Press Releases
MTM Technologies, Inc. Reports Results For Fiscal Year Ended March 31, 2004
Valley Cottage, N.Y. – June 18, 2004 – MTM Technologies, Inc. (“MTM”) (NASDAQ: MTMC), a leading computer and communications technology management company providing IT networking and data center services, including storage, security and messaging solutions, today announced financial results for its fiscal year ended March 31, 2004.
Net revenue for 2004 was $52.3 million, as compared with net revenue of $55.5 million for 2003. The decrease in net revenue was attributable to a decrease in service revenue of $7.7 million, partially offset by an increase in product revenue of $4.5 million. The decrease in service revenue was primarily related to the delayed funding of E-RATE programs for certain school districts, an increase in deferred revenue of $1.6 million during the fourth quarter as MTM recorded new business for which the related revenue is expected to be recognized in subsequent periods, as well as certain credits to revenue of $1.2 million. Substantially all of the increase in the product revenue was attributable to a single major customer upgrade of its existing computer system.
Net loss for 2004 was ($8.1) million, or ($1.72) per share, as compared to a net loss of ($1.2) million, or ($.26) per share, for 2003. The increase in net loss was attributable to the reduction in net revenues described above, as well as an increase in interest expense of $208,000. Included in the net loss for 2004 is depreciation and amortization expense of $1.6 million and interest expense of $494,000.
MTM’s newly appointed CEO Francis J. Alfano stated, “During the past year MTM transitioned itself into a leading provider of middle-market IT solutions. Now that the transition process is substantially complete, and with the addition of an expanded management team and enhanced networking and data center service offerings, including storage, security and messaging solutions, MTM is well positioned to achieve its growth objectives. These include building a national middle-market IT solutions business and expanding its solutions capabilities into emerging technologies. We are actively seeking to acquire solutions oriented businesses that will accelerate our growth plans and add to our technical capabilities. We have received positive feedback from our customers, suppliers and potential acquisition candidates on our middle-market IT solution focus. Subsequent to the end of the fourth quarter we closed on a $7 million investment by Pequot Ventures and a one year extension of our existing credit facility. MTM believes that it has the necessary capital to begin to execute on its growth strategy.”
Mr. Poch noted, “Pequot invests in growing companies poised to move to the next level. MTM is well positioned to become the leading national provider of IT solutions to the middle market. MTM provides a solid platform for a national build-out of middle market solution providers. We are very excited about the completion of our initial $7 million investment in MTM’s growth through acquisition strategy.”
About MTM Technologies, Inc.
MTM Technologies is a premier provider of network analysis and diagnostics, management, architecture, design, implementation and support services, as well as technology acquisition and deployment workflow management systems serving the New York Tri-State area since 1986. The Company performs services in the areas of Network Analysis, Network and Systems Management, Internet Services, IT Consulting, Data & Network Security, Network Infrastructure Engineering, Server-Based Computing, Active Directory, Data and Network Communications, Technology Acquisition and Deployment, Process Automation, Professional IT Staffing and Enterprise LifeCycle Managed Services to create a comprehensive computer and communication services suite. The Company maintains sales, technology labs, help desk, network management operation centers, training and service facilities in Valley Cottage, New York, New York City, and Connecticut. MTM is a certified and authorized reseller/partner and integrator for Microsoft, Cisco, Citrix, HP/Compaq, Neoteris, SecureWave, Symantec, Internet Security Systems, Packeteer, NetIQ, Intel, IBM, Dell Computer, Lexmark and Novell.
