Welcome!

Wearables Authors: Elizabeth White, Automic Blog, Harry Trott, Liz McMillan, Peter Silva

News Feed Item

DecisionPoint Systems Reports Record Third Quarter Revenue of $18.6 Million

Gross Margin Expands to Record 23.4%, 250 Basis Point Improvement Year-Over-Year

IRVINE, CA -- (Marketwire) -- 11/14/12 -- DecisionPoint Systems, Inc. (OTCBB: DPSI), a leading enterprise mobility and RFID systems solutions provider, today reported its financial results for the third quarter ended September 30, 2012.

Highlights of Quarter Ended September 30, 2012

  • Revenue increased to $18.6 million, 12.9% above the $16.4 million for the quarter ended September 30, 2011.
  • Gross margin expanded to 23.4% from 20.9% in the third quarter of 2011, a 250 basis point improvement.
  • Adjusted EBITDA(1) for the third quarter of 2012 was $1.1 million compared to $0.8 million for the quarter ended September 30, 2011.
  • Operating loss was $0.6 million, including $0.5 million of acquisition related expenses, compared to operating income of $0.2 million for the quarter ended September 30, 2011.
  • Net loss attributable to common shareholders was $1.3 million, or $(0.15) per share, after deducting preferred dividends of approximately $249,000, compared to a net income attributable to common shareholders of approximately $55,000, or $0.01 per share, after deducting preferred dividends of approximately $214,000 for the third quarter of 2011.
  • Cash flow from operating activities for the nine months ended September 30, 2012 was $0.7 million compared to $(1.4) million for nine months ended September 30, 2011.
  • The Company completed the acquisition of Illume Mobile Software, a division of MacroSolve, Inc., based in Tulsa, OK, for approximately $1.0 million in cash and stock. Illume Mobile has patent protected domain expertise in developing Enterprise mobile software for Android and Apple (iOS) mobile devices. Illume's operating results are included in the Company's results of operations beginning August 1, 2012.

Management Commentary
"Record revenue and gross margin expansion in the third quarter reflects the growing success of the strategic shift we have made over the past two years to develop our field mobility solutions and professional services and software divisions," said Nicholas Toms, CEO of DecisionPoint. "The three acquisitions that we have completed during that time -- CMAC, Apex and Illume Mobile -- have broadened our software products and professional services capabilities, opened new markets and deepened our relationships with our customers, including our carrier partners. We now offer the full range of mobile solutions to meet the requirements of any enterprise mobility strategy. In addition, higher margin professional software and services revenue has grown to over 35% of total revenue, leading to the improved corporate gross margins.

"An increasingly mobile workforce continues to drive demand for our field mobility solutions. The bundled solutions for enterprise and small business applications that we market together with our wireless carrier partners, Verizon, Sprint and T-Mobile, are gaining traction, adding to the installed user base and increasing recurring revenue to the Company," added Mr. Toms. "And as the retail industry embarks on an overdue technology upgrade of its outdated systems, it is creating opportunities for our tablet-based assisted shopping solution suite for in-store applications that increases productivity and reduces costs. Excluding one-time costs related to the two acquisitions that we completed earlier this year and other restructuring and one-time costs, our third quarter and year to date adjusted EBITDA was $1.1 million and $2.4 million, respectively. As we execute our strategy to build the capabilities of our Professional Services and Software Group and with positive momentum in our field mobility and retail systems divisions, we remain well positioned for continued revenue and adjusted EBITDA growth."

Third Quarter 2012 Results
Revenue was $18.6 million, compared to $16.4 million for quarter ended September 30, 2011 and $17.8 million for the quarter ended June 30, 2012. The 12.9% year-over-year increase was primarily due to increased field mobility solution sales and increased professional services revenue.

