- RV Business - http://www.rvbusiness.com -
ARI Network Services Sees 44% 3Q Sales Jump
Posted By RVBusiness On June 12, 2013 @ 10:01 am In Breaking News | No Comments
ARI Network Services Inc., a leading provider of website, software and data solutions for dealers, distributors and manufacturers, reported a 44% increase in revenue for its third quarter, ended April 30.
Total sales for the period totaled $8.2 million versus $5.7 million for the same period last year. Recurring revenue comprised 93% of total revenue during the quarter versus 88.3% last quarter and 83.7% for the third quarter of fiscal year 2012. Gross margin for the third quarter was 77.1%, versus 75.9% for the same period last year.
The company incurred a net loss of $571,000, or 5 cents per share, for the quarter compared to net income of $210,000, or 3 cents per share, for the same period last year, primarily due to a non-cash loss of $682,000 related to the early repayment of debt and a $420,000 impairment charge to a long-lived asset.
Other third-quarter highlights included:
• On Nov. 28,, the company acquired the assets of the retail division of 50 Below Sales & Marketing, Inc., a leading provider of eCommerce websites to the powersports, automotive tire and wheel aftermarket and medical equipment industries. The 50 Below operation, which was purchased out of bankruptcy, generated an operating profit during the quarter, only the second quarter under ARI ownership.
• On March 13, ARI announced that it entered into agreements with various accredited investors in a private placement of $4.8 million (3.2 million shares) of its common stock at a purchase price of $1.50 per share. The Company also issued warrants to purchase 1.1 million shares at a price per share of $2.00. The funds raised in the private placement were used to pay down a substantial portion of the Company’s outstanding debt.
• ARI announced on April 25 that it closed new senior secured credit facilities with Silicon Valley Bank. The facilities include a $4.5 million term loan and a $3 million revolving credit facility. The proceeds from the transaction were used to pay down the remaining portion of the company’s outstanding debt with Fifth Third Bank and with a shareholder.
Article printed from RV Business: http://www.rvbusiness.com
URL to article: http://www.rvbusiness.com/2013/06/ari-network-services-sees-44-3q-sales-jump/
Copyright © 2009 RV Business. All rights reserved.