SYOSSET, N.Y., May 12 /PRNewswire-FirstCall/ -- Synergx Systems Inc. reported the following results for its second quarter and six-month period ended March 31, 2006 and 2005: THREE MONTHS SIX MONTHS 2006 2005 2006 2005 Revenues $4,371,000 $4,912,000 $8,612,000 $9,379,000 (Loss) Income Before Equity Investment and Taxes (101,000) 88,000 (486,000) (153,000) (Loss) from Equity Investment (17,000) (12,000) (42,000) (22,000) (Loss) Income Before Taxes (118,000) 76,000 (528,000) (175,000) Net (Loss) Income (74,000) 40,000 (321,000) (115,000) Diluted (Loss) Earnings per Share ($.01) $.01 ($.06) ($.02) Weighted Average Common and Potential Dilutive Common Shares Outstanding 5,210,950 5,216,424 5,201,639 5,151,324 The decrease in revenues during the three and six month periods of 2006 was due to lower transit product shipments due to reduced order position and the timing of releases required by customers. The transit product line and management has been re-tooled which has resulted in increased bidding activity which should result in stronger order flow. In addition, revenues for the first six months of our fiscal year reflect the low pattern of sales in Dallas, Texas which gets the benefit of school work during the third and fourth quarters. The decrease in income and increase in loss before income taxes during the three and six months ended March 31, 2006 is primarily due to the decrease in gross profit caused by anticipated lower product revenue discussed above. This decrease in product gross profit was mitigated by higher service gross profit that resulted from increased service revenue and a decrease in customer support staffing level. For the six month period of 2006 selling, general, and administrated expenses increased $168,000 or 6% and reflects $42,000 of cost increases related to additional sales staff to develop and strengthen our sales and marketing and is geared to support higher product revenues, and from a $92,000 increase in recruitment costs to obtain such personnel. There is a lag between the hiring of new sales and marketing staff and the realization of billing objectives. In particular, due to retirement and changes in markets we have had to overhaul and upgrade our transit group. For the three and six month periods of 2006 the Company also recorded a loss of $17,000 and $42,000, respectively, on its equity in the operating loss of Secure 724 LP. Management noted the Company is aggressively marketing its products and services and has hired, and continues to search for additional sales representatives and possible acquisitions in order to maintain and increase revenues. Synergx is engaged in the design, manufacture, marketing and service of a variety of data communication products and systems with applications in the fire alarm, life safety, security and communication industries. For further information about Synergx please go to our website at WWW.SYNERGXSYSTEMS.COM "Safe Harbor" statement under the Private Securities Reform Act of 1995: This release contains forward-looking statements, which reflect management's current views of future events and operations. These forward-looking statements are based on assumptions and external factors, including assumptions relating to product pricing, competitive market conditions, financial data, and other risks or uncertainties detailed from time to time in the Company's filings with the Securities and Exchange Commission. These forward-looking statements represent the Company's judgment as of the date of this release and any changes in the assumptions of external factors could produce significantly different results. DATASOURCE: Synergx Systems Inc. CONTACT: John Poserina, Chief Financial Officer, +1-516-433-4700 Web site: http://www.synergxsystems.com/

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