Press Releases
MTM Technologies, Inc. Reports Results for the Fiscal Quarter Ended June 30, 2004
Valley Cottage, N.Y. – August 12, 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, messaging and IP telephony solutions, today announced financial results for its fiscal quarter ended June 30, 2004.
Net revenue for the quarter ended June 30, 2004 was $15.2 million, as compared with net revenue of $13.6 million for the quarter ended June 30, 2003. The increase in net revenue was attributable to an increase in product revenue of $3.9 million, partially offset by a decrease in service revenue of $2.3 million. The increase in product revenue was the result of increased demand by customers. The decrease in service revenue during the quarter was primarily related to the continued delayed funding of E-RATE programs for certain school districts.
Net loss for the quarter ended June 30, 2004 was ($2.5) million, or ($.53) per share, as compared to net income of $37,139, or $.01 per share, for the quarter ended June 30, 2003. The decrease in net income was primarily attributable to the reduced level of service revenues described above and to a $1.1 million expense relating to special compensation arrangements incurred in connection with the closing of Pequot Ventures’ $7 million investment in MTM. Included in the net loss for the quarter ended June 30, 2004 was depreciation and amortization expense of $402,281 and interest expense of $124,528.
“MTM has been focusing on beginning to build a national middle-market IT solutions business and on expanding its solutions capabilities into emerging technologies.” said MTM’s CEO Francis J. Alfano. “During the quarter we closed on a $7 million investment by Pequot Ventures and completed a one year extension of our existing credit facility. MTM’s first quarter results reflect the investments being made to prepare MTM for acquisitions and substantial growth, including investments in enhanced corporate infrastructure, primarily expanding our management team to add experienced technology, finance and acquisition professionals. The results also reflect $1.1 million of expenses relating to the closing of the investment by Pequot Ventures.”
“On July 2, 2004, we took the first step in executing our growth-through-acquisition strategy with the acquisition of DataVox Technologies, Inc.” continued Mr. Alfano. “This acquisition brings extensive IP telephony, wireless facility engineering and data center capabilities to MTM and complements our existing storage, security and messaging solutions. We are continuing to actively seek to acquire solutions oriented businesses that will accelerate our growth plans and add to our technical capabilities.”
About MTM Technologies, Inc.
MTM Technologies, Inc. is a leading computer and communications technology management company providing IT networking and data center services, including storage, security, messaging and IP telephony solutions. MTM Technologies’ practices in Network Analysis, Network & Systems Management, Internet Services, IT Consulting, Data & Network Security, Network Infrastructure Engineering, Integrated Communications, Technology Acquisition and Deployment, Process Automation, and Enterprise LifeCycle Managed Services 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 Technologies is an authorized reseller/partner and integrator for Microsoft, HP/ Compaq Computer, Cisco Systems, Citrix, Lexmark, Intel Corp, IBM, Dell Computer, and Novell. For more information visit our web site at http://mtm.com/ .
