Welcome!

Agile Computing Authors: Yeshim Deniz, Liz McMillan, Elizabeth White, Roger Strukhoff, Pat Romanski

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
SYS-CON Events announced today that Roundee / LinearHub will exhibit at the WebRTC Summit at @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LinearHub provides Roundee Service, a smart platform for enterprise video conferencing with enhanced features such as automatic recording and transcription service. Slack users can integrate Roundee to their team via Slack’s App Directory, and '/roundee' command lets your video conference ...
24Notion is full-service global creative digital marketing, technology and lifestyle agency that combines strategic ideas with customized tactical execution. With a broad understand of the art of traditional marketing, new media, communications and social influence, 24Notion uniquely understands how to connect your brand strategy with the right consumer. 24Notion ranked #12 on Corporate Social Responsibility - Book of List.
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.
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
Adobe is changing the world though digital experiences. Adobe helps customers develop and deliver high-impact experiences that differentiate brands, build loyalty, and drive revenue across every screen, including smartphones, computers, tablets and TVs. Adobe content solutions are used daily by millions of companies worldwide-from publishers and broadcasters, to enterprises, marketing agencies and household-name brands. Building on its established design leadership, Adobe enables customers not o...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lea...
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...
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 ...
The Jevons Paradox suggests that when technological advances increase efficiency of a resource, it results in an overall increase in consumption. Writing on the increased use of coal as a result of technological improvements, 19th-century economist William Stanley Jevons found that these improvements led to the development of new ways to utilize coal. In his session at 19th Cloud Expo, Mark Thiele, Chief Strategy Officer for Apcera, will compare the Jevons Paradox to modern-day enterprise IT, e...
Major trends and emerging technologies – from virtual reality and IoT, to Big Data and algorithms – are helping organizations innovate in the digital era. However, to create real business value, IT must think beyond the ‘what’ of digital transformation to the ‘how’ to harness emerging trends, innovation and disruption. Architecture is the key that underpins and ties all these efforts together. In the digital age, it’s important to invest in architecture, extend the enterprise footprint to the cl...
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 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 solutions, helping companies worldwide activate their data to drive more value and business insight and to transform moder...
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2016 Silicon Valley. The 19th Cloud Expo and 6th @ThingsExpo will take place on November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. "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 Interne...
What does it look like when you have access to cloud infrastructure and platform under the same roof? Let’s talk about the different layers of Technology as a Service: who cares, what runs where, and how does it all fit together. In his session at 18th Cloud Expo, Phil Jackson, Lead Technology Evangelist at SoftLayer, an IBM company, spoke about the picture being painted by IBM Cloud and how the tools being crafted can help fill the gaps in your IT infrastructure.
Digital innovation is the next big wave of business transformation based on digital technologies of which IoT and Big Data are key components, For example: Business boundary innovation is a challenge to excavate third-party business value using IoT and BigData, like Nest Business structure innovation may propose re-building business structure from scratch, as Uber does in the taxicab industry The social model innovation is also a big challenge to the new social architecture with the design fr...
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
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...
IoT offers a value of almost $4 trillion to the manufacturing industry through platforms that can improve margins, optimize operations & drive high performance work teams. By using IoT technologies as a foundation, manufacturing customers are integrating worker safety with manufacturing systems, driving deep collaboration and utilizing analytics to exponentially increased per-unit margins. However, as Benoit Lheureux, the VP for Research at Gartner points out, “IoT project implementers often ...