MAM Software Group Inc. Reports Second Quarter and Six Month Financial Results
BARNSLEY, England, Feb. 8, 2011 /PRNewswire/ -- MAM Software Group, Inc. (OTC Bulletin Board: MAMS), 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, 2010, through the filing on February 8, 2011 of its Quarterly Report on Form 10-Q with the Securities and Exchange Commission:
(In thousands, except share and per share data) |
|||||||||
For the Three Months Ended December 31, |
For the Six Months Ended December 31, |
||||||||
2010 |
2009 |
2010 |
2009 |
||||||
Revenues |
$ |
6,149 |
$ |
6,746 |
$ |
12,751 |
$ |
12,958 |
|
Gross profit |
$ |
3,823 |
$ |
4,259 |
$ |
7,430 |
$ |
7,524 |
|
Operating income |
$ |
1,071 |
$ |
265 |
$ |
2,277 |
$ |
855 |
|
Income before provision for income tax |
$ |
893 |
$ |
189 |
$ |
1,630 |
$ |
489 |
|
Net income (loss) |
$ |
663 |
$ |
(237) |
$ |
1,100 |
$ |
(157) |
|
Earnings per share attributed to common stockholders - basic and diluted |
$0.01 |
- |
$0.01 |
- |
|||||
Weighted average shares outstanding : |
|||||||||
Basic |
126,009,626 |
83,765,095 |
105,861,027 |
83,630,793 |
|||||
Diluted |
127,788,467 |
83,765,095 |
106,583,793 |
83,630,793 |
|||||
The Company reported revenue of $6,149,000 for the three months ended December 31, 2010, a decrease of $597,000 or 8.8%, compared with revenues of $6,746,000 for the three months ended December 31, 2009. Operating income was $1,071,000 for the three month ended December 31, 2010 compared with operating income of $265,000 for December 31, 2009. Earnings before income tax was $893,000 for the three months ended December 31, 2010 which included $112,000 of expense from the Change in Fair Value of Derivative Liabilities, compared with income of $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. The net income was $663,000 and loss of $237,000 for the three month periods ended December 31, 2010 and 2009 respectively.
The Company reported revenue of $12,751,000 for the six months ended December 31, 2010 compared with $12,958,000 for the six months ended December 31, 2009 a decrease of $207,000 or 1.6%. Operating income was $2,277,000 for the six month ended December 31, 2010 compared with income of $855,000 for December 31, 2009. Earnings before tax was $1,630,000 for the six months ended December 31, 2010 which included $164,000 of expense from the Change in Fair Value of Derivative Liabilities, compared with income of $489,000 for the six months ended December 31, 2009 which included $315,000 income from the Change in Fair Value of Derivative Liabilities. The Net income was $1,100,000 and loss was $157,000 for the six month periods ended December 31, 2010 and 2009 respectively.
Commenting on the three and six month periods ending December 31, 2010, MAM's CEO, Michael Jamieson, said, "We have accomplished a number of key initiatives in the first half of this fiscal year. We successfully strengthened and cleaned up our balance sheet by refinancing our $4.3 million 16% term loan with the proceeds of a 3.4% term loan and our oversubscribed Rights Offering, prepaid a 7% note with cash on hand, and generated substantial cash from operations. We are pleased with the rollout of the new Autowork Online product in the UK. Autowork Online is our software as a service (SaaS) solution, aimed at the independent service and repair business. Revenue from Autowork Online has increased each month of this fiscal year and totaled $193,000 for the three months and $358,000 for the six months ended December 31, 2010 respectively a 17% quarter-over-quarter revenue growth. We streamlined our operations and have generated two sequential quarters of positive Net Income. With a stronger and healthier company, we are now focused on growing our business in the US and UK."
About MAM Software Group, Inc.
MAM Software Group, Inc. (OTC Bulletin Board: MAMS) is a supplier of business and ERP supply chain management solutions to automotive parts manufacturers, distributors and retailers. MAM Software 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.mamsoftwaregroup.com/.
