Servidyne Reports Second Quarter Results

ATLANTA--(BUSINESS WIRE)--SERVIDYNE, INC. (Nasdaq: SERV), an energy efficiency, demand response and real estate company, today reported consolidated revenues for the second quarter ended October 31, 2009, of $4.608 million, compared to consolidated revenues of $4.218 million for the same period last year, a year-over-year improvement of approximately 9%. For the six months ended October 31, 2009, consolidated revenues were $9.237 million, an increase of approximately 19% over the comparable prior year results.

At the Company’s core Building Performance Efficiency (“BPE”) Segment, second quarter revenues grew by approximately 14% over last year to $3.923 million, including revenues from energy efficiency lighting and mechanical projects that grew approximately 67% year-over year to $2.048 million. BPE revenues for the six months ended October 31, 2009, were $7.796 million, an annual increase of approximately 27%, including energy efficiency project revenues of $4.061 million that were approximately 87% higher than last year.

Consolidated selling, general and administrative expenses were reduced by approximately 15% in the second quarter and by approximately 8% in the first six months, in each case as compared to the comparable prior year period, reflecting lower SG&A costs at each operating segment and at headquarters.

The consolidated net loss from continuing operations in the second quarter was $708,022, or $0.19 per share, compared to last year’s second quarter net loss of $905,712, or $0.24 per share. The second quarter net loss at the core BPE Segment was reduced by approximately 43% year-over-year to $224,455.

Commenting on the results, Alan R. Abrams, Chairman, President and CEO, stated, “I continue to be encouraged by our progress, particularly in light of the ongoing worldwide economic malaise. Our core energy efficiency business has achieved higher revenues in four consecutive quarters, as we continue to benefit from growing demand for energy efficiency products and services, particularly in the government sector. I am also optimistic about the potential of our new, recently-announced Fifth Fuel Management™ demand response and energy efficiency offering, which positions us to better serve the utility sector in the U.S., where demand is projected to grow exponentially over the next decade.

“As we continue to grow our BPE sales force, I am particularly proud of our successful corporate-wide efforts to manage operating expenses. We continue to be vigilant in protecting our available capital resources, and I am pleased that we generated positive consolidated cash flow from operations in the quarter. I am also encouraged that it appears that the status of our small office property in Newnan, Georgia, is being successfully resolved as expected, with no adverse impact on our available liquidity.”

About Servidyne

Established in 1925, Servidyne, Inc. is headquartered in Atlanta, Georgia, and operates globally through its wholly–owned subsidiaries. The Company provides comprehensive energy efficiency and demand response solutions, sustainability programs, and other products and services that significantly enhance the operating and financial performance of existing buildings. Servidyne enables its customers to cut energy consumption and realize immediate cost savings across their portfolios, while reducing greenhouse gas emissions and improving the comfort and satisfaction of their buildings' occupants. The Company serves a broad range of markets in the United States and internationally, including owners and operators of corporate, commercial office, hospitality, gaming, retail, light industrial, distribution, healthcare, government, multi-family and education facilities, as well as energy services companies and public and private utilities. Servidyne also currently owns two shopping centers in the Southeast and two office properties in metropolitan Atlanta. For more information about Servidyne, please visit or call 770-953-0304.

Certain statements contained in this news release are forward-looking statements within the meaning of federal securities laws. Without limitation, statements in this press release that are forward-looking include statements regarding the Company’s ongoing progress, the projected growing demand for energy efficiency products and services, the potential for the Company’s BPE Segment’s new Fifth Fuel Management™ demand response and energy efficiency offering, the projected growth in demand from the U.S. utility sector, and the Company’s expectations regarding the status of the Company’s Real Estate Segment’s small office property in Newnan, Georgia. Such forward-looking statements involve known and unknown risks, uncertainties and other matters, including: the length and severity of the current economic downturn and disruptions in the capital markets; the ability and timing of the Company’s BPE Segment achieving increased revenues, positive cash flows and profits; the Company’s ability to access additional capital; the health of the commercial real estate market; the timing, content and implementation of laws affecting demand for the BPE Segment’s products and services; the Company’s ability to attract, retain and motivate key personnel; and the other risks and uncertainties set forth under the heading “Risk Factors” in the Company’s periodic reports filed with the Securities and Exchange Commission; any of which may cause the actual results, performance or achievement of Servidyne, Inc. to be materially different from any past or future results, performance, or uncertainties expressed or implied by such forward-looking statements. Servidyne, Inc. does not undertake to update these forward-looking statements.

Christine Pietryla, Pietryla Enterprises/Public Relations
(312) 276-5177
E-mail: cpietryla@pietryla.com