“The historic slowdown in the overall economy and stress in worldwide capital markets certainly impacted our third quarter results, although customer order activity and backlog increased substantially,” said Alan R. Abrams, chairman of the board, president and chief executive officer. “The Board of Directors made the decision to reduce our dividend as part of a strategic action to preserve capital and protect the strength of our balance sheet, in order to fund revenue growth and enhance our financial flexibility as we manage through these difficult times. Although our cash position stabilized in the quarter and we have no unsecured bank debt, the Board believes this is a prudent step to take at this time.”
“There is an unprecedented focus on energy efficiency during this period of worldwide economic malaise, and demand for our cost-saving building performance efficiency (“BPE”) services and products has increased dramatically in recent months,” noted Abrams. “While BPE revenues grew modestly in the third quarter compared to last year, BPE backlog increased by 62% in the quarter and is 79% above last year’s comparable quarterly amount. Despite the ongoing economic recession, we expect that BPE revenues will grow significantly in the next few quarters, in part because of how well positioned we are to benefit materially from the federal government’s multi-billion dollar commitment to improve the energy efficiency of federal, state and local governments’ buildings and facilities. At the same time, we will continue to look for ways to reduce our operating expenses and capitalize on opportunities to carefully grow our business under these extraordinary economic conditions.”
Additionally, Servidyne has announced that the board of directors has reauthorized the repurchase of up to 100,000 shares of the company’s Common Stock during the twelve-month period beginning March 6, 2009, and ending March 5, 2010. Any such purchases, if made, could be in the open market at prevailing prices or in privately negotiated transactions.
Servidyne is a US-based provider of energy efficiency solutions, sustainability programs, and other building performance-enhancing products and services.
