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MAM Software Reports Fiscal First Quarter ResultsBLUE BELL, Pa., Nov. 14, 2017 /PRNewswire/ -- MAM Software Group, Inc. (NASDAQ Capital Market: MAMS) (the "Company" or "MAM"), a leading global provider of on-premise and cloud-based business management solutions for the auto parts, tire and vertical distribution industries, announced the following financial results in accordance with U.S. generally accepted accounting principles ("GAAP") for its first fiscal quarter ended September 30, 2017, through the filing on November 14, 2017 of its Quarterly Report on Form 10-Q with the Securities and Exchange Commission:
Michael Jamieson, MAM's President and Chief Executive Officer commented, "Fiscal year 2018 is off to a solid start with results that were in-line with our expectations. We also continued to focus our efforts on progressing on our key development projects, including VAST Online and Autocat+." "Our team achieved a significant milestone in October with the first installation of VAST Online at a Goodyear dealer location as part of our pilot test program," continued Jamieson. "We are pleased with the feedback that we've received so far from our customer. With this being the first location to go live we will continue to monitor it closely while preparing for the roll-out at additional locations." First Quarter Highlights:
First Quarter Financial Results: Net revenues were $8.6 million for the quarter ended September 30, 2017 versus $8.1 million for the same period last year, an increase of $576,000 or 7.1%. On a constant currency basis, revenue was up 7.4% over the same period last year. Recurring revenue for the quarter was $7.1 million, or 82% of total revenue, an increase of $673,000 or 10.5%, over $6.4 million, or 79.5% of total revenue, for the first quarter last year. Sequentially, recurring revenue increased $225,000, or 3.2%, compared to $6.9 million in the fiscal fourth quarter of 2017. Total Software as a Service (SaaS) revenue for the quarter was $2.6 million, an increase of $580,000, or 29%, year-over-year and an increase of $179,000, or 7.5%, sequentially when compared to the fourth quarter of fiscal 2017. The increase in the SaaS revenue was primarily attributable to a 24.3% increase in Autowork Online (SaaS) revenue for the quarter to $1.5 million, and a 36.5% increase in Autopart Online (SaaS) revenue for the quarter to $1.1 million. Total Data as a Service (DaaS) revenue for the quarter was $2.3 million, an increase of $72,000, or 3.2%, year over year, and $114,000, or 5.1%, sequentially when compared to the fiscal fourth quarter of 2017. Gross profit for the quarter was $4.8 million, or 55.9% of total revenue, an increase of $87,000 compared to $4.7 million, or 58.8% of total revenue, for the same period last year. Operating expenses for the quarter decreased by $74,000 to $3.3 million, a decrease of 2.2% as compared to $3.4 million for the same period last year. An increase in Research and Development expenses to support growth was offset by lower Sales and Marketing expenses and General and Administrative expenses. Operating income for the quarter increased by $160,000, or 11.7%, to $1.5 million, as compared to $1.4 million for the same period last year. Other expense for the quarter decreased by $16,000, or 13.3%, to $104,000, as compared to $120,000 for the same period last year. Provision for income taxes increased to $0.3 million, or an effective tax rate of 22%, for the quarter, as compared to $34,000, or an effective tax rate of 3%, for the same period last year. The increase in the effective tax rate was primarily due to the partial release of our valuation allowance last year. Net income for the quarter was $1.1 million, or $0.09 per basic and diluted share, compared to net income of $1.2 million, or $0.10 per basic and diluted share, for the same period last year. Balance Sheet and Other Financial Highlights
Business Outlook The Company reaffirmed its expectations for fiscal year 2018 Adjusted EBITDA* in the range of $5.5 million to $6.0 million, on a constant currency basis. Conference Call Information The Company has scheduled a conference call for Wednesday, November 15, 2017, at 9 a.m. ET to review the results. Investors and interested parties can access the conference call by dialing:
A replay will be available until November 29, 2017 by calling 1-844-512-2921 (United States) or 1-412-317-6671 (UK/international). Please use pin number 6378993 for the replay. A live webcast as well as a replay of the call will be accessible at the investor relations section of the Company's website, www.mamsoftware.com. The replay will be active for 60 days following the conference call. About MAM Software Group, Inc. MAM is a leading global provider of cloud-based business and on-premise management solutions for the auto parts, tire and vertical distribution industries. The company provides a portfolio of innovative software (SaaS and packaged), data (DaaS), and integration (iPaaS) services that enable businesses to intelligently manage core business processes, control costs and generate new profit opportunities. MAM's integrated platforms provide a wealth of rich functionality including: point-of-sale, inventory, purchasing, reporting, data and e-commerce. Wholesale, retail and installer business across North America, the U.K. and Ireland rely on MAM solutions, backed by dedicated teams of experienced service and support professionals. For further information, please visit http://www.mamsoftware.com. *Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization adjusted to exclude non-cash equity compensation, and other special non-recurring charges. A reconciliation of net income (loss) to Adjusted EBITDA can be found at the end of the following tables. Adjusted EBITDA is commonly used by management and investors as an indicator of operating performance and liquidity. Adjusted EBITDA is not considered a measure of financial performance under GAAP and it should not be considered as an alternative to net income (loss), or other financial statement data presented in accordance with GAAP in our consolidated financial statements. Safe Harbor Statement This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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 from time to time in the Company's filings with the Securities and Exchange Commission.
The Accompanying Notes Are an Integral Part of these Condensed Consolidated Financial Statements F-4
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