Cheers

"The second fiscal quarter was a pivotal turning point for the organization," said Steve Ross, DynTek's chief executive officer. "We implemented financial and operational changes designed to create a stable environment for future growth. From an operational perspective, we made significant investments in recruiting and training additional sales and technical talent in our key markets. As this enhanced sales team moves out of ramp-up mode and into full-scale production, we expect to see a substantial return on our investment. We restructured the field operations in order to reduce our sales general and administrative expenses by over $1 million annually. In addition, we completed the recapitalization of the business, providing us with the resources necessary to fund the growth and development of the organization. As a result of our investments, expense reduction and increased capitalization, we are projecting positive earnings from operations, before depreciation and amortization, in the third fiscal quarter."