MAM Software Group Reports Quarterly Financial Results
BARNSLEY, England, Nov. 1, 2010 /PRNewswire-FirstCall/ -- MAM Software Group, Inc. (OTC Bulletin Board: MAMS), (the "Company" or "MAM"), a leading provider of business automation and ecommerce solutions for the automotive aftermarket, announced the following financial results for its quarter ended September 30, 2010, through the filing on November 1, 2010 of its Quarterly Report on Form 10-Q with the Securities and Exchange Commission:
(In thousands, except share and per share data) |
For The Quarter Ended |
||||
September 30, |
|||||
2010 |
2009 |
||||
Revenues |
$ |
6,602 |
$ |
6,212 |
|
Gross profit |
$ |
3,607 |
$ |
3,265 |
|
Operating income |
$ |
1,206 |
$ |
590 |
|
Income before provision for income tax |
$ |
737 |
$ |
300 |
|
Net Income after taxes |
$ |
437 |
$ |
80 |
|
Income per share attributed to common stockholders - basic and diluted |
$ |
0.01 |
$ |
- |
|
Weighted average shares outstanding - basic and diluted |
85,712,429 |
83,496,491 |
|||
The Company reported revenue of $6,602,000 for quarter ended September 30, 2010 as compared to $6,212,000 for the quarter ended September 30, 2009 an increase of $390,000 or 6.3%. Operating income increased $616,000 to $1,206,000 for the quarter ended September 30, 2010, as compared to income of $590,000 for September 30, 2009. Income before income taxes was $737,000 as compared to income of $300,000 in the prior year, and the net income after taxes was $437,000 for the quarter ended September 30, 2010 vs. income of $80,000 for the quarter ended September 30, 2009.
Gross margins for the quarter ended September 30, 2010 were 54.7% vs. 52.6% for the quarter ended September 30, 2009.
The Company reported revenue of $5,017,000 and $1,585,000 from its UK and US operations, respectively, for the quarter ended September 30, 2010, compared to $4,431,000 and $1,781,000, respectively, during the same period in 2009. Revenue increased 538,000GBP or 19.9% in our UK operations to 3,237,000GBP from 2,699,000GBP from organic sales growth in data services and support. The stronger US dollar resulted in dollar denominated revenue of $5,017,000 during 2010 as compared to $4,431,000 during 2009, which is an increase of $586,000. US revenue decreased $196,000 to $1,585,000 in 2010 from $1,781,000 in 2009.
Commenting on the first quarter of fiscal 2011, MAM's CEO, Michael Jamieson, said, "The Company has been able to increase revenues and profit margins while reducing operating expenses, which resulted in an increase in operating income of $616,000 to $1,206,000. MAM Software in the US and UK continues to grow both revenue and income, while Aftersoft Network N.A. experienced a decrease in revenues but remained profitable for the quarter." Mr. Jamieson also added, "The September 30, 2010 Balance Sheet does not reflect the recently completed $3.3 million equity financing, or the $2.0 million three year term debt, both of which closed in October. These two financings allowed the Company to prepay the 16% per annum $3.2 million term loan and the 13.5% per annum $1.0 million revolving credit facility. After repaying these obligations the Company added approximately $1.1 million to working capital."
