Quorum Information Technologies Inc.
TSX VENTURE : QIS

Quorum Information Technologies Inc.

November 23, 2007 18:26 ET

Quorum Announces Third Quarter 2007 Results

CALGARY, ALBERTA--(Marketwire - Nov. 23, 2007) - Quorum Information Technologies Inc. (Quorum) (TSX VENTURE:QIS) today released Third Quarter (Q3) Fiscal Year (FY) 2007 results. Quorum's suite of Dealership Management System (DMS) software products are Windows-based, completely integrated systems that automate and streamline automobile dealerships' sales, service, parts, accounting and CRM processes.

In Q3 FY2007, the Corporation focused on getting to a cash flow positive position with an emphasis on increasing support, dealer services, integration services and migrations revenue. All of these revenues are recurring in nature. For net new revenue, the Corporation exited the quarter at 199 customers. While the rate of net new sales has dropped, the recurring revenue per customer has increased substantially.

The Corporation continues to invest in XSELLERATOR™, the next generation of dealership management systems (DMS). This investment is now more focused on development that will improve customer satisfaction, reduce calls (and our cost of support) and on paid integration work through the GM IDMS contract and Chrysler integration work.

Maury Marks, President and CEO of Quorum said, "At this point in time, we are focused on getting to a cash flow positive position. That focus has resulted in an absolute shift in thinking and a much greater emphasis on providing value-added, recurring services to our existing customers. Our recurring revenue across our customer base has increased substantially. Short term, we anticipate that this new business model will take the Company to cash flow positive. Long term, this new business model will be more profitable for the Company as we continue to add new dealership customers."



Q3 FY2007 Financial Highlights
- 45% increase in on-going annuity XSELLERATOR software support revenue.
- 14% increase in customer base since December 31, 2006 from 175 to 199.
- Net loss for Q3 FY2007 of $249,338 compares favourably to a net loss of
$617,167 for Q3 FY2006.


Financial Highlights

9 months 9 months
ended Sept ended Sept Q3 ended Q3 ended
30/07 30/06 Sept 30/07 Sept 30/06

Gross revenue $6,134,478 $5,210,893 $2,016,763 $1,987,644
Cost of products &
services sold 4,389,551 4,568,170 1,243,718 1,600,540

Gross profit 1,744,927 642,723 773,045 387,104

Loss before interest, taxes
& amortization (EBITDA) (1,342,065) (3,350,873) (249,544) (667,431)

Net loss (1,312,358) (2,640,002) (249,338) (617,167)

Basic loss per share (0.034) (0.086) (0.006) (0.020)
Fully diluted loss per share $ (0.034) $ (0.085) $ (0.006) $ (0.020)

Weighted average
number of common
shares
Basic 38,214,449 30,859,087 38,214,449 30,859,087
Diluted 38,214,449 31,177,777 38,214,449 31,177,777

XSELLERATOR
installations
- in the period 26 22 3 9
XSELLERATOR
installations
- to date (year to date
reflects the loss of two
dealerships) 199 165 199 165
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Q2 ended Q2 ended Q1 ended Q1 ended
June 30/07 June 30/06 Mar 31/07 Mar 31/06

Gross revenue $2,003,640 $1,523,452 $2,114,075 $1,699,797
Cost of products &
services sold 1,708,443 1,412,344 1,437,390 1,555,286

Gross profit 295,197 111,108 676,685 144,511

Loss before interest, taxes
& amortization (EBITDA) (729,010) (1,462,594) (363,511) (1,220,848)

Net loss (742,895) (1,083,286) (320,125) (939,549)

Basic loss per share (0.019) (0.038) (0.008) (0.033)
Fully diluted loss per share $(0.019) $(0.036) $(0.008) $(0.032)

Weighted average
number of common
shares
Basic 38,214,449 28,814,022 38,214,449 28,781,981
Diluted 38,214,449 30,268,272 38,215,560 29,445,427

XSELLERATOR
installations
- in the period 8 5 15 8
XSELLERATOR
installations
- to date (year to date
reflects the loss of two
dealerships) 197 156 190 151
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For detailed Q3 FY2007 financial information including the Unaudited Interim Consolidated Financial Statements for the period ended September 30, 2007 and 2006, and the accompanying Management's Discussion and Analysis, please go to www.Sedar.com, or www.QuorumDMS.com.

About Quorum

Headquartered in Calgary, Alberta, Quorum's focus is on developing, marketing, implementing and supporting its Windows-based DMS products for the automotive vertical. Quorum's suite of dealership and customer management software products automate, integrate and streamline every process across departments in a dealership. One of the select North American suppliers of General Motors' IDMS, Quorum is the third largest DMS provider for GM's Canadian dealerships with over 20% of the market. Quorum is a Microsoft Gold Certified Partner and Field-Level Managed ISV in both Canada and the United States. Quorum Information Technologies Inc. is traded on the Toronto Venture Exchange (TSX-V) under the symbol QIS.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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