DLH Holdings Corp. announced consolidated earnings results for the second quarter and six months ended March 31, 2013. For the quarter, the company announced revenues of $13,007,000 compared to $12,619,000 for the same period a year ago. Income from operations was $9,000 compared to loss from operations of $564,000 for the same period a year ago. Loss before income taxes was $109,000 compared to $715,000 for the same period a year ago. Net loss was $109,000 compared to $715,000 for the same period a year ago. Net loss per share, basic and diluted was $0.01 compared to $0.12 for the same period a year ago. Adjusted EBITDA was $80,000 compared to adjusted LBITDA of $487,000 for the same period a year ago. The increase in revenue is due primarily to expansion on current programs. The improvement in income from operations results from improved gross margin and decreased non-strategic general and administrative expenses. This reduction in net loss is due to increased gross profit, constraints on spending, and a reduction of other expenses. For the six months, the company announced revenues of $26,002,000 compared to $24,114,000 for the same period a year ago. Loss from operations was $84,000 compared to $774,000 for the same period a year ago. Loss before income taxes was $237,000 compared to $1,104,000 for the same period a year ago. Net loss was $237,000 compared to $1,104,000 for the same period a year ago. Net loss per share, basic and diluted was $0.03 compared to $0.18 for the same period a year ago. Adjusted EBITDA was $109,000 compared to adjusted LBITDA of $503,000 for the same period a year ago. The increase in revenue is due primarily to expansion on current programs as well as having the full six month impact of new business awards received during the prior year period. The improvement in income from operations results from improved gross margin and decreased non-strategic general and administrative expenses. This decrease in net loss is due to increased gross profit, constraints on spending, and a reduction in non-strategic other expenses.

On May 3, 2013, DLH Holdings Corp. received a staff deficiency letter from The Nasdaq Stock Market (Nasdaq) notifying the Company that for the past 30 consecutive business days, the closing bid price per share of its common stock was below the $1.00 minimum bid price requirement for continued listing on The Nasdaq Capital Market, as required by Nasdaq Listing Rule 5550(a)(2) (the Listing Rule). As a result, the Company was notified by Nasdaq that it is not in compliance with the Listing Rule. Nasdaq has provided the Company with 180 calendar days, or until October 30, 2013, to regain compliance. This notification has no immediate effect on the Company’s listing on the Nasdaq Capital Market or on the trading of the Company’s common stock. To regain compliance with the Listing Rule, the closing bid price of the Company’s common stock must meet or exceed $1.00 per share for a minimum of ten consecutive business days during the 180 day grace period. If the Company’s common stock does not regain compliance with the Listing Rule during this grace period, it will be eligible for an additional grace period of 180 calendar days provided that the Company satisfies Nasdaq’s initial listing standards for listing on The Nasdaq Capital Market, other than the minimum bid price requirement, and provides written notice to Nasdaq of its intention to cure the delinquency during the second grace period. If the Company does not regain compliance during the initial grace period and is not eligible for an additional grace period, Nasdaq will provide written notice that the Company’s common stock is subject to delisting from The Nasdaq Capital Market. In that event, the Company may appeal such determination to a hearings panel. There can be no guarantee that the Company will be able to regain compliance with the Listing Rule.

DLH Holdings Corp., Q2 2013 Earnings Call, May 15, 2013