Quorum Releases Q3 FY2008 Results
November 19 2008 - 4:30PM
Marketwired Canada
Quorum Information Technologies Inc. (Quorum) (TSX VENTURE:QIS) today released
Third Quarter (Q3) Fiscal Year (FY) 2008 results. Quorum provides services to
General Motors (GM), Chrysler and Hyundai dealerships in North America. The
Corporation is an Integrated Dealership Management System (IDMS) strategic
partner with GM and a strategic partner with Microsoft. Quorum's XSELLERATOR(TM)
product is broadly promoted to our targeted dealerships by these two world-class
organizations.
Currently, the U.S. economic environment and the automotive industry are very
challenging. Despite these challenges, Quorum had a record quarter in terms of
total revenue, profitability and cash flow. This was a breakthrough quarter for
financial results as the Company reported positive profitability and cash flow.
These results are a major accomplishment and they have been attained in the face
of very difficult economic and market conditions. Some of the key results were:
- Increased revenue by 23% from $2.02 million in Q3 FY2007 to $2.48 million in
Q3 FY2008;
- Recorded recurring support revenues in Q3 FY2008 of $1.41 million compared to
$1.06 million in Q3 FY2007;
- Produced a positive EBITDA of $0.20 million in Q3 FY2008 versus a negative
EBITDA of $0.36 million in Q3 FY2007;
- Generated a positive net income of $0.07 million in Q3 FY2008 versus a net
loss of $0.25 million in Q3 FY2007; and
- The Corporation's consolidated statement of cash flow shows an increase in net
cash in Q3 FY2008 of $0.06 million versus a decrease in net cash of $0.99 in Q3
FY2007.
"This quarter represents a breakthrough for Quorum and is welcome news for our
customers and investors alike," said Maury Marks, President and CEO. "I could
not be more proud of our entire team and the fantastic progress we have made
compared to the third quarter in 2007."
Q3 FY2008 Financial Highlights
- 23% increase in gross revenues from Q3 FY2007.
- 33% increase in on-going annuity XSELLERATOR software support revenue over Q3
FY2007.
- Positive EBITDA of $196,042 versus a negative EBITDA of $359,041 in Q3 FY2007.
- Net profit of $72,321 for Q3 FY2008 versus a net loss of $249,338 in Q3 FY2007.
- 201% increase in cash flow from operating activities from Q3 FY2007.
- 29% decrease in quarterly cash expenditures from Q3 FY2007.
Results of Operations
(Dollar figures in '000)
----------------------------------------------------------------------------
Nine Nine Q3 ended Q3 ended
months months September September
ended ended 30, 2008 30, 2007
September September
30, 2008 30, 2007
----------------------------------------------------------------------------
Gross revenue $ 6,271 $ 6,135 $ 2,481 $ 2,017
Gross profit 2,422 1,745 1,070 773
Expenses 2,687 3,283 874 1,132
Operating income
(loss) before interest,
taxes, depreciation
and amortization
(EBITDA) (265) (1,538) 196 (359)
Net income (loss) (702) (1,312) 72 (249)
Cash flow from
operating activities (54) (1,650) 436 (430)
Quarterly cash
expenditures (cash
payments for operating
and investing activities) $ 6,981 $ 9,315 $ 2,224 $ 3,120
----------------------------------------------------------------------------
KEY
MANAGEMENT
METRICS
XSELLERATOR
installations - in the
period 22 26 10 3
XSELLERATOR
installations - to date 223 199 223 199
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Q2 ended Q2 ended Q1 Q1
June 30, June 30, ended ended
2008 2007 March March
31, 2008 31, 2007
----------------------------------------------------------------------------
Gross revenue $ 2,117 $ 2,004 $ 1,673 $ 2,114
Gross profit 847 295 505 677
Expenses 889 1,119 924 1,032
Operating income
(loss) before interest,
taxes, depreciation
and amortization
(EBITDA) (42) (824) (419) (355)
Net income (loss) (252) (743) (522) (320)
Cash flow from
operating activities (264) (369) (226) (851)
Quarterly cash
expenditures (cash
payments for operating
and investing activities) $ 2,421 $ 2,807 $ 2,336 $ 3,388
----------------------------------------------------------------------------
KEY
MANAGEMENT
METRICS
XSELLERATOR 10 8 2 15
installations - in the
period
XSELLERATOR 213 197 203 190
installations - to date
----------------------------------------------------------------------------
About Quorum
Headquartered in Calgary, Alberta, Quorum's focus is on developing, marketing,
implementing and supporting its XSELLERATOR(TM) product for the automotive
vertical. XSELLERATOR is a dealership and customer management software product
which automates, integrates and streamlines every process across departments in
a dealership. One of the select North American suppliers of General Motors'
IDMS, Quorum is the third largest DMS provider for GM's Canadian dealerships
with over 20% of the market. Quorum is a Microsoft Gold Certified Partner and
Field-Level Managed ISV in both Canada and the United States. Quorum Information
Technologies Inc. is traded on the Toronto Venture Exchange (TSX-V) under the
symbol QIS.
Go to www.QuorumDMS.com or www.Sedar.com to see the Q3 FY2008 financials and the
MD&A.
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