ROLLING MEADOWS, Ill., Aug. 14, 2013 (GLOBE NEWSWIRE) -- Q4 Systems Corporation (OTCBB:QFOR) reported its financial and operational results for the quarter ending June 30, 2013.
Second Quarter Highlights:
- Revenue increased 37% year-over-year
- Gross profit increased 88% year-over-year
- Gross margin percentage improved to 27% from 19% in the year-ago period
- EBITDA increased 133% year-over-year
- Adjusted net loss decreased 7% year-over-year
- Net loss per share remained flat at $0.02 per share
Revenue for the second quarter increased 37% to $9.1 million, compared to $6.7 million in the same period of 2012. The increase in revenue was primarily due to the integration of acquisitions completed in the first quarter of 2013 and the expansion of the core businesses to include SaaS and other solutions tools. Revenue was comprised of service-related sales of software programming, consulting and development services.
Gross profit increased 88% to $2.4 million in the second quarter, compared to $1.3 million in the same period of 2012. Gross margin percentage improved to 27% for the second quarter, compared to 19% in the second quarter of 2012.
General and administrative expenses increased 59% to $1.3 million, compared to $0.8 million in the same period of 2012. The increase was due to higher staffing, management and overhead costs associated with the integration of acquisitions completed in the first quarter of 2013.
Earnings before interest, taxes, depreciation and amortization increased 133% to $1.2 million, compared to $0.5 million in the same period of 2012.
Net loss adjusted for one-time costs related to a legal judgment decreased 7% to $771,447 for the second quarter, compared to $831,790 in the same period of 2012. GAAP net loss per common share remained flat at $0.02 per share.
Dhru Desai, Chairman of the Board and Chief Financial Officer, stated, "We've completed the integration of our past acquisitions and formed a stable base business which is reflected in our numbers this quarter. In addition, this quarter Q4 achieved the very significant milestone of unveiling our flagship Health Exchange platform – QHIX - which is based on Q4's proprietary SMAC (social media, mobility, analytics and cloud computing) technologies. QHIX will establish Q4 as a significant player in the health care market segment. Q4's technology and solutions are perfectly positioned to help implementation of the Affordable Care Act. We have a robust pipeline and are excited about the set of opportunities we are currently pursuing both for our SaaS business as well as our IT services business."
To view the Company's current Form 10-Q, please visit www.sec.gov or click on the following link: http://www.sec.gov/Archives/edgar/data/878802/000118518513001680/q4systems10q063013.htm
About Quadrant 4 Systems Corporation
Quadrant 4 Systems Corporation delivers end-to-end information technology solutions to its clients through a unique blend of consulting, software development & maintenance, cloud based products and technology from its global delivery centers. The company currently focuses on Financial Services, Health Care, Retail, Manufacturing and Telecommunication sectors with a broad spectrum of services and technology practices that include ERP, SCM, CRM, e-Commerce, m-Commerce, SFA, Microsoft, Java and Legacy platforms, BI/DW, testing, platform migration, web technologies and others.
Forward-Looking Statements
This release contains forward-looking statements, which are subject to the inherent uncertainties in predicting future results and conditions. Any statements that are not statements of historical fact should be considered to be forward-looking statements. Certain factors could cause actual results and conditions to differ materially from those projected in such forward-looking statements. We do not undertake any obligation to release publicly revised or updated forward-looking information, and such information included in this release is based on information currently available and may not be reliable after this date.
| RECONCILIATION OF GAAP NET LOSS TO NON-GAAP ADJUSTED NET LOSS | ||
| For the Three Months Ended | ||
| June 30, | ||
| 2013 | 2012 | |
| Net Loss | (1,463,447) | (831,790) |
| Adjustments to Net Loss | ||
| One-Time Legal Judgement | 692,000 | -- |
| Adjusted Net Loss | (771,447) | (831,790) |
| The non-GAAP metric above is not a substitute for GAAP but is viewed as useful by management this quarter because the one-time impact of the legal judgement. | ||