AP NEWS

CynergisTek Reports Second Quarter 2018 Financial Results

August 9, 2018

MISSION VIEJO, Calif.--(BUSINESS WIRE)--Aug 9, 2018--CynergisTek, Inc. (NYSE AMERICAN: CTEK), a leader in healthcare cybersecurity and information management, today announced its financial results for the second quarter that ended June 30, 2018.

Financial Highlights for the Second Quarter 2018 Include:

Revenues for the second quarter were $16.9 million, an increase of 1 percent from $16.8 million in the second quarter of 2017. Gross margins were comparable at 26 percent for the second quarter 2018 compared to the same period in 2017. GAAP net income for the second quarter was $0.1 million, or $0.01 per basic and diluted share compared to net income of $0.07 million, or $0.01 per basic and diluted share in the same period of 2017. Non-GAAP adjusted EBITDA was $1.1 million in the second quarter of 2018, compared to $1.2 million for the same period in 2017. Non-GAAP adjusted earnings per share for the second quarter 2018 was $0.08 per basic and diluted share, compared to $0.09 per basic and $0.08 per diluted share for the same period of 2017.

Recent Operational Highlights Include:

Experienced an increase in demand for new professional services while increasing the number of new managed security services clients. Continued to maintain a 95 percent client renewal rate for the quarter and, 20 percent of renewals expanded contracts with additional services. Announced MPS early renewal of contract for large academic medical center. Rated as the top comprehensive cybersecurity firm by KLAS and named to “20 Most Promising Managed Print Solution Providers 2018” List by CIOReview.

“In Q2, we experienced some significant achievements,” said Mac McMillan, President and CEO of CynergisTek. “It was an honor to receive such high ratings from KLAS and experience milestones with contract renewals and expansions on both security and managed print service lines. Managed security services and professional services continues to be a need for healthcare IT.”

For the Three Months Ended June 30, 2018 Compared to the Three Months Ended June 30, 2017

Revenue increased by approximately $0.1 million to $16.9 million for the three months ended June 30, 2018, as compared to the same period in 2017.

Cost of revenue was flat at $12.5 million for the three months ended June 30, 2018 compared to the same period in 2017. Equipment costs increased by approximately $1.4 million to $1.9 million in 2018, directly as a result of the increase in equipment revenues from copier fleet refresh activities.

Gross margin remained flat at 26 percent of revenue for the three months ended June 30, 2018 compared to the same period in 2017.

Sales and marketing expenses were $1.5 million for the three months ended June 30, 2018, as compared to $1.4 million for the same period in 2017. General and administrative expenses increased by $0.2 million to $2.0 million for the three months ended June 30, 2018, as compared to the three months ended June 30, 2017.

Net income was $0.1 million for the three months ended June 30, 2018, or $0.01 per basic and diluted share, compared to net income of $0.1 million, or $0.01 per basic and diluted share in the same period of 2017.

Non-GAAP adjusted EBITDA, when adding back stock-based compensation was $1.1 million in the second quarter of 2018, compared to $1.2 million for the same period in 2017.

Non-GAAP adjusted earnings for the second quarter of 2018 was $0.8 million, or $0.08 per basic and diluted share, compared $0.8 million or $0.09 per basic and $0.08 per diluted share for the same period of 2017.

For the Six Months Ended June 30, 2018 Compared to the Six Months Ended June 30, 2017

Revenue decreased by approximately $1.7 million to $33.3 million for the six months ended June 30, 2018, as compared to the same period in 2017.

Cost of revenue was $24.7 million for the six months ended June 30, 2018, as compared to $26.1 million for the same period in 2017. Equipment costs increased by approximately $1.3 million to $2.9 million in 2018, directly as a result of the increase in equipment revenues from copier fleet refresh activities.

Gross margin was 26 percent of revenue for the six months ended June 30, 2018 as compared to 25 percent for the same period in 2017.

Sales and marketing expenses were $3.0 million for the six months ended June 30, 2018, as compared to $2.7 million for the same period in 2017. General and administrative expenses increased to $4.6 million for the six months ended June 30, 2018, as compared to $4.0 million for the six months ended June 30, 2017.

Net loss was $(0.6) million for the six months ended June 30, 2018, or $(0.06) per basic and diluted share, compared to net income of $0.1 million, or $0.01 per basic and diluted share in the same period of 2017.

Non-GAAP adjusted EBITDA for the six months ended June 30, 2018, when adding back stock-based compensation, onetime restructuring and legal fees was $2.1 million, compared to $2.3 million for the same period in 2017.

Non-GAAP adjusted earnings for the six months ended June 30, 2018 was $1.3 million, or $0.14 per basic and $0.13 per diluted share, compared to $1.5 million or $0.16 per basic and $0.15 per diluted share for the same period of 2017.

The reconciliation of GAAP to non-GAAP information can be found in the tables at the end of this release and provide the details of the Company’s non-GAAP disclosures and the reconciliation of non-GAAP information.

This article has been truncated. You can see the rest of this article by visiting http://www.businesswire.com/news/home/20180809005163/en.

AP RADIO
Update hourly