|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.
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
Dec. 11, 2016 05:30 AM EST Reads: 712
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
Dec. 11, 2016 04:30 AM EST Reads: 882
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smart...
Dec. 11, 2016 03:30 AM EST Reads: 1,158
Complete Internet of Things (IoT) embedded device security is not just about the device but involves the entire product’s identity, data and control integrity, and services traversing the cloud. A device can no longer be looked at as an island; it is a part of a system. In fact, given the cross-domain interactions enabled by IoT it could be a part of many systems. Also, depending on where the device is deployed, for example, in the office building versus a factory floor or oil field, security ha...
Dec. 11, 2016 03:00 AM EST Reads: 806
An IoT product’s log files speak volumes about what’s happening with your products in the field, pinpointing current and potential issues, and enabling you to predict failures and save millions of dollars in inventory. But until recently, no one knew how to listen. In his session at @ThingsExpo, Dan Gettens, Chief Research Officer at OnProcess, discussed recent research by Massachusetts Institute of Technology and OnProcess Technology, where MIT created a new, breakthrough analytics model for s...
Dec. 11, 2016 02:45 AM EST Reads: 920
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2017 New York. The 20th Cloud Expo and 7th @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Internet to enable us all to im...
Dec. 11, 2016 02:30 AM EST Reads: 1,068
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at 20th Cloud Expo, Ed Featherston, director/senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Dec. 11, 2016 01:30 AM EST Reads: 1,755
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
Dec. 11, 2016 01:15 AM EST Reads: 1,350
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
Dec. 11, 2016 12:00 AM EST Reads: 1,135
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
Dec. 11, 2016 12:00 AM EST Reads: 2,404
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and sh...
Dec. 11, 2016 12:00 AM EST Reads: 949
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 10, 2016 11:15 PM EST Reads: 1,224
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 10, 2016 09:15 PM EST Reads: 1,362
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...
Dec. 10, 2016 07:30 PM EST Reads: 1,826
Dec. 10, 2016 07:00 PM EST Reads: 4,166
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
Dec. 10, 2016 06:30 PM EST Reads: 1,559
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
Dec. 10, 2016 06:30 PM EST Reads: 1,977
"ReadyTalk is an audio and web video conferencing provider. We've really come to embrace WebRTC as the platform for our future of technology," explained Dan Cunningham, CTO of ReadyTalk, in this SYS-CON.tv interview at WebRTC Summit at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 10, 2016 05:30 PM EST Reads: 1,020
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Dec. 10, 2016 05:15 PM EST Reads: 1,436
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
Dec. 10, 2016 04:30 PM EST Reads: 1,847