Emtec, Inc. reported net income of $1.4 million, or $0.09 per share, in the third quarter of 2009 which ended November 30, 2009. This was an increase from net income of $1.0 million, or $0.07 per share, in the same quarter of 2008.
The company reported an increase in gross margin to 14.3% from 12.6% a year earlier. Adjusted EBITDA also rose, from $2.8 to $3.4 million over the same time period.
Dinesh Desai, the CEO of Emtec, stated, “We are excited about the continued operating performance of the business. Our federal and education businesses continue to perform strongly. While the declines in our EGS business are concerning, they were not unexpected given the current economic environment. We continue to experience challenges in the commercial market place, however, we believe our industry diversification has softened the blow of the economic downturn versus our competitors.”
Emtec, Inc. reports in two business segments. The Emtec Infrastructure Services segment saw higher revenues due to increased business from school districts in the southeastern United States. The Emtec Global Services segment suffered during the quarter from a lower billing rate and less hours billed to customers. The company blamed the decline on the weak economy.
Emtec, Inc. is an information technology company providing products and services to federal, state and local governments, and the private sector.