Dyntek Wts A (MM) (NASDAQ:DYTKW)
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DynTek's Securities Expected to Trade on NASD OTC
Company Provides Guidance on Current Quarter; Expects to Exceed Revenue Targets
IRVINE, Calif., Dec. 16 /PRNewswire-FirstCall/ -- DynTek, Inc.
(NASDAQ:DYTKNASDAQ:DYTKPNASDAQ:DYTKW), a leading provider of professional
technology services and IT security solutions, today announced that it has
decided to voluntarily delist its securities from the Nasdaq SmallCap Market
and to move to the NASD OTC Bulletin Board. The Company arrived at this
decision subsequent to receipt of a deficiency letter from the Staff of the
Nasdaq Stock Market, which stated that the Staff believes the Company did not
comply with shareholder approval requirements in Marketplace Rule
4350(i)(1)(D)(i) with respect to certain sales of the Company's securities in
2003, including sales of the Company's shares by a former major shareholder
over which the Company had no control.
"DynTek continues to believe that the Company acted in compliance with the
Nasdaq shareholder approval requirements in the Marketplace Rule," stated Steve
Ross, DynTek's chief executive officer. "However, the Staff has indicated that
it does not agree with the Company's position, and we believe that the ongoing
costs, distractions and uncertainties of a lengthy process to maintain the
SmallCap listing are not warranted at this time. Such uncertainty does not
benefit our shareholders, especially at a time when we are making significant
progress on many business fronts. We feel that our stakeholders would be
better served by channeling our resources into efforts that will accelerate the
profitable growth of our company."
"With respect to such growth, we are tracking ahead of our $20 million revenue
target for the current quarter ending December 31, 2004," Ross continued.
"This would represent a 104% increase over the Company's revenues of $9.8
million from the same quarter last year, and a 43% increase in revenues from
our most recent quarter ended September 30, 2004. We believe that the Company
is on track to reach our previously announced targets of $100 million in
revenues and profitability for calendar 2005. There should be no significant
diminution in liquidity on the OTC Bulletin Board or a reduction in access to
information by shareholders. We will continue to focus on building our
business, meeting our targets, and perhaps later seek listing on the American
Stock Exchange or Nasdaq National Market System, rather than going through a
lengthy, expensive and uncertain process to maintain the SmallCap listing at
this time."
DynTek's common stock, Series A Preferred Stock and Class A Warrants are
expected to trade under the symbol DYTK on the OTC Bulletin Board, effective on
or about December 20, 2004.
About DynTek
DynTek is a leading provider of professional technology services to government,
education and mid-market commercial customers in the largest IT markets
nationwide. The company provides solutions that address the critical business
needs of organizations today, such as IT security, voice and data convergence
(VOIP), enterprise access and technology management. Our practice areas
incorporate an approach and methodology derived from more than 18 years of
experience in the assessment, design, implementation, management and support of
technology solutions. For more information, visit http://www.dyntek.com/.
Forward-Looking Statements
This press release contains certain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended, which are intended to
be covered by the safe harbors created thereby. Investors are cautioned that
certain statements in this release are "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995 and involve
known and unknown risks, uncertainties and other factors. Such uncertainties
and risks include, among others, success in reaching target markets for
services and products in a highly competitive market and the ability to attract
future customers, the ability to finance and sustain operations, including the
ability to comply with the terms of the Textron Factoring Facility and/or the
amended Laurus Funds Note, and to extend such obligations when either becomes
due, or to replace them with alternative financing, the ability to raise equity
capital in the future, despite historical losses from operations, the ability
to fulfill the Company's obligations to third parties, and ability to resolve
successfully certain ongoing litigation over contract performance in the state
of Virginia, the size and timing of additional significant orders and their
fulfillment, the ability to turn contract backlog into revenue and net income,
the continuing desire of state and local governments to outsource to private
contractors, the ability to successfully integrate ITI and Redrock, the ability
to continue to implement an acquisition growth strategy, the ability to achieve
financial targets, the retention of certain key managers, the performance of
successful government and commercial technology services, the ability to
develop and upgrade our technology, the continuation of general economic and
business conditions that are conducive to governmental outsourcing of service
performance and the acquisition of other services and product, the ability to
list and maintain its securities on the NASD OTC Bulletin Board or other
markets in the future, and such other risks and uncertainties included in our
Annual Report on Form 10-K filed on September 29, 2004, our Quarterly Report on
Form 10-Q filed on November 15, 2004, and other SEC filings. The Company has
no obligation to publicly release the results of any revisions, which may be
made to any forward-looking statements to reflect anticipated or unanticipated
events or circumstances occurring after the date of such statements.
DATASOURCE: DynTek, Inc.
CONTACT: Linda Ford of DynTek, Inc., +1-949-798-7215,
Web site: http://www.dyntek.com/