STEELCLOUD, INC. 
By First quarter revenues decreased 86% to approximately
"While our second quarter was better than our first, the economy continues to impact our services and integration businesses," said
Second Quarter Highlights:
-- Cash balance at April 30, 2009 was approximately $538,000
-- Working capital was approximately $516,000 on April 30, 2009
-- Operating expenses decreased 28% from prior year Q2
Quarterly Conference Call
The Company will hold a conference call at
About the Company
SteelCloud is a manufacturer of embedded integrated computing systems for the industrial automation marketplace. SteelCloud designs and manufactures specialized servers and appliances for federal integrators, software vendors and volume users. For both the government and commercial markets SteelCloud delivers integration services and software focused on risk management and network management solutions. SteelCloud's ISO 9001:2000 certified Quality Management System provides procedures for continuous quality improvement in all aspects of its business. Over its nearly 20-year history, SteelCloud has won numerous awards for technical excellence and customer satisfaction. SteelCloud can be reached at (703) 674-5500. Additional information is available at www.steelcloud.com. E-mail: info@steelcloud.com.
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: Except for historical information, all of the statements, expectations and assumptions contained in the foregoing are forward looking statements that involve a number of risks and uncertainties. It is possible that the assumptions made by management are not necessarily the most likely and may not materialize. In addition, other important factors that could cause actual results to differ materially include the following: SteelCloud's ability to obtain financing in the short term, risks associated with the integration of business following an acquisition, business conditions and the amount of growth in the computer industry and general economy; competitive factors; ability to attract and retain personnel, including key sales and management personnel; the price of SteelCloud's stock; and the risk factors set forth from time to time in SteelCloud's SEC reports, including but not limited to its annual report on Form 10-K and its quarterly reports on Forms 10-Q; and any reports on Form 8K. SteelCloud takes no obligation to update or correct forward-looking statements.
CONDENSED CONSOLIDATED BALANCE SHEET
October 31, April 30,
2008 2009
ASSETS (unaudited)
Current assets
Cash and cash equivalents $752,351 $538,164
Accounts receivable, net 1,571,673 302,291
Inventory, net 521,920 461,227
Prepaid expenses and other current assets 130,446 157,612
Deferred contract costs - 25,000
Total current assets 2,976,390 1,484,294
Property and equipment, net 626,440 539,053
Equipment on lease, net 442,099 2,180
Other assets 7,020 12,109
Total assets $4,051,949 $2,037,636
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $718,316 $482,443
Accrued expenses 561,009 441,253
Notes payable, current 7,538 7,719
Unearned revenue 8,882 36,596
Total current liabilities 1,295,745 968,011
Long-term liabilities
Notes payable, long-term 7,903 3,998
Other long-term 132,055 174,814
Total long-term liabilities 139,958 178,812
Stockholders' equity
Preferred stock, $.001 par value:
2,000,000 shares authorized, no
shares issued and outstanding at
October 31, 2008 and April 30, 2009 - -
Common stock, $.001 par value:
50,000,000 shares authorized,
15,138,376 and 15,342,376 shares
issued at October 31, 2008 and
April 30, 2009, respectively 15,138 15,342
Additional paid in capital 50,902,172 51,030,239
Treasury stock, 400,000 shares at
October 31, 2008 and April 30, 2009 (3,432,500) (3,432,500)
Accumulated deficit (44,868,564) (46,722,268)
Total stockholders' equity 2,616,246 890,813
Total liabilities and stockholders' equity $4,051,949 $2,037,636
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Six Months Ended
April 30, April 30,
2008 2009 2008 2009
Revenues
Products $7,827,740 $958,263 $13,080,767 $1,306,165
Services 556,894 238,600 1,110,339 779,608
Total revenues 8,384,634 1,196,863 14,191,106 2,085,773
Cost of revenues
Products 6,435,320 826,048 11,051,123 1,238,472
Services 480,204 166,709 920,513 613,558
Total cost of revenues 6,915,524 992,757 11,971,636 1,852,030
Gross profit 1,469,110 204,106 2,219,470 233,743
Selling and marketing 281,718 144,280 601,962 280,254
Research and product
development 208,888 102,273 407,113 203,754
General and
administrative 973,440 807,921 1,887,793 1,530,643
Severance and
restructuring - - - 73,205
Income (loss) from
operations 5,064 (850,368) (677,398) (1,854,113)
Interest income, net 4,827 410 11,242 410
Income (loss) income
before income taxes 9,891 (849,958) (666,156) (1,853,703)
Provision for income
taxes - - - -
Net income (loss) $9,891 $(849,958) $(666,156) $(1,853,703)
Income (loss) per share
(basic and diluted):
Basic and diluted (loss)
income per share $0.00 $(0.06) $(0.05) $(0.13)
Weighted-average shares
outstanding:
Basic 14,323,458 14,828,849 14,320,179 14,783,698
Diluted 14,667,606 14,828,849 14,320,179 14,783,698
SOURCE SteelCloud
