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

DynTek Announces Results for the Second Fiscal Quarter and Year-to-Date Period 
Ended December 31, 2012 
Company Continues Growth in Revenues and Earnings 
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."  
EBITDA
 The 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 DynTek
 DynTek 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 Statements
 This 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
linda.ford@dyntek.com