NEW YORK and LONDON, Feb. 15, 2007 (PRIME NEWSWIRE) -- Aftersoft Group Inc. ("Aftersoft") (OTCBB:ASFG), a leading supplier of software and services to the automotive aftermarket in the U.S., UK and Canada, today announced the results of operations for fiscal second quarter ended December 31, 2006. Revenues for the second quarter were $6.8 million compared to $4.8 million for the second quarter of the prior fiscal year, an increase of 30%. The Company reported net income of $996,000 versus $488,000 for the comparable period in previous fiscal year, an increase of 104%.
Through the first six months of fiscal 2007, the Company generated revenue of $12.6 million compared to $9.6 million in the prior year period, an increase of 31%. The Company generated net income of $2.0 million or $0.03 per share during the first six months of fiscal 2007. This compares to net income of $312,000 or $0.01 per share for the first six months of fiscal 2006.
(In 000s except
per share amounts) Three Months Ended Six Months Ended
12-30-06 12-30-05 12-30-06 12-30-05
Revenue $ 6,788 $ 4,845 $ 12,639 $ 9,624
Gross profit $ 4,112 $ 2,555 $ 7,322 $ 4,895
Income from
operations $ 1,103 $ 341 $ 1,815 $ 290
Net (comprehensive)
income $ 996 $ 488 $ 2,007 $ 312
EPS per share $ 0.01 $ 0.02 $ 0.03 $ 0.01
Shares (basic
and diluted) 63,071 34,101 54,657 34,101
Gross margins for the second quarter were 63.4 percent, significantly up from the prior year period level of 52.7 percent. For the first six months, gross margin average 57.9 percent compared to 50.9% for the same period in fiscal 2006.
Aftersoft's CEO, Ian Warwick, commented, "With the Auto Data Network spin-out of Aftersoft shares firmly in process, we have repositioned the company and laid the foundations for sustainable, profitable growth. We have made significant progress in strengthening our UK and European market share and intend to focus on opportunities to further fortify our competitive position abroad as well as in North America."
Mr. Warwick continued, "We closed the EXP acquisition during the first quarter and are now focused on higher margin business, which, we expect, will soon be reflected on our financial results. In addition, we have identified a number of accretive acquisitions that are extremely synergistic with our existing business."
As announced in a previously issued press release, Aftersoft intends to conduct a conference call on February 22, 2007 at 4:00 p.m. (EST) to present its second quarter financial results and to respond to investor questions. Details as to how investors may participate in the conference call will be made public shortly.
About Aftersoft
Aftersoft Group, Inc. is a leading provider of software, information and services to the automotive aftermarket and automotive dealerships in the U.S., UK and Canada. Aftersoft develops and markets business, supply chain management, dealership and customer relationship management software solutions to small and medium-size firms in the automotive aftermarket and dealership market in the U.S. and UK. The automotive aftermarket consists of businesses associated with the life cycle of a motor vehicle -- from when the original manufacturer's warranty expires to when the vehicle is scrapped. The Company services this market with business management systems, information products and online services that its customers use to manage their critical day-to-day business operations through automated point-of-sale, inventory management, purchasing, general accounting and customer relationship management. Aftersoft is currently number two in the U.S. parts aftermarket, which is comprised of approximately 20,000 small to mid-sized (SME) companies that approximately $68 billion in business, annually. The Company is also the leader in the UK parts aftermarket, which generates approximately $27 billion of business, annually, fueled by approximately 30 million vehicles in circulation. Its dealer management division services this market with dealership business management and marketing software systems for automotive manufacturers and automobile dealerships. This is a highly fragmented market with an aggregate annual, worldwide market volume of approximately $15 billion.
This release contains forward-looking statements that involve risks and uncertainties, such as statements about our plans, objectives, expectations, assumptions, or future events. These statements involve estimates, assumptions, known and unknown risks, uncertainties and performances, or achievements expressed or implied by the forward-looking statement. Actual future results and trends may differ materially from those made in or suggested by any forward-looking statement due to a variety of factors, including, for example, 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. Consequently you should not place undue reliance on these forward-looking statements. We discuss these and other risks and uncertainties in greater detail in the filings we make with the Securities and Exchange Commission, including under the section entitled, "Risk Factors" in the Company's Annual Report on Form 10-KSB and our report on Form 10-Q.
AFTERSOFT GROUP, INC
CONSOLIDATED BALANCE SHEET
(Unaudited)
(In thousands, except share and per share data)
December 31,
2006
------------
ASSETS
CURRENT ASSETS
Cash $ 767
Accounts receivable, net of allowance of $286 5,580
Note receivable 950
Inventories 561
Amount due from parent company 304
Other 776
------------
Total Current Assets 8,938
------------
Property and equipment, net 327
------------
OTHER ASSETS
Goodwill 22,966
Amortizable intangible assets, net 7,502
Software development costs, net 1,292
Other long-term assets 34
------------
Total Other Assets 31,794
------------
TOTAL ASSETS $ 41,059
============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 2,697
Accrued expenses 2,045
Accrued legal expenses 1,895
Payroll and other taxes 988
Current portion of long-term debt 892
Deferred revenue 2,521
Taxes payable 1,030
------------
Total Current Liabilities 12,068
LONG-TERM LIABILITIES
Deferred revenue 772
Deferred income taxes 880
Long-term debt 6
------------
Total Liabilities 13,726
------------
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, 100,000,000
shares authorized, 63,071,167 shares issued and
outstanding 6
Additional paid-in capital 24,528
Accumulated other comprehensive loss (258)
Retained earnings 3,057
------------
Total Stockholders' Equity 27,333
------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 41,059
============
AFTERSOFT GROUP, INC
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
(In thousands, except share and per share data)
For the Three For the Six
Months Ended Months Ended
December December December December
31, 31, 31, 31,
2006 2005 2006 2005
-------- -------- -------- --------
Revenues $6,788 $4,845 $12,639 $9,624
Cost of revenues 2,676 2,290 5,317 4,729
-------- -------- -------- --------
Gross profit 4,112 2,555 7,322 4,895
-------- -------- -------- --------
Operating expenses
Research and
development 853 763 1,628 1,536
Sales and marketing 591 487 1,111 966
General and
administrative 1,033 699 1,853 1,559
Depreciation and
amortization 532 265 915 544
-------- -------- -------- --------
Total operating expenses 3,009 2,214 5,507 4,605
-------- -------- -------- --------
Operating income 1,103 341 1,815 290
-------- -------- -------- --------
Other income (expense)
Interest expense (36) (26) (59) (58)
Interest income 1 -- 3 --
Gain (loss) on sale
of property and
equipment -- 304 (4) 304
Other, net 4 17 500 18
-------- -------- -------- --------
Total other income
(expense) (31) 295 440 264
-------- -------- -------- --------
Income from operations 1,072 636 2,255 554
Provision for income taxes 134 104 378 185
-------- -------- -------- --------
Net income 938 532 1,877 369
Foreign currency
translation gain (loss) 58 (44) 130 (57)
Total comprehensive
income $996 $488 $2,007 $312
========= ======== ======== ========
Earnings per share
attributed to common
stockholders - basic
and diluted $0.01 $0.02 $0.03 $0.01
========= ========= ========= =========
Weighted average number
of shares of common
stock outstanding -
basic and diluted 63,071,167 34,101,167 54,657,167 34,101,167
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