-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OFoc7VoKMhSd7e1tUA7hysyLrtwhh3zCWqJD48XC7QNTELD+Hfqzmk1dXH8GRoEb D0k+dp2wxlHxuB/ln+a7GA== 0000950117-04-000715.txt : 20040219 0000950117-04-000715.hdr.sgml : 20040219 20040219141221 ACCESSION NUMBER: 0000950117-04-000715 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040219 ITEM INFORMATION: FILED AS OF DATE: 20040219 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EMTEC INC/NJ CENTRAL INDEX KEY: 0000005117 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-BUSINESS SERVICES, NEC [7389] IRS NUMBER: 870273300 STATE OF INCORPORATION: UT FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-32789 FILM NUMBER: 04615647 BUSINESS ADDRESS: STREET 1: 817 EAST LAKE GATE DRIVE CITY: MT LAUREL STATE: UT ZIP: 08054 BUSINESS PHONE: 8013633283 MAIL ADDRESS: STREET 1: 817 EAST GATYE DRIVE CITY: MT LAUREL STATE: NJ ZIP: 08054 FORMER COMPANY: FORMER CONFORMED NAME: AMERICAN GEOLOGICAL ENTERPRISES INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: NUCLEAR PROCESSING CORP DATE OF NAME CHANGE: 19820318 FORMER COMPANY: FORMER CONFORMED NAME: AMERICAN GEOTHERMAL ENERGY INC DATE OF NAME CHANGE: 19681212 8-K 1 a37104.txt EMTEC, INC. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 --------------- FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report: February 19, 2004 EMTEC, INC. (Exact name of Registrant as specified in Charter) Delaware 2-54020 87-0273300 (State or other jurisdiction of (Commission File No.) (IRS Employer incorporation Identification Number) 817 East Gate Drive, Mount Laurel, New Jersey 08054 (Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (856) 235-2121 ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On February 17, 2004, Emtec, Inc. issued a press release announcing its financial results for the 3rd quarter ended December 31, 2003. A copy of the press release is being furnished as Exhibit 99.1 to this report and incorporated herein by reference. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized. Dated: February 19, 2004 EMTEC, INC. (Registrant) By: /s/John Howlett ----------------------------- John Howlett Chairman and Chief Executive Officer EX-99 3 ex99.txt EXHIBIT 99.1 Exhibit 99.1 Contacts: Stanley Wunderlich John Howlett Consulting For Strategic Growth 1, Ltd. Chief Executive Officer Public Relations Emtec, Inc. Corporate Development Consultants Tel: 856-235-8787 Tel: 800-625-2236 Fax: 856-235-2932 Fax: 212-697-0910 Email:john_howlett@emtecinc.com Email: cfsg@consultant.com Website: www.emtecinc.com EARNINGS RELEASE EMTEC, INC. REPORTS RESULTS FOR THIRD QUARTER ENDED DECEMBER 31, 2003 Net Income Increased by 141.76% for the Quarter and by 201.71% for the Nine Months, Compared to the Same Periods in 2002 MT. LAUREL, N.J., February 17, 2004 - Emtec, Inc. (OTCBB:ETEC), a systems integrator providing technology solutions to enable customers to effectively use and manage data to grow their business, announced today its results for the third quarter ended December 31, 2003. Net income for the three months ended December 31, 2003 rose by 141.76 percent to $320,326, compared to a net loss of $(767,026) for the comparable period in 2002. Net income for the nine months ended December 31, 2003, rose to $539,269 compared to a net loss of $(530,200) for the same period in 2002 - an increase of 201.71 percent. Management attributed both of these increases in net income to the overall increase in installation services associated with computer roll-out projects for the various state agencies in the State of New Jersey and a school district in Georgia, as well as an increase in our manufacturers' support services contract revenues to one customer. John Howlett, CEO, Emtec, Inc., said, "Our rapidly growing net income in 2003 was a result of our acquisitions in August 2002 of certain assets of Acentra Technologies, Inc. and Turnkey Computer Systems, Inc., which brought us substantial new groups of customers for our IT solutions, including a contract with the State of New Jersey. Today, Emtec is building on that foundation. In November 2003, we received Sun Microsystems' highest level of accreditation - iForce Strategic Technology