Auto Data Network Generates $5.6 Million in Revenue During Second Quarter; Company delivers $0.05 per share net earnings in quarter.Business Editors NEW YORK--(BUSINESS WIRE)--Oct. 22, 2003 Auto Data Network, Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB: ADNW), a provider of software and real-time data Real-time data denotes information that is delivered immediately after collection. There is no delay in the timeliness of the information provided. Some uses of this term confuse it with the term dynamic data. services to the automotive industry The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. In 2006, more than 69 million motor vehicles, including cars and commercial vehicles were produced worldwide. , today reported results for its second quarter and six months ended August 30, 2003. Revenue for the second fiscal quarter was $5.6 million compared to $423,000 for the corresponding period for 2002. Net income for the second quarter was $728,000 or $0.05 per share as compared to $127,000 or $0.01 per share for the same period last year. The Company generated revenue of $9.1 million for the first six months ended August 31, 2003 compared to $551,000 during the same period of the previous year. Net income for the six month period was $1.1 million or $0.08 per share as compared to approximately $3,000 for the six months of 2002. Chris Glover, Auto Data Network's chairman, commented, "We continue to build momentum in the execution of our growth strategy, as we aggressively add to the company's services and products through organic and acquisitional growth. We are very focused on realizing the significant growth potential of our growing base of high-end value solutions for the global automotive industry. The company's second quarter results were inline with our expectations." During the recent quarter, the Company made significant progress in the development of its business plan, achieving the following milestones: -- The closing of its acquisition of Avenida Technologies Limited. Avenida's software connects existing, legacy systems to those of trading partners using the latest XML XML in full Extensible Markup Language. Markup language developed to be a simplified and more structural version of SGML. It incorporates features of HTML (e.g., hypertext linking), but is designed to overcome some of HTML's limitations. standards and 'rules based' processing. Avenida products support the centralization cen·tral·ize v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. and sharing of the critical business services, processes, messages, and vocabularies that make up the transactions exchanged between trading partners. It offers an Internet-based solution to reflect the increasingly distributed nature of the automotive industry. Streamlined business information is able to flow between dealerships, manufacturers, aftermarket Aftermarket See: Secondary market. aftermarket See secondary market. service providers and other distribution 'value chain' companies. Messaging to exchange customer records, orders, shipment information and other business information, within automotive product configuration and sales systems, is already in use with a number of clients including Land Rover See LANRover. , MG Rover, Ford, BMW BMW in full Bayerische Motoren Werke AG German automaker. Founded as an aircraft engine manufacturer in 1916, the company assumed the name Bayerische Motoren Werke and became known for its high-speed motorcycles in the 1920s. , Rolls Royce Rolls Royce the millionaire’s vehicle. [Trademarks: Brewer Dictionary, 928] See : Luxury , Lloyds TSB TSB TPS (Thermal Protection System) Sample Box TSB Technical Service Bulletin TSB Transportation Safety Board of Canada TSB Telecommunication Standardization Bureau TSB Trustee Savings Bank TSB Telecommunications Systems Bulletin , and TNT TNT: see trinitrotoluene. TNT in full trinitrotoluene Pale yellow, solid organic compound made by adding nitrate (−NO2) groups to toluene. -- The completion of a strategic investment in CarParts Technologies, Inc. (CarParts), a leading provider of software systems to the automotive aftermarket supply chain. Over 3,000 customers, including leading automotive aftermarket outlets, tier 1 manufacturers, program groups, warehouse distributors, tire and service chains and independent installers across all 50 U.S. states A U.S. state is any one of the fifty subnational entities of the United States, although four states use the official title "commonwealth". The separate state governments and the federal government share sovereignty, in that an American is a citizen both of the federal entity and and Canada rely on CarParts software. Under the terms of the agreement, Auto Data Network made a strategic investment of $2 million to fund the continued growth of the company. ADNW will also acquire CarParts Technologies on a pre-determined formula at the end of 2005. -- Completed a $4 million financing with the sale of Series A Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. . Investors included Rho Venture Partners, BEV Capital, Investor AB Investor AB is a Swedish investment company, founded in 1916 and still controlled by the Wallenberg family. The company owns a controlling stake in several large Swedish companies. In 2006 it had a market value of 119 billion kronor (€13 billion). ($16 billion). , St. Pauls St. Paul as a missionary he fearlessly confronts the “perils of waters, of robbers, in the city, in the wilderness.” [N.T.: II Cor. 11:26] See : Bravery Venture Fund and Creed & Kellor. -- Formed a Strategic Advisory Board consisting of senior executives with experience in law, corporate finance, accounting, software and the automotive industry. The purpose of the advisory board will be to provide valuable guidance to the company's product diversification and business development activity. About Auto Data Network Auto Data Network is a group of established companies that provide software products and services to the automotive industry. The company's main customer base is the auto dealership marketplace, which consists of approximately 78,000 dealers in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and 92,000 dealers in Europe. The company estimates that the industry represents a $15 billion market for software and services specifically for auto dealerships. The company supplies a suite of software solutions and services that enable dealerships to run their businesses more efficiently, while achieving considerable cost savings. The majority of the company's current solutions are focused on serving the aftermarket and finance areas of dealerships. These areas are of particular importance as the aftermarket business generates 48% of a dealership's profit from 12% of its overall revenue. The second most profitable area is vehicle finance and insurance, which contributes 35% of a dealership's profits from only 2% of its revenues. For more information visit www.autodatanetwork.com This press release contains 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. as defined in 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 of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of risks and uncertainties impacting the Company's business including increased competition; the ability of the Company to expand its operations through either acquisitions or internal growth, to attract and retain qualified professionals, and to expand commercial relationships; technological obsolescence ob·so·les·cent adj. 1. Being in the process of passing out of use or usefulness; becoming obsolete. 2. Biology Gradually disappearing; imperfectly or only slightly developed. ; general economic conditions; and other risks detailed time to time in the Company's filings with the Securities and Exchange Commission (SEC).
Auto Data Network, Inc.
Consolidated Statements of Operations
(Unaudited)
Three months Six months
ended ended
August 31, August 31,
2003 2002 2003 2002
----------- ---------- ----------- ----------
Revenue $5,612,053 $422,903 $9,006,104 $551,385
Cost of Revenue 1,038,626 30,760 2,731,547 159,784
----------- ---------- ----------- ----------
Gross Margin 4,573,427 392,143 6,274,557 391,601
Operating Expenses
Personnel 1,344,724 - 1,826,869 -
Sales & Marketing 72,860 8,839 143,576 20,028
General &
Administration 1,798,348 144,176 2,336,289 351,259
Depreciation and
Amortization 201,974 3,872 220,725 9,707
----------- ---------- ----------- ----------
Total Operating
Expenses 3,417,906 156,887 4,527,459 380,994
Total Operating
Profit/(Loss) 1,155,521 235,256 1,747,098 10,607
Interest Expense (40,762) (3,188) (54,967) (6,247)
----------- ---------- ----------- ----------
Net Profit/(Loss)
before Tax 1,114,759 232,068 1,692,131 4,360
Provision for Taxation 386,336 104,577 592,246 1,656
----------- ---------- ----------- ----------
Net Profit after Tax $728,423 $127,491 $1,099,885 $2,704
=========== ========== =========== ==========
Net Profit per Share $0.05 $0.01 $0.08 $0.00
Weighted average number
of shares
outstanding 14,389,850 11,552,289 14,389,850 11,552,289
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion