RE: 2006 FinancialsSeems very defensive for obvious reasons.
They are aware of whatt the market is saying.
Now can they rebound?
CALGARY, ALBERTA, Apr 30, 2007 (CCNMatthews via COMTEX News Network) --
Quorum Information Technologies Inc. (Quorum) (TSX VENTURE:QIS) today released Fiscal Year (FY) 2006 results. In FY2006, Quorum entered into two key strategic relationships: a) On January 3, 2006 Quorum was named one of only two providers, on behalf of General Motors Corporation (GM) of its Integrated Dealer Management System (IDMS) throughout North America. The award of this contract is a positive endorsement of the Corporation's XSELLERATOR(TM) product and is providing accelerated access to the over 8,000 GM-branded dealerships throughout North America. The Company incurred a number of costs in 2006 to put the people and processes in place to deliver on this long-term contract.
b) In November 2006, Microsoft announced a strategic relationship with Quorum for the North American automotive market. The strategic relationship will improve the exposure of the Corporation's XSELLERATOR product in the marketplace and will accelerate development projects.
Corporately, Quorum is leveraging these very significant strategic relationships with GM and Microsoft to grow the company in North America. Additionally, we are actively selling to Chrysler dealerships throughout North America in 2007. It was costly to invest in these strategic relationships and to open the Chrysler marketplace; however, these investments are providing Quorum with significant long-term growth opportunities.
Strategically, the Company has all the pieces in place to be successful in North America, including the relationships, the products, financing and the people to support an initiative of this magnitude. Our "story" has broad market appeal. Getting to cash flow positive will "prove out" our financial model and, we believe, provide the basis for much wider appeal for the Company's shares. Stepped growth to cash flow positive has become the absolute mission for Quorum in 2007.
2006 Financial Highlights
- 29% increase in gross revenues from FY2005.
- 48% increase in on-going annuity XSELLERATOR software support revenue.
- 22% increase in customer base from 143 to 175 installs.
- Raised $6.65 million in equity capital to fund continuing operations and expansion.
- Net loss for FY2006 increased to $3.666 million from $2.195 million in FY2005.
- The net loss in FY2006 is due to increased costs of the expanding organization as it prepared to meet the requirements of the GM IDMS contract.
Financial Highlights Year ended Year ended Year ended
December December December
31, 31, 31,
2006 2005 2004
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Gross revenue $7,423,733 $5,772,973 $ 3,869,025
Cost of products and services sold 6,233,650 5,196,823 2,832,287
Gross profit 1,190,083 576,150 1,036,738
Loss before interest, taxes and
amortization (EBITDA) (4,302,926) (2,690,804) (923,844)
Net loss (3,666,353) (2,194,589) (1,045,648)
Basic loss per share (0.116) (0.079) (0.044)
Fully diluted loss per share $(0.116) $(0.075) $(0.038)
Weighted average number of
common shares
Basic 31,517,432 27,634,483 23,971,784
Diluted 31,706,932 29,244,843 27,261,922
XSELLERATOR installations
- in the period 34 27 25
XSELLERATOR installations
- to date (reflects 2 lost
dealerships) 175 143 116
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