Quorum Information Technologies Inc.
TSX VENTURE : QIS

Quorum Information Technologies Inc.

November 29, 2006 18:23 ET

Quorum Information Technologies Inc. Announces Third Quarter 2006 Results

CALGARY, ALBERTA--(CCNMatthews - Nov. 29, 2006) - Quorum Information Technologies Inc. (TSX VENTURE:QIS) (Quorum) today released Third Quarter (Q3) Fiscal Year (FY) 2006 results. Quorum's XSELLERATOR™ software is a completely integrated, Windows-based Dealership Management System (DMS) that automates and streamlines automobile dealerships' Sales, Service, Parts, Accounting and CRM processes. In Q3 FY2006, the Corporation continued to expand its customer base and added another nine dealership customers. Four of these dealerships are located in Canada and five in the United States. This brings the exit total of customers for the Corporation at September 30, 2006 to 165 dealerships.

"Quorum has 13 new dealership installations scheduled for the fourth quarter, including the first two DaimlerChrysler pilot customers, giving Quorum a planned exit total for FY2006 of 178 dealerships running on XSELLERATOR. Q1 FY2007 has 18 installs scheduled to date; all of these dealerships have already been sold, so quarter over quarter improved financial results will be achieved," Maury Marks, President and CEO of Quorum said.



Financial Highlights

Nine months Nine months
ended ended Q3 ended Q3 ended
Sept 30, Sept 30, Sept 30, Sept 30,
2006 2005 2006 2005
---------------------------------------------------------------------------
Gross revenue $ 5,210,893 $ 4,349,662 $ 1,987,644 $ 1,006,734
Cost of products
and services sold 4,568,170 3,805,265 1,600,540 1,073,524

Gross profit 642,723 544,397 387,104 (66,790)

Loss before
interest, taxes
and amortization
(EBITDA) (3,350,873) (1,573,554) (667,431) (809,442)

Net loss (2,640,002) (1,217,216) (617,167) (617,377)

Basic loss per share (0.086) (0.045) (0.020) (0.023)
Fully diluted loss
per share $ (0.085) $ (0.042) $ (0.020) $ (0.021)

Weighted average
number of
common shares
Basic 30,859,087 27,252,478 30,859,087 27,252,478
Diluted 31,177,777 28,975,180 31,177,777 28,975,180

XSELLERATOR
Installations
- in the period 22 17 9 3
XSELLERATOR
Installations
- to date 165 133 165 133

---------------------------------------------------------------------------

Q2 ended Q2 ended Q1 ended Q1 ended
June 30, June 30, March 31, March 31,
2006 2005 2006 2005
---------------------------------------------------------------------------
Gross revenue $ 1,523,452 $ 1,904,141 $ 1,699,797 $ 1,438,787
Cost of products
and services sold 1,412,344 1,489,817 1,555,286 1,241,924

Gross profit 111,108 414,324 144,511 196,863

Loss before
interest, taxes and
amortization
(EBITDA) (1,462,594) (363,661) (1,220,848) (400,451)

Net loss (1,083,286) (265,797) (939,549) (334,042)

Basic loss per share (0.038) (0.010) (0.033) (0.013)
Fully diluted loss
per share $ (0.036) $ (0.009) $ (0.032) $ (0.011)

Weighted average
number of
common shares
Basic 28,814,022 26,755,323 28,781,981 26,263,160
Diluted 30,268,272 29,787,138 29,445,427 29,238,717

XSELLERATOR
Installations
- in the period 5 10 8 4
XSELLERATOR
Installations
- to date 156 130 151 120
---------------------------------------------------------------------------


For detailed Q3 FY2006 financial information, please go to www.Sedar.com or www.QuorumIS.com.

About Quorum

Quorum's focus is on developing, marketing, implementing and supporting its XSELLERATOR™ product for the automotive vertical. XSELLERATOR is a dealership and customer management software product which automates, integrates and streamlines every process across departments in a dealership. Quorum currently holds more than 19 percent of GM dealership market share in Canada, making it the third largest supplier of Dealership Management Systems for GM in Canada. Quorum is one of only two General Motors' IDMS Suppliers for North America, and is the only Microsoft Gold Certified Partner and Field-Level Managed ISV in the North American automotive retail technology market.


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

Contact Information

  • Quorum Information Technologies Inc.
    Craig F. Nieboer
    V.P. & CFO
    (403) 777-0035 Ext. 110
    Email: NieboerC@QuorumIS.com
    or
    Quorum Information Technologies Inc.
    #200, 6715 8 Street N.E.
    Calgary, AB T2E 7H7
    (403) 777-0039 (FAX)
    Website: www.QuorumIS.com