ARI Reports Increased Revenues for Fiscal 2009.Marketing services growth and two acquisitions drive results; company remains profitable MILWAUKEE -- ARI ARI Acute respiratory infection, see there (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :ARIS ARIS American Religious Identification Survey ARIS Architecture of Integrated Information Systems ARIS Active Rack Isolation System ARIS Aggregate Route-based IP Switching ARIS Agentia Romana pentru Investitii Straine ), a leading provider of technology solutions that help dealers, distributors and manufacturers in selected vertical markets sell and service their products, today reported results for the fourth fiscal quarter and fiscal year ended July 31, 2009. Full Year Fiscal 2009 Highlights * Revenues increased to $17.6 million for fiscal 2009, from revenues of $16.9 million in fiscal 2008. * Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. was $767,000 for fiscal 2009, compared to operating income of $821,000 for the prior fiscal year. * Net income was $424,000 or $0.06 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share for fiscal 2009, compared to net income of $1.4 million or $0.20 per diluted share for fiscal 2008. Fourth Quarter Fiscal 2009 Highlights * Revenues increased 24% to $5.3 million for the fourth quarter of fiscal 2009, from revenues of $4.3 million for the fourth quarter of fiscal 2008. * Operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. was $105,000 for the fourth quarter of fiscal 2009, compared to an operating loss of $237,000 for the fourth quarter of the prior year. * The company recorded a net loss of $114,000 or $0.02 per diluted share for the fourth quarter of fiscal 2009, compared to net income of $378,000 or $0.05 per diluted share for the fourth quarter of fiscal 2008. Operations Review "Fiscal 2009 was a good year for ARI. We increased revenues, remained profitable and successfully completed two acquisitions, all within a challenging economic environment," said Roy W. Olivier, President and Chief Executive Officer of ARI. "We generated $2.7 million in cash from operations for the year, which we used for the two acquisitions, investments in equipment and software development and for the repayment of debt and capital lease obligations." Olivier said the increased revenues reflected the continued growth of the company's marketing services business and increased revenues from catalog catalog, descriptive list, on cards or in a book, of the contents of a library. Assurbanipal's library at Nineveh was cataloged on shelves of slate. The first known subject catalog was compiled by Callimachus at the Alexandrian Library in the 3d cent. B.C. subscriptions, partially offset by a decline in professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. fees as companies delayed projects in response to the economic downturn. The two businesses acquired during the year, Channel Blade Technologies Corp. and the finance and insurance assets of Powersports Outsourcing Group, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , also contributed to the higher fiscal 2009 revenues. Catalog revenues benefited from the July, 2008 acquisition of InfoAccess, an electronic parts catalog Noun 1. parts catalog - a list advertising parts for machinery along with prices parts catalogue catalogue, catalog - a complete list of things; usually arranged systematically; "it does not pretend to be a catalog of his achievements" business. "Recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. revenues remained consistent at over 90% renewals for our two core product lines, WebsiteSmartPro[TM] and PartSmart([R])," said Olivier. "The small decrease in operating income for the year was primarily due to expenses related to the two acquisitions and their integration into ARI," added Brian E. Dearing, Chairman and Interim Chief Financial Officer of ARI. "Factors contributing to the decrease in net income included non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. related to increased valuation reserves for deferred tax assets and amortization expense related to acquired intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. . There is also a cash charge related to higher interest payments for debt associated with the Channel Blade acquisition. In addition, shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. , an indicator of our financial stability, continued to increase in fiscal 2009." "We made excellent progress on growing our marketing services business over the past year," Oliver added. "We expanded into the marine and recreation vehicle markets through the acquisition of Channel Blade Technologies, the leading provider of websites, lead management and marketing automation solutions for these markets. The synergies with Channel Blade include opportunities to expand its lead generation platform, Footsteps[TM], to our existing customer base, further enhancing the value ARI brings to manufacturers, dealers and distributors in key markets." "Our recurring revenue model provided stability for ARI during a challenging year for the economy. Because our products support the service and accessorizing side of our customers' businesses, we benefited as many people repaired or enhanced their existing outdoor power equipment, power sports vehicles, motorcycles and other equipment rather than making new purchases. In fact, we saw an 18% increase in parts and accessory sales processed A sales process is a systematic approach for performing product or service sales. The reasons for having a sales process include seller and buyer risk management, achieving standardized customer interaction in sales and scalable revenue generation. on our e-commerce customer platform during the year," said Olivier. "We enter fiscal 2010 in a good position. The two acquisitions will contribute to revenues for the full year, as will our key new products SearchEngineSmart[TM] and PartStream[TM], each of which we developed and launched during fiscal year 2009. We also expect to generate cash and remain profitable as we continue to benefit from our significantly reduced cost structure. Our priorities for the year include expanding sales to new customers, retaining current customers and providing additional products to this established customer base, further integrating the two acquisitions and continuing to invest in new product development," added Olivier. For additional commentary and detail, please reference ARI's annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended July 31, 2009, which has been filed with the SEC as of today. About ARI ARI is a leading provider of technology-enabled services that help dealers, distributors and manufacturers reduce cost and increase sales in selected vertical markets. Specifically, ARI provides electronic parts catalogs, dealer e-commerce solutions, professional services and/or outsourced F&I services in about a dozen vertical markets worldwide, including outdoor power, power sports, motorcycles, marine, recreation vehicles, appliances, agricultural equipment, floor maintenance and construction. ARI currently serves over 20,000 dealers, over 100 manufacturers and over 150 distributors in more than 100 countries worldwide. For more information on ARI, please visit our website www.arinet.com. Fourth Quarter Earnings Conference Call ARI's Fourth Quarter Conference Call is scheduled for Thursday, October 29, 2009 at 3:30 p.m. Central Time/4:30 p.m. Eastern Time. To participate in the conference call, please dial-in at least five minutes prior to the start time at (800) 214-0694 or (719) 955-1425 and enter the passcode 330233. A replay of the conference call and information presented during the call will be available after 8:00 p.m. Eastern Time on October 29 on ARI's website, www.arinet.com. Click on the "Company" link and select "Investors" to access the information. Statements in this news release are "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and . The forward-looking statements can generally be identified by words such as "believes," "anticipates," "expects" or words of similar meaning. Forward-looking statements also include statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company's future performance, such as future prospects, revenues, profits and cash flows. The forward-looking statements are subject to risks and uncertainties, which may cause actual results to be materially different from any future performance suggested in the forward-looking statements. Such risks and uncertainties include those factors described under "Forward Looking Statements Disclosure" in Exhibit 99.1 of the Company's annual report on Form 10-KSB for fiscal year ended July 31, 2009 filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements. For more information, please refer to the Company's filings with the Securities and Exchange Commission. [TABLE OMITTED] [TABLE OMITTED] |
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