SPCK the big news.. numbers are growing and their is profit
Financial Results
During the year ended October 31, 2010, revenue increased $1,404,122 or 18.3% to $9,093,208 compared to $7,689,086 for the year ended October 31, 2009. The favorable sales variances were incurred in both revenue streams. Compared to the previous year, net service revenue which includes installation revenue increased 26.0% to $4,942,469 from $3,924,024 in 2009 and services revenue which includes guest support services increased 10.2% to $4,150,739 from $3,765,062 in 2009. The Superclick solution continues to receive strong validation from new clients and existing clients. Along with year over year increases in net sales, the Company was able to secure support contracts not only with new customers but successfully renew services with existing clients.
Gross profit for the year ended October 31, 2010 increased by $102,024 or 2.6% to $4,075,882 compared to $3,973,858 for the year ended October 31, 2009. Gross margin for the current year was 44.8% compared to 51.7% the previous year.
For the years ended October 31, 2010 and 2009, selling, general and administrative expenses were $2,584,065 and $1,868,656, respectively. The $715,409 or 38.3% increase in SG&A was primarily due to approximately $564,000 increase in sales and marketing expenses and $163,000 increase in general expenses.
The net income before income taxes for the year ended October 31, 2010 was $1,164,426 or 12.8% of net revenue compared to $1,903,857 or 24.8% of net revenue during the year ended October 31, 2009. The Company recorded $373,904 in income tax expense during the year ended October 31, 2010 compared to $611,732 in 2009. As a result, net income for the year ended October 31, 2010 was $790,522 or 8.7% of revenue and $501,603 or 38.8% lower compared net income of $1,292,125, or 16.8% of revenue for 2009.
For the years ended October 31, 2010, the net income per common share basic was $0.02 and $0.01 fully diluted, compared to $0.03 basic and $0.02 fully diluted for the year ended October 31, 2009. The basic and fully diluted weighted average shares for the current fiscal year end was 45,424,991 and 58,149,991, respectively. The basic and fully diluted weighted average shares for the year ended October 31, 2009 was 45,134,205 and 58,986,561, respectively.
