MAM Software Group Reports Third Quarter and Nine Month Financial Results

TANKERSLEY BARNSLEY, England, April 24, 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 nine months ended March 31, 2012, through the filing on April 24, 2012 of its Quarterly Report on Form 10-Q with the Securities and Exchange Commission:

Third Quarter Highlights:

• A nine month increase in net income of $743,000 or 48% to $2,294,000
• Autowork Online (SAAS) year-over-year revenue increase of 48%
• A 25% quarterly growth in cash, net of interest bearing debt to $2,831,000
• Stockholders' Equity year-to-date increase of 16%
• Repurchase of 321,679 shares during the quarter and 486,733 total shares repurchased to date
• Successful launch of EMI+ BI, a warehouse management solution and Autowork Enterprise

Third Quarter Financial Review:

The Company reported revenues of $6,130,000 for the three months ended March 31, 2012, an increase of $14,000 or 0.2%, compared with revenues of $6,116,000 for the three months ended March 31, 2011. Operating income was $815,000 for the three months ended March 31, 2012 compared with operating income of $802,000 for the three months ended March 31, 2011, an increase of $13,000 or 1.7%.  Net income before income taxes was $673,000 for the three months ended March 31, 2012, which included $95,000 of expense from the Change in Fair Value of Derivative Liabilities, compared with net income before income taxes of $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. The net income was $427,000 and $451,000 for the three month periods ended March 31, 2012 and 2011, respectively. 

The Company reported revenues of $18,978,000 for the nine months ended March 31, 2012 compared with $18,867,000 for the nine months ended March 31, 2011, an increase of $111,000 or 0.6%. Operating income was $2,923,000 for the nine months ended March 31, 2012 compared with operating income of $3,079,000 for the nine months ended March 31, 2011, a decrease of $156,000 or 5.1%.  Net income before income taxes was $3,052,000 for the nine months ended March 31, 2012, which included $181,000 of income from the Change in Fair Value of Derivative Liabilities, compared with net income before income taxes of $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. The net income was $2,294,000 and $1,551,000 for the nine month periods ended March 31, 2012 and 2011, respectively.

Revenues for our U.K. operations were 2,902,000GBP and 8,704,000GBP for the three and nine months ended March 31, 2012, respectively, an increase of 91,000GBP or 3.2% and a decrease of 192,000GBP or 2.2%, respectively, compared with revenues of 2,811,000GBP and 8,896,000GBP for the three and nine months ended March 31, 2011, respectively.  U.K. recurring revenue increased 105,000GBP or 5.3% to 2,110,000GBP from 2,005,000GBP and system sales decreased 14,000GBP to 792,000GBP from 806,000GBP for the three months ended March 31, 2011.  U.K. recurring revenue increased 371,000GBP or 6.4% to 6,159,000GBP from 5,788,000GBP and system sales decreased 563,000GBP or 18.1% from 3,108,000GBP to 2,545,000GBP for the nine months ended March 31, 2011, respectively.

Revenues for our U.S. operations were $1,573,000 and $5,184,000 for the three and nine months ended March 31, 2012, respectively, a decrease of 2.8% and an increase of 7.1%, compared with revenues of $1,616,000 and $4,839,000 for the three and nine months ended March 31, 2011, respectively. Recurring revenue increased $26,000 from $1,122,000 to $1,148,000 and system sales decreased $70,000 or 14.2% to $424,000 from $494,000 for the three months ended March 31, 2012. Recurring revenue increased $138,000 to $3,414,000 from $3,276,000 and system sales increased $206,000 to $1,770,000 from $1,564,000 for the nine months ended March 31, 2011, respectively.

Gross margins for the three and nine months ended March 31, 2012 were 56.2% and 57.8% vs. 57.5% and 58.1% for the three and nine months ended March 31, 2011, respectively.

Business Update:

Commenting on the quarter ended March 31, 2012 compared with the quarter ended March 31, 2011, MAM's CEO, Michael Jamieson, said, "Revenues increased $14,000, and for the nine months ending March 31, 2012, revenues increased $111,000 compared with the nine months ended March 31, 2011." 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 2,532.  Revenues from Autowork Online have increased each month of this fiscal year and totaled $300,000 for the three months and $849,000 for the nine months ended March 31, 2012 as compared to $193,000 for the three months and $551,000 for the nine months ended March 31, 2011, respectively.  MAM Software in the U.S. and Aftersoft Network N.A.'s operations remain consistent with a positive increase in income for all quarters. Net income was $427,000 for the three months ended March 31, 2012 compared to net income of $451,000 for the three months ended March 31, 2011, and was $2,294,000 for the nine months ended March 31, 2012 compared to income of $1,551,000 for the nine months ended March 31, 2011."

Mr. Jamieson added, "We continued our strategic development, building on the results achieved in Fiscal 2011. During the quarter ended March 31, 2012, we announced the launch of three new products which highlights the ongoing strategic investment that is being made in the Company.  A business intelligence tool (EMI+), a warehouse management solution and Autowork Enterprise, a solution aimed at the larger service and repair operator and tire dealer were all launched." Mr. Jamieson further elaborated that "the Company increased its cash position by $1,337,000 to $4,107,000, decreased debt by $575,000 to $1,276,000, and increased Stockholders' Equity by 16% to $13,313,000 after the repurchase of 487,000 common shares at a cost of $868,000. Furthermore, the three quarters produced an Adjusted EBITDA of $4,145,000 versus $4,169,000 for the three quarters ended March 31, 2011."  Mr. Jamieson concluded, "I am looking forward to meeting with new and prospective investors as the Company increases its investor relations efforts."

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.