Derycz Scientific Reports Adjusted EBITDA of $422,000 for Second Quarter Fiscal Year 2013

ENCINO, Calif., Feb. 14, 2013 /PRNewswire/ -- Derycz Scientific, Inc. (OTC:DYSC), a leader in information logistics solutions and a pioneer in facilitating the flow of information from content publishers to enterprise customers in life science and other research intensive industries, today reported financial and operating results for the second quarter of its fiscal year 2013 (quarter ended December 31, 2012).

Second Quarter Fiscal Year 2013 Highlights:

• Adjusted EBITDA of $422,000, a $1.4M increase over Q2 FY2012
• 20% gross profit as a percentage of revenue, a 5 point increase over Q2 FY2012
• $11.5M in revenue from US Operations, a 29% increase over Q2 FY2012; $14M in consolidated revenue, up 16% over Q2 FY2012
• Reaffirm guidance of $1M in adjusted EBITDA from US Operations for FY2013

Management Commentary

"We couldn't be happier to report the continuation of the positive adjusted EBITDA trend we started last quarter.  Our adjusted EBITDA improved by 142% compared to the same quarter last year, and by 91% compared to our previous quarter.  This was a very strong quarter for us despite the holidays and disruption in the US market caused by hurricane Sandy.  Our US operations at Reprints Desk are running very smoothly.  During the quarter we were able to not only increase our revenue and customer base, but we were also able to make substantial technology, human resource, and process improvements which improved our ability to satisfy our customers that are growing in number on a daily basis.  These improvements and our ability to bring happiness to our customers is now well documented.  Our Reprints Desk brand, by a large margin, ranked first in each and every category measured in the Document Delivery: Best Practices and Vendor Scorecard – 2012 Update published by media, information, and technology analyst and research advisory firm Outsell Inc.  A free copy of the report can be viewed online at http://info.reprintsdesk.com/Portals/28841/docs/outselldocdel-rd.pdf," said Derycz Scientific President and CEO Peter Derycz.

Alan Urban, Chief Financial Officer, added "Everything appears to be going up and to the right.  Compared to the same quarter last year we experienced a 29% increase in revenue from US Operations, and a 16% increase in consolidated revenue.  In addition, our adjusted EBITDA was $422,000 for the quarter, bringing our year to date EBITDA to $643,000."  Mr. Urban continued, "Again our adjusted EBITDA swung in the right direction compared to the same quarter last year, this time by $1.4M.  We reaffirm our guidance of $1M in adjusted EBITDA from US operations for the fiscal year."

Conference Call

Derycz Scientific management will host an investment-community conference call on Tuesday, February 19, 2013 beginning at 4:15 p.m. Eastern time (1:15 p.m. Pacific time) to discuss these results and answer questions. To participate in the call please dial (866) 516-3002 for domestic callers or +1 (253) 237-1159 for international callers, and enter passcode 99443847 when prompted.

The webcast will also be available from the Company's website at www.deryczscientific.com. Listening to the webcast requires Internet access and the Windows Media Player or other compatible streaming media player. A recorded replay will be available on the deryczscientific.com website for 60 days following the conclusion of the call.

Quarterly Results at a Glance

The following financial information should be read in conjunction with the unaudited financial statements and accompanying notes thereto filed by the Company with the Securities and Exchange Commission on February 14, 2013 in its Quarterly Report on Form 10-Q for the period ended December 31, 2012. The Quarterly Report can be viewed at www.sec.gov.

(Table amounts in 000's)

Use of Non-GAAP Measure – Adjusted EBITDA

Derycz Scientific management evaluates and makes operating decisions using various financial metrics. In addition to the Company's GAAP results, management also considers the non-GAAP measure of Adjusted EBITDA. Management believes that this non-GAAP measure provides useful information about the Company's operating results.  The attached tables provide a reconciliation of this non-GAAP financial measure with the most directly comparable GAAP financial measure.

Adjusted EBITDA is defined as net income (loss) from operations before interest, income taxes, depreciation and amortization expenses, excluding, when applicable, stock-based compensation, and impairment of acquired intangibles and goodwill.

 Reconciliation of Adjusted EBITDA to Income (Loss) from Operations

(Table amounts in 000's)

About Derycz Scientific®

Derycz Scientific, Inc. is an information logistics company. The company and its subsidiaries develop products, services and systems to 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.  Subsidiary companies include Reprints Desk, Inc., and Techniques Appliquees aux Arts Graphiques, S.p.A. (TAAG).  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 and interim Quarterly Reports on Form 10-Q.  Examples of forward-looking statements in this release include statements related to new products, anticipated revenue and profitability.  The Company assumes no obligation to update the cautionary information in this release.

SOURCE Derycz Scientific, Inc.

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