Aftersoft Group Reports First Quarter Financial Results
NEW YORK, Nov. 17, 2009 -- Aftersoft Group, Inc. (OTC Bulletin Board: ASFG), a leading provider of business automation and ecommerce solutions for the automotive aftermarket, announced the following financial results for its fiscal first quarter and three months ended September 30, 2009, through the filing on November 12, 2009 of its Quarterly Report on Form 10-Q with the Securities and Exchange Commission:
(In thousands, except per share data) Three Months Ended
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9/30/09 9/30/08
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Revenues $6,212 $5,845
Gross Profit $3,265 $3,090
Operating income (loss) $590 ($67)
Total comprehensive income (loss) $206 ($2,348)
Income (loss) per share - ($0.01)
Shares (basic and diluted) 83,496,491 92,733,220
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Gross margins for the first quarter were 53%, consistent with the Company's gross margins during the same period in 2008.
The Company reported revenue of $1,781,000 and $4,431,000 from its US and UK operations, respectively, for the three-month period ended September 30, 2009, compared to $1,352,000 and $4,503,000, respectively, during the same period in 2008. Revenue from the Company's UK operations was negatively impacted by the effect of a stronger US Dollar versus the British Pound relative to the same period a year ago. Revenue in GBP from UK operations increased from 2,374,000 GBP for the three months ended September 30, 2008 to 2,669,000 GBP for the three months ended September 30, 2009.
Commenting on the quarter, Aftersoft's CEO, Ian Warwick, said, "The last quarter has continued to build upon the last two quarters of the previous fiscal year. MAM Software in the US and UK continues to grow both revenue and income and Aftersoft Network N.A.'s revenues remain consistent with a positive increase in income. These together have enabled us to turn the loss of last year to the positive income we see today."
About Aftersoft Group, Inc.
Aftersoft Group, Inc. (OTC:ASFG) (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)
September 30, June 30,
2009 2009
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(Unaudited)
ASSETS
Current Assets
Cash and cash equivalents $829 $1,663
Accounts receivable, net of allowance of
$148 and $87 3,255 2,154
Inventories 360 318
Prepaid expenses and other current assets 435 507
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Total Current Assets 4,879 4,642
Property and Equipment, Net 1,010 1,028
Other Assets
Goodwill 9,290 9,548
Amortizable intangible assets, net 3,345 3,566
Software development costs, net 1,656 1,691
Other long-term assets 128 179
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Total Assets $20,308 $20,654
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $1,906 $1,386
Accrued expenses and other 2,580 3,162
Payroll and other taxes 261 278
Derivative liabilities 521 -
Current portion of long-term debt 2,092 1,598
Current portion of deferred revenue 430 482
Taxes payable 624 708
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Total Current Liabilities 8,414 7,614
Long-Term Liabilities
Deferred revenue, net of current portion 508 748
Deferred income taxes 846 880
Long-term debt, net of current portion and
debt discount 4,027 4,713
Other 194 199
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Total Liabilities 13,989 14,154
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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, 83,647,999 and 83,462,337 Shares
issued and outstanding, respectively 8 8
Additional paid-in capital 29,371 30,219
Accumulated other comprehensive loss (356) (482)
Accumulated deficit (22,704) (23,245)
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Total Stockholders' Equity 6,319 6,500
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Total Liabilities and Stockholders' Equity $20,308 $20,654
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AFTERSOFT GROUP, INC.
Consolidated Statements of Operations and Comprehensive Income (Loss)
(Unaudited)
(In thousands, except share and per share data)
For the For the
three three
months months
ended ended
September September
30, 2009 30, 2008
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Revenues $6,212 $5,845
Cost of revenues 2,947 2,755
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Gross Profit 3,265 3,090
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Operating Expenses
Research and development 844 785
Sales and marketing 644 599
General and administrative 905 1,505
Depreciation and amortization 282 268
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Total Operating Expenses 2,675 3,157
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Operating Income (Loss) 590 (67)
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Other Income (Expense)
Interest expense (378) (372)
Gain on settlement of liability 50 -
Change in fair value of derivative liabilities 38 -
Other, net - 2
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Total other expense, net (290) (370)
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Income (loss) before provision for income taxes 300 (437)
Provision for income taxes 220 115
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Net income (loss) 80 (552)
Unrealized loss on investments in
available-for-sale securities - (748)
Foreign currency translation gain (loss) 126 (1,048)
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Total comprehensive income (loss) $206 $(2,348)
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Income (loss) per share attributed to common
stockholders: basic and diluted
Basic $ - $(0.01)
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Diluted $ - $(0.01)
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Weighted average shares outstanding:
Basic 83,496,491 92,733,220
Diluted 83,496,491 92,733,220