Derycz Scientific Reports Adjusted EBITDA of $221,000 for First Quarter Fiscal Year 2013

ENCINO, Calif., Nov. 13, 2012 /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 first quarter of its fiscal year 2013 (quarter ended September 30, 2012).

First Quarter Fiscal Year 2013 Highlights:

• Adjusted EBITDA of $221,000, a $1.5M increase over Q1 FY2012
• 23% gross profit as a percentage of revenue, an 8 point increase over Q1 FY2012
• $7.1M in revenue from US Operations, a 4% increase over Q1 FY2012; $9.5M in consolidated revenue, down 3% over Q1 FY2012
• Reaffirm guidance of $1M in adjusted EBITDA from US Operations for FY2013
• Stabilization of European subsidiary TAAG.

Management Commentary

"We are very excited to see the beginnings of positive adjusted EBITDA in our US Operations.  We had predicted this turn towards the positive at the end of our last quarter, and are happy to be delivering on that today.  I reaffirm guidance for the year of $1M in adjusted EBITDA from our US Operations for our fiscal year 2013.  Additionally, I am happy to report that we are seeing early signs of stabilization at our European subsidiary TAAG which also managed to create a small, but positive, adjusted EBITDA of $23,000 for the quarter," said Derycz Scientific President and CEO Peter Derycz.  "We are currently adding about one new corporate customer every business day, despite a prolonged global economic downturn.  This validates our belief that there are literally thousands, if not tens of thousands, of organizations all over the world that should be using our products and services.  These products and services continue to evolve and improve as we interact with more customers.  These improvements in turn help us bring more happiness to more customers worldwide."

Alan Urban, Chief Financial Officer, added "A 4% increase in revenue from US operations over Q1 FY2012, a staggering 8 point increase in gross profit as a percentage of revenue over Q1 FY2012, and expense reduction work performed in prior quarters allowed us to achieve $221,000 in adjusted EBITDA this quarter.  Mr. Urban added, "Our adjusted EBITDA swung $1.5M in the right direction compared to the same quarter last year.  We feel comfortable with our guidance of $1M in adjusted EBITDA from US operations for the fiscal year."

Annual Meeting Reminder

Stockholders of Derycz Scientific, Inc. are invited to attend the Annual Meeting to be held on November 15, 2012, at 11:00 a.m. Pacific time, at our corporate headquarters, located at 5435 Balboa Boulevard, Suite 202, Encino, California 91316.

Our Board of Directors has fixed October 15, 2012 as the record date for the determination of stockholders entitled to notice and to vote at the Annual Meeting and any postponement or adjournment thereof, and only stockholders of record at the close of business on that date are entitled to notice and to vote at the Annual Meeting.  We hope that you will use this opportunity to take an active part in the affairs of the Company by voting on the business to come before the Annual Meeting, either by Proxy Card or by casting your vote in person at the Annual Meeting.

Conference Call

Derycz Scientific management will host an investment-community conference call on Wednesday, November 14, 2012 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 70838050 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 November 13, 2012 in its Quarterly Report on Form 10-Q for the period ended September 30, 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.