Derycz Scientific Reports 34% Revenue Increase For Fiscal 2011

SANTA MONICA, Calif., Sept. 29, 2011 /PRNewswire/ -- Derycz Scientific, Inc. (OTC Bulletin Board: DYSC), a company that is pioneering a fresh way of facilitating the flow of information from content publishers to enterprise customers and their constituents, today reported financial and operating results for the fiscal year ended June 30, 2011.

Financial highlights include the following:

• Fiscal 2011 full year revenues increased 34% to $33.5 million from $24.9 million in fiscal 2010.
• Fiscal 2011 fourth quarter revenues increased 77% to $11.3 million from $6.4 million in the fiscal 2010 fourth quarter.

"The past fiscal year was one of tremendous growth for Derycz Scientific.  We raised revenues by 34% while significantly expanding our customer base and publisher agreements, and adding to our technology solutions through new business relationships," said Peter Derycz, President and CEO of Derycz Scientific.  "Among our notable recent accomplishments, we completed our acquisition of Techniques Appliquees aux Arts Graphiques, S.p.A. (TAAG), which provides the Company with a physical presence in Europe, and provides global customers with a truly global information logistics solution.

"While our loss widened compared with the prior year, due principally to expenses related to warrant and option grants issued to the Company's consultants, directors and employees, in addition to costs associated with the amortization of guaranteed payments required under publisher agreements, and one-time costs associated with the acquisition of TAAG, we foresee the attainment of our profitability goals within a reachable timeframe.  Our optimism is fueled by our development of new, higher-margin products that we intend to sell into our existing customer base.

"As I previously stated at the end of the last quarter, we expect to continue significant revenue growth and improve our bottom line for coming quarters and fiscal 2012," added Mr. Derycz.  "We remain focused on our goals of growing our sales capabilities and enhancing our current line of products."  

Fiscal 2011 Financial Results

For fiscal 2011, revenues increased 34% to $33.5 million from $24.9 million in fiscal 2010.  The Company reported a net loss of $5,407,606 for the year ended June 30, 2011 compared to a net loss of $307,193 for the year ended June 30, 2010. Approximately $1,418,000 of the loss is attributable to expenses related to warrant and option grants issued to the Company's consultants, directors and employees.  Revenues from the Company's wholly owned subsidiary Reprints Desk increased 25% to $27.5 million from $22.0 million in fiscal 2010.  Pools Press contributed $2.2 million for the year and TAAG contributed $3.8 million for the three months ended June 30, 2011.  Gross margin decreased from 15% during the year ended June 30, 2010 to 12% for the year ended June 30, 2011.  The Company expects gross margin percentage to improve as TAAG's higher gross margin sales will contribute to the Company's overall gross margins and as it begins to market some higher gross margin products at Reprints Desk.

General and administrative expenses were $7.9 million for fiscal 2011, compared with $3.6 million in fiscal 2010.  Marketing and advertising expenses were $619,000, compared with $440,000 in the prior year.  For fiscal 2011, the Company reported a net loss of $5,407,606, or $0.36 per share, compared with a net loss of $307,000, or $0.02 per share, for fiscal 2010.

As of June 30, 2011, the Company had cash and cash equivalents of $2.9 million, compared to $1.9 million as of June 30, 2010.  

Fiscal Fourth Quarter Financial Results

For the fiscal 2011 fourth quarter, revenues increased 77% to $11.3 million, from $6.4 million in the fiscal 2010 fourth quarter.  This increase was due primarily to the Company's acquisition of TAAG and sales growth at Reprints Desk. Financial information for the fourth quarter of fiscal 2011 should be read in conjunction with the fiscal 2011 Financial Results set forth above and the Company's Annual Report on Form 10-K, filed today with the Securities and Exchange Commission.

Conference Call

Derycz Scientific management will host an investment-community conference call today beginning at 11:00 a.m. Eastern time (8:00 a.m. Pacific time) to discuss these results and answer questions.  To participate in the call please dial (888) 424-8151 for domestic callers, or +1 (847) 585-4422 for international callers, and enter passcode 7292 723 when prompted.

A telephone replay will be available for 30 days following the conclusion of the call by dialing (888) 843-7419 for domestic callers, or +1 (630) 652-3042 for international callers, and entering reservation code 7292 723 when prompted.

About Derycz Scientific®

Derycz Scientific, Inc. develops companies, products, services and systems that facilitate the re-use of published content in a manner that helps organizations achieve their marketing, communication and research goals effectively and in compliance with copyright law and regulatory rules. Its subsidiary companies include Reprints Desk, Inc., Pools Press, Inc. and Techniques Appliquees aux Arts Graphiques, S.p.A. (TAAG).  Reprints Desk improves how journal articles and clinical reprints are accessed, procured, and legally used in evidence-based promotions and scientific, technical, and medical (STM) research.  Pools Press has excelled in the reprint market for more than 30 years.  It provides professionally printed articles from medical and technical journals; prints booklets, catalogs, pamphlets, direct mail pieces and newsletters; and works with publishers who wish to outsource a portion of or all of their reprints business.  TAAG offers printing, distribution and information logistics services, with core competencies in the professional production and distribution of clinical trial kits and clinical article reprints for the life sciences industry. For more information, please visit www.deryczscientific.com.

Forward-Looking Statements

Certain matters discussed in this press release may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Such matters involve risks and uncertainties that may cause actual results to differ materially, including the following: changes in economic conditions; general competitive factors; acceptance of the Company's products in the market; the Company's success in obtaining new customers; the Company's success in technology and product development; the Company's ability to execute its business model and strategic plans; the Company's success in integrating acquired entities and assets, and all the risks and related information described from time to time in the Company's filings with the Securities and Exchange Commission ("SEC"), including the financial statements and related information contained in the Company's Annual Report on Form 10-K.  The Company assumes no obligation to update the cautionary information in this release.

SOURCE Derycz Scientific, Inc.