 
FOR: Quorum Information Technologies Inc.
TSX VENTURE SYMBOL:
QIS
Quorum Information Technologies Inc. Releases Fiscal Year 2005 Results
APR 28, 2006 - 12:30 ET
CALGARY, ALBERTA--(CCNMatthews - April 28, 2006) - Quorum Information Technologies Inc. (Quorum) (TSX VENTURE:QIS) today released Fiscal Year (FY) 2005 results. In FY2005, Quorum focused its efforts on the very important elements of building advanced "B2B" integration points with GM Canada; moving forward with GM-U.S. to provide a higher level of integration; continuing to improve XSELLERATORTM by rolling out Version 4.3.3 with more than 100 new features; improving Customer Service and Support; building the Quorum brand in both Canada and the U.S; and signing up more than 40 new XSELLERATOR customers.
However, Quorum's primary focus during FY2005 was on the pursuit of the General Motors' Request for Proposal for Vendors for its Integrated Dealership Management System (IDMS). Effective January 1, 2006, Quorum was awarded a multi-year contract with General Motors to deliver the GM IDMS program to its dealers throughout North America.
The effort required to win a major contract like GM IDMS was not without costs. Quorum put in an enormous effort to support its existing customer base, as it simultaneously refit, retooled and refocused the organization to meet the requirements of GM IDMS. This effort required investment and in 2005, as per the business plan, Quorum had a net loss of $2.2 million. To meet the financial needs of the company, additional equity capital was raised primarily through warrant conversions totalling $2.7 million in 2005, and subsequent to year end, an additional $4.1 million was raised through a non-brokered private placement completed in January 2006.
2005 Financial Highlights
- 49% increase in Gross Revenues
- 55% increase in on-going annuity XSELLERATOR software support revenue
- 23% increase in customer base from 116 to 143 installs
- Raised $2.7 million in equity capital to fund continuing operations and expansion
- Net loss for FY2005 increased to $2.195 million from $1.046 million in FY2004. The net loss in FY2005 is due to increased costs of the expanding organization as it prepared to itself to meet the requirements of the pending GM IDMS contract award.
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FINANCIAL HIGHLIGHTS
Year ended Year ended
December 31, 2005 December 31, 2004
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Gross Revenue $ 5,772,973 $ 3,869,025
Cost of products and
services sold $ 5,196,823 $ 2,832,287
Gross Profit $ 576,150 $ 1,036,738
Gross Profit % 10% 27%
Earnings Before Interest,
Taxes, Depreciation and
Amortization (EBITDA) $(2,690,804) $ (923,844)
Net Loss (2,194,589) $(1,045,648)
Basic Earnings (loss) per share $ (0.079) $ (0.044)
Fully Diluted Earnings
(loss) per share $ (0.075) $ (0.038)
Weighted Average Number of
Common Shares
Basic 27,634,483 23,971,784
Diluted 29,244,843 27,261,922
Number XSELLERATOR
Dealerships Added (Installed) 27 25
Total Number XSELLERATOR
Dealerships (Installed) 143 116
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For detailed FY2005 financial information, please go to www.Sedar.com, or www.QuorumIs.com.
About Quorum:
Quorum's focus is on developing, marketing, implementing and supporting its XSELLERATORTM product for the automotive vertical. XSELLERATOR is a dealership and customer management software product which automates, integrates and streamlines every department in a dealership. Quorum currently has over 17% of the GM dealership market in Canada making it the third largest supplier of Dealership Management Systems for GM in Canada. Quorum was also recently named General Motors' IDMS Supplier for North America.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
FOR FURTHER INFORMATION PLEASE CONTACT:
Quorum Information Technologies Inc.
Craig F. Nieboer
V.P. & CFO
(403) 777-0035 Ext. 110
(403) 777-0039 (FAX)
or
Quorum Information Technologies Inc.
#200, 6715 8 Street N.E.
Calgary, AB T2E 7H7
Email: NieboerC@QuorumIS.com
Website: www.QuorumIS.com
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