Gross profit was $4.3 million, compared to $3.4 million for quarter ended September 30, 2011 and $3.8 million for the second quarter of 2012. Gross profit margin was 23.4%, compared to 20.9% for the same period a year ago and 21.3% for the second quarter of 2012. The increases are due to the higher gross margin from professional services revenue and improved utilization of professional services resources. Additionally, the Company has continued to emphasize cost control and improved efficiencies throughout its operations.

Selling, general and administrative expenses were $5.0 million, compared to $3.3 million for the same period of 2011, and $4.8 million for the second quarter of 2012. The year-over-year increase was primarily due to increased personnel and operating expenses relating to the Illume and Apex acquisitions of $0.6 million as well as Illume and Apex acquisition related costs of $0.5 million.

The operating loss was $0.6 million, compared to operating income of $0.2 million for the quarter ended September 30, 2011, and an operating loss of $1.1 million in the second quarter of 2012.

Net loss attributable to common shareholders was approximately $1.3 million, or $(0.15) per share, after deducting preferred dividends of approximately $249,000, compared to net income attributable to common shareholders of approximately $55,000, or $0.01 per share, after deducting preferred dividends of approximately $214,000 in the quarter ended September 30, 2011. Net loss was approximately $1.5 million or $(0.20) per share, after deducting preferred dividends of approximately $238,000 in the second quarter of 2012.

Nine Month 2012 Year to Date Results
Revenue for the nine months ended September 30, 2012 was $54.1 million, compared to $42.5 million in the year ago period, an increase of 27.5%. Gross profit was $11.9 million for the nine months ended September 30, 2012, compared to $8.4 million for the nine months ended September 30, 2011. The gross profit margin was 21.9%, compared to 19.8% in the same period a year ago. Selling, general and administrative expenses were $13.6 million for the nine months ended September 30, 2012, compared to $10.3 million for the nine months ended September 30, 2011. Net loss attributable to common shareholders was approximately $3.2 million, or $(0.42) per share, after deducting preferred dividends of approximately $710,000, compared to a net loss attributable to common shareholders of approximately $5.5 million, or $(1.00) per share, after deducting preferred dividends of approximately $268,000 in the same period a year ago. Included in the net loss for the first nine months of 2011 was a one-time, non-cash expense for debt extinguishment of $2.7 million.

Forward-Looking Statements
Under the Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company's actual results, performance and achievement in the future to differ materially from forecasted results, performance, and achievement. These risks and uncertainties are described in the Company's periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events or changes in the Company's plans or expectation.

About DecisionPoint Systems, Inc.
DecisionPoint Systems, Inc. (OTCBB: DPSI) delivers improved productivity and operational advantages to its clients by helping them move their business decision points closer to their customers. We do this by making enterprise software applications accessible to the front-line worker anytime, anywhere. DecisionPoint utilizes the latest wireless, mobility, and RFID technologies. For more information on DecisionPoint Systems visit www.decisionpt.com/news.php.

Non-GAAP Financial Measures
To supplement the Company's consolidated financial statements presented on a GAAP basis, the Company has provided non-GAAP financial information, namely earnings before interest, taxes, depreciation and amortization (EBITDA). The Company's management believes that this non-GAAP measure provides investors with a better understanding of how the results relate to the Company's historical performance. The additional adjusted information is not meant to be considered in isolation or as a substitute for GAAP financials. Management believes that these adjusted measures reflect the essential operating activities of the Company. A reconciliation of non-GAAP financial information appears below:

(1) See schedule attached and description of non-GAAP financial measures: Adjusted EBITDA



                             Three Months Ended        Nine Months Ended
                                September 30,            September 30,
                          ------------------------ ------------------------
EBITDA Calculation            2012         2011        2012         2011
                          -----------  ----------- -----------  -----------

Net (loss) income         $(1,014,176) $   268,387 $(2,534,965) $(5,233,377)
Depreciation &
 amortization                 574,567      137,573     991,939      411,248
Interest expense              349,941      230,982     698,158    1,003,597
Income taxes                   63,690       13,450     131,653       21,173
                          -----------  ----------- -----------  -----------

