St. Louis - (Business Wire) – May 15, 2007 - Siboney Corporation (OTC BB: SBON) announced today its results of operations for the quarter ended March 31, 2007.
Revenues for the three months ended March 31, 2007 were $1,187,083, a 21% decrease from the $1,495,404 reported during the same period in 2006. Loss from operations for the three months ended March 31, 2007 was $333,669, a decrease of $245,971 or 42% compared to loss from operations of $579,640 for the three months ended March 31, 2006.
Due to a decrease in costs, the Company reported a lower net loss for the first quarter of 2007 compared to the first quarter of 2006, despite lower revenues. The net loss for the first quarter of 2007 was $249,629 (or $0.01 per basic and diluted share) after an income tax benefit of $136,000 compared to $366,128 (or $0.02 per basic and diluted share) after an income tax benefit of $243,000 for the first quarter of 2006.
Bill Edwards, President of Siboney Learning Group, commented: “We are seeing the positive impact of cost cutting strategies implemented during 2006 in our quarterly results. Current sales efforts target the upcoming launch of PracticePlanet, our new online test preparation software. In addition, an aggressive marketing campaign highlights several industry awards earned by Orchard Gold Star, our flagship product. Orchard Gold Star earned recognition both as a “Best Education Solution” finalist in the Software & Information Industry Association’s CODiE Awards, and as a finalist in the Technology category of the Association of Educational Publishers’ Golden Lamp Awards. We are also proud to announce that Orchard Gold Star 7-9 bundle is ComputED’s Bessie award selection for Best Educational Software in the Middle School Language Arts category.”
| Three Months Ended March 31 | ||
|---|---|---|
| 2007 | 2006 | |
| Revenues | $1,187,083 | $1,495,404 |
| Cost of Product Sales | $427,874 | $433,272 |
| Selling, General & Administrative Expenses | $1,092,878 | $1,641,772 |
| Income (Loss) from Operations | $(333,669) | $(579,640) |
| Income Tax Benefit | $136,000 | $243,000 |
| Net Income (Loss) | $(249,629) | $(366,128) |
| Earnings (Loss) per Common Share—Basic and Diluted | $(0.01) | $(0.02) |
| Weighted Average Number of Common Shares Outstanding—Basic and Diluted | 16,920,419 | 16,930,419 |
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.