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DynTek Announces Results for the Second Fiscal Quarter and Year-to-Date Period Ended December 31, 2012
[January 28, 2013]

DynTek Announces Results for the Second Fiscal Quarter and Year-to-Date Period Ended December 31, 2012

(Marketwire Via Acquire Media NewsEdge) NEWPORT BEACH, CA -- (Marketwire) -- 01/28/13 -- DynTek, Inc. (PINKSHEETS: DYNE), a leading provider of professional technology services, today announced results for the quarter and six months ended December 31, 2012.

Second Fiscal Quarter Ended December 31, 2012 DynTek reported revenues of $31,868,000 for the second quarter ended December 31, 2012, an increase of 24% from $25,669,000 in the second quarter ended December 31, 2011. Gross profit increased to $5,514,000 for the second quarter ended December 31, 2012, an increase of $1,512,000 or 38% from $4,002,000 for the prior second fiscal quarter. Total operating expenses increased to $4,230,000 in the second quarter ended December 31, 2012 compared to $3,546,000 in the prior second quarter ended December 31, 2011, primarily attributable to higher selling expense associated with higher revenues.

DynTek reported positive EBITDA of $1,399,000 for the second fiscal quarter ended December 31, 2012, an increase of $889,000 or 174% from $510,000 for the prior second fiscal quarter ended December 31, 2011. Net income is $944,000 for the second fiscal quarter of 2013, an increase of $864,000 over the $80,000 for the second fiscal quarter of 2012.


Year-to-Date Period Ended December 31, 2012 DynTek reported revenues of $68,219,000 for the six months ended December 31, 2012, an increase of 28% from $53,222,000 in the six months ended December 31, 2011. Gross profit also increased to $11,070,000 for the six months ended December 31, 2012, an increase of $1,620,000 or 17% from $9,450,000 for the prior six months ended December 31, 2011. Total operating expenses increased to $8,684,000 in the six months ended December 31, 2012 compared to $7,601,000 in the prior six months ended December 31, 2011, primarily attributable to higher selling expense associated with higher revenues.

DynTek reported positive EBITDA of $2,554,000 for the six months ended December 31, 2012, an increase of $613,000 or 32% from $1,941,000 for the prior six months ended December 31, 2011. Net income is $1,728,000 for the six months ended December 31, 2012, an increase of $1,042,000 over the prior six months ended December 31, 2011.

"DynTek is driving double and triple digit growth on both the top and bottom lines, highlighting that our investments are performing and we are controlling costs in line with growth," said Ron Ben-Yishay, DynTek's chief executive officer. "Our focus continues to be on sustaining our organic growth across all regions and technology areas through key investments in technical talent, sales and marketing and customer service." EBITDAThe Company defines EBITDA as net income from operations before interest, taxes, depreciation and amortization, and stock-based compensation. Other companies may calculate EBITDA differently. Although EBITDA is a widely used financial indicator of a company's ability to service debt, it is not a recognized measure for financial statement presentation under generally accepted accounting procedures (GAAP). EBITDA should not be considered in isolation or as superior or as an alternative to net income or to cash flows from operating activities as determined in accordance with GAAP. Nonetheless, the Company believes that EBITDA provides useful supplemental information for investors and others to measure operating performance, especially in situations where a company has significant non-cash operating expenses that are not indicative of core business operating results. EBITDA is widely used in the IT services industry to analyze comparable company performance, and management of the Company also uses EBITDA, in addition to GAAP information, as a measure of operating performance for assessing its business units.

About DynTekDynTek is a leading provider of professional technology services to mid-market companies, such as state and local governments, educational institutions and commercial entities in the largest IT markets nationwide. From virtualization and cloud computing to unified communications and collaboration, DynTek provides professional technology solutions across the three core areas of our customers' technical environment: Infrastructure/Data Center, Microsoft Platform, End Point Computing. DynTek's multidisciplinary approach allows our clients to turn to a single source for their most critical technology requirements. For more information, visit http://www.dyntek.com.