MAM SOFTWARE GROUP, INC. |
|||||||||
Condensed Consolidated Balance Sheets |
|||||||||
(In thousands, except share and per share data) |
|||||||||
December 31, |
June 30, |
||||||||
2010 |
2010 |
||||||||
ASSETS |
(unaudited) |
||||||||
Current Assets |
|||||||||
Cash and cash equivalents |
$ |
1,555 |
$ |
1,196 |
|||||
Accounts receivable, net of allowance of $136 and $192 |
2,605 |
2,520 |
|||||||
Inventories |
282 |
366 |
|||||||
Prepaid expenses and other current assets |
579 |
371 |
|||||||
Total Current Assets |
5,021 |
4,453 |
|||||||
Property and Equipment, net |
801 |
856 |
|||||||
Other Assets |
|||||||||
Goodwill |
9,096 |
8,924 |
|||||||
Amortizable intangible assets, net |
2,425 |
2,757 |
|||||||
Software development costs, net |
1,457 |
1,520 |
|||||||
Other long-term assets |
96 |
49 |
|||||||
TOTAL ASSETS |
$ |
18,896 |
$ |
18,559 |
|||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||||
Current Liabilities |
|||||||||
Accounts payable |
$ |
1,378 |
$ |
1,551 |
|||||
Accrued expenses and other |
1,764 |
1,758 |
|||||||
Payroll and other taxes |
224 |
364 |
|||||||
Current portion of settlement liability |
- |
326 |
|||||||
Derivative liabilities |
793 |
291 |
|||||||
Current portion of long-term debt |
739 |
5,000 |
|||||||
Current portion of deferred revenue |
509 |
641 |
|||||||
Sales tax payable |
682 |
598 |
|||||||
Income tax payable |
796 |
659 |
|||||||
Total Current Liabilities |
6,885 |
11,188 |
|||||||
Long-Term Liabilities |
|||||||||
Deferred revenue, net of current portion |
168 |
345 |
|||||||
Deferred income taxes |
378 |
642 |
|||||||
Settlement liability, net of current portion |
- |
525 |
|||||||
Long-term debt, net of current portion |
1,426 |
168 |
|||||||
Other |
337 |
359 |
|||||||
Total Liabilities |
9,194 |
13,227 |
|||||||
Commitments and contingencies |
|||||||||
Stockholders' Equity |
|||||||||
Preferred stock: Par value $0.0001 per share; 10,000,000 shares authorized, 1,792,662 and 0 issued and outstanding, respectively |
– |
– |
|||||||
Common stock: Par value $0.0001 per share; 150,000,000 shares authorized, 138,733,246 and 84,862,880 shares issued and outstanding, respectively |
14 |
8 |
|||||||
Additional paid-in capital |
32,728 |
29,503 |
|||||||
Accumulated other comprehensive loss |
(729) |
(768) |
|||||||
Accumulated deficit |
(22,311) |
(23,411) |
|||||||
Total Stockholders' Equity |
9,702 |
5,332 |
|||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
18,896 |
$ |
18,559 |
|||||
MAM SOFTWARE GROUP, INC. |
|||||||||||||||||
Condensed Consolidated Statements of Operations and Comprehensive Income (loss) (Unaudited) |
|||||||||||||||||
(In thousands, except share and per share data) |
|||||||||||||||||
For the Three Months Ended |
For the Six Months Ended |
||||||||||||||||
December 31, |
December 31, |
||||||||||||||||
2010 |
2009 |
2010 |
2009 |
||||||||||||||
Revenues |
$ |
6,149 |
$ |
6,746 |
$ |
12,751 |
$ |
12,958 |
|||||||||
Cost of revenues |
2,326 |
2,487 |
5,321 |
5,434 |
|||||||||||||
Gross profit |
3,823 |
4,259 |
7,430 |
7,524 |
|||||||||||||
Operating expenses |
|||||||||||||||||
Research and development |
733 |
763 |
1,552 |
1,607 |
|||||||||||||
Sales and marketing |
469 |
620 |
1,087 |
1,264 |
|||||||||||||
General and administrative |
1,279 |
2,322 |
1,975 |
3,227 |
|||||||||||||
Depreciation and amortization |
271 |
289 |
539 |
571 |
|||||||||||||
Total operating expenses |
2,752 |
3,994 |
5,153 |
6,669 |
|||||||||||||
Operating income |
1,071 |
265 |
2,277 |
855 |
|||||||||||||
Other income (expense) |
|||||||||||||||||
Interest expense |
(118) |
(352) |
(535) |
(730) |
|||||||||||||
Interest income |
- |
- |
- |
- |
|||||||||||||
Change in fair value of derivative liabilities |
(112) |
277 |
(164) |
315 |
|||||||||||||
Gain on settlement of liability |
52 |
- |
52 |
50 |
|||||||||||||
Other, net |
- |
(1) |
- |
(1) |
|||||||||||||
Total other expense, net |
(178) |
(76) |
(647) |
(366) |
|||||||||||||
Income before provision for income taxes |
893 |
189 |
1,630 |
489 |
|||||||||||||
Provision for income taxes |
230 |
426 |
530 |
646 |
|||||||||||||
Net income (loss) |
663 |
(237) |
1,100 |
(157) |
|||||||||||||
Foreign currency translation income (loss) |
(295) |
(234) |
39 |
(108) |
|||||||||||||
Total comprehensive income (loss) |
$ |
368 |
$ |
(471) |
$ |
1,139 |
$ |
(265) |
|||||||||
Earnings (loss) per share attributed to common stockholders: Basic |
$ |
0.01 |
$ |
- |
$ |
0.01 |
$ |
- |
|||||||||
Diluted |
$ |
0.01 |
$ |
- |
$ |
0.01 |
$ |
- |
|||||||||
Weighted average shares outstanding : Basic |
126,009,626 |
83,765,095 |
105,861,027 |
83,630,793 |
|||||||||||||
Diluted |
127,788,467 |
83,765,095 |
106,583,793 |
83,630,793 |
|||||||||||||
MAM Software Group, Inc. Calculation of Adjusted Earnings before Interest, Taxes, Depreciation, and Amortization (un-audited, includes non-cash compensation and intangible asset impairment) |
For the Six Months Ended December 31, |
|||||
(in thousands) |
2010 |
2009 |
||||
Net Income (loss) |
$ 1,100 |
$ |
(157) |
|||
Interest Expense |
535 |
730 |
||||
Income Taxes |
530 |
646 |
||||
Depreciation and amortization |
539 |
571 |
||||
Non-cash equity compensation |
171 |
68 |
||||
Change in fair value of derivation liabilities |
164 |
(315) |
||||
Adjusted EBITDA |
$ 3,039 |
$ |
1,543 |
|||
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.
SOURCE MAM Software Group, Inc.
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