St. Louis - (Business Wire) –March 28, 2008 - Siboney Corporation (OTC BB: SBON) announced today its results of operations for the year ended December 31, 2007.
Revenues for 2007 were $5,620,091, an 11% decrease from the $6,295,934 reported in 2006. Loss from operations for 2007 was $542,858, a decrease of $954,367 compared to the loss from operations of $1,497,225 for 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 $966,000 during 2007. As a result of the valuation allowance the Company’s income tax expense was $966,000 higher during 2007. The Company can still use its net operating loss carryforwards in the future to offset taxes that would be due on future profits.
The Company recorded an extraordinary gain of $624,725 in 2007 due to the sale of a claim that arose out of natural resources interests held in Cuba which were expropriated by the Cuban government. The gain included the cash of $1,018,725 we were paid offset by $10,000 in direct costs and $384,000 in income tax expense that was allocated to the gain in accordance with accounting standards.
As a result, the Company reported a net loss for the year ended December 31, 2007 of $853,676 (or $0.05 per basic and diluted share) after an income tax expense of $715,099 and the extraordinary gain compared to a net loss of $1,012,772 (or $0.06 per basic and diluted share) after an income tax benefit of $654,000 for the year ended December 31, 2006.
| Year Ended December 31 | ||
|---|---|---|
| 2007 | 2006 | |
| Revenues | $5,620,091 | $6,295,934 |
| Cost of Product Sales | $1,721,511 | $1,791,684 |
| Gross Profit | $3,898,580 | $4,504,250 |
| Selling, General & Administrative Expenses | $4,441,438 | $6,001,475 |
| Income (Loss) from Operations | $(542,858) | $(1,497,255) |
| Income Tax Benefit (Expense) | $(715,099) | $654,000 |
| Extraordinary gain, net of tax | $624,725 | $- |
| Net Income (Loss) | $(853,676) | $(1,012,772) |
| Earnings (loss) per share, basic and diluted | ||
| Loss before extraordinary gain | $(0.09) | $(0.06) |
| Extraordinary gain | $0.04 | $- |
| Total | $(0.05) | $(0.06) |
| Weighted Average Number of Common Shares Outstanding—Basic | 16,920,419 | 16,929,460 |
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.