EBITDA                    $   (25,978) $   650,392 $  (713,215) $(3,797,359)
                          ===========  =========== ===========  ===========

One time cash transaction
 expenses in connection
 with the acquisition of
 Apex                         380,000            -   1,943,000            -
One time cash expenses in
 connection with the
 acquisition and
 integration of Illume
 Mobile                       363,000            -     363,000            -
Stock-based and ESOP-
 based compensation
 expense                       44,000      140,360     489,457      502,058
Transition-related costs      317,000            -     317,000            -
Loss on debt
 extinguishment                     -            -           -    2,268,859
                          -----------  ----------- -----------  -----------

Adjusted EBITDA           $ 1,078,022  $   790,752 $ 2,399,242  $(1,026,442)
                          ===========  =========== ===========  ===========

Adjusted EBITDA per share $      0.13  $      0.11 $      0.31  $     (0.19)
                          ===========  =========== ===========  ===========

Weighted average shares
 outstanding - Basic        8,182,103    7,320,328   7,697,635    5,493,530
                          ===========  =========== ===========  ===========




                        DECISIONPOINT SYSTEMS, INC.
                   Condensed Consolidated Balance Sheets

                                            September 30,     December 31,
                                                 2012             2011
                                           ---------------  ---------------
ASSETS                                       (unaudited)
Current assets
  Cash                                     $       392,424  $       365,814
  Accounts receivable, net                      10,675,484       13,916,787
  Other receivable                                       -        1,476,285
  Due from related party                           357,326                -
  Inventory, net                                   897,401          705,757
  Deferred costs                                 3,602,564        3,468,583
  Prepaid expenses and other current
   assets                                          302,071          408,413
                                           ---------------  ---------------
    Total current assets                        16,227,270       20,341,639

  Property and equipment, net                      160,685           98,934
  Intangible assets, net                         6,626,416        2,214,000
  Goodwill                                       8,616,767        5,538,466
  Deferred costs, net of current portion         2,249,960        1,800,320
  Other assets, net                                344,323          175,329
                                           ---------------  ---------------
    Total assets                           $    34,225,421  $    30,168,688
                                           ===============  ===============

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
  Accounts payable                         $     8,502,486  $     8,947,133
  Accrued expenses and other current
   liabilities                                   2,704,787        2,504,870
  Lines of credit                                4,742,212        4,024,141
  Current portion of debt                        1,847,675        1,000,000
  Due to related parties                            80,721          871,508
  Accrued earn out consideration                 1,201,727                -
  Unearned revenue                               6,368,073        6,756,214
                                           ---------------  ---------------
    Total current liabilities                   25,447,681       24,103,866

Long term liabilities
  Unearned revenue, net of current portion       3,012,324        2,509,190
  Debt, net of current portion and
   discount                                      3,452,031          970,160
  Accrued earn out consideration                   161,754                -
  Deferred tax liabilities                       1,290,621           18,000
  Deferred rent                                     62,091                -
  Interest payable                                  60,000           60,000
                                           ---------------  ---------------
    Total liabilities                           33,486,502       27,661,216
                                           ---------------  ---------------

Commitments and contingencies
                                                         -                -
STOCKHOLDERS' EQUITY
  Cumulative convertible preferred stock,
   $0.001 par value, 10,000,000
   sharesauthorized, 1,816,289 shares
   issued and outstanding,
   includingcumulative and imputed
   preferred dividends of $696,880 and
   $435,563, andwith a liquidation
   preference of $11,109,994 and
   $10,652,275, respectively                     6,580,949        6,319,629
  Common stock, $0.001 par value,
   100,000,000 shares authorized,9,125,075
   issued and 8,971,192 outstanding as of
   September 30, 2012,and 8,182,791 issued
   and 8,028,908 outstanding as of
   December 31, 2011                                 9,125            8,183
  Additional paid-in capital                    15,601,481       14,513,918
  Other comprehensive income                        27,798                -
  Treasury stock, 153,883 shares of common
   stock                                          (204,664)        (204,664)
  Accumulated deficit                          (20,475,451)     (17,230,792)
  Unearned ESOP shares                            (800,319)        (898,802)
                                           ---------------  ---------------
    Total stockholders' equity                     738,919        2,507,472
                                           ---------------  ---------------
      Total liabilities and stockholders'
       equity                              $    34,225,421  $    30,168,688
                                           ===============  ===============




