MAM Software Group Inc. Reports Third Quarter and Nine Month Financial Results

BARNSLEY, England, May 3, 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 third quarter and three and nine months ended March 31, 2011, through the filing on May 3, 2011 of its Quarterly Report on Form 10-Q with the Securities and Exchange Commission:

The Company reported revenue of $6,116,000 for the three months ended March 31, 2011, an increase of $566,000 or 10.2%, compared with revenues of $5,550,000 for the three months ended March 31, 2010. Operating income was $802,000 for the three month ended March 31, 2011 compared with an operating loss of $211,000 for March 31, 2010.  Net income before income taxes was $568,000 for the three months ended March 31, 2011 which included $175,000 of expense from the Change in Fair Value of Derivative Liabilities, compared to a loss of $587,000 for the three months ended March 31, 2010 which included a loss of $62,000 from the Change in Fair Value of Derivative Liabilities. The net income was $451,000 or $0.03 per share vs. a loss of $719,000 or $(0.09)per share for the three month periods ended March 31, 2011 and 2010 respectively.

The Company reported revenue of $18,867,000 for the nine months ended March 31, 2011 compared with $18,508,000 for the nine months ended March 31, 2010 an increase of $359,000 or 1.9%. Operating income was $3,079,000 for the nine months ended March 31, 2011 compared with operating income of $644,000 for March 31, 2010, an increase of $2,435,000 or 378%.  Net income before taxes was $2,198,000 for the nine months ended March 31, 2011 which included $339,000 of expense from the Change in Fair Value of Derivative Liabilities, compared to a loss of $98,000 for the nine months ended March 31, 2010 which included $253,000 of income from the Change in Fair Value of Derivative Liabilities.  Net income for the nine month period ended March 31, 2011 was $1,551,000 or $0.13 per share, compared to a loss of $876,000 or   $(0.10) per share for the nine month periods ended March 31, 2010.

The Company reported total revenue of $6,116,000 with $1,616,000 and $4,500,000 generated by its U.S. and U.K. operations, for the three month period ended March 31, 2011, compared to total revenue of $5,550,000 with $1,470,000 and $4,080,000 generated by its U.S. and U.K. operations, during the same period in 2010. Revenue for the U.S. operations increased $146,000 or 9.9% for the three months ended March 31, 2011 when compared to the three month period ended March 31, 2010.   Revenue in GBP from UK operations increased 174,000GBP or 6.6% from 2,637,000GBP for the three months ended March 31, 2010 to 2,811,000GBP for the three months ended March 31, 2011. The weakness of the U.S. Dollar vs. the British Pound had a positive effect on reported revenue for our U.K. operation for the quarter ended March 31, 2011 when compared to the comparable quarter in 2010.  This weakness of the U.S. Dollar resulted in dollar-denominated revenue of $4,500,000 for the three months ended March 31, 2011 as compared to $4,080,000 for the three months ended March 31, 2010, an increase of $420,000 or 10.3%. The quarter ending March 31, 2010 was positively impacted by a major contract, with no similar contract in 2011. Recurring revenues also have increased for the three months ending March 31, 2011; support revenues increasing 18% and data service revenue increasing 20% compared to the same three-month period ending March 31, 2010.

The Company reported total revenue of $18,867,000 with $4,839,000 and $14,028,000 generated by its U.S. and U.K. operations, for the nine month period ended March 31, 2011, compared to $4,720,000 and $13,788,000, during the same period in 2010. Revenue for the U.S. operations increased $119,000 or 2.5% for the nine months ended March 31, 2011 when compared to the nine-month period ended March 31, 2010. Revenue in GBP from UK operations increased 329,000GBP or 3.8% from £8,567,000 for the nine months ended March 31, 2010 to £8,896,000 for the nine months ended March 31, 2011. The strength of the U.S. Dollar vs. the British Pound had a negative effect on reported revenue for our U.K. operation for the quarter ending March 31, 2011 when compared to the nine months ending March 31, 2010.  The strength of the U.S. Dollar resulted in dollar-denominated revenue of $14,028,000 for the nine months ended March 31, 2011 as compared to $13,788,000 for the nine months ended March 31, 2010, an increase of $240,000 or 1.7%.

Commenting on the quarter ending March 31, 2011 compared with the quarter ending March 31, 2010, MAM's CEO, Michael Jamieson, said, "The positive revenue comparison for our FY 2011 third quarter was a result of our continued hard work. The UK business continues to deliver strong results in line with our expectations. We continue to gain market share through new Autopart system sales which in turn delivers increased recurring revenues from support and maintenance and data sales." Mr. Jamieson further commented "he was pleased with the rollout of the new Autowork Online product in the UK": "Autowork Online is our 'cloud' computing application aimed at the smaller independent service and repair, and tire business. Subscribers to Autowork Online have increased each month of this fiscal year and now total 2,155. Revenue from Autowork Online totaled $215,000 for the three months and $573,000  for the nine months ended March 31, 2011 respectively, a $22,000 or 11.4%    quarter-over-quarter revenue growth." Added Jamieson: "We continue to work hard in order to extend this positive trend over coming months as more people are introduced to the product". The next stage of our development plan for Autowork Online is the creation of a US version. Work is currently underway and the Company expects to have its first release available by the third quarter of fiscal 2012. Subscribers to our 'Autocat+' web driven parts catalog now exceed 10,000 users. Autocat+ is used by the majority of our UK Autopart customers.

Commenting on the Company's U.S. operations, Jamieson noted: "MAM Software in the US and Aftersoft Network N.A.'s operations remain consistent with a positive increase in income for all the quarters. Together these have enabled us to turn the loss of last year to the positive income we see today."  Added Jamieson: "Interest in MAM Software is increasing. In order to meet this increased demand, the US business units have already hired three additional sales and two professional service personnel since January 1, 2011, and we are continuing our search for additional good quality sales personnel as well as professional services personnel to help us deploy the increased levels of new business. "We've made some significant progress this year and we now have a number of key deployment projects currently underway that are being closely monitored by other potential interested parties".

"The Company also reported that its  cash position at March 31, 2011 was $2,251,000, an increase of $1,055,000 from the June 30, 2010 fiscal year end, that such  cash position exceeds its interest-bearing liabilities of $2,053,000.

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/.

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.