Armada Data Corporation
TSX VENTURE : ARD

Armada Data Corporation

October 30, 2009 09:00 ET

Armada Posts Record Q1 Results

Revenue up 58%. Net Income Up 244%. Dividend To Increase

MISSISSAUGA, ONTARIO--(Marketwire - Oct. 30, 2009) - Armada Data Corporation (TSX VENTURE:ARD) is pleased to report that its interim financial results for the quarter ended August 31, 2009 have now been filed on Sedar and are available to view on the Company's website www.ArmadaData.com as well as on Sedar at www.Sedar.com.

Highlights for the Quarter compared to the same quarter last year

  • Net income increased to $156,298 from $45,381; an increase of 244% or 1.2 cents per share

  • Revenue increased to $746,695 from $471,992 last year; an increase of 58%

  • Operating income (before amortization and stock-based compensation) increased to $179,873 from $56,294 last year; an increase of 220% or 1.3 cents per share

  • Dealer Services revenue increased 112%

  • Insurance Services revenue increased 72%

  • Retail Services revenue increased 44%

  • Advertising/Marketing Services revenue increased 23%

  • Company plans to increase yearly dividend. Amount to be determined at year end.

Record profits of 1.2 cents per share for the quarter ended August 31, 2009 were achieved as the Company reported its highest revenue and net income in the Company's history.

Overall revenue grew to $746,695; an increase of 58% from $471,992 a year earlier. Net income increased to $156,298 or 1.2 cents per share from $45,381 a year earlier; an increase of 244%.

Operating income (before amortization and stock-based compensation) increased to $179,873 or 1.3 cents per share from $56,294 a year earlier; an increase of 220%.

Four of the Company's five divisions experienced significant growth.

Dealer Services and Retail Services grew 112% and 44% respectively, primarily as a result of increased site traffic derived from a very successful advertising and marketing campaign using Google AdWords and other media advertising. Armada will be continuing its advertising efforts with Google and other mediums in an effort to further increase its market share. Current market share at quarter end was approximately 3.5% of retail new car buyers in Canada. Armada looks to increase its market share to 10%.

Insurance Services revenue increased 72% primarily as a result of market acceptance of Armada's new "ACV" Actual Cash Value insurance services product which is a complementary additional product developed by Armada targeting its existing customers.

In 2003 Armada set a new industry standard in claims settlement with its 43r.ca insurance services outsourcing product, which on average saved insurance Companies $1000 per claim on total loss incidents when a vehicle was 3 years old or newer. Armada has been developing a new ACV insurance service product to participate in the claims settlement business with cars that experience a total loss that are now 3 years or older; a market space Armada estimates to be 10X larger than the market space of its 43r.ca product.

Armada is currently servicing 26 Canadian insurance companies with its 43r.ca insurance product including 8 of the top 10 insurance companies. In early 2009, Armada began offering its new ACV product to its existing insurance customers and is experiencing positive market acceptance after 18+ months in development and 6+ months of product testing.

Armada looks to report further progress regarding market penetration of its new ACV product in the coming months.

Advertising/Marketing Services revenue also increased 23% as a result of increased site traffic derived from the success of Armada's advertising and marketing campaign, again attributed to both the Google AdWords advertising campaign and other media advertising. In this area, Armada looks to further increase its market share.

Subsequent to the first quarter, the Company declared a dividend in the amount of $0.005 per common share to all shareholders of record as at September 1, 2009. Based upon the results of the first quarter, it is the Company's intention to increase its yearly dividend. Amount to be determined at year end.

"After 10 years of operations, I am pleased to report a very successful first quarter. All of our major business divisions posted impressive gains. Our online advertising campaign delivered the best results in Armada's history and our new ACV insurance services product is gaining acceptance with our existing insurance customers which is in a very large market space for us; 10 times larger than our current service was targeting. We believe after 10 years we now are now beginning to see the success that our business holds. For that I thank my entire team and look forward to reporting continued success to our shareholders in the coming quarters," commented Paul Timoteo, President and CFO.

Paul Timoteo, President of Armada Data Corp. will record a "Beyond The Press Release" on the Company's official Investor Relations Site at http://agoracom.com/ir/ArmadaData, in which the above developments will be discussed in detail. The recording is expected to be available on or after November 2, 2009.

Outlook and Investor Highlights

Armada Data continues to work to attain a number of important fiscal and operational achievements, which include:

  • Retail Services continues to grow despite perceived negativity in overall market conditions

  • Dealer Services continues to outpace all divisions in growth

  • Insurance Services is entering its busiest time of the year

  • ACV Service provides opportunity for significant revenue generation

  • Company remains 100% debt free and is in the best cash position in its history

  • Management is focused on National sales growth, expense management and increasing profitability

  • An independent audit committee and mandate remains in full force to ensure quality of corporate governance to provide shareholders the confidence they deserve

Management believes that Armada Data Corporation, with its financial resources, is poised for significant growth as it grows its niche markets in all aspects of its Internet and traditionally based businesses.

It is expected that Management can meet these objectives regardless of economic conditions. Although a robust economy can lead to a greater number of cars sold and thus a potentially larger market opportunity for all of Armada's divisions, a down economy has proven to have an equally positive impact as both individuals and insurance companies become more cost conscious.

About Armada Data Corp.

Armada Data Corp. is a profitable web-enabled Automobile Information Services Company providing accurate and real-time pricing data, to institutional and retail customers on a fee-for-service basis, through developing, owning and operating automotive related websites and providing information services to its clients.

Armada Data Corp shares are listed on the TSX Venture exchange under the trading Symbol ARD. Armada has 13,598,831 shares outstanding.

Additional information relating to Armada Data Corporation is filed on SEDAR, and can be viewed at www.sedar.com.

This news release contains forward-looking information within the meaning of Canadian securities laws, including statements relating to revenue, earnings, customer demand, penetration and increases to market share and anticipated growth. Forward-looking statements are based on estimates and assumptions made by Armada in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors Armada believes are appropriate. Many factors could cause the actual results of Armada to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, reduced spending by customers and risks relating to general economic conditions. Readers should not place undue reliance on Armada's forward-looking statements. Armada undertakes no obligation to update or revise any forward-looking information, except as required by law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the Policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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