St. Louis - (Business Wire) – March 23, 2007 - Siboney Corporation (OTC BB: SBON) announced today its results of operations for the year ended December 31, 2006.
Revenues for 2006 were $6.3 million, a 17% decrease from the $7.5 million reported in 2005. Net loss for the year ended December 31, 2006 was $1,012,772 after an income tax benefit of $654,000 compared to a net loss of $1,236,394 after an income tax benefit of $772,000 for the year ended December 31, 2005.
Bill Edwards, President of Siboney Learning Group, commented: “2006 was a difficult year for supplemental educational curriculum sales. As a result we have reduced our operating costs and refocused our sales and marketing efforts. Our flagship product, Orchard Software, was recently selected as a finalist in the SIIA CODiE Awards for Best Educational Solution as well as the AEP Golden Lamp Awards. This industry recognition reconfirms the effectiveness of Orchard’s state specific assessment, targeted instruction and data driven management capabilities.”
| Year Ended December 31 | ||
|---|---|---|
| 2006 | 2005 | |
| Revenues | $6,295,934 | $7,544,703 |
| Cost of Product Sales | $1,791,684 | $2,105,973 |
| Gross Profit | $4,504,250 | $5,438,730 |
| Selling, General & Administrative Expenses | $6,001,475 | $7,407,951 |
| Income (Loss) from Operations | $(1,497,255) | $(1,969,221) |
| Income Tax Benefit (Expense) | $654,000 | $772,000 |
| Net Income (Loss) | $(1,012,772) | $(1,236,394) |
| Earnings (Loss) per Common Share—Basic | $(0.06) | $(0.07) |
| Weighted Average Number of Common Shares Outstanding—Basic | 17,093,391 | 17,094,350 |
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.