Integrator. In February 2004, Emtec was awarded a backdrop contract (#CMS553A) from the New York State Office of General Services to provide IT consulting and systems integration services to a variety of state government entities. As a longtime provider of IT services to Fortune 1000 companies, we are becoming a solution of choice in the government and education markets, and this is adding strongly to our bottom line." Revenue Increases For the three months ended December 31, 2003, total revenues for the IT business, which includes services and consulting revenue and procurement revenues, increased by 9.44 percent or $2.12 million, to $24.62 million, compared to revenues of $22.49 million for the same period in 2002. Services and consulting revenue increased by 25.11 percent, or $1.0 million, to $4.97 million. This increase was attributed to the overall increase in installation services associated with computer roll-out projects for the various state agencies in the State of New Jersey and a school district in Georgia, as well as an increase in our manufacturers' support services contract revenues. The increase in manufacturers support services contracts revenue is mainly attributable to a third-year renewal of an annual maintenance contract to one customer. Net revenue associated with this sale increased by approximately $410,000 for the quarter ended December 31, 2003. For the nine months ended December 31, 2003, total revenues for the IT business increased by 18.61 percent or $12.36 million, to $78.82 million compared to $66.46 million for the same nine months in 2002. The company attributed this increase primarily to the acquisitions of Acentra Technologies, Inc. and Turnkey Computer systems, Inc. in August 2002. Also attributed to these acquisitions is the increase in services and consulting revenue, which rose by 20.64 percent, or $2.31 million, to $13.53 million for the nine-month period. An 18.19 percent rise in procurement revenues, to $65.29 million for the nine months, is also attributed to these acquisitions. Gross Profits For the three months ended December 31, 2003, aggregate gross profit for the IT business increased by 68.21 percent (or $1.56 million) to $3.84 million. This increase was attributed to a 25.11 percent increase in services and consulting revenues. As a percentage of total IT revenues, overall gross profit margin also increased to 15.59 percent of total IT revenues for the quarter, compared to 10.14 percent for the same quarter a year ago. Gross profit for product sales during the three months increased by 6.63 percent. Gross profit for service and consulting increased by 325.17 percent, or $1.43 million, to $1.87 million, compared with $440,986 for the same quarter in 2002. For the nine months ended December 31, 2003, aggregate gross profit for IT business increased by 26.28 percent, or $2.24 million, to $10.77 million. As a percentage of total IT revenues, overall gross profit margin for the nine-month period increased to 13.67 percent, up from 12.84 percent for the same period in 2002. Gross profit for product sales decreased slightly by 0.12 percent from results for the same period a year ago. Gross profit for service and consulting increased by 95.05 percent, or $2.25 million, to $4.62 million for the nine months ended December 31, 2003. This increase was attributed to the 20.64 percent increase in services and consulting revenues. SG&A Expenses For the three-month period, sales, general, and administrative expenses increased by 11.08 percent, or $334,068, to $3.35 million for the three months ended December 31, 2003. For the nine-month period, SG&A 2 expenses increased by 10.13 percent, or $914,085, to $9.93 million. These increases are primarily a result of the new businesses of the company, mentioned above. Without the acquisitions of Acentra Technologies, Inc. and Turnkey Computer Systems, Inc., the SG&A expenses would have decreased by approximately 11.41 percent of $1.03 million, to $7.99 million for the nine months ended December 31, 2003 compared with $9.02 million for the nine months ended December 31, 2002. This decrease is attributable to the elimination of non-productive