Aftersoft Group Reports Second Quarter Financial Results
BARNSLEY, England, Feb. 12 /PRNewswire-FirstCall/ -- Aftersoft Group, Inc. (OTC Bulletin Board: ASFG), a leading provider of business automation and ecommerce solutions for the automotive aftermarket, announced the following financial results for its fiscal second quarter and three and six months ended December 31, 2009, through the filing on February 11, 2010 of its Quarterly Report on Form 10-Q with the Securities and Exchange Commission:
For the For the For the For the
Three Three Six Six
Months Months Months Months
Ended Ended Ended Ended
31-Dec-09 31-Dec-08 31-Dec-09 31-Dec-08
--------- --------- --------- ---------
Revenues $6,746 $5,005 $12,958 $10,850
Gross profit $4,259 $2,770 $7,524 $5,860
Operating income (loss) $265 $(238) $855 $(305)
Total comprehensive loss $(471) $(5,836) $(265) $(8,184)
Loss per share attributed
to common stockholders -
basic and diluted - (0.05) - (0.06)
Weighted average shares
outstanding -basic and
diluted 83,765,095 92,814,017 83,630,793 92,773,620
The Company reported revenue of $6,746,000 for the three months ended December 31, 2009 as compared to $5,005,000 for the three months ended December 31, 2008 an increase of $1,741,000 or 35%. Operating income was $265,000 for the three month ended December 31, 2009 as compared to a loss of $238,000 for December 31, 2008. Net income before income taxes was $189,000 for the three months ended December 31, 2009 which included $277,000 of income from the Change in Fair Value of Derivative Liabilities, compared to a loss of $4,599,000 for the three months ended December 31, 2008 which included a Write Down of Investments of $3,957,000. The Net loss was $237,000 and $4,797,000 for the three month periods ended December 31, 2009 and 2008 respectively. The Net Income for the quarter ended December 31, 2009 was negatively impacted by $650,000 in termination expenses.
The Company reported revenue of $12,958,000 for the six months ended December 31, 2009 as compared to $10,850,000 for the six months ended December 31, 2008 an increase of $2,108,000 or 19%. Operating income was $855,000 for the six month ended December 31, 2009 as compared to a loss of $305,000 for December 31, 2008. Net income before income taxes was $489,000 for the six months ended December 31, 2009 which included $315,000 of income from the Change in Fair Value of Derivative Liabilities, compared to a loss of $5,036,000 for the six months ended December 31, 2008 which included a Write Down of Investments of $3,957,000. The Net Loss was $157,000 and $5,349,000 for the six month periods ended December 31, 2009 and 2008 respectively. The Net Income for the six month period ended December 31, 2009 was negatively impacted by $650,000 in termination expenses.
Gross margins for the three month and six month periods ended December 31, 2009 were 63% and 58% respectively and gross margins for the three month and six month periods ended December 31, 2008 were 56% and 54% respectively.
The Company reported revenue of $1,469,000 and $5,277,000 from its US and UK operations, respectively, for the three month period ended December 31, 2009, compared to $1,265,000 and $3,740,000, respectively, during the same period in 2008. Revenue from the Company's UK operations was negatively impacted by the effect of a stronger US Dollar versus the British Pound relative to the same period a year ago. Revenue in GBP from UK operations increased from 2,373,000 GBP for the three months ended December 31, 2008 to 3,271,000 GBP for the three months ended December 31, 2009.
The Company reported revenue of $3,250,000 and $9,708,000 from its US and UK operations, respectively, for the six month period ended December 31, 2009, compared to $2,607,000 and $8,243,000, respectively, during the same period in 2008. Revenue from the Company's UK operations was negatively impacted by the effect of a stronger US Dollar versus the British Pound relative to the same period a year ago. Revenue in GBP from UK operations increased from 4,747,000 GBP for the three months ended December 31, 2008 to 5,930,000 GBP for the six months ended December 31, 2009.
Commenting on the quarter, Aftersoft's CEO, Michael Jamieson, said, "The last quarter has continued to build upon the results achieved in the first quarter. MAM Software in the US and UK continues to grow both revenue and income and Aftersoft Network N.A.'s revenues remain consistent with a positive increase in income. These together have enabled us to turn the loss of last year to the positive income we see today."
About Aftersoft Group, Inc.
Aftersoft Group, Inc. (OTC Bulletin Board: ASFG) is a supplier of business and ERP supply chain management solutions to automotive parts manufacturers, distributors and retailers. Aftersoft Group provides the automotive aftermarket with a combination of business management systems, information products, and online services that together deliver benefits for all parties involved in the timely repair of a vehicle. For further information, please visit http://www.aftersoftgroup.com.
