Beacon Enterprise Solutions Group, an emerging global leader in the design, implementation, and management of high performance Information Technology Systems (“ITS”) infrastructure solutions, today announced its fiscal second quarter financial results for the period ended March 31, 2012, which are discussed below:
Highlights of the Fiscal Second Quarter and Six Months ended March 31, 2012, include:
• 4% increase in net sales for the six-month period compared to a year earlier;
• Gross profit increased 38% from $2.6 million to $3.6 million;
• Gross profit margins increased 9 basis points to 37% from 28% in Q2 compared with the corresponding period in 2011;
• For the six-month period, gross profit margins improved to 38% as compared with 29% in the comparable year-ago period;
• Total operating expenses for the quarter decreased 13% to $2.5 million from $2.8 million in the year-ago second quarter;
• EBIT (Earnings Before Interest and Taxes) increased for both the three and six month periods in 2012 as compared with 2011, improving 15% for the quarter and 59% for the six month period.
“While we have experienced a challenging most recent quarter, I am very proud of the leadership team we have in place,” stated Bruce Widener, Chairman and CEO of Beacon. “Our recently announced leadership and positioning changes do not represent a radical shift in how we go to market. These changes represent a continuation of the building process we began two years ago to move from a tactical vendor, used on an as-needed basis, to a strategic business partner of our Fortune 1000 clients. Beacon is now better positioned to continue to grow its business, strengthen our client relationships and expand our capabilities despite the challenges in the global market place.”
“Today we have a stronger Beacon team and an impressive customer base that expects nothing less than consistent and reliable execution,” added Paris Arey, Executive Vice President Sales and Marketing. “The Beacon Solution’s portfolio will enable the infrastructure layer to become business relevant by increasing IT implementation and accelerating their business impact. Beacon is leveraging our 5-year history of cost-effectively managing the IT infrastructure and proven service capabilities for organic growth. Market dynamics are requiring CIOs to play a larger roll in business responsiveness and decisions in which the IT infrastructure supports. I am optimistic the second half of the year (fiscal 2012) will be better than the first half of the year. We expect progress in all areas of our business and anticipate year-over-year improvements. This will position Beacon for a strong 2013.”
“Enterprises around the world are becoming more in tune with the fact the physical IT infrastructure is the first step in enabling any enterprise service change,” said Michael Martin, Executive Vice President Global Services. “The impact we’ve had with our existing client base is they value Beacon’s focus on simplifying the challenges associated with the delivery of physical infrastructure. This unique offering allows predictable, consistent standards implementation on a global scale, reducing design and deployment time to accelerate the delivery of business solutions.”
“Despite the challenging revenue environment we experienced in the second quarter, we have positioned the Company to be profitable and cash flow positive in the future,” commented S. Scott Fitzpatrick, Vice President Corporate Controller and Treasurer. “Our comparisons with the previous fiscal year for the six-month periods remain favorable for revenue, margin percent and operating expenses. We will continue to maintain our capacity to grow in order to take advantage of the measures we have implemented over the past year for sustained profitability as we achieve our revenue goals.”
“For the prior quarter and six months, gross profit margins increased 9 basis points to 37 and 38 respectively for each period,” concluded Mr. Fitzpatrick. “We expect our improvements in gross margin to remain consistent in the second half of the year. We continue to address our cost structure and realized an improvement in operating costs equating to a 13% reduction. It should also be pointed out that our cash position remained neutral and consistent with the year-end 2012 levels.”
Management will be holding a conference call today, Wednesday, May 2, 2012, at 10:00 a.m. EDT to discuss the financial results. Those who wish to access the teleconference can do so by calling 888-495-3916 and entering conference ID # 74625231. Participants outside of the U.S. and Canada can join by calling 706-634-7530 and entering the same conference ID. The conference call will be simultaneously webcast and available on the company’s website, http://www.askbeacon.com, under the “Investor Relations” tab. A digital recording of the conference call will be available later today until 11:59 p.m. EDT on Friday, May 4, 2012, by calling 404-537-3406 and entering conference ID # 74625231.
For additional information, visit the company’s website at www.AskBeacon.com
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