IRVINE, Calif., Nov. 1, 2016 /PRNewswire/ — DecisionPoint™ Systems, Inc. (Other OTC: DPSID), a leading provider and integrator of Enterprise Mobility and Wireless Applications solutions, today reported its financial results for the year ended December 31, 2015. The results include a key milestone: the removal of “going concern” language from the report of DecisionPoint’s auditor, Haskell White LLP. DecisionPoint believes that this was largely brought about by the Company’s EBITDA-positive results during the course of 2016 and the vote by the Company’s preferred and common stockholders in favor of the Company’s recapitalization at the Company’s Special Meeting of Stockholders held on September 30, 2016. Although the positive effects of the recapitalization are not reflected in the Company’s financial statements as of and for the year ended December 31, 2015, they will be reflected in the Company’s financial statements as of and for the third quarter ended September 30, 2016. The financial condition of the recapitalized company has been significantly strengthened.
Revenue from continuing operations in 2015 was $33.8 million, versus $50.6 million for 2014. Gross profit margin for 2015 was 20.8%, compared to 21.3% for 2014. For 2015, the Company reported a net loss attributable to common stockholders of $5.4 million, or $0.43 loss per share, which included a one-time loss of $3.5 million relating to discontinued operations in Canada and an expense of $1.8 million in dividends imputed to or paid on the Company’s outstanding preferred stock series A through E. The preferred stock has since been converted to common stock as a result of the recently approved recapitalization and is no longer outstanding. As a result of the recapitalization, the Company now has 6,006,980 shares of common stock outstanding. The net loss from continuing operations for 2015 was $15,000, compared to net income from continuing operations of $391,000 for 2014.
CEO Steve Smith commented, “The recapitalization approved on September 30, 2016 was a watershed event for DecisionPoint. The burden of convertible debt and preferred dividends is now gone. Our ability to build, raise financing and add new markets is now unimpeded. DecisionPoint is a leader in mobility and networking for workforces in transportation, retail and warehousing, and we are eager to move forward at full strength. We hope to make 2017 a year of improved results following a period of extreme difficulty that we believe is now behind us.”
CFO Michael Roe commented, “We plan to announce the results for each of the first three quarters of 2016 in the near term. As a result of the recapitalization, many of the issues that had clouded our balance sheet have been eliminated, including the conversion into common stock of all outstanding series of preferred stock and all convertible debt. As a result, the balance sheet for the third quarter ended September 30, 2016 will show a significant improvement in our financial condition, and we expect that our overall expenses going forward will be significantly lower.”
The financial statements for 2015 are posted on the Company’s website at www.decisionpt.com, as well as on third-party financial sites on the Internet under the temporary ticker symbol DPSID, which, in connection with the finalization of the recently approved recapitalization, will revert to the Company’s old ticker symbol DPSI on or about November 2, 2016.
About DecisionPoint Systems, Inc.
DecisionPoint Systems, Inc. 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 all the latest wireless, mobility, and RFID technologies. For more information about DecisionPoint Systems, Inc., visit www.decisionpt.com.
Except for historical information contained herein, the statements in this news release are forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company’s actual results, performance and achievements in the future to differ materially from forecasted results, performance, and achievements. The Company undertakes no obligation to publicly release the results of any revisions to its forward-looking statements to reflect events or circumstances after the date hereof, including without limitation unanticipated events or changes in the Company’s plans or expectations.
DecisionPoint™ Systems, Inc.
Chief Financial Officer
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) and adjusted EBITDA. The Company’s management believes that these non-GAAP measures provide investors with a better understanding of how the Company’s results relate to the Company’s historical performance, and reflect the essential operating activities of the Company. Non-GAAP information is not meant to be considered in isolation or as a substitute for GAAP information. A reconciliation of our GAAP financial measures to our non-GAAP financial measures appears below:
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SOURCE DecisionPoint Systems, Inc.