                        DECISIONPOINT SYSTEMS, INC.
Unaudited Condensed Consolidated Statements of Operations and Comprehensive
                                    Loss

                            Three Months Ended         Nine Months Ended
                               September 30,             September 30,
                         ------------------------  ------------------------
                             2012         2011         2012         2011
                         -----------  -----------  -----------  -----------


Net sales                $18,567,021  $16,446,541  $54,144,051  $42,471,307

Cost of sales             14,222,782   13,007,116   42,269,043   34,042,818
                         -----------  -----------  -----------  -----------

Gross profit               4,344,239    3,439,425   11,875,008    8,428,489

Selling, general and
 administrative expense    4,951,913    3,274,994   13,622,674   10,267,641
                         -----------  -----------  -----------  -----------

Operating (loss) income     (607,674)     164,431   (1,747,666)  (1,839,152)
                         -----------  -----------  -----------  -----------

Other expense:
  Interest expense           349,941      230,982      698,158    1,003,597
  Loss on debt
   extinguishment                  -       24,098            -    2,665,157
  Other expense
   (income), net              (7,129)    (372,486)     (42,512)    (295,702)
                         -----------  -----------  -----------  -----------
    Total other expense      342,812     (117,406)     655,646    3,373,052
                         -----------  -----------  -----------  -----------

Net (loss) income before
 income taxes               (950,486)     281,837   (2,403,312)  (5,212,204)

Provision for income
 taxes                        63,690       13,450      131,653       21,173

                         -----------  -----------  -----------  -----------
Net (loss) income         (1,014,176)     268,387   (2,534,965)  (5,233,377)

Cumulative preferred
 stock dividends            (248,750)    (213,898)    (709,699)    (268,098)

                         -----------  -----------  -----------  -----------
Net (loss) income
 attributable to common
 shareholders            $(1,262,926) $    54,489  $(3,244,664) $(5,501,475)
                         ===========  ===========  ===========  ===========

Net (loss) income per
 share -
  Basic                  $     (0.15) $      0.01  $     (0.42) $     (1.00)
                         ===========  ===========  ===========  ===========
  Diluted                $     (0.15) $      0.01  $     (0.42) $     (1.00)
                         ===========  ===========  ===========  ===========

Weighted average shares
 outstanding -
  Basic                    8,182,103    7,320,328    7,697,635    5,493,530
                         ===========  ===========  ===========  ===========
  Diluted                  8,182,103    7,417,555    7,697,635    5,493,530
                         ===========  ===========  ===========  ===========

Comprehensive loss       $(1,240,576) $         -  $(3,216,866) $         -
                         ===========  ===========  ===========  ===========


More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Pulzze Systems was happy to participate in such a premier event and thankful to be receiving the winning investment and global network support from G-Startup Worldwide. It is an exciting time for Pulzze to showcase the effectiveness of innovative technologies and enable them to make the world smarter and better. The reputable contest is held to identify promising startups around the globe that are assured to change the world through their innovative products and disruptive technologies. There w...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abil...
Is the ongoing quest for agility in the data center forcing you to evaluate how to be a part of infrastructure automation efforts? As organizations evolve toward bimodal IT operations, they are embracing new service delivery models and leveraging virtualization to increase infrastructure agility. Therefore, the network must evolve in parallel to become equally agile. Read this essential piece of Gartner research for recommendations on achieving greater agility.
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.