Third Quarter 2008 Highlights: -- Revenues of $9.6 million for the quarter ended September 30, 2008 -- Net loss of $0.01 per share -- Gross profit of $2.0 million -- Gross margin increased 220 basis points to 21.1% -- EBITDA of $0.3 million
Mr. LaMontagne continued, "Excluding the small business set-aside program we had been historically active in, our core revenues have increased over the past two years. At the end of the third quarter, small business set-aside revenues were at an all-time low for Paradigm. Although this trend toward full and open business has manifested itself in lower total revenue levels, the transition out of these small business programs is an important milestone. At the same time, we remain focused on keeping our expenses in line as we increase our higher margin national and homeland security focus. As a result, we achieved a 220 basis point increase in gross margins and positive cash flow for the quarter."
The Company's EBITDA was
Quarter Ended Sept. 30 Nine Months Ended Sept. 30 Sept. 30 2008 2007 2008 2007 Net Loss $(224,147) $(252,965) $(627,313) $(785,214) Adjustments: Interest Expense, net 230,593 401,672 733,877 964,052 Income Tax Benefit (105,263) (22,406) (255,505) (277,296) Depreciation & Amortization 142,844 140,250 468,824 355,388 Stock Compensation 140,032 136,210 420,095 311,640 Restructuring Expense 67,390 105,000 431,978 358,588 EBITDA $251,449 $507,761 $1,171,956 $927,158
Revenue for the third quarter of 2008 was
The Company had approximately
For additional details, please refer to the Company's quarterly report on Form 10-Q as filed with the SEC.
About Paradigm Holdings, Inc.
Paradigm Holdings, Inc., (www.paradigmsolutions.com) is a comprehensive
information technology and business solutions provider for government
enterprises. Paradigm specializes in Enterprise Risk Management, Systems
Engineering, Infrastructure Support, and Information Assurance and Cyber
Forensics solutions for government customers. Paradigm also provides
intelligence analyst and linguistic support for National Security programs.
Headquartered in
Safe Harbor Statement
This press release may contain forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor created by those sections. Paradigm Holdings, Inc. assumes no obligation to update the information contained in this press release. Future results for Paradigm Holdings, Inc. may be affected by its ability to continue to implement its government technology solutions, its dependence on the federal government and state and local governments and other federal government contractors as its major customers, timely passage of components of the federal budget, timely obligations of funding by the federal and state governments, its dependence on procuring, pricing and performing short-term government contracts, its dependence on hiring and retaining qualified professionals, potential fluctuations in its quarterly operating results, including seasonal impacts, its dependence on certain key employees and its ability to timely and effectively integrate the businesses it may acquire. For further information about forward-looking statements and other Paradigm Holdings, Inc. specific risks and uncertainties please refer to recent SEC filings for Paradigm Holdings, Inc., which are available from the Edgar Web site at www.edgar.org.
(tables follow) PARADIGM HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS September 30, December 31, 2008 2007 ASSETS (unaudited) Current assets Cash and cash equivalents $2,012 $7,771 Accounts receivable - contracts, net 8,290,857 8,982,638 Prepaid expense 821,716 1,078,529 Prepaid corporate income taxes 90,449 74,207 Deferred income tax assets 38,660 68,567 Other current assets 341,009 346,785 Total current assets 9,584,703 10,558,497 Property and equipment, net 226,919 407,320 Deferred income tax assets, net of current portion 100,305 -- Goodwill 3,991,605 3,969,249 Intangible assets, net 1,331,409 1,591,864 Other non-current assets 177,326 193,218 Total assets $15,412,267 $16,720,148 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Bank overdraft $505,494 $1,687,491 Note payable - line of credit 5,688,373 5,268,698 Note payable - promissory note 2,000,000 2,000,000 Capital leases payable, current portion 8,357 30,436 Accounts payable and accrued expenses 3,775,623 4,020,669 Accrued salaries and related liabilities 1,551,915 1,550,962 Other current liabilities 556,872 177,844 Total current liabilities 14,086,634 14,736,100 Long-term liabilities Capital leases payable, net of current portion -- 1,889 Deferred income taxes -- 220,802 Other non-current liabilities 196,112 289,593 Total liabilities 14,282,746 15,248,384 Convertible preferred stock - $.01 par value, 10,000,000 shares authorized, 1,800 shares issued and outstanding as of September 30, 2008 and December 31, 2007, respectively. Each share of convertible preferred stock has a liquidation preference of $0.01 per share plus all accrued but unpaid dividends 18 18 Common stock - $.01 par value, 50,000,000 shares authorized, 19,148,153 shares issued and outstanding as of September 30, 2008 and December 31, 2007, respectively 191,482 191,482 Additional paid-in capital 3,058,617 2,773,547 Accumulated deficit (2,120,596) (1,493,283) Total stockholders' equity 1,129,521 1,471,764 Total liabilities and stockholders' equity $15,412,267 $16,720,148 PARADIGM HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Nine Months Ended Sept. 30, Sept. 30, Sept. 30, Sept. 30, 2008 2007 2008 2007 Contract Revenue Service contracts $7,079,396 $6,507,413 $21,388,614 $19,388,586 Repair and maintenance contracts 2,485,063 4,607,003 9,593,523 13,955,470 Total contract revenue 9,564,459 11,114,416 30,982,137 33,344,056 Cost of revenue Service contracts 5,324,087 5,241,905 16,394,569 17,067,606 Repair and maintenance contracts 2,223,919 3,775,008 8,417,479 11,173,179 Total cost of revenue 7,548,006 9,016,913 24,812,048 28,240,785 Gross margin 2,016,453 2,097,503 6,170,089 5,103,271 Selling, general and administrative 2,115,270 1,971,250 6,319,257 5,086,271 (Loss) income from operations (98,817) 126,253 (149,168) 17,000 Other (expense) income Interest income 65 -- 2,772 1,907 Interest expense (230,658) (401,672) (736,649) (965,959) Other income (expense) -- 48 227 (6,870) Total other expense (230,593) (401,624) (733,650) (970,922) Loss from continuing operations before income taxes (329,410) (275,371) (882,818) (953,922) Benefit for income taxes (105,263) (22,406) (255,505) (277,296) Loss from continuing operations (224,147) (252,965) (627,313) (676,626) Loss from operations of discontinued component, net of income tax benefits -- -- -- (186,804) Gain on sale of discontinued operations, net of income taxes -- -- -- 78,216 Loss from discontinued operations, net of income taxes -- -- -- (108,588) Net loss $(224,147) $(252,965) $(627,313) $(785,214) Dividends on preferred stock 45,000 30,000 135,000 30,000 Net loss attributable to common shareholders $(269,147) $(282,965) $(762,313) $(815,214) Weighted average number of common shares: Basic 19,148,153 19,019,871 19,148,153 19,414,378 Diluted 19,148,153 19,019,871 19,148,153 19,414,378 Basic and diluted net loss per common share: Loss from continuing operations $(0.01) $(0.01) $(0.04) $(0.03) Loss from discontinued operations $-- $-- $-- $(0.01) Net loss $(0.01) $(0.01) $(0.04) $(0.04)
SOURCE Paradigm Holdings, Inc.