Aftersoft Group Reports Third Quarter Financial Results
May 15, 2009 12:47:00 PM
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View Additional ProfilesNEW YORK, May 15 /PRNewswire-FirstCall/ -- Aftersoft Group, Inc. (OTC Bulletin Board: ASFG), a major supplier of business and ERP supply chain management solutions to automotive parts and tires, distributors, jobbers, retailers and installers, announced the following financial results for its fiscal third quarter and nine months ended March 31, 2009, on May 15, 2009, through the filing of its Quarterly Report on Form 10-Q with the Securities and Exchange Commission:
(In thousands, except Three Months Ended Nine Months Ended
per share data) 3/31/09 3/31/08 3/31/09 3/31/08
Revenues $5,027 $5,833 $15,877 $16,833
Gross Profit $2,902 $3,112 $8,762 $8,945
Operating income (loss) $244 ($1,496) ($61) ($2,556)
Total comprehensive loss ($492) ($2,634) ($8,676) ($2,171)
Loss per share - ($0.02) ($0.07) ($0.02)
Shares (basic and
diluted) 79,123,769 85,335,721 88,291,870 85,637,056
Gross margins for the third quarter were 57.7%, up from a gross margin of 53.4% during the same period in 2008. For the first nine months of fiscal 2009, gross margin averaged 55.2% compared to 53.1% for the same period in fiscal 2008.
Commenting on the quarter, Aftersoft's CEO, Ian Warwick, said, "This has been a significant quarter for us. During the quarter our US operations turned their first operating profit in the Company's history. We are pleased with results and look forward to the US finishing this Fiscal 2009 in a strong position."
The Company reported revenue of $4,378,000 and $11,499,000 from its US and UK operations, respectively, for the nine-month period ended March 31, 2009. Revenue from its UK operations was negatively impacted by the effect of a stronger US Dollar vs. Pounds Sterling relative to the same period a year ago. Revenue in Pounds Sterling from UK operations increased from 6,310,000 Pounds Sterling for the nine months ended March 31, 2008 to 7,019,000 Pounds Sterling for the nine months ended March 31, 2009. Added Warwick, "Currency translation is a reality of our business. Although the reported numbers on a dollar basis don't accurately reflect the underlying continuous improvement in our UK business, in fact our UK division's revenue on a constant, Pounds Sterling basis, grew by 709,000 Pounds Sterling or 11.2% from the same period a year ago."
About Aftersoft Group, Inc.
Aftersoft Group, Inc. (OTC Bulletin Board: ASFG) is a supplier of business and ERP supply chain management solutions to automotive parts manufacturers, distributors and retailers. Aftersoft 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 www.aftersoftgroup.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.
AFTERSOFT GROUP, INC
Consolidated Balance Sheets
(In thousands, except share data)
March 31, June 30,
2009 2008
(Unaudited)
ASSETS
Current Assets
Cash and cash equivalents $1,147 $1,964
Accounts receivable, net of allowance
of $40 and $202 2,742 3,233
Inventories 339 615
Prepaid expenses and other current assets 455 690
Total Current Assets 4,683 6,502
Property and Equipment, Net 960 592
Other Assets
Goodwill 9,404 11,878
Amortizable intangible assets, net 3,575 4,584
Software development costs, net 1,577 1,718
Investments in available-for-sale securities 1,238 4,102
Other long-term assets 233 426
Total Assets $21,670 $29,802
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $1,455 $2,372
Accrued expenses and other 3,450 3,508
Payroll and other taxes 715 933
Current portion of long-term debt 1,070 598
Current portion of deferred revenue 391 607
Other current liabilities 377 379
Total Current Liabilities 7,458 8,397
Long-Term Liabilities
Deferred revenue, net of current portion 711 545
Deferred income taxes 880 880
Long-term debt, net of current portion and
debt discount 5,215 4,783
Other 152 142
Total Liabilities 14,416 14,747
Commitments and contingencies
STOCKHOLDERS' EQUITY
Preferred stock:
Par value $0.0001 per share; 10,000,000 shares
authorized, none issued and outstanding - -
Common stock:
Par value $0.0001 per share; 150,000,000
shares authorized, 79,125,953 and 92,733,220
shares issued and outstanding, respectively 8 9
Additional paid-in capital 29,927 31,732
Parent company common stock - (2,850)
Accumulated other comprehensive income (loss) (1,395) 1,617
Accumulated deficit (21,286) (15,453)
Total Stockholders' Equity 7,254 15,055
Total Liabilities and Stockholders' Equity $21,670 $29,802
AFTERSOFT GROUP, INC
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Unaudited)
(In Thousands except for For the Three Months For the Nine Months
share and per share data) Ended Ended
March 31, March 31,
2009 2008 2009 2008
Revenues $5,027 $5,833 $15,877 $16,833
Cost of revenues 2,125 2,721 7,115 7,888
Gross profit 2,902 3,112 8,762 8,945
Operating expenses
Research and development 721 832 2,215 2,290
Sales and marketing 550 640 1,710 1,829
General and administrative 1,134 2,815 4,117 6,379
Depreciation and amortization 253 321 781 1,003
Total operating expenses 2,658 4,608 8,823 11,501
Operating income (loss) 244 (1,496) (61) (2,556)
Other income (expense)
Interest expense (413) (360) (1,213) (442)
Write down of investments in
available-for-sale securities - - (3,957) -
Interest income 8 - 21 -
Reduction in litigation settlement - - - 76
Gain on sale of investment in
non-marketable securities - - - 1,312
Other, net (2) 36 11 35
Total other income (loss), net (407) (324) (5,138) 981
Loss before provision for income
taxes (163) (1,820) (5,199) (1,575)
Provision for income taxes 152 77 465 465
Loss from continuing operations (315) (1,897) (5,664) (2,040)
Income from discontinued
operations - - - 14
Loss on sale of discontinued
operations - - - (26)
Net loss (315) (1,897) (5,664) (2,052)
Unrealized gain (loss) on
investments in available-for-sale
securities and
Reversal of unrealized loss on
investments in available-for-sale
securities 281 (234) 1,089 (188)
Foreign currency translation
gain (loss) (458) (503) (4,101) 69
Total comprehensive loss $(492) $(2,634) $(8,676) $(2,171)
Loss per share attributed to
common stockholders - basic
and diluted
Continuing operations $- $(0.02) $(0.07) $(0.02)
Discontinued operations - - - -
$- $(0.02) $(0.07) $(0.02)
Weighted average common
shares outstanding- basic
and diluted 79,123,769 85,335,721 88,291,870 85,637,056
SOURCE Aftersoft Group, Inc.
----------------------------------------------
Sarah Jarvis of Aftersoft Group
Inc.
+44-1244-893138
sjarvis@aftersoftgroup.com
