St. Louis - (Business Wire) – November 14, 2007 - Siboney Corporation (OTC BB: SBON) announced today its results of operations for the third quarter and the nine months ended September 30, 2007.
Revenues for the quarter ended September 30, 2007 were $1,486,094, an increase of $196,959 or 15.3% compared to $1,289,135 for the third quarter of 2006. Income from operations for the quarter ended September 30, 2007 was $8,255, an increase of $516,602 compared to the loss from operations of $508,347 for the quarter ended September 30, 2006.
For the nine months ended September 30, 2007, the Company reported revenues of $4,604,254, a decrease of $414,064 or 8.3% compared to the first nine months of 2006. Loss from operations for the nine months ended September 30, 2007 was $30,275, compared to a loss from operations of $978,162 for the nine months ended September 30, 2006.
In accordance with accounting standards, the Company recorded a non-cash charge to establish a valuation allowance for its deferred tax assets in the amount of $1,141,000 during the third quarter, based upon its assessment of the realization of the net deferred tax assets and the Company’s third year of historic cumulative losses. As a result of the valuation allowance the Company’s income tax expense was $1,141,000 higher during the third quarter 2007. The Company can still use its net operating loss carryforwards in the future to offset taxes that would be due on future profits.
As a result, the Company reported a net loss for the third quarter of 2007 of $1,186,476 (or $0.07 per basic and diluted share) after income tax expense of $1,136,099, an increase of 240%, compared to $348,981 (or $0.02 per basic and diluted share) after an income tax benefit of $221,000 for the third quarter of 2006.
Net loss for the nine-month period was $1,298,505 (or $0.08 per basic and diluted share) after income tax expense of $1,099,099, compared to a net loss of $640,835 (or $0.04 per basic and diluted share) after an income tax benefit of $471,000 for the nine months ended September 30, 2006.
| Three Months Ended September 30, | Nine Months Ended September 30, | |||
|---|---|---|---|---|
| 2007 | 2006 | 2007 | 2006 | |
| Revenues | $1,486,094 |
$1,289,135 |
$4,604,254 | $5,018,318 |
| Cost of Product Sales | $404,611 |
$444,039 |
$1,274,684 | $1,384,122 |
| Selling, General & Administrative Expenses | $1,073,228 |
$1,353,443 |
$3,359,845 |
$4,612,358 |
| Income (Loss) from Operations | $8,255 |
$(508,347) |
$(30,275) |
$(978,162) |
| Income Tax Benefit (Expense) | $(1,136,099) | $221,000 | $(1,099,099) |
$471,000 |
| Net Income (Loss) | $(1,186,476) |
$(348,981) |
$(1,298,505) |
$(640,835) |
| Loss per Share - Basic | $(0.07) |
$(0.02) |
$(0.08) |
$(0.04) |
| Weighted Average Number of Shares - Basic | 16,920,419 |
16,930,419 |
16,920,419 |
16,930,419 |
| Loss per Share - Diluted | $(0.07) | $(0.02) | $(0.08) | $(0.04) |
| Weighted Average Number of Shares - Diluted | 16,920,419 |
16,930,419 |
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. 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.