Quorum Information Technologies Reports Strong Q3 FY2009 Results Amidst Market Rebound

Strategic Insights -

Market conditions have started to rebound, with a desire to return to "business as usual" among General Motors (GM) and Chrysler dealerships. Quorum Information Technologies Inc. (Quorum) saw a significant increase in qualified leads, with a 35% growth in the third quarter (Q3) of Fiscal Year (FY) 2009, and a further 20% increase in the first half of Q4 FY2009. Additionally, the company signed a new customer a week for six consecutive weeks, starting from the end of Q3.

Key Takeaways:

  • Quorum's qualified leads pipeline grew by 35% in Q3 FY2009 and by a further 20% in the first half of Q4 FY2009.
  • The company signed a new customer a week for six consecutive weeks, starting from the end of Q3.
  • Dealerships that lost their GM franchises are transitioning to new manufacturer franchises or aftermarket operations, resulting in Quorum adding three new markets by the end of the year.
  • Quorum deployed the GM Global Warranty integration point for Canada and initiated four new integration projects by GM in Q3 FY2009.
  • Gross Margin percentage improved to 66% in Q3 FY2009, with a corresponding increase in support revenue.
  • EBITDA (earnings before interest, taxes and amortization) increased to $529,552 for Q3 FY2009, compared to $262,718 in Q3 FY2008.
  • Quorum's cash balance increased by $64,697 and working capital increased by $210,810 over Q2 FY2009.
  • The company received $238,898 in government funding, including $203,303 from Provincial Government Scientific Research and Experimental Development (SRED) and $35,595 from the Atlantic Canada Opportunities Agency (ACOA).

Statistics:

  • Qualified leads pipeline grew by 35% in Q3 FY2009.
  • Qualified leads pipeline grew by a further 20% in the first half of Q4 FY2009.
  • Gross Margin percentage improved to 66% in Q3 FY2009.
  • EBITDA increased to $529,552 for Q3 FY2009.
  • Cash balance increased by $64,697 over Q2 FY2009.
  • Working capital increased by $210,810 over Q2 FY2009.
  • Government funding: $238,898 ($203,303 SRED + $35,595 ACOA).

Sources:

  • Quorum Information Technologies Inc.
  • Marketwire.
  • QuorumDMS.com
  • TSX Venture Exchange (TSX-V) under the symbol QIS