RE: "Doubled their Sales Group"CALGARY, ALBERTA, Apr 28, 2005 (CCNMatthews via COMTEX) --
Quorum Information Technologies Inc. (TSX VENTURE:QIS) (Quorum) today released Fiscal Year (FY) 2004 results. In FY2004 the Company took an important step forward in terms of building the organizational, developmental, and financial structure required to transform Quorum from a Canadian company serving the Canadian automotive dealership sector, into a North American company with an ever growing list of both Canadian and U.S. customers.
"When I look back over the last twelve months, I am amazed at how much has been accomplished; Certification by GM U.S.; new integration partnerships with GM Canada; a contract to provide technology to 380 Cadillac dealerships in the U.S.; the continued evolution of our XSELLERATOR product evidenced by the release of Version 4.3.2, the production of a U.S. version, and the development of Version 4.3.3; the sale of our first system into the U.S., and as of now, 12 more U.S. sales on the books," said Maury Marks, President and CEO of Quorum. "It's been a big year, and with the investment we made putting developmental, organizational, and financial structures in place during 2004, we are more than ready to take the position as the best alternative to existing dealership management systems on the market, and to meet our growth objectives across North America in the coming years."
For FY 2004, the Company reported a 4% decrease in Gross Revenues from the XSELLERATOR business, a 56% increase in on-going annuity XSELLERATOR software support revenue, and a 27% increase in the XSELLERATOR customer base from 91 to 116 installs. FY2004 saw significant investments made by Quorum in its XSELLERATOR product; implementation and support processes and tools; and people in order to meet the challenges of entering the U.S. marketplace. As a result, the net loss for FY2004 increased to $1.045 million over $0.621 million in FY2003. In anticipation of the requirement for capital, the Company raised over $4.4million in FY2004, with the completion of a $3.1 million oversubscribed non-brokered private placement in Q1 FY2004, of which 71% was taken up by Director's, Officers and Insiders of the Corporation, as well as, various other warrant and share option conversions during the year raising an additional $1.3 million. The balance sheet is strong with a FY2004 exit cash position of $1.9 million and a current ratio of 5.85.
FINANCIAL HIGHLIGHTS------------------------------------------------------------------------ Year ended Year ended December 31, 2004. December 31, 2003.------------------------------------------------------------------------Gross Revenue $ 3,869,025 $ 4,021,580Cost of products and services sold $ 2,832,287 $ 1,965,147Gross Profit $ 1,036,738 $ 2,056,433Gross Profit % 27% 51%Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) $ (923,844) $ 9,182Loss before discontinued operations $(1,045,648) $ (304,795)------------------------------------------------------------------------Net income (loss) from discontinued operations $ - $ (316,057)Net loss $(1,045,648) $ (620,852)Basic Earnings (loss) per share from continuing operations $ (0.044) $ (0.018)Basic Earnings (loss) per share from discontinued operations $ - $ (0.019)Basic Earnings (loss) per share $ (0.044) $ (0.037)Fully diluted Earnings (loss) per share $ (0.038) $ (0.035)Weighted average number of common sharesBasic 23,971,784 16,973,670Diluted 27,261,922 17,919,351Number XSELLERATOR dealerships added 25 31Total number XSELLERATOR dealerships 116 91------------------------------------------------------------------------
For detailed FY2004 financial information including the audited Consolidated Financial Statements for the Years ended December 31, 2004 and 2003, and the accompanying Management's Discussion and Analysis, please go to www.Sedar.com, or www.QuorumIs.com.
About Quorum:
Quorum (TSX V: QIS) is a successful information technology company that develops, markets, implements and supports its own software products for the automotive vertical. Its key products are DISTRIBUTOR(TM), a Windows and Web based network solution, and XSELLERATOR dealership management software, which combine to form a Dealership and Customer Relationship Management System (DMS) for the automotive dealership market. Quorum's success comes from delivering the best DMS System on the market, and their commitment to total customer satisfaction.
------------------------------------------------------------------------XSELLERATOR (XS) % Mkt. XS XS % IncreaseTarget Market Total # Share at Dealers Dealers fromCANADA Dealers Apr / 05 Apr / 05 12/31/01 12/31/01------------------------------------------------------------------------GM/Saturn 793 14.75% 117 30 290%------------------------------------------------------------------------XSELLERATOR (XS) % Mkt. XS XS % IncreaseTarget Market Total # Share at Dealers Dealers fromUNITED STATES Dealers Apr / 05 Apr / 05 12/31/04 12/31/04------------------------------------------------------------------------GM United States 7647 .017% 13 6 116%------------------------------------------------------------------------Saturn United States 437 - - - -------------------------------------------------------------------------
Quorum Information Technologies Inc.Maury MarksPresident and CEO(403) 777-0035 Ext. 104(403) 777-0039 (FAX)Email: marksm@QuorumIS.comWebsite: www.QuorumIS.comorQuorum Information Technologies Inc.#200, 6715 8 Street N.E., Calgary, AB T2E 7H7
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