|By Marketwired .||
|November 20, 2012 01:37 PM EST||
CALGARY, ALBERTA -- (Marketwire) -- 11/20/12 -- Quorum Information Technologies Inc. (TSX VENTURE:QIS) ("Quorum" or the "Company") today released its Third Quarter (Q3) Fiscal Year (FY) 2012 results. Quorum delivers its dealership management system (DMS), XSellerator(TM), and related services to automotive dealerships throughout North America. The Company is both an Integrated Dealership Management System (IDMS) strategic partner with General Motors Corporation (GM) and a strategic partner with Microsoft. Quorum's XSellerator product is broadly promoted to its target dealerships throughout North America by these prominent industry partners. Quorum supplies its DMS to Isuzu, Chrysler, Hyundai, Kia, Nissan, Subaru, NAPA and Bumper to Bumper franchised and independent dealership customers.
Maury Marks, Quorum's President and CEO made the following remarks about the Company's Q3 FY2012 results:
Over the last two years, Quorum has become an "all makes" organization, with a continued emphasis on GM dealerships. Quorum supplies our product to GM, Isuzu, Chrysler, Hyundai, Kia, Nissan, Subaru, NAPA and Bumper to Bumper franchised dealership as well as independent dealership customers.
As the Company has grown in the market, we have also enhanced our operational excellence by focusing on measurable improvements. Some of our key Q3 FY2012 milestones are as follows:
-- Customer Base - we attained 267 installed active dealership rooftops at the end of Q3 FY2012. Although we continue to grow, one of our key goals is to increase our sales and implementation rate. We are working on multiple initiatives; for example, in Q3 FY2012 we hired an additional salesperson and we also initiated activities focused on increasing the number of qualified sales leads per salesperson. -- Product and Product Utilization - during the quarter we piloted V4.7.5 in six dealerships. The version has seven new major features and multiple small enhancements. In 2012, one of the Company's key goals is to increase dealerships' utilization of XSellerator. We are working on multiple initiatives to help increase utilization; for example, we recently launched eQUIP (which is a web training subscription service for our customers), we planned our 1st annual customer conference which will take place Nov 27th and 28th and engaged our support desk to have them proactively show dealerships new features during support calls. -- Customer Metrics - our dealership Customer Satisfaction ("CSI") score results in Q3 FY2012 were as follows: -- CSI semi annual survey - 85% of end users reported "satisfied" or "very satisfied" and 70% of dealer principals reported "satisfied" or "very satisfied". Note that if "somewhat satisfied" is included in our results, the numbers would be 94% of end users and 85% of dealer principals. -- CSI monthly support surveys - over 95% of our end users reported "very satisfied" with the service they received from our support center. -- Financing - during the quarter we signed a $500K interest-free, five year, unsecured government loan with the Atlantic Canada Opportunities Agency (ACOA). The financing will be received as Quorum incurs specific expenditures made from Q3 FY2012 to Q2 FY2013. Additionally, we signed a $50K grant with ACOA for specific expenditures from Q4 FY2012 to Q3 FY2013.
Key financial results summary:
-- Sales increased by 2% to $1,907K in Q3 FY2012 from $1,874K in Q3 FY2011, and margin after direct costs decreased to $1,031K in Q3 FY2012, as compared to $1,105K in Q3 FY2011, a 7% decrease. The increase in sales is due to: -- An increase of $41K in net new revenue which was a result of completing four installations in Q3 FY2012 as compared to three dealership installations in Q3 FY2011. -- An increase of $115K in recurring support revenue as a result from having 267 active dealership rooftops at the end of Q3 FY2012 versus 250 at the end of Q3 FY2011. -- A decrease in integration revenue of $152K due to a reduced number of GM integration projects. -- An increase of $29K in transition revenue. The decrease in margin after direct costs is largely due to an increase in low margin net new and transition revenue and a decrease in higher margin integration revenue. -- Earnings before interest, taxes, depreciation and amortization ("EBITDA") decreased to $239K in Q3 FY2012 from $372K in Q3 FY2011. Income before taxes decreased to $81K in Q3 FY2012 from $200K in Q3 FY2011. The decreases in both EBITDA and income before taxes are largely due to: -- $74K decrease in margin after direct costs in Q3 FY2012 compared to Q3 FY2011 as explained above; and -- an increase in sales and marketing staffing levels which increased Salaries and Benefits costs by $61K in Q3 FY2012 versus Q3 FY2011. -- Cash flows from operating activities were $157K in Q3 FY2012 compared to $163K in Q3 FY2011. -- Net working capital at September 30, 2012 was $968K, with a current ratio of 2.26, compared to $1,065K at December 31, 2011, with a current ratio of 2.43. The decrease in working capital is primarily due to a decrease in accounts receivable from having less GM integration projects at the end of Q3 FY2012 versus Q4 FY2011 and the expiration of the Newfoundland and Labrador Government wage subsidy payment as of March 31, 2012.
