Le Lézard
Classified in: Transportation, Science and technology, Business
Subjects: ERN, CCA, ERP

MAM Software Reports Fiscal First Quarter Results


BLUE BELL, Pa., Nov. 13, 2018 /PRNewswire/ -- MAM Software Group, Inc. (NASDAQ Capital Market: MAMS) (the "Company" or "MAM"`), a leading global provider of on-premise and cloud-based business management solutions for the auto parts, tire and vertical distribution industries, announced the following financial results in accordance with U.S. generally accepted accounting principles ("GAAP") for its first fiscal quarter ended September 30, 2018, through the filing on November 13, 2018 of its Quarterly Report on Form 10-Q with the Securities and Exchange Commission:

(In thousands, except per share data)

For the Three Months Ended
September 30,


2018


2017

Net revenues

$

9,300


$

8,638

Gross profit

$

5,235


$

4,831

Operating income

$

1,605


$

1,527

Income before provision for income taxes

$

1,514


$

1,423

Net income

$

1,211


$

1,114

Earnings per share attributed to common stockholders ? basic and diluted

$

0.10


$

0.09

MAM Software Group, Inc. logo. (PRNewsFoto/MAM Software Group, Inc.)

Michael Jamieson, MAM's President and Chief Executive Officer commented, "Our first quarter financial results were in-line with our expectations and reflect the strength of our business model and the health of our balance sheet. We continue to grow our top line revenue and generate solid profitability and strong cash flow for reinvestment back into our business, while also returning a portion to our stockholders in the form of a share repurchase program. We are encouraged by the solid start to fiscal year 2019 and remain on track to achieve our financial guidance for the full year."

Jamieson added, "We also continued to make significant investments in our products, including VAST Online and our DaaS products, and I am very pleased with the progress that we have made during the first quarter."

First Quarter Highlights:

First Quarter Financial Results:

Net revenues were $9.3 million for the quarter ended September 30, 2018, as compared to $8.6 million for the same period last year, an increase of $662,000 or 7.7%. On a constant currency basis, revenue increased 8.0% over the same period last year.

Recurring revenue for the quarter was $7.7 million, or 82.5% of total revenue, an increase of $586,000 or 8.3%, as compared to $7.1 million, or 82.0% of total revenue, for the first quarter last year. Sequentially, recurring revenue decreased $51,000, or 0.7%, as compared to $7.7 million, or 81.0% of total revenue, in the fourth quarter of fiscal year 2018. On a constant currency basis, recurring revenue increased 2.3% sequentially.

Total Software as a Service (SaaS) revenue for the quarter was $3.0 million, an increase of $398,000 or 15.4%, year-over-year, but a decrease of $22,000, or 0.7%, sequentially when compared to the fourth quarter of fiscal year 2018. On a constant currency basis, total SaaS revenue for the quarter increased by 2.5% sequentially. The increase in the SaaS revenue was primarily attributable to a 5.6% increase in Autowork Online (SaaS) revenue for the quarter to $1.6 million, and a 29.6% increase in Autopart Online (SaaS) revenue for the quarter to $1.4 million.

Total Data as a Service (DaaS) revenue for the quarter was $2.5 million, an increase of $155,000, or 6.7%, year over year, and a decrease of $78,000, or 3.1%, sequentially when compared to the fourth quarter of fiscal year 2018. On a constant currency basis, DaaS revenue was about flat sequentially.

Gross profit for the quarter was $5.2 million, or 56.3% of total revenue, an increase of $404,000, or 8.4%, as compared to $4.8 million, or 55.9% of total revenue, for the same period last year.

Operating expenses for the quarter increased by $326,000 to $3.6 million, an increase of 9.9%, as compared to $3.3 million for the same period last year. The increase was primarily the result of increased R&D expenses in support of new client developments, increased general and administrative expenses primarily due to timing of professional fees, increased sales and marketing expenses due primarily to new employees.

Operating income for the quarter increased by $78,000, or 5.1%, to $1.6 million, as compared to $1.5 million for the same period last year.

Interest expense for the quarter decreased by $13,000, or 12.5%, to $91,000, as compared to $104,000 for the same period last year primarily due to reductions in the outstanding debt balance.

Net income for the quarter was $1.2 million, or $0.10 per basic and diluted share, as compared to net income of $1.1 million, or $0.09 per basic and diluted share, for the same period last year.

Balance Sheet and Other Financial Highlights

Share Repurchase Plan

As of November 13, 2018, the Company repurchased 32,750 shares at an average price of $7.63 per share under its previously announced $2.0 million share repurchase plan.