sales staff, reduction in sales commission compensation plans, and eliminated duplication of non-essential administrative support services. About Emtec Emtec, Inc. established in 1981, provides high-end computer systems and services to Fortune 1000 clients ranging in size from $50 million to $500 million in revenues. The Company specializes in evaluating and providing solutions for data management including Enterprise Management, Managed Services (monitoring/maintenance/helpdesk), and Data Management (storage and protection of data). With the recent acquisitions of Intellispan (Help Desk), Acentra (systems and services) and Turnkey Computer Systems (managed building services), Emtec has broadened its engineering and services capabilities. For additional information please contact Consulting For Strategic Growth 1, Ltd, at 800-625-2236. # # # Certain statements in this document constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Emtec, Inc. ("the Company"), or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) obtain sufficient capital or a strategic business arrangement to fund its plan of operations when needed; (ii) build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control; and (iv) other risk factors discussed in the Company's periodic filings with the Securities and Exchange Commission which are available for review at www.sec.gov under "Search for Company Filings." Consulting For Strategic Growth I, Ltd. ("CFSG") has a month-to-month relationship with Emtec, Inc. to provide consulting, business advisory, investor relations, public relations and corporate development services to the Company for fees to be determined. In connection with these services, CFSG prepares press releases, corporate profiles, and other publications on behalf of and regarding the Company. Independent of CFSG's receipt of cash compensation from Emtec, CFSG may choose to purchase the common stock of Emtec and thereafter liquidate those securities at any time it deems appropriate to do so. 3 EMTEC, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Three Months Ended Nine Months Ended December 31, December 31, ---------------------- ------------------- 2003 2002 2003 2002 ---- ---- ---- ---- Revenues: Procurement services $19,648,683 $18,522,103 $65,286,512 $55,237,353 Service and consulting 4,969,881 3,972,432 13,533,973 11,218,523 Geothermal 47,900 45,353 140,873 127,705 ----------- ----------- ----------- ----------- Total Revenues 24,666,464 22,539,888 78,961,358 66,583,581 ----------- ----------- ----------- ----------- Cost of Revenues: Procurement services 17,686,595 16,681,947 59,127,426 49,070,806 Service and consulting 3,094,958 3,531,446 8,917,374 8,851,590 Geothermal 61,167 18,154 91,249 53,783 ----------- ----------- ----------- ----------- Total Cost of Revenues 20,842,720 20,231,547 68,136,049 57,976,179 ----------- ----------- ----------- ----------- Gross Profit: Procurement services 1,962,088 1,840,156 6,159,086 6,166,547 Service and consulting 1,874,923 440,986 4,616,599 2,366,933 Geothermal (13,267) 27,199 49,624 73,922 ----------- ----------- ----------- ----------- Total Gross Profit 3,823,744 2,308,341 10,825,309 8,607,402 ----------- ----------- ----------- ----------- Operating Expenses: Selling, general and administrative 3,350,077 3,016,008 9,934,891 9,020,806 Interest 75,333 59,359 247,885 106,926 ----------- ----------- ----------- ----------- Total Operating Expenses 3,425,410 3,075,367 10,182,776 9,127,732 ----------- ----------- ----------- ----------- Income (Loss) Before Income Tax Expense 398,334 (767,026) 642,533 (520,330) Income tax expense 78,008 -- 103,264 9,870 ----------- ----------- ----------- ----------- Net Income (Loss) $ 320,326 $ (767,026) $ 539,269 $ (530,200) =========== =========== =========== =========== Net Income (Loss) Per Share Basic $ .04 $ (.11) $ .08 $ (.07) Net Income (Loss) Per Share Diluted $ .04 $ (.11) $ .07 $ (.07) Weighted Average Number Of Shares Outstanding {Basic} 7,197,628 7,080,498 7,118,680 7,080,498 Weighted Average Number Of Shares Outstanding {Diluted} 7,504,498 7,080,498 7,470,137 7,080,498
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