MILWAUKEE, Dec. 16, 2013 (GLOBE NEWSWIRE) — ARI Network Services
(Nasdaq:ARIS), a leading provider of website, software, and data
solutions that help dealers, distributors and manufacturers Sell More
Stuff!(TM), reported financial results today for its fiscal 2014 first
quarter ended October 31, 2013.
Highlights for the fiscal first quarter included:
— Revenues for the first quarter of fiscal year 2014 were $8.2 million, a
37.3% increase over the same period last year.
— Recurring revenues for the first quarter of fiscal year 2014 were $7.7
million, a 57.7% increase over the first quarter of fiscal year 2013. As
a percentage of total revenues, recurring revenues in the first quarter
were 94.7% in fiscal year 2014 versus 82.5% for the same period in
fiscal year 2013.
— Net income for the first quarter of fiscal year 2014 was $25,000 or
$0.00 per share, compared to $113,000 or $0.01 per share for the first
quarter of fiscal 2013.
— EBITDA, a non-GAAP measure, adjusted for non-cash charges, was $966,000
in the first quarter of fiscal year 2014, a decrease of 1.7% compared to
the same period last year.
Fiscal Year 2014 First Quarter Financials
ARI reported revenues of $8.2 million for the first quarter of fiscal
year 2014 versus $5.9 million for the first quarter of fiscal year
2013, an increase of 37.3%. Recurring revenue comprised 94.7% of total
revenue for the first quarter of fiscal year 2014 versus 82.5% for the
first quarter of fiscal year 2013.
Overall gross margin for the first quarter of fiscal year 2014 was
80.9%, versus 76.3% last year. The gross margin improvement resulted
from the Company’s focus on higher margin, recurring revenue streams
and its continued shift away from one-time revenue sources.
Operating income was $167,000 for the first quarter of fiscal year
2014, compared to $303,000 for the same period last year. The decrease
in operating income was primarily a result of expanding our sales and
marketing resources and campaign expenditures.
The company reported net income of $25,000 or $0.00 per share for the
quarter, compared to $113,000 or $0.01 per share last year.
Management Discussion
Roy W. Olivier, President and Chief Executive Officer of ARI,
commented, “I am pleased that we are on target with the integration of
50 Below, and we are making investments to grow revenue. We believe
that it is the right time to invest in growing revenues versus
maximizing EBITDA or cash flow. During the first quarter of fiscal
2014, we invested 30.1% of revenue in sales and marketing versus 20.6%
for the same period last year. Early indications are that these
investments are having a positive impact, as we are seeing significant
year over year growth in new sales.”
Mr. Olivier continued, “In addition, the Company showed improvement in
both its gross margin and recurring revenue as a percent of total
revenue. We expect to continue to make investments in sales and
marketing this year to the extent we achieve a reasonable rate of
return on those investments, while improving EBITDA performance over
last year.”
William A. Nurthen, recently hired Chief Financial Officer of ARI,
commented, “I am very excited to be joining the ARI team. The Company’s
focus on recurring revenues has resulted in another strong quarter from
a revenue and gross profit perspective. Additionally, the Company was
able to make investments in the first quarter of fiscal 2014 in order
to support its future revenue growth.”
