ARI Sales Up; Incurs Loss on Acquisition Costs
ARI Network Services Inc. said Tuesday (Oct. 29) it posted a fiscal fourth-quarter loss as it continued to integrate two acquisitions from the past year while revenue increased 44%.
The Milwaukee Business Journal reported that the software company, which serves equipment manufacturers and dealers, said it lost $298,000, or 2 cents per share, in the quarter ended July 31, compared with a profit of $512,000, or 6 cents per share, in the year-ago period. Revenue increased to $8.5 million from $5.9 million.
For the full fiscal year, the company posted a net loss of $753,000, or 8 cents per share, compared with a profit last year of $1 million, or 13 cents per share.
The loss was driven by acquisition-related costs of $1.2 million, a non-cash $635,000 loss on the fair market valuation of stock warrants, a non-cash loss of $682,000 on early repayment of debt and a $420,000 non-cash impairment charge to a “long-lived asset.” The charges were partially offset by a non-cash gain of $180,000 and an income tax benefit of $1.1 million, ARI said.
ARI acquired Ready2Ride Inc. in August 2012 and purchased the retail division of 50 Below Sales & Marketing Inc. in November 2012.
Roy W. Olivier, president and CEO of Milwaukee-based ARI, noted, “Fiscal 2013 was a transformational year for ARI. We completed two acquisitions, which provided us with a first-to-market opportunity in the powersports industry and introduced ARI to several new markets – aftermarket wheel and tire and durable medical equipment. We raised $4.5 million in a private placement transaction that was used to reduce our post-acquisition debt and are excited about our new relationship with Silicon Valley Bank, which we believe will be a critical growth partner for the company.”