Follow Us Online:Twitter: @DynTek DynTek on Facebook DynTek on LinkedIn Forward Looking StatementsThis press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Investors are cautioned that forward-looking statements made in this press release, such as statements relating to the effect that the adoption of the revolving line of credit will have on our business and our intended use of funds borrowed under the revolving line of credit, involve known and unknown risks and uncertainties that could cause actual results to materially differ from the forward-looking statements. Such risks and uncertainties include, among others, our success in reaching target markets for services and products in a highly competitive market; our ability to maintain existing customers and attract future customers; our ability to finance and sustain operations, including our ability to comply with the terms of the revolving line of credit and the Company's other existing and future indebtedness; our ability to achieve profitability and positive cash flow from operations; our ability to maintain business relationships with IT product vendors; the size and timing of additional significant orders for our products and services and our ability to fulfill such orders; the continuing desire of state and local governments to outsource to private contractors and the availability of budgets to place orders for our products and services; our ability to retain skilled professional staff and certain key executives; the performance of our government and commercial technology services; and the continuation of general economic and business conditions that are conducive to outsourcing of IT services. We have no obligation to publicly revise any forward-looking statements to reflect anticipated or unanticipated events or circumstances occurring after the date of such statements.

DYNTEK, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (EBITDA presentation) (Unaudited, in thousands, except share and per share data) Six Months Quarter Six Months Quarter Ended Ended Ended Ended December 31, December 31, December 31, December 31, 2012 2012 2011 2011 ------------- ------------- ------------- ------------- REVENUES Product revenues $ 23,773 $ 51,571 $ 18,736 $ 37,933 Service revenues 8,095 16,647 6,933 15,289 ------------- ------------- ------------- ------------- TOTAL REVENUES 31,868 68,219 25,669 53,222 ------------- ------------- ------------- ------------- COST OF REVENUES Cost of products 19,748 43,939 16,293 32,042 Cost of services 6,606 13,209 5,374 11,730 ------------- ------------- ------------- ------------- TOTAL COST OF REVENUES 26,354 57,148 21,667 43,772 ------------- ------------- ------------- ------------- GROSS PROFIT 5,514 11,070 4,002 9,450 ------------- ------------- ------------- ------------- OPERATING EXPENSES Selling 3,163 6,470 2,489 5,256 General and administrative 1,042 2,163 1,024 2,283 Depreciation and amortization 25 51 33 63 ------------- ------------- ------------- ------------- TOTAL OPERATING EXPENSES 4,230 8,684 3,546 7,601 ------------- ------------- ------------- ------------- INCOME FROM OPERATIONS 1,285 2,386 456 1,849 EBITDA 1,399 2,554 510 1,941 OTHER INCOME (EXPENSE) Interest expense (237) (468) (304) (552) ------------- ------------- ------------- ------------- TOTAL OTHER EXPENSE (237) (468) (304) (552) ------------- ------------- ------------- ------------- INCOME BEFORE INCOME TAX PROVISION 1,048 1,919 152 1,297 Income tax provision (104) (191) (72) (610) ------------- ------------- ------------- ------------- NET INCOME $ 944 $ 1,728 $ 80 $ 686 ============= ============= ============= ============= NET INCOME PER SHARE: Basic $ 0.45 $ 0.83 $ 0.04 $ 0.35 ============= ============= ============= ============= Diluted $ 0.45 $ 0.83 $ 0.04 $ 0.34 ============= ============= ============= ============= WEIGHTED AVERAGE NUMBER OF SHARES: Basic 2,093,188 2,090,653 1,978,802 1,971,900 ============= ============= ============= ============= Diluted 2,093,188 2,090,653 2,035,766 2,023,589 ============= ============= ============= ============= For more information, contact: Linda Ford DynTek, Inc.

949-271-6705 Email Contact Source: DynTek Services, Inc.

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