The Company continues to grow our customer base, improve our service offerings and customer satisfaction, and lead the market in product innovation. We also continue to deliver solid financial results and improve our cash and working capital positions by producing improved positive cash flow every year. Our single biggest challenge in 2012 is to grow our sales and implementation rates to the "next level." We have already embarked on a number of initiatives that are focused on meeting this challenge.
Quorum has filed its Q3 2012 consolidated financial statements and notes thereto as at and for the period ended September 30, 2012 and accompanying management's discussion and analysis in accordance with National Instrument 51-102 - Continuous Disclosure Obligations adopted by the Canadian securities regulatory authorities. Additional information about Quorum will be available on Quorum's SEDAR profile at www.sedar.com and Quorum's website at www.QuorumDMS.com.
Nine Nine Months Months Ended Ended Q3 Ended Q3 Ended Sept. 30, Sept. 30, Sept. 30, Sept. 30, 2012 2011 2012 2011 ---------------------------------------------------------------------------- Gross revenue $5,580,724 $5,616,280 $1,907,406 $1,874,497 Direct Costs 2,556,320 2,387,713 876,660 769,301 Margin after direct costs 3,024,404 3,228,567 1,030,746 1,105,196 Earnings before interest, taxes and amortization (EBITDA) 591,133 933,387 238,591 372,122 Income (loss) before deferred income tax 108,114 416,877 80,523 200,064 Net income (loss) (98,458) 287,241 34,107 224,327 Comprehensive income (loss) (175,007) 404,032 (40,790) 411,338 Basic net income (loss) per share $ (0.0025) $ 0.0073 $ 0.0009 $ 0.0057 Fully diluted net income (loss) per share $ (0.0025) $ 0.0073 $ 0.0009 $ 0.0057 Weighted average number of common shares Basic 39,298,438 39,298,438 39,298,438 39,298,438 Diluted 39,298,438 39,298,438 39,298,438 39,298,438 XSellerator installations - in the period 16 15 4 3 XSellerator active dealership rooftops 267 250 267 250 ---------------------------------------------------------------------------- Q2 Ended Q2 Ended Q1 Ended Q1 Ended June 30, June 30, March 31, March 31, 2012 2011 2012 2011 ---------------------------------------------------------------------------- Gross revenue $1,831,132 $1,829,515 $1,842,186 $1,912,268 Direct Costs 850,670 770,837 828,990 847,575 Margin after direct costs 980,462 1,058,678 1,013,196 1,064,693 Earnings before interest, taxes and amortization (EBITDA) 226,086 238,508 126,456 322,757 Income (loss) before deferred income tax 65,027 62,603 (37,436) 154,210 Net income (loss) (80,311) 110,638 (52,254) (47,724) Comprehensive income (loss) (41,613) 92,871 (92,604) (100,177) Basic net income (loss) per share $ (0.0020) $ 0.0028 $ (0.0013) $ (0.0012) Fully diluted net income (loss) per share $ (0.0020) $ 0.0028 $ (0.0013) $ (0.0012) Weighted average number of common shares Basic 39,298,438 39,298,438 39,298,438 39,298,438 Diluted 39,298,438 39,684,319 39,298,438 39,684,319 XSellerator installations - in the period 6 6 6 6 XSellerator active dealership rooftops 263 249 259 245 ----------------------------------------------------------------------------
Quorum is a North American company focused on developing, marketing, implementing and supporting its XSellerator product for GM, Isuzu, Chrysler, Hyundai, KIA, Nissan, Subaru, NAPA and Bumper to Bumper dealerships. XSellerator is a dealership and customer management software product that automates, integrates and streamlines every process across departments in a dealership. One of the select North American suppliers under General Motors' IDMS program, Quorum is the second largest DMS provider for GM's Canadian dealerships with 25% of the market. Quorum is a Microsoft Partner in both Canada and the United States. Quorum Information Technologies Inc. is traded on the Toronto Venture Exchange (TSX-V) under the symbol QIS. For additional information please go to www.QuorumDMS.com.
