BEACON ENTERPRISE SOLUTIONS REPORTS RESULTS FOR FISCAL SECOND QUARTER 2012
– Conference Call To Be Held Today at 10:00 A.M. Eastern Time –
LOUISVILLE, KY, May 2, 2012 — Beacon Enterprise Solutions Group, Inc. (OTCBB: BEAC) (www.askbeacon.com), an emerging global leader in the design, implementation and management of high performance Information Technology Systems (“ITS”) infrastructure solutions, reports fiscal second quarter financial results for the period ended March 31, 2012, which are discussed below:
Financial Highlights for the Fiscal Second Quarter and Six Months ended March 31, 2012:
- Net sales increased 4% for the six months ended to $9.3 million from $9.0 million in the corresponding year-ago period;
- For the six months ended gross profit increased 38% from $2.6 million to $3.6 million in fiscal 2011 compared to fiscal 2012;
- Gross profit margins increased 9 basis points to 37% from 28% in Q2 compared with the same 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 months ended.
“While we have experienced a challenging most recent quarter, I am very proud of the leadership team we have in place,” commented 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,” stated 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,” added 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,” stated 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.”
Earnings Conference Call Today, Wednesday, May 2, 2012 @ 10:00 a.m. EDT:
Beacon’s Management will hold a conference call today, Wednesday, May 2, 2012 at 10:00 a.m. EDT to discuss its fiscal second quarter 2012 financial results for the period ending March 31, 2012. Participants on the call will include Bruce Widener, Chairman and CEO; Paris Arey, Executive Vice President Sales and Marketing; Michael Martin, Executive Vice President Global Services and S. Scott Fitzpatrick, Vice President Corporate Controller and Treasurer. The teleconference can be accessed 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. Please dial in 15 minutes prior to the beginning of the call. 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 for replay two hours after the end of the call’s completion until 11:59 p.m. EDT on Friday, May 4, 2012 by calling 404-537-3406 and entering conference ID # 74625231.
About Beacon Enterprise Solutions Group, Inc.
Beacon Enterprise Solutions Group is an emerging global leader in the design, implementation and management of high performance Information Technology Systems (“ITS”) infrastructure solutions. Beacon offers fully integrated, turnkey IT infrastructure solutions capable of fully servicing the largest companies in the world as they increasingly outsource to reduce costs while optimizing critical IT design and infrastructure management. Beacon is headquartered in Louisville, Kentucky, with regional headquarters in Cincinnati, Ohio, Dublin, Ireland, Prague, Czech Republic and personnel located throughout the United States and Europe.
For additional information, please visit Beacon’s corporate website: www.askbeacon.com.
For financial tables, please go to the “Investor Relations” tab.
This press release may contain “forward-looking statements.” Expressions of future goals and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements may include, without limitation, statements about our market opportunity, strategies, competition, expected activities and expenditures as we pursue our business plan. Although we believe that the expectations reflected in any forward looking statements are reasonable, we cannot predict the effect that market conditions, customer acceptance of products, regulatory issues, competitive factors, or other business circumstances and factors described in our filings with the Securities and Exchange Commission may have on our results. The company undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this press release.