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Message: Quorum Releases Fiscal Year 2008 Results

Quorum Releases Fiscal Year 2008 Results

posted on Apr 21, 2009 09:42AM
April 21, 2009
Quorum Releases Fiscal Year 2008 Results
CALGARY, ALBERTA--(Marketwire - April 21, 2009) - Quorum Information Technologies Inc. (TSX VENTURE:QIS) ("Quorum" or the "Corporation") today released Fiscal Year (FY) 2008 results. Quorum provides services to General Motors (GM), Chrysler and Hyundai dealerships in North America. The Corporation is an Integrated Dealership Management System (IDMS) strategic partner with GM and a strategic partner with Microsoft.

There are significant costs associated with operating throughout North America as a public company and maintaining the GM IDMS contract, other manufacturer relationships and a strong Microsoft strategic relationship. The key to covering Quorum's total fixed costs is having a critical mass of installed dealerships that supply a recurring revenue stream. Despite a sharp deterioration in market conditions in the fourth quarter, we continued to grow our customer base in 2008 and, equally important, reduced our cost structure, which dramatically improved operating results. Some of the Corporation's key results were (numbers in 000's):

- Increased revenue by 4% from $8,163K in FY2007 to $8,451K in FY2008;

- Improved EBITDA (earnings before interest, taxes and amortization) from negative $1,097K in FY2007 to negative $40K (near break-even) in FY2008;

- Net loss decreased by 68% from negative $1,952K in FY2007 to negative $626K in FY2008.

- Exited the year with recurring quarterly support revenue of $1,517K, an increase of 38% over the fourth quarter of 2007.

Financial Highlights      

                             Year ended        Year ended        Year ended 
                      December 31, 2008 December 31, 2007 December 31, 2006
Gross revenue                $8,451,030       $ 8,162,503       $ 7,423,733
Cost of products and 
 services sold                4,802,411         5,610,441         6,233,650

Gross profit                  3,648,619         2,552,062         1,190,083

Loss before interest, 
 taxes and amortization 
 (EBITDA)                       (39,932)       (1,096,660)       (3,747,829)

Net loss                     $ (625,679)      $(1,951,916)      $(3,666,353)

Basic loss per share         $   (0.016)      $    (0.051)      $    (0.116)
Fully diluted loss per share $   (0.016)      $    (0.051)      $    (0.116)

Weighted average number of 
 common shares
  Basic                      39,298,438        38,214,449        31,517,432
  Diluted                    39,298,438        38,406,972        31,706,932

XSELLERATOR installations
 - in the period                     31                29                34
XSELLERATOR installations
 - to date                          226               201               175
About Quorum

Headquartered in Calgary, Alberta, Quorum's focus is on developing, marketing, implementing and supporting its XSELLERATOR(TM) product for the automotive vertical. XSELLERATOR is a dealership and customer management software product which automates, integrates and streamlines every process across departments in a dealership. As a select North American supplier of General Motors' IDMS, Quorum is the third largest DMS provider for GM's Canadian dealerships with over 20% of the market. Quorum is a Microsoft Gold Certified Partner and Field-Level Managed ISV 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.
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