MAM Software Reports Fiscal Second Quarter Results

BLUE BELL, Pa., Feb. Eleven, 2019 /PRNewswire/ — MAM Software Group, Inc. (NASDAQ Capital Market: MAMS) (the “Company” or “MAM”`), a main worldwide provider of on-premise and cloud-primarily based enterprise control answers for the car parts, tire and vertical distribution industries, introduced the following financial consequences according with U.S. Usually everyday accounting principles (“GAAP”) for its second economic sector ended December 31, 2018, thru the filing on February 11, 2019 of its Quarterly Report on Form 10-Q with the Securities and Exchange Commission:
Michael Jamieson, MAM’s President, and Chief Executive Officer commented, “Our 2d quarter economic effects have been in step with our expectations and our business outlook for the whole fiscal yr 2019. Our group effectively completed the set up of VAST Online at extra places in the course of the area. The comments from our clients have been encouraging, and we anticipate deployment to start accelerating over the following couple of months in accordance with the project timeline. We are cultivating new commercial enterprise opportunities and advancing discussions with ability customers because of the progress we’re demonstrating with VAST Online.”

Second Quarter Highlights:

Net revenues of $nine.0 million had been up 5.Four% in comparison to $eight.5 million for the identical length remaining 12 months. On a steady forex basis, sales were up 7.6% over the identical duration in the previous fiscal 12 months.
Recurring revenues were 85.0% of internet revenues compared to 85.Four% of internet sales for an equal period within the previous monetary 12 months.
Total Software as a Service (SaaS) sales increased by 12.6% yr-over-year and 2.2% sequentially. On a consistent currency foundation, SaaS revenues elevated 15.2% 12 months-over-12 months.
Operating profits become $906,000, or 10.1% of internet sales, as compared to $823,000, or nine.7% of net revenues, for the same duration within the previous fiscal year.
Net income turned into $704,000 in comparison to a net loss of $79,000 within the same length within the previous economic yr.
Adjusted EBITDA* was $1.2 million, or thirteen.5% of internet sales, as compared to $1.1 million, or 12.9% of net revenues, for the identical period in the prior economic 12 months.

Second Quarter Financial Results:

Net revenues were $9.Zero million for the area ended December 31, 2018, as compared to $eight.5 million for the equal length ultimate 12 months, an growth of $456,000 or 5.Four%. On a constant currency foundation, revenue accelerated 7.6% over the same duration inside the earlier economic 12 months.

Recurring revenue for the sector changed into $7.6 million, or eighty-five .0% of general revenue, an boom of $359,000 or 4.9%, as compared to $7.Three million, or 85.4% of internet revenues, for the second area final yr. Sequentially, habitual sales reduced $fifty five,000, or zero.7%, as compared to $7.7 million, or 82.5% of internet revenues, in the first sector of fiscal 12 months 2019, mostly because of changes in overseas forex rates. On a steady forex foundation, habitual sales extended 7.2% over the identical period within the previous economic yr.

Total Software as a Service (SaaS) sales for the region became $three.Zero million, an increase of $341,000, or 12.6%, year-over-12 months, and an boom of $ sixty-seven,000, or 2.2%, sequentially whilst as compared to the primary zone of the monetary year 2019. The increase in SaaS revenue over the previous year was more often than not on account of a 5.Five% boom in Autowork Online (SaaS) sales for the quarter to $1.6 million, and a 22.1% boom in Autopart Online (SaaS) revenue for the region to $1.4 million. On a consistent foreign money basis, overall SaaS sales for the zone elevated by using 15.2% over the identical duration within the earlier economic 12 months.

Total Data as a Service (DaaS) revenue for the region become $2.Four million, an boom of $ sixty-one,000, or 2.6%, year over year, and a decrease of $70,000, or 2.8%, sequentially when in comparison to the primary region of the monetary year 2019, commonly because of adjustments in foreign currency trading fees and seasonality. On a regular foreign money foundation, DaaS sales multiplied with the aid of 4.Eight% over the same in the prior fiscal yr.

Gross income for the quarter was $4.9 million, or fifty four.6% of net revenues, an increase of $389,000, or 8.6%, in comparison to $four.5 million, or fifty-three.Zero% of net revenues, for the identical period in the prior financial 12 months.

Operating charges for the quarter expanded via $306,000 to $four.0 million, an growth of 8.Three% in comparison to $three.7 million for the equal period remaining yr. The growth changed into more often than not the result of expanded R&D costs due to extra assets focused on new initiatives and lower capitalized expenses.

Operating profits for the area accelerated by using $ eighty-three,000, or 10.1%, to $906,000 as compared to $823,000 for the identical length in the previous economic 12 months.

The interest rate for the zone decreased by way of $17,000, or 15.6%, to $92,000 in comparison to $109,000 for the same length ultimate year commonly due to discounts within the great debt balance.

Provision for income taxes reduced to $110,000, or an effective tax price of 13.5%, for the sector as compared to $793,000, or an effective tax price of 111.1%, for the equal length final 12 months. The lower in the powerful tax fee was basically because of the decrease US federal statutory price powerful January 1, 2018 as consistent with the Tax Cuts and Jobs Act, tax benefits from equity repayment, and the revaluation of our internet deferred tax belongings at the decrease US federal statutory charge and the only-time repatriation tax on deemed repatriation of ancient earnings on our foreign subsidiaries in the earlier year, as in line with the Tax Cuts and Jobs Act, partly offset via lower R&D tax credits.

Net profits for the area become $704,000, or $zero.06 according to fundamental and diluted share, compared to an internet lack of $79,000, or ($0.01) consistent with fundamental and diluted proportion, for the same duration inside the prior economic yr.

Year-to-Date Financial Results

Net revenues have been $18.Three million for the six months ended December 31, 2018, compared to $17.1 million for the equal length ultimate year, an boom of $1.1 million, or 6.5%. On a steady foreign money basis, revenues had been up 7.8% over the equal period in the earlier monetary yr.

Recurring revenue for the first six months of financial 12 months 2019 changed into $15.3 million, or eighty-three .7% of net sales, an increase of $0.Nine million, or 6.6%, in comparison to $14.3 million, or eighty-three .7% of net revenues, for the primary six months of the prior fiscal year. On a consistent foreign money foundation, ordinary revenues have been up 7.2% over the same length inside the previous financial 12 months.

Total Software as a Service (SaaS) revenue for the first six months of financial yr 2019 changed into $6.0 million, an growth of $zero.7 million, or 14.0%, year-over-yr. The increase within the SaaS sales changed into normally on account of a five.6% growth in Autowork Online (SaaS) sales for the first six months of the monetary year 2019 to $three.2 million, and a 25.7% growth in Autopart Online (SaaS) sales for the primary six months of economic 12 months 2019 to $2.8 million. On a consistent foreign money foundation, SaaS sales were up 15.Five% over the identical length in the earlier fiscal 12 months.

Total Data as a Service (DaaS) revenue for the first six months of the monetary year 2019 turned into $4.Nine million, an increase of $216,000, or 4.6%, when in comparison to the first six months of the previous monetary 12 months. On a regular currency basis, DaaS revenues were up five.Nine% over the same period in the prior financial 12 months.

Gross income for the primary six months of monetary 12 months 2019 became $10.1 million, or fifty-five.Five% of internet revenues, an increase of $793,000