Welcome!

Agile Computing Authors: Elizabeth White, Mark Ross-Smith, Carmen Gonzalez, Liz McMillan, Aruna Ravichandran

News Feed Item

Quorum Releases Q3 Fiscal Year 2012 Results

Quorum produces solid Operational and Financial Results

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.

Financial Highlights


                               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 
----------------------------------------------------------------------------

About Quorum

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.

Forward-Looking Information

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.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
The security needs of IoT environments require a strong, proven approach to maintain security, trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vic...
Who are you? How do you introduce yourself? Do you use a name, or do you greet a friend by the last four digits of his social security number? Assuming you don’t, why are we content to associate our identity with 10 random digits assigned by our phone company? Identity is an issue that affects everyone, but as individuals we don’t spend a lot of time thinking about it. In his session at @ThingsExpo, Ben Klang, Founder & President of Mojo Lingo, discussed the impact of technology on identity. Sho...
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet and...
IoT generates lots of temporal data. But how do you unlock its value? You need to discover patterns that are repeatable in vast quantities of data, understand their meaning, and implement scalable monitoring across multiple data streams in order to monetize the discoveries and insights. Motif discovery and deep learning platforms are emerging to visualize sensor data, to search for patterns and to build application that can monitor real time streams efficiently. In his session at @ThingsExpo, ...
What are the new priorities for the connected business? First: businesses need to think differently about the types of connections they will need to make – these span well beyond the traditional app to app into more modern forms of integration including SaaS integrations, mobile integrations, APIs, device integration and Big Data integration. It’s important these are unified together vs. doing them all piecemeal. Second, these types of connections need to be simple to design, adapt and configure...
"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.
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.
WebRTC is about the data channel as much as about video and audio conferencing. However, basically all commercial WebRTC applications have been built with a focus on audio and video. The handling of “data” has been limited to text chat and file download – all other data sharing seems to end with screensharing. What is holding back a more intensive use of peer-to-peer data? In her session at @ThingsExpo, Dr Silvia Pfeiffer, WebRTC Applications Team Lead at National ICT Australia, looked at differ...
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.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Day 2 Keynote at 17th Cloud Expo, Sandy Ca...
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...
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
Providing secure, mobile access to sensitive data sets is a critical element in realizing the full potential of cloud computing. However, large data caches remain inaccessible to edge devices for reasons of security, size, format or limited viewing capabilities. Medical imaging, computer aided design and seismic interpretation are just a few examples of industries facing this challenge. Rather than fighting for incremental gains by pulling these datasets to edge devices, we need to embrace the i...
Internet of @ThingsExpo, taking place June 6-8, 2017 at the Javits Center in New York City, New York, 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. @ThingsExpo New York Call for Papers is now open.
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
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...
"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...
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 ...
In the next five to ten years, millions, if not billions of things will become smarter. This smartness goes beyond connected things in our homes like the fridge, thermostat and fancy lighting, and into heavily regulated industries including aerospace, pharmaceutical/medical devices and energy. “Smartness” will embed itself within individual products that are part of our daily lives. We will engage with smart products - learning from them, informing them, and communicating with them. Smart produc...