Net Sales Increase 35% for The Year — – Operating Expenses Decline 12% for The Year
LOUISVILLE, Ky., Dec. 14, 2011 /PRNewswire/ — Beacon Enterprise Solutions Group, Inc. BEAC (www.askbeacon.com), an emerging global leader in the design, implementation and management of high-performance Information Technology Systems (“ITS”) infrastructure solutions, today announces the publication of its webcast of the fourth quarter and Fiscal 2011 Earnings Call on the Beacon website.
The webcast of the Earnings Call can be located under the Investor Relations tab located at www.askbeacon.com.
A digital recording of the conference call is also available via telephone for replay until 11:59 p.m. EST on Thursday, December 15, 2011, by calling 404-537-3406 and entering conference ID # 20119461.
For the 12 month-period ended September, 30, 2011, the Company reported a 35% increase in net sales to $18.9 million as compared to $13.9 million for fiscal year 2010. Fourth-quarter 2011 net sales were $5.4 million, a 26% increase compared to $4.3 million reported for the same period of 2010. The Company attributes the significant increases to its continued penetration into the North American and European markets, as well as its ability to deliver on expanded product and program offerings worldwide.
Gross profit for the 12 months of fiscal 2011 increased 14% to $6.7 million compared to $5.9 million reported for the 12-month period of 2010. Gross profit for the fourth quarter of 2011 increased 77% to $2.1 million compared to $1.2 million reported in the fourth quarter of the year prior.
Total operating expenses decreased in fiscal 2011 to $10.2 million, a 12% reduction compared to $11.6 million reported in fiscal 2010. Core operating expenses for the fourth quarter of 2011 decreased by 33% to $2.1 million from $3.1 million in the fourth quarter of 2010.
“Our ability to reduce our level of expenditures resulted from management's continued commitment to cost control and increased efficiency as well as scalability of our systems and office infrastructure. We expect this trend of improvements, along with revenue growth, to continue,” said Scott Fitzpatrick, Beacon vice president corporate controller and treasurer.
Loss from operations decreased significantly in fiscal 2011 to $3.5 million from $5.7 million in fiscal 2010. The Company achieved a major milestone by generating positive income from core operations during the fourth quarter of fiscal 2011 of $47,000, a nearly $2 million improvement compared to the loss of $1.9 million in the same period in fiscal 2010.
Fiscal year 2011′s basic and diluted net income per share was $0.09 compared to a loss of $(0.57) per share in the previous fiscal year. Fiscal 2011 was positively impacted by discontinued operations of $0.21 per share.
Net loss per basic and diluted share was $(0.02) in the fourth quarter of fiscal 2011 compared to a net loss of $(0.09) per share in the same period in fiscal 2010.
“To summarize, year-over-year net sales and gross margin are both up, operating expenses and current liabilities are down, the cash position of the company is the best it's been, we have replaced the short-term debt facility that was due to mature with a new facility, and for the first time in the Company's history we have positive income from operations from our core business,” concluded Bruce Widener, Beacon Chairman and CEO.
Beacon also reviewed its recent progress and achievements, including several new sales strategies that began in 2011. In addition, the Company refocused its sales efforts on higher-margin professional services business, redefined and documented its business processes, and implemented a new cloud-based ERP solution.
“We firmly believe the changes we've made in the past year provide for a more efficient method of operation and will meet the market opportunity and more importantly, specific, individual customer needs,” concluded Mr. Widener. “Our team is very pleased to deliver a clear picture of what we've been working on and how we are positioned for profitable, scalable growth in 2012.”
About Beacon Enterprise Solutions Group, Inc.
Beacon Enterprise Solutions Group is an emerging global leader in the design, implementation and management of high performance Information Technology Systems (“ITS”) infrastructure solutions. Beacon offers fully integrated, turnkey IT infrastructure solutions capable of fully servicing the largest companies in the world as they increasingly outsource to reduce costs while optimizing critical IT design and infrastructure management. Beacon is headquartered in Louisville, Kentucky, with regional headquarters in Cincinnati, Ohio, Dublin, Ireland, Prague, Czech Republic and personnel located throughout the United States and Europe.
For additional information, please visit Beacon's corporate website: www.askbeacon.com
This press release may contain “forward-looking statements.” Expressions of future goals and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements may include, without limitation, statements about our market opportunity, strategies, competition, expected activities and expenditures as we pursue our business plan. Although we believe that the expectations reflected in any forward-looking statements are reasonable, we cannot predict the effect that market conditions, customer acceptance of products, regulatory issues, competitive factors, or other business circumstances and factors described in our filings with the Securities and Exchange Commission may have on our results. The company undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this press release.
Contact:
Bruce Widener, CEO
502-657-3507
investors@askbeacon.com
Porter, LeVay & Rose, Inc.
Michael Porter, President
212-564-4700
Halliburton Investor Relations
Geralyn DeBusk, President, or Hala Elsherbini, COO
972-458-8000
SOURCE Beacon Enterprise Solutions Group, Inc.
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