(0.02) |
$(0.03) |
$(0.04) |
$(0.04) |
| Loss per Common Share—Diluted | $(0.02) |
$(0.03) |
$(0.04) |
$(0.04) |
| Weighted Average Number of Common Shares Outstanding—Basic | 17,094,350 |
17,030,419 |
17,094,350 |
17,149,291 |
| Weighted Average Number of Common Shares Outstanding—Diluted | 17,094,350 |
17,244,960 |
17,094,350 |
17,556,828 |
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.