|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.
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, will discuss the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filte...
Feb. 8, 2016 08:00 PM EST Reads: 129
SYS-CON Events announced today that VAI, a leading ERP software provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. VAI (Vormittag Associates, Inc.) is a leading independent mid-market ERP software developer renowned for its flexible solutions and ability to automate critical business functions for the distribution, manufacturing, specialty retail and service sectors. An IBM Premier Business Part...
Feb. 8, 2016 03:00 PM EST Reads: 573
Fortunately, meaningful and tangible business cases for IoT are plentiful in a broad array of industries and vertical markets. These range from simple warranty cost reduction for capital intensive assets, to minimizing downtime for vital business tools, to creating feedback loops improving product design, to improving and enhancing enterprise customer experiences. All of these business cases, which will be briefly explored in this session, hinge on cost effectively extracting relevant data from ...
Feb. 8, 2016 03:00 PM EST
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
Feb. 8, 2016 02:00 PM EST Reads: 375
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
Feb. 8, 2016 12:45 PM EST Reads: 356
As enterprises work to take advantage of Big Data technologies, they frequently become distracted by product-level decisions. In most new Big Data builds this approach is completely counter-productive: it presupposes tools that may not be a fit for development teams, forces IT to take on the burden of evaluating and maintaining unfamiliar technology, and represents a major up-front expense. In his session at @BigDataExpo at @ThingsExpo, Andrew Warfield, CTO and Co-Founder of Coho Data, will dis...
Feb. 8, 2016 12:30 PM EST Reads: 142
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
Feb. 8, 2016 10:45 AM EST Reads: 383
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, will provide an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profes...
Feb. 8, 2016 09:30 AM EST Reads: 155
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts...
Feb. 7, 2016 12:00 PM EST Reads: 354
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry's single source for the cloud. Fusion's advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including clou...
Feb. 6, 2016 03:30 PM EST Reads: 739
Most people haven’t heard the word, “gamification,” even though they probably, and perhaps unwittingly, participate in it every day. Gamification is “the process of adding games or game-like elements to something (as a task) so as to encourage participation.” Further, gamification is about bringing game mechanics – rules, constructs, processes, and methods – into the real world in an effort to engage people. In his session at @ThingsExpo, Robert Endo, owner and engagement manager of Intrepid D...
Feb. 5, 2016 09:00 PM EST Reads: 796
Eighty percent of a data scientist’s time is spent gathering and cleaning up data, and 80% of all data is unstructured and almost never analyzed. Cognitive computing, in combination with Big Data, is changing the equation by creating data reservoirs and using natural language processing to enable analysis of unstructured data sources. This is impacting every aspect of the analytics profession from how data is mined (and by whom) to how it is delivered. This is not some futuristic vision: it's ha...
Feb. 2, 2016 02:00 PM EST Reads: 417
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Feb. 2, 2016 04:30 AM EST Reads: 860
Learn how IoT, cloud, social networks and last but not least, humans, can be integrated into a seamless integration of cooperative organisms both cybernetic and biological. This has been enabled by recent advances in IoT device capabilities, messaging frameworks, presence and collaboration services, where devices can share information and make independent and human assisted decisions based upon social status from other entities. In his session at @ThingsExpo, Michael Heydt, founder of Seamless...
Feb. 1, 2016 05:00 AM EST Reads: 951
The IoT's basic concept of collecting data from as many sources possible to drive better decision making, create process innovation and realize additional revenue has been in use at large enterprises with deep pockets for decades. So what has changed? In his session at @ThingsExpo, Prasanna Sivaramakrishnan, Solutions Architect at Red Hat, discussed the impact commodity hardware, ubiquitous connectivity, and innovations in open source software are having on the connected universe of people, thi...
Jan. 31, 2016 09:00 PM EST Reads: 736
WebRTC: together these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at WebRTC Summit, Cary Bran, VP of Innovation and New Ventures at Plantronics and PLT Labs, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it may enable, complement or entirely transform.
Jan. 31, 2016 07:15 PM EST Reads: 1,157
There are so many tools and techniques for data analytics that even for a data scientist the choices, possible systems, and even the types of data can be daunting. In his session at @ThingsExpo, Chris Harrold, Global CTO for Big Data Solutions for EMC Corporation, showed how to perform a simple, but meaningful analysis of social sentiment data using freely available tools that take only minutes to download and install. Participants received the download information, scripts, and complete end-t...
Jan. 31, 2016 10:00 AM EST Reads: 1,231
For manufacturers, the Internet of Things (IoT) represents a jumping-off point for innovation, jobs, and revenue creation. But to adequately seize the opportunity, manufacturers must design devices that are interconnected, can continually sense their environment and process huge amounts of data. As a first step, manufacturers must embrace a new product development ecosystem in order to support these products.
Jan. 31, 2016 10:00 AM EST Reads: 821
Manufacturing connected IoT versions of traditional products requires more than multiple deep technology skills. It also requires a shift in mindset, to realize that connected, sensor-enabled “things” act more like services than what we usually think of as products. In his session at @ThingsExpo, David Friedman, CEO and co-founder of Ayla Networks, discussed how when sensors start generating detailed real-world data about products and how they’re being used, smart manufacturers can use the dat...
Jan. 30, 2016 07:45 PM EST Reads: 798
When it comes to IoT in the enterprise, namely the commercial building and hospitality markets, a benefit not getting the attention it deserves is energy efficiency, and IoT’s direct impact on a cleaner, greener environment when installed in smart buildings. Until now clean technology was offered piecemeal and led with point solutions that require significant systems integration to orchestrate and deploy. There didn't exist a 'top down' approach that can manage and monitor the way a Smart Buildi...
Jan. 30, 2016 03:45 PM EST Reads: 1,281