Press
04/10/2007 DynTek Awarded Master Services
Agreement Valued up to Approximately
$18 Million Annually
Company’s TekConnect Private Label
Services Business Unit Selected as Designated Service Provider
for Large Technology Manufacturer
Irvine, CA – April 10, 2007 – DynTek, Inc.
(OTCBB: DYNK), a leading provider of professional technology
services, today announced it has been awarded a multi-million
dollar Master Services Agreement from a large technology manufacturer.
Through a competitive bid process, DynTek was selected as a primary
technology services sub-contractor for engagements throughout
the United States. The award was based on DynTek’s strong
project management capabilities, highly scalable service delivery
model and competitive price points. The contract does not have
a fixed term.
“This agreement is a perfect fit for our Private Label Services
program, which enables us to rapidly scale and deploy services
on a national basis,” said Steve Struthers, TekConnect’s
president. “In recent months, we have made an investment
in additional staff and management systems to support our ability
to service multiple large, national agreements. We look forward
to providing excellent service to our manufacturer partner, and
the end user client base we will serve directly.”
“Based on the scope of our award, we anticipate revenues
from this program to be between approximately $6 and $18 million
per year,” said Casper Zublin, Jr., DynTek’s chief
executive officer. “This award is a significant catalyst
to our organic revenue growth. While it will take 6 to 9 months
to fully scale the program, we anticipate to see the initial impact
in the June and September quarters. Due to the extensive nature
of the agreements, our Private Label Services business unit represents
an area that can rapidly propel the growth of the company, from
both a top line and bottom line perspective.”
About DynTek
DynTek is a leading provider of professional technology services
to mid-market companies, such as state and local governments,
educational institutions and commercial entities in the largest
IT markets nationwide. The company offers technology practices
in IT security, advanced network infrastructure, voice over internet
protocol (“VOIP”), and access infrastructure. DynTek’s
multidisciplinary approach allows our clients to turn to a single
source for their most critical technology requirements. For more
information, visit www.dyntek.com.
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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, our dependence on our private label service
partners to sell and properly price our services to their customers;
our ability to scale our services to meet customer demands without
degrading quality of service; success in reaching target markets
for services and products in a highly competitive market and the
ability to maintain existing and attract future customers; our
ability to finance and sustain operations, including our ability
to comply with the terms of working capital facilities and/or
other term indebtedness of the Company, and to extend such obligations
when they become due, or to replace them with alternative financing;
our ability to raise equity capital in the future; our ability
to achieve profitability despite historical losses from operations;
our ability to maintain business relationships with IT product
vendors and our ability to procure products as necessary; the
size and timing of additional significant orders and their fulfillment;
the continuing desire of and available budgets for state and local
governments to outsource to private contractors; our ability to
successfully identify and integrate acquisitions; the retention
of skilled professional staff and certain key executives; the
performance of the Company’s government and commercial technology
services; the continuation of general economic and business conditions
that are conducive to outsourcing of IT services; our ability
to maintain trading 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 October 13, 2006, our
Quarterly Reports on Form 10-Q filed on November 20, 2006 and
February 20, 2007 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.
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