Datascension, Inc. Reports Third Quarter Financial Results
Datascension turnaround plan advances with record performance in Net Income Improvement in 3Q’09 of $4,994,831, and year-to-date of $5,945,957, over prior year results.
LAS VEGAS, NV – November 16, 2009 - Datascension, Inc. (OTC BB: DSEN), a global outsourcing solutions company, today announced financial results for the Company’s third quarter ended September 30, 2009.
For the quarter ended September 30, 2009, the Company recorded a net loss of ($49,976) compared to a year ago net loss of ($5,044,809), an improvement of $4,994,831. Total net revenues decreased to $3,550,457, from $3,975,576 in the prior year period, a decline of $425,119 or approximately 10.7%. Cost of goods sold decreased to $2,873,921 from $3,479,922, a reduction of $606,001, or approximately 17.4%, from the prior year period. For the quarter ended September 30, 2009, the Company generated a gross profit of $675,536 compared to $495,654 for the quarter ended September 30, 2008, an increase of $180,882 or 36.5%.
Total selling, general and administrative expenses decreased by $125,804, or 20.6%, to $486,002 for the three months ended September 30, 2009, from $611,806 in the prior year period.
Interest expense declined by $54,320, or 24.6%, to $166,538 for the three months ended September 30, 2009, as compared to $220,858 for the three months ended September 30, 2008.
Basic and diluted loss per share was $0.00 for the quarter ended September 30, 2009, as compared to basic and diluted loss per share of ($0.20) for the quarter ended September 30, 2008. As of September 30, 2009, the Company had cash and cash equivalents of $299,378.
Year-To-Date 2009 Results
Net income for the nine months ended September 30, 2009, was $160,367 compared with a loss of ($5,785,590) in the year-ago period, an improvement of $5,945,957. Diluted earnings per share were $0.01 compared with a loss of ($0.18) per diluted share for the 2008 period. Revenue for the nine-month period totaled $11,138,267, a decrease of 20.5% percent compared with $14,014,679 for the nine months of 2008. Gross profit for the nine months ended September 30, 2009, was $2,114,096 compared with $1,655,115 for the nine months of 2008, an increase of $458,981 or 27.7%. For the nine months ended September 30, 2009, the Company improved its working capital position by $956,786 from ($1,369,443) as of December 31, 2008, to $(412,657) as of September 30, 2009.
“We are delivering on our commitments, executing on our plans and operating more efficiently. Our turnaround plan continues to build momentum as we further reinforce and strengthen our financial position by restructuring our debt,” DSEN Chairman and CEO Lou Persico said. As the economy works to regain its footing, we are keenly focused on cost improvements as well as continued leadership and investments in key areas that will drive future profitable, revenue growth. Our razor edge focus on operations combined with a continued disciplined concentration on cost control, helped DSEN deliver improved gross and operating margins, highlighting the resilience of our financial model and our crisp execution. While uncertainty still remains regarding the pace of the economic recovery, we feel confident that our investments in our business will enable us to capitalize on growth opportunities as the economy improves.”
Effective September 30, 2009, two of the Company's major creditors, Longview Fund and Alpha Capital Anstalt, agreed to modification of the terms of their outstanding notes with the Company, in order to assist the Company in its efforts to restructure its balance sheet, as detailed below. The note modifications are intended to extend the term of the notes, to ease the Company's short-term cash flow burden, and to strengthen the balance sheet for potential investors and clients of the Company.
Longview Fund, LP, and Alpha Capital Anstalt have agreed to capitalize all accrued and unpaid interest on the notes, as well as to increase the balances to include interest payments, which would otherwise be due through December 2009. The new interest rate on the notes is 8% per annum, and the additions to principal balances for interest due for the fourth quarter of 2009 are calculated at the new 8% interest rate.
In commenting upon the restructuring, the Company's CEO, Lou Persico, said, "I am proud of the work our employees have done to improve our business despite adverse economic conditions. We have worked hard and our lenders have recognized these efforts by agreeing to restructure our outstanding notes on more favorable terms for the Company."
ABOUT DATASCENSION, INC.
Datascension, Inc. is a multi faceted data collection, contact center and business operations provider. This global outsourcing solutions company with offices in Las Vegas, Nevada, Anaheim, California, and operations in San Jose and Limon, Costa Rica is committed to customer service, quality and on-time project management. Its dedication to providing both value and excellence for its clients, employees and shareholders continually fosters its excellent reputation within the industry. Datascension is positioning itself to be the forerunner in the fields of Market Research Data Collection, Contact Center Services and Business Operations Provider services. For additional information, please visit the Company's website at www.datascension.com.