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Derycz Scientific, Inc. (DYSC.OB) Reports 70% Revenue Increase for Fiscal Year 2010

Derycz Scientific, Inc., a company that deals in getting information and content from publishers to consumers, reported financial and operating results for the fiscal year ending on June 30, 2010 in a conference call on Sept. 28.

The highlights included full year revenues increased 70% to $24.9 million, up from $14.7 million in 2009. Their net loss narrowed from $1.1 million to $307,000. Fiscal 2010 fourth quarter revenues increased 51% to $6.4 million from $4.2 million in the 2009 fourth quarter.

“The past fiscal year was exceptionally rewarding for Derycz Scientific. We grew revenues by 70% 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, our main operating subsidiary signed a multi-year contract as the exclusive provider of reprints and ePrints for the prestigious Journal of the American Medical Association and nine additional specialty journals published by the American Medical Association.

“We achieved our goal of narrowing our loss compared with the prior year, even with our decision to increase our sales and marketing, information technology and administrative teams during the past year. We intend to continue monitoring staffing and make appropriate additions to support further growth.

“We expect another year of significant revenue growth for fiscal 2011,” added Mr. Derycz. “Because our customers are spending cautiously in the current economic environment, we are focusing heavily on customer satisfaction and referrals, new customer acquisition and on new products and services to achieve this growth. We also see the need for aggressive pricing to support growth, which should result in gross margin remaining unchanged or down slightly. Our marketing and advertising expense for the current fiscal year are expected to be in the $500,000 range, representing a modest increase from fiscal 2010. We also expect that our cash resources will be sufficient to sustain current operations for the coming year.”

Revenues from Derycz subsidiary Reprints Desk increased 67%, from $13.2 million in 2009 to $22 million in 2010. Pools Press, another subsidiary, contributed the remaining revenues in both periods. Gross margin decreased from 17% in 2009 to 15% in 2010. Derycz expects the gross margin percentage to remain stable, depending on the relative sales of products with differing margins.

General and administrative expenses were $3.6 million in 2010, versus $3.3 million in 2009; marketing and advertising expenses were $440,000 in 2010, up from $158,000 in 2009. As of the end of the 2010 fiscal year, Derycz had cash and cash equivalents of $1.9 million, unchanged from the end of fiscal year 2009.

A webcast replay of the conference call is available on the Derycz Scientific website deryczscientific.com.
 
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