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) |
||||||
September 30, |
June 30, |
|||||
2010 |
2010 |
|||||
ASSETS |
(unaudited) |
|||||
Current Assets |
||||||
Cash and cash equivalents |
$ |
847 |
$ |
1,196 |
||
Accounts receivable, net of allowance of $128 and $192 |
2,991 |
2,520 |
||||
Inventories |
297 |
366 |
||||
Prepaid expenses and other current assets |
643 |
371 |
||||
Total Current Assets |
4,778 |
4,453 |
||||
Property and Equipment, net |
840 |
856 |
||||
Other Assets |
||||||
Goodwill |
9,242 |
8,924 |
||||
Amortizable intangible assets, net |
2,621 |
2,757 |
||||
Software development costs, net |
1,508 |
1,520 |
||||
Other long-term assets |
42 |
49 |
||||
TOTAL ASSETS |
$ |
19,031 |
$ |
18,559 |
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||
Current Liabilities |
||||||
Accounts payable |
$ |
1,208 |
$ |
1,551 |
||
Accrued expenses and other |
2,627 |
1,758 |
||||
Payroll and other taxes |
330 |
364 |
||||
Current portion of settlement liability |
332 |
326 |
||||
Derivative liabilities |
343 |
291 |
||||
Current portion of long-term debt |
3,042 |
5,000 |
||||
Current portion of deferred revenue |
412 |
641 |
||||
Sales tax payable |
703 |
598 |
||||
Income tax payable |
810 |
659 |
||||
Total Current Liabilities |
9,807 |
11,188 |
||||
Long-Term Liabilities |
||||||
Deferred revenue, net of current portion |
225 |
345 |
||||
Deferred income taxes |
510 |
642 |
||||
Settlement liability, net of current portion |
440 |
525 |
||||
Long-term debt, net of current portion |
1,518 |
168 |
||||
Other |
348 |
359 |
||||
Total Liabilities |
12,848 |
13,227 |
||||
Commitments and contingencies |
||||||
Stockholders' Equity |
||||||
Preferred stock: Par value $0.0001 per share; 10,000,000 shares authorized, |
– |
– |
||||
Common stock: Par value $0.0001 per share; 150,000,000 shares authorized, |
9 |
8 |
||||
Additional paid-in capital |
29,582 |
29,503 |
||||
Accumulated other comprehensive loss |
(434) |
(768) |
||||
Accumulated deficit |
(22,974) |
(23,411) |
||||
Total Stockholders' Equity |
6,183 |
5,332 |
||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
19,031 |
$ |
18,559 |
||
MAM SOFTWARE GROUP, INC. Condensed Consolidated Statements of Operations and Comprehensive Loss (In thousands, except share and per share data) |
||||||
For the three months ended September 30, 2010 |
For the three months ended September 30, 2009 |
|||||
Revenues |
$ |
6,602 |
$ |
6,212 |
||
Cost of revenues |
2,995 |
2,947 |
||||
Gross Profit |
3,607 |
3,265 |
||||
Operating Expenses |
||||||
Research and development |
819 |
844 |
||||
Sales and marketing |
618 |
644 |
||||
General and administrative |
696 |
905 |
||||
Depreciation and amortization |
268 |
282 |
||||
Total Operating Expenses |
2,401 |
2,675 |
||||
Operating Income |
1,206 |
590 |
||||
Other Income (Expense) |
||||||
Interest expense |
(417) |
(378) |
||||
Gain on settlement of liability |
- |
50 |
||||
Change in fair value of derivative liabilities |
(52) |
38 |
||||
Total other expense, net |
(469) |
(290) |
||||
Income before provision for income taxes |
737 |
300 |
||||
Provision for income taxes |
300 |
220 |
||||
Net income |
437 |
80 |
||||
Foreign currency translation gain |
334 |
126 |
||||
Total comprehensive income |
$ |
771 |
$ |
206 |
||
Income per share attributed to common stockholders: basic and |
||||||
Basic |
$ |
0.01 |
$ |
- |
||
Diluted |
$ |
0.01 |
$ |
- |
||
Weighted average shares outstanding: |
||||||
Basic |
85,712,429 |
83,496,491 |
||||
Diluted |
85,712,429 |
83,496,491 |
||||
MAM SOFTWARE GROUP, INC. |
|||||
Calculation of Adjusted Earnings before Interest, Taxes, Depreciation, |
|||||
For the Quarter Ended |
|||||
September 30, |
|||||
(in thousands) |
2010 |
2009 |
|||
Net Income |
$ |
437 |
$ |
80 |
|
Interest Expense |
417 |
378 |
|||
Taxes |
300 |
220 |
|||
Depreciation and amortization |
268 |
282 |
|||
Non-cash equity compensation |
80 |
20 |
|||
Change in fair value of derivative liabilities |
52 |
(38) |
|||
Adjusted EBITDA |
$ |
1,554 |
$ |
942 |
|
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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