|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.
"LinearHub provides smart video conferencing, which is the Roundee service, and we archive all the video conferences and we also provide the transcript," stated Sunghyuk Kim, CEO of LinearHub, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 18, 2017 02:45 PM EST Reads: 1,581
A look across the tech landscape at the disruptive technologies that are increasing in prominence and speculate as to which will be most impactful for communications – namely, AI and Cloud Computing. In his session at 20th Cloud Expo, Curtis Peterson, VP of Operations at RingCentral, will highlight the current challenges of these transformative technologies and share strategies for preparing your organization for these changes. This “view from the top” will outline the latest trends and developm...
Jan. 18, 2017 02:15 PM EST Reads: 962
Things are changing so quickly in IoT that it would take a wizard to predict which ecosystem will gain the most traction. In order for IoT to reach its potential, smart devices must be able to work together. Today, there are a slew of interoperability standards being promoted by big names to make this happen: HomeKit, Brillo and Alljoyn. In his session at @ThingsExpo, Adam Justice, vice president and general manager of Grid Connect, will review what happens when smart devices don’t work togethe...
Jan. 18, 2017 02:00 PM EST Reads: 342
When you focus on a journey from up-close, you look at your own technical and cultural history and how you changed it for the benefit of the customer. This was our starting point: too many integration issues, 13 SWP days and very long cycles. It was evident that in this fast-paced industry we could no longer afford this reality. We needed something that would take us beyond reducing the development lifecycles, CI and Agile methodologies. We made a fundamental difference, even changed our culture...
Jan. 18, 2017 02:00 PM EST Reads: 910
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, 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 opportunity. Submit your speaking proposal ...
Jan. 18, 2017 01:00 PM EST Reads: 5,094
@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
Jan. 18, 2017 01:00 PM EST Reads: 3,457
In his General Session at 16th Cloud Expo, David Shacochis, host of The Hybrid IT Files podcast and Vice President at CenturyLink, investigated three key trends of the “gigabit economy" though the story of a Fortune 500 communications company in transformation. Narrating how multi-modal hybrid IT, service automation, and agile delivery all intersect, he will cover the role of storytelling and empathy in achieving strategic alignment between the enterprise and its information technology.
Jan. 18, 2017 01:00 PM EST Reads: 4,430
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
Jan. 18, 2017 01:00 PM EST Reads: 5,586
"Avere Systems is a hybrid cloud solution provider. We have customers that want to use cloud storage and we have customers that want to take advantage of cloud compute," explained Rebecca Thompson, VP of Marketing at Avere Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jan. 18, 2017 12:30 PM EST Reads: 6,299
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
Jan. 18, 2017 12:30 PM EST Reads: 2,488
Discover top technologies and tools all under one roof at April 24–28, 2017, at the Westin San Diego in San Diego, CA. Explore the Mobile Dev + Test and IoT Dev + Test Expo and enjoy all of these unique opportunities: The latest solutions, technologies, and tools in mobile or IoT software development and testing. Meet one-on-one with representatives from some of today's most innovative organizations
Jan. 18, 2017 12:15 PM EST Reads: 1,516
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Jan. 18, 2017 12:00 PM EST Reads: 4,222
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 7-9, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and E...
Jan. 18, 2017 12:00 PM EST Reads: 5,749
SYS-CON Events announced today that Linux Academy, the foremost online Linux and cloud training platform and community, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Linux Academy was founded on the belief that providing high-quality, in-depth training should be available at an affordable price. Industry leaders in quality training, provided services, and student certification passes, its goal is to c...
Jan. 18, 2017 12:00 PM EST Reads: 1,934
The unique combination of Amazon Web Services and Cloud Raxak, a Gartner Cool Vendor in IT Automation, provides a seamless and cost-effective way of securely moving on-premise IT workloads to Amazon Web Services. Any enterprise can now leverage the cloud, manage risk, and maintain continuous security compliance. Forrester's analysis shows that enterprises need automated security to lower security risk and decrease IT operational costs. Through the seamless integration into Amazon Web Services, ...
Jan. 18, 2017 11:45 AM EST Reads: 1,796