MAM Software Group Reports Second Quarter and Six Month Financial Results

TANKERSLEY BARNSLEY, England, Feb. 6, 2012 /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 three and six months ended December 31, 2011, through the filing on February 6, 2012 of its Quarterly Report on Form 10-Q with the Securities and Exchange Commission:

Second Quarter Highlights:

• Continued quarterly growth of Autowork Online subscribers to 2,523
• US quarterly revenue growth of 27.7%
• UK quarterly revenue growth of 2.6%
• A 21% quarterly growth in  cash, net of interest bearing debt to $2,272,000
• Repurchase of 165,054 common shares

Second Quarter Financial Review:

The Company reported revenues of $6,686,000 for the three months ended December 31, 2011, an increase of $537,000 or 8.7%, compared with revenues of $6,149,000 for the three months ended December 31, 2010. Operating income was $1,273,000 for the three months ended December 31, 2011 compared with operating income of $1,071,000 for the three months ended December 31, 2010, an increase of $202,000 or 18.9%.  Net income before income taxes was $1,351,000 for the three months ended December 31, 2011, which included $126,000 of income from the Change in Fair Value of Derivative Liabilities, compared with net income before income taxes of $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. The net income was $1,079,000 and $663,000 for the three month periods ended December 31, 2011 and 2010, respectively.  

The Company reported revenues of $12,848,000 for the six months ended December 31, 2011 compared with $12,751,000 for the six months ended December 31, 2010, an increase of $97,000 or 0.8%. Operating income was $2,147,000 for the six months ended December 31, 2011, compared with operating income of $2,277,000 for the six months ended December 31, 2010, a decrease of 130,000 or 5.7%.  Net income before income taxes was $2,322,000 for the six months ended December 31, 2011, which included $276,000 of income from the Change in Fair Value of Derivative Liabilities, compared with net income before income taxes of $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. The net income was $1,810,000 and $1,100,000 for the six month periods ended December 31, 2011 and 2010, respectively.

Revenues for our U.K. operations were 2,921,000GBP and 5,802,000GBP for the three and six months ended December 31, 2011, respectively, an increase of 74,000GBP or 2.6% and a decrease of 282,000GBP or 4.6%, respectively, compared with revenues of 2,847,000GBP and 6,084,000GBP for the three and six months ended December 31, 2010, respectively.  U.K. recurring revenue increased 125,000GBP or 6.5% to 2,045,000GBP from 1,920,000GBP and system sales decreased 51,000GBP to 876,000GBP from 927,000GBP for the three months ended December 31, 2011.  U.K. recurring revenue increased 267,000GBP or 7.1% to 4,049,000GBP from 3,782,000GBP and system sales decreased 549,000GBP or 23.9% from 2,302,000GBP to 1,753,000GBP for the six months ended December 31, 2011, respectively.

Revenues for our U.S. operations were $2,092,000 and $3,612,000 for the three and six months ended December 31, 2011, respectively, an increase of 27.7% and an increase of 12.0%, compared with revenues of $1,638,000 and $3,224,000 for the three and six months ended December 31, 2010, respectively. Recurring revenue increased $4,000 from $1,132,000 to $1,136,000 and system sales increased $450,000 or 89.1% to $955,000 from $505,000 for the three months ended December 31, 2011.  ASNA received several system orders for the VAST and Autopart products that were partially installed during the quarter.  Recurring revenue increased $112,000 to $2,266,000 from $2,154,000 and system sales increased $275,000 to $1,345,000 from $1,070,000 for the six months ended December 31, 2011, respectively.

Gross margins for the three and six months ended December 31, 2011 were 60.4% and 58.5% vs. 58.9% and 58.3% for the three and six months ended December 31, 2010, respectively.

Business Update:

Commenting on the quarter ending December 31, 2011 compared with the quarter ending December 31, 2010, MAM's CEO, Michael Jamieson, said, "Revenues increased $537,000, primarily from the $450,000 increase in system sales in the U.S. business. For the six months ending December 31, 2011, revenues were slightly ahead of last year." Mr. Jamieson further commented "I was pleased with the results we achieved with our "cloud" based application, Autowork Online in the U.K. Subscribers to Autowork Online have increased each month of this quarter and now total 2,523.  Revenues from Autowork Online have increased each month of this fiscal year and totaled $280,000 for the three months and $552,000 for the six months ended December 31, 2011 as compared to $193,000 for the three months and $358,000 for the six months ended December 31, 2010, respectively.  MAM Software in the U.S. and Aftersoft Network N.A.'s operations remain consistent with a positive increase in income for both quarters. Net income was $1,079,000 for the three months ended December 31, 2011 compared to net income of $663,000 for the three months ended December 31, 2010, and was $1,810,000 for the six months ended December 31, 2011 compared to income of $1,100,000 for the three months ended December 31, 2010."

Mr. Jamieson also added, "We continued our strategic development, building on the results achieved in Fiscal 2011. During 2011 we commissioned a number of software development projects to support our strategic objectives. A warehouse management software module, a new business intelligence reporting tool and a US version of Autowork Online were some of the major projects that were commissioned. Adding new functionality into our Trader business management software was also a key requirement, as we seek to expand our penetration into other vertical markets."

Mr. Jamieson further elaborated that "the Company increased its cash position by $925,000 to $3,695,000, decreased debt by $439,000 to $1,423,000, and increased Stockholders' Equity by 13% to $12,975,000 after the repurchase of 165,054 common shares at a cost of $284,000"

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.