This press release contains forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of risks and uncertainties impacting the company's business including, increased competition; the ability of the company to expand its operations through either acquisitions or internal growth, to attract and retain qualified professionals, and to expand commercial relationships; technological obsolescence; general economic conditions; and other risks detailed time to time in the Company's filings with the Securities and Exchange Commission.
AFTERSOFT GROUP, INC.
Consolidated Balance Sheets
(In thousands, except share data)
December 31, June 30,
2009 2009
------------ --------
(Unaudited)
ASSETS
Current Assets
Cash and cash equivalents $2,075 $1,663
Accounts receivable, net of
allowance of $109 and $87 3,024 2,154
Inventories 444 318
Prepaid expenses and other
current assets 377 507
--- ---
Total Current Assets 5,920 4,642
Property and Equipment, Net 968 1,028
Other Assets
Goodwill 9,293 9,548
Amortizable intangible assets, net 3,165 3,566
Software development costs, net 1,635 1,691
Other long-term assets 86 179
--- ---
Total Assets $21,067 $20,654
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $1,618 $1,386
Accrued expenses and other 4,385 3,162
Payroll and other taxes 333 278
Derivative liabilities 243 -
Current portion of long-term debt,
net of debt discount 5,933 1,598
Current portion of deferred revenue 432 482
Taxes payable 633 708
--- ---
Total Current Liabilities 13,577 7,614
Long-Term Liabilities
Deferred revenue, net of current portion 411 748
Deferred income taxes 778 880
Long-term debt, net of current portion 217 4,713
Other 188 199
--- ---
Total Liabilities 15,171 14,154
------ ------
Commitments and contingencies
STOCKHOLDERS' EQUITY
Preferred stock:
Par value $0.0001 per share;
10,000,000 shares authorized,
none issued and outstanding - -
Common stock:
Par value $0.0001 per share;
150,000,000 shares authorized,
83,773,264 and 83,462,337 shares
Issued and outstanding,
respectively 8 8
Additional paid-in capital 29,419 30,219
Accumulated other comprehensive loss (590) (482)
Accumulated deficit (22,941) (23,245)
------- -------
Total Stockholders' Equity 5,896 6,500
----- -----
Total Liabilities and
Stockholders' Equity $21,067 $20,654
======= =======
AFTERSOFT GROUP, INC.
Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)
(In thousands except for share and per share data)
For the Three For the Six
Months Ended Months Ended
December 31, December 31,
------------------ ---------------------
2009 2008 2009 2008
------ ------ ------- -------
Revenues $6,746 $5,005 $12,958 $10,850
Cost of revenues 2,487 2,235 5,434 4,990
----- ----- ----- -----
Gross profit 4,259 2,770 7,524 5,860
Operating expenses
Research and
development 763 709 1,607 1,494
Sales and marketing 620 561 1,264 1,160
General and
administrative 2,322 1,478 3,227 2,983
Depreciation and
amortization 289 260 571 528
--- --- --- ---
Total operating
expenses 3,994 3,008 6,669 6,165
----- ----- ----- -----
Operating
income (loss) 265 (238) 855 (305)
Other income
(expense)
Interest expense (352) (428) (730) (800)
Write down of
investment
available-
for-sale
securities - (3,957) - (3,957)
Interest income - 13 - 13
Change in fair
value of
derivative
liabilities 277 - 315 -
Gain on settlement
of liability - - 50 -
Other, net (1) 11 (1) 13
--- --- --- ---
Total other Net (76) (4,361) (366) (4,731)
--- ------ ---- -------
Income (loss)
before provision
for income taxes 189 (4,599) 489 (5,036)
Provision for
income taxes 426 198 646 313
--- --- --- ---
Net Loss (237) (4,797) (157) (5,349)
Reversal of
unrealized
loss on
investments in
available-
for-sale
securities - 1,556 - 808
Foreign currency
translation
loss (234) (2,595) (108) (3,643)
---- ------ ---- ------
Total comprehensive
loss $(471) $(5,836) $(265) $(8,184)
----- ------- ----- -------
Loss per share
attributed to
common
stockholders -
basic and
diluted $ - $(0.05) $ - $(0.06)
Weighted
average shares
outstanding -
basic and
diluted 83,765,095 92,814,017 83,630,793 92,773,620
========== ========== ========== ==========
SOURCE Aftersoft Group, Inc.
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