This press release contains certain forward-looking statements and forward-looking information ("forward-looking information") within the meaning of applicable Canadian securities laws. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "expect", "may", "will", "project", "should" or similar words suggesting future outcomes. In particular, this press release includes forward-looking information relating to results of operations, plans and objectives, projected costs and business strategy. Quorum believes the expectations reflected in such forward-looking information are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon.
Forward-looking information is not a guarantee of future performance and involves a number of risks and uncertainties some of which are described herein. Such forward-looking information necessarily involves known and unknown risks and uncertainties, which may cause Quorum's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking information. These risks and uncertainties include but are not limited to the risks identified in Quorum's Management's Discussion and Analysis for the period ended September 30, 2012. Any forward-looking information is made as of the date hereof and, except as required by law, Quorum assumes no obligation to publicly update or revise such information to reflect new information, subsequent or otherwise.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...
Aug. 23, 2016 04:45 PM EDT Reads: 1,740
Enterprises have forever faced challenges surrounding the sharing of their intellectual property. Emerging cloud adoption has made it more compelling for enterprises to digitize their content, making them available over a wide variety of devices across the Internet. In his session at 19th Cloud Expo, Santosh Ahuja, Director of Architecture at Impiger Technologies, will introduce various mechanisms provided by cloud service providers today to manage and share digital content in a secure manner....
Aug. 23, 2016 04:15 PM EDT Reads: 283
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Aug. 23, 2016 04:00 PM EDT Reads: 3,470
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
Aug. 23, 2016 03:45 PM EDT Reads: 3,716
As the world moves toward more DevOps and Microservices, application deployment to the cloud ought to become a lot simpler. The Microservices architecture, which is the basis of many new age distributed systems such as OpenStack, NetFlix and so on, is at the heart of Cloud Foundry - a complete developer-oriented Platform as a Service (PaaS) that is IaaS agnostic and supports vCloud, OpenStack and AWS. Serverless computing is revolutionizing computing. In his session at 19th Cloud Expo, Raghav...
Aug. 23, 2016 03:30 PM EDT Reads: 291
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Aug. 23, 2016 03:00 PM EDT Reads: 3,769
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
Aug. 23, 2016 02:15 PM EDT Reads: 2,482
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, wil...
Aug. 23, 2016 02:15 PM EDT Reads: 305
SYS-CON Events announced today that eCube Systems, a leading provider of middleware modernization, integration, and management solutions, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. eCube Systems offers a family of middleware evolution products and services that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...
Aug. 23, 2016 01:49 PM EDT Reads: 193
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
Aug. 23, 2016 01:45 PM EDT Reads: 1,390
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Aug. 23, 2016 01:15 PM EDT Reads: 1,695
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Aug. 23, 2016 12:00 PM EDT Reads: 1,981
To leverage Continuous Delivery, enterprises must consider impacts that span functional silos, as well as applications that touch older, slower moving components. Managing the many dependencies can cause slowdowns. See how to achieve continuous delivery in the enterprise.
Aug. 23, 2016 10:45 AM EDT Reads: 1,352
Ixia (Nasdaq: XXIA) has announced that NoviFlow Inc.has deployed IxNetwork® to validate the company’s designs and accelerate the delivery of its proven, reliable products. Based in Montréal, NoviFlow Inc. supports network carriers, hyperscale data center operators, and enterprises seeking greater network control and flexibility, network scalability, and the capacity to handle extremely large numbers of flows, while maintaining maximum network performance. To meet these requirements, NoviFlow in...
Aug. 23, 2016 10:30 AM EDT Reads: 1,751
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
Aug. 23, 2016 10:30 AM EDT Reads: 3,305