Outsourcing Solutions Company, Datascension, Inc. Reports Second Quarter Financial Results
Datascension Achieves Record Net Income Improvement in 2Q ’09, of $875,325 over Prior Year
Las Vegas, NV, August 13, 2009 --(PR.com)-- Datascension, Inc. (OTC BB: DSEN), a global outsourcing solutions company, today announced financial results for the Company’s second quarter ended June 30, 2009.
For the quarter ended June 30, 2009, the Company recorded positive earnings up $875,325 over the prior year period as the Company’s turnaround plan continued to build momentum. Total net revenues decreased to $3,814,623, from $4,691,116, a decline of $876,493 or approximately 18.7% year-over-year and 2.3% sequential increase over the first quarter results. Cost of goods sold decreased to $3,043,746 from $4,413,487, a reduction of $1,369,741, or approximately 31.0%, from the prior year period. For the quarter ended June 30, 2009, the Company generated a gross profit of $770,877 compared to $277,629 for the quarter ended June 30, 2008, an increase of $493,248 or 178%.
The Company generated net income of $201,434 for the three months ended June 30, 2009, compared to a net loss of ($673,891) for the three months ended June 30, 2008, an increase in net income of $875,325.
Total selling, general and administrative expenses decreased by $179,354, or 26.8%, to $490,974 for the three months ended June 30, 2009, from $670,328 in the prior year period. The decrease in expenses is mainly due to reductions in executive salaries combined with a reduction in marketing and administrative costs.
Interest expense declined by $82,811, or 37.5%, to $137,962 for the three months ended June 30, 2009, as compared to $220,773 for the three months ended June 30, 2008. The decrease in interest expense was primarily attributable to the payoff of several loans and reduced borrowing under its new receivable financing agreement with Wells Fargo Business Credit.
Basic and diluted income per share was $0.01 for the quarter ended June 30, 2009, as compared to basic and diluted loss per share of ($0.02) for the quarter ended June 30, 2008. The company reported operational net cash flow of $193,647, as compared to ($243,647) in the prior period, a significant increase of $437,294 over the prior year period attributable to the effectiveness of the turnaround plan. As of June 30, 2009, the Company had cash and cash equivalents of $139,080.
“In a global economic environment that continues to remain challenging, DSEN delivered solid second-quarter business results,” DSEN Chairman and CEO Lou Persico said. “I’m proud of our strong financial performance, which we have continued to achieve in concert with our ability to continuously improve the level of quality of the services we offer to our clients. I am pleased with the DSEN team’s execution in this tough environment. We are working through the recession by aggressively controlling costs and driving efficiencies through our operations while continuing to invest for future growth. While we are not immune to the effects of the economy, I am confident in the strength of our business portfolio and soundness of our approach.”
Moving forward, the Company intends to invest in the long-term health of the business in order to be positioned to capture the growth opportunities created by the economic recovery and the ongoing shifts of its dynamic business. The new Datascension website is a prominent example of the Company’s efforts to innovate and create an expanded service offering by analyzing customer needs and rebranding the Company accordingly. The Company plans to continue to identify important strategic initiatives to create value for their customers and shareholders.
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For the quarter ended June 30, 2009, the Company recorded positive earnings up $875,325 over the prior year period as the Company’s turnaround plan continued to build momentum. Total net revenues decreased to $3,814,623, from $4,691,116, a decline of $876,493 or approximately 18.7% year-over-year and 2.3% sequential increase over the first quarter results. Cost of goods sold decreased to $3,043,746 from $4,413,487, a reduction of $1,369,741, or approximately 31.0%, from the prior year period. For the quarter ended June 30, 2009, the Company generated a gross profit of $770,877 compared to $277,629 for the quarter ended June 30, 2008, an increase of $493,248 or 178%.
The Company generated net income of $201,434 for the three months ended June 30, 2009, compared to a net loss of ($673,891) for the three months ended June 30, 2008, an increase in net income of $875,325.
Total selling, general and administrative expenses decreased by $179,354, or 26.8%, to $490,974 for the three months ended June 30, 2009, from $670,328 in the prior year period. The decrease in expenses is mainly due to reductions in executive salaries combined with a reduction in marketing and administrative costs.
Interest expense declined by $82,811, or 37.5%, to $137,962 for the three months ended June 30, 2009, as compared to $220,773 for the three months ended June 30, 2008. The decrease in interest expense was primarily attributable to the payoff of several loans and reduced borrowing under its new receivable financing agreement with Wells Fargo Business Credit.
Basic and diluted income per share was $0.01 for the quarter ended June 30, 2009, as compared to basic and diluted loss per share of ($0.02) for the quarter ended June 30, 2008. The company reported operational net cash flow of $193,647, as compared to ($243,647) in the prior period, a significant increase of $437,294 over the prior year period attributable to the effectiveness of the turnaround plan. As of June 30, 2009, the Company had cash and cash equivalents of $139,080.
“In a global economic environment that continues to remain challenging, DSEN delivered solid second-quarter business results,” DSEN Chairman and CEO Lou Persico said. “I’m proud of our strong financial performance, which we have continued to achieve in concert with our ability to continuously improve the level of quality of the services we offer to our clients. I am pleased with the DSEN team’s execution in this tough environment. We are working through the recession by aggressively controlling costs and driving efficiencies through our operations while continuing to invest for future growth. While we are not immune to the effects of the economy, I am confident in the strength of our business portfolio and soundness of our approach.”
Moving forward, the Company intends to invest in the long-term health of the business in order to be positioned to capture the growth opportunities created by the economic recovery and the ongoing shifts of its dynamic business. The new Datascension website is a prominent example of the Company’s efforts to innovate and create an expanded service offering by analyzing customer needs and rebranding the Company accordingly. The Company plans to continue to identify important strategic initiatives to create value for their customers and shareholders.
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Contact
Datascension, Inc.
Lou Persico
1-888-996-9238
www.datascension.com
Lou Persico
1-888-996-9238
www.datascension.com
Contact
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