Business Outlook

The Company reiterated is expectations for continued revenue growth during fiscal 2019 of approximately 10% and continuing improvement in profitability with 2019 Adjusted EBITDA* in the range of $6.2 million to $6.7 million, on a constant currency basis. The Company also expects to invest approximately $7.0 million in Research and Development, including capitalized software development costs.

Conference Call Information

The Company has scheduled a conference call for Wednesday, November 14, 2018, at 9 a.m. ET to review the results. Investors and interested parties can access the conference call by dialing:

A replay will be available until December 5, 2018 by calling 1-844-512-2921 (United States) or 1-412-317-6671 (UK/international). Please use pin number 132144 for the replay.

A live webcast as well as a replay of the call will be accessible at the investor relations section of the Company's website, www.mamsoftware.com. The replay will be active for 60 days following the conference call.

About MAM Software Group, Inc.

MAM Software is a leading global provider of cloud-based business and on-premise management solutions for the auto parts, tire and vertical distribution industries. The company provides a portfolio of innovative software (SaaS and packaged), data (DaaS), and integration (iPaaS) services that enable businesses to intelligently manage core business processes, control costs and generate new profit opportunities. MAM's integrated platforms provide a wealth of rich functionality including: point-of-sale, inventory, purchasing, reporting, data and e-commerce. Wholesale, retail and installer business across North America, the U.K. and Ireland rely on MAM solutions, backed by dedicated teams of experienced service and support professionals. For further information, please visit http://www.mamsoftware.com.   

*Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization adjusted to exclude non-cash equity compensation, and other special non-recurring charges. A reconciliation of adjusted EBITDA to net income (loss) can be found at the end of the following tables. Adjusted EBITDA is commonly used by management and investors as an indicator of operating performance and liquidity. Adjusted EBITDA is not considered a measure of financial performance under GAAP and it should not be considered as an alternative to net income (loss), or other financial statement data presented in accordance with GAAP in our consolidated financial statements.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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 from time to time in the Company's filings with the Securities and Exchange Commission.

MAM SOFTWARE GROUP, INC.

Condensed Consolidated Balance Sheets

(In thousands, except share and per share data)






September 30,


June 30,


2018


2018







ASSETS






Current Assets






Cash and cash equivalents

$

4,205


$

4,171

Accounts receivable, net of allowance of $227 and $224, respectively


5,217



5,010

Inventories


164



170

Prepaid expenses and other current assets


1,445



1,270

Income tax receivable


100



-

Total Current Assets


11,131



10,621







Property and Equipment, Net


470



480







Other Assets






Goodwill


8,201



8,280

Intangible assets, net


540



568

Software development costs, net


9,696



8,889

Deferred income taxes


1,396



1,251

Other long-term assets


590



545

TOTAL ASSETS

$

32,024


$

30,634







LIABILITIES AND STOCKHOLDERS' EQUITY






Current Liabilities






Accounts payable

$

1,460


$

1,318

Accrued expenses and other liabilities


1,222



1,201

Accrued payroll and related expenses


1,669



2,146

Current portion of long-term debt


2,022



1,811

Current portion of deferred revenue


2,712



1,885

Sales tax payable


876



910

Income tax payable


878



669

Total Current Liabilities


10,839



9,940







Long-Term Liabilities






Deferred revenue, net of current portion


879



1,146

Deferred income taxes


756



789

Income tax payable, net of current portion


232



232

Long-term debt, net of current portion


4,061



4,581

Other long-term liabilities


309



426

Total Liabilities


17,076



17,114







Commitments and Contingencies












Stockholders' Equity






Preferred stock: Par value $0.0001 per share; 2,000 shares authorized, none issued and outstanding


-



-

Common stock: Par value $0.0001 per share; 18,000 shares authorized, 12,606 shares issued and
12,596 shares outstanding at September 30, 2018, and 12,593 shares issued and 12,588 shares
outstanding at June 30, 2018


1



1

Additional paid-in capital


14,976



14,768

Accumulated other comprehensive loss


(3,408)



(3,236)

Retained earnings (accumulated deficit)


3,434



2,003

Treasury stock at cost,10 and  5 shares at September 30, 2018 and June 30, 2018, respectively


(55)



(16)

Total Stockholders' Equity


14,948



13,520

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

32,024


$

30,634

 

 

MAM SOFTWARE GROUP, INC.

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)

 (In thousands, except share and per share data)




For the Three Months Ended


September 30,


2018



2017

Net revenues

$

9,300



$

8,638

Cost of revenues


4,065




3,807

Gross Profit


5,235




4,831








Operating Expenses







Research and development


1,215




1,003

Sales and marketing


773




753

General and administrative


1,585




1,490

Depreciation and amortization


57




58

Total Operating Expenses


3,630




3,304








Operating Income


1,605




1,527








Other Income (Expense)







Interest expense, net


(91)




(104)

Total other expense, net


(91)




(104)








Income before provision for income taxes


1,514




1,423








Provision for income taxes


303




309








Net Income

$

1,211



$

1,114








Earnings per share attributed to common stockholders ? basic

$

0.10



$

0.09

Earnings per share attributed to common stockholders ? diluted

$

0.10



$

0.09








Weighted average common shares outstanding ? basic


12,145




11,816

Weighted average common shares outstanding ? diluted


12,202




11,871








Net Income

$

1,211



$

1,114

Foreign currency translation gain / (loss)


(172)




265

Total Comprehensive Income

$

1,039



$

1,379

 

 

MAM SOFTWARE GROUP, INC.

Consolidated Statements of Cash Flows

(Unaudited)

 (In thousands)




For the Three Months Ended


September 30,


2018


2017

CASH FLOWS FROM OPERATING ACTIVITIES:







Net income

$

1,211


$

1,114

Adjustments to reconcile net income to net cash provided by operating activities:







Bad debt expense


15



12

Depreciation and amortization


126



142

Amortization of debt issuance costs


9



11

Deferred income taxes


(46)



184

Stock-based compensation expense


181



97








Changes in assets and liabilities:







Accounts receivable


(198)



652

Prepaid expenses and other assets


(91)



(7)

Income tax receivable


(100)



169

Accounts payable


152



(205)

Accrued expenses and other liabilities


(440)



(87)

Income tax payable


(55)



126

Deferred revenues


233



32

NET CASH PROVIDED BY OPERATING ACTIVITIES


997



2,240








CASH FLOWS FROM INVESTING ACTIVITIES:







Purchase of property and equipment


(30)



(42)

Capitalized software development costs


(416)



(630)

NET CASH USED IN INVESTING ACTIVITIES


(446)



(672)








CASH FLOWS FROM FINANCING ACTIVITIES:







Repayment of long-term debt


(317)



(400)

Repayment of contingent consideration


(86)



-

Repurchase of common stock for treasury


(39)



-

Common stock surrendered to pay for tax withholding


(9)



-

NET CASH USED IN FINANCING ACTIVITIES


(451)



(400)








Effect of exchange rate changes


(66)



10

Net change in cash and cash equivalents


34



1,178

Cash and cash equivalents at beginning of period


4,171



1,260

Cash and cash equivalents at end of period

$

4,205


$

2,438

 

 

MAM SOFTWARE GROUP, INC.

Calculation of Adjusted Earnings before Interest,

 Taxes, Depreciation and Amortization (Non-GAAP)

(Unaudited)

 (In thousands)




For the Three Months Ended

September 30,



2018


2017






Net income (GAAP)

$

1,211

$

1,114

Interest expense, net


91


104

Provision (benefit) for income taxes


303


309

Depreciation and amortization


126


142

Non-cash stock compensation


181


97

Adjusted EBITDA (Non-GAAP)

$

1,912

$

1,766

 

SOURCE MAM Software Group, Inc.


These press releases may also interest you

at 08:50
Abaxx Technologies Inc. (CBOE CA:ABXX) ("Abaxx" or the "Company"), a financial software and market infrastructure company, majority shareholder of Abaxx Singapore Pte Ltd., the owner of Abaxx Commodity Exchange and Clearinghouse (individually, "Abaxx...

at 08:49
Cove Capital Investments reviews and analyzes nearly every type of asset class available for Delaware Statutory Trust investors.  This list of potential DST property asset classes includes government leased buildings, self-storage facilities,...

at 08:46
bioaqualife is proud to announce that it is an official shrinkwrap partner of New York Yacht Club American Magic, the US Challenger for the 37th America's Cup. The America's Cup is the oldest organized international competition in the world. In 2023,...

at 08:45
WM Partners, LP, a diverse-owned private equity firm certified by the National Association of Investment Companies, focused on investing in lower-middle market companies and driving value creation in the health and wellness sector, today announced...

at 08:44
The CandEs, a research and awards program focused on the elevation and promotion of a quality candidate experience and now part of ERE Media, today announced that Sense, an AI-powered Talent Engagement Platform that automates each stage of the hiring...

at 08:44
Nossa Imports partners with Minnesota-based beverage wholesaler New France Wine Company for distribution in Minnesota and North Dakota. Together, they will increase the visibility and availability of Nossa's Mexican and Portuguese wines in the...



News published on and distributed by: