Datascension, Inc. Reports First Quarter Financial Results
May 21, 2009 4:48:00 PM
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View Additional ProfilesLAS VEGAS, May 21 /PRNewswire-FirstCall/ -- Datascension, Inc. (OTC Bulletin Board: DSEN), a premier data solutions provider, today announced financial results for the Company's first quarter ended March 31, 2009.
For the quarter ended March 31, 2009, the Company recorded positive earnings up $75,801 over the prior year period as the Company's turnaround plan gained positive traction. Total net revenues decreased to $3,773,187, from $5,347,987, a decline of approximately 29.4%. Cost of goods sold decreased by $1,359,651, or 30.4%, to $3,106,504 as compared to $4,466,155 during the prior year period. The decrease in revenue and in cost of goods sold was primarily attributable to the current general economic downturn, which has affected the Company's customers resulting in reduced demand for the services provided by the Company.
The Company generated net income of $8,911 for the three months ended March 31, 2009, compared to a net loss of ($66,890) for the three months ended March 31, 2008, an increase in net income of $75,801.
Total selling, general and administrative expenses decreased by $243,520, or 35.8%, to $437,328 for the three months ended March 31, 2009, from $680,848 in the prior year period. The decrease in expenses is due mainly to reductions in executive salaries combined with a reduction in marketing and administrative costs.
Interest expense declined by $61,470, or 29.6%, to $145,945 for the three months ended March 31, 2009, as compared to $207,415 for the three months ended March 31, 2008. The decrease in interest expense was primarily attributable to the pay down of certain notes payable and a favorable interest rate from Wells Fargo Bank on an account purchase agreement to acquire certain accounts receivables of up to $4.5M.
Basic and diluted loss per share was $0.00 for both the quarter ended March 31, 2009, and the quarter ended March 31, 2008. The company reported operational net cash flow of $343,949, as compared to $31,700 in the prior period, a significant increase of $312,249 over the prior year period attributable to the effectiveness of the turnaround plan. As of March 31, 2009, the Company had cash and cash equivalents of $324,750.
"The first quarter of 2009 was a defining moment for Datascension," stated new CEO, Lou Persico, who became CEO and Chairman of the Board on December 31, 2008. "In a recessionary environment, impacting every sector of the economy, we delivered positive net earnings for the first time in the Company's public history. We took deliberate, methodical and disciplined steps to reduce our overall operating and fixed costs to achieve profitability, which resulted in a smaller but profitable Datascension, Inc."
Despite the difficult economy, we are continuing to monitor our business to assure that we give our customers the excellent service they deserve, but at the same time continue to incorporate cost-cutting measures in order to become the lowest cost provider and to maintain our competitive edge in the marketplace. By driving cost down we are managing operations more efficiently, leading to improved revenue per hour. The objective is to generate a profit on each project we undertake. On balance, we continue to review all infrastructure cost associated with our business in order to remain profitable in 2009.
"We are running Datascension for the long term," Persico said.
We are investing in growth, while lowering cost and generating cash. We see great opportunity in a global economy to continue to improve efficiencies and shrink cost as well as continue to expand into adjacent businesses.
ABOUT DATASCENSION, INC.
Datascension, Inc. a premier data solutions company and business process outsourcing provider with operations in California and Costa Rica, embodies a unique expertise in the collection, storage and processing of marketing data. Employing hundreds of bilingual professionals, the company is rapidly becoming one of the largest Spanish-speaking call centers. The company's commitment to customer service, quality and on-time project management has fostered its excellent reputation among major market research firms and corporate market research departments. Datascension is positioning itself to be the forerunner in the fields of Inbound call center services and Outbound Market Research.
For additional information, please visit the Company's website at www.datascension.com.
Safe Harbor Statement
This press release and other written reports and oral statements made from time to time by the Company may contain so-called "forward-looking statements," all of which are subject to risks and uncertainties. You can identify these forward-looking statements by their use of words such as "expects," "plans," "will," "estimates," "forecasts," "projects" and other words of similar meaning. You can identify them by the fact that they do not relate strictly to historical or current facts. These statements are likely to address the Company's growth strategy, financial results and product and development programs. You must carefully consider any such statement and should understand that many factors could cause actual results to differ from the Company's forward-looking statements. These factors include inaccurate assumptions and a broad variety of other risks and uncertainties, including some that are known and some that are not. No forward-looking statement can be guaranteed and actual future results may vary materially.
The Company does not assume the obligation to update any forward-looking statement. You should carefully evaluate such statements in light of factors described in the Company's filings with the SEC, especially on Forms 10-K, 10-Q and 8-K. In various filings, the Company has identified important factors that could cause actual results to differ from expected or historic results. You should understand that it is not possible to predict or identify all such factors. Consequently, you should not consider any such list to be a complete list of all potential risks or uncertainties.
SOURCE Datascension, Inc.
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David Lieberman of Datascension
Inc.
+1-702-233-6785
david.lieberman@datascension.com
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