SmartPros Reports Second Quarter 2010 Financial Results

Taken from Yahoo

•Net revenues of $5 million, compared to $4.7 million

•Operating income of $159,000, compared to $245,000

•EBITDA (earnings before interest, taxes, depreciation and amortization) of $414,000, compared to $494,000

Net income was $86,000, or $.02 per diluted share, compared to $217,000, or $.04 per diluted share

As of June 30, 2010, the Company had approximately $4.9 million in cash and cash equivalents ($1 per share in cash), $3.1 million in accounts receivable (.62 per share in AR), $5.4 million in deferred revenue, stockholders' equity of $12.1 million (2.45 per share in equity), and no debt. Current price as of 08/10/10 was $2.84

"While net revenues from our core subscription products remain stable, net revenues from our custom work continue to reflect the effects of the economy," said Allen Greene, Chairman and CEO of SmartPros. "In addition, we are seeing an industry-wide slow down in live-training attendance that effects our live training business. To address these market conditions, we continue to cut expenses and staff when appropriate. We have started to see more requests for proposals, which lead us to be cautiously optimistic about the future."

Greene continued: "SmartPros' cash position remains strong. Therefore, we continue to look for acquisitions and other growth and investment opportunities. As we previously reported, in June we made a 120-day $900,000 loan to an unrelated company at prime plus eight percent, secured by all the assets of the borrower."

"In addition, the Board has approved our third consecutive quarterly dividend of $.01 per share payable on October 11, 2010, to shareholders of record October 1, 2010," Greene said. "The Board took into consideration the seasonality of our business, and continues to feel that our strong cash position and our EBITDA performance make a dividend appropriate. While we hope to be able to continue to pay quarterly dividends, we must caution that any future dividend will be affected by our results and by any acquisitions that we might make, which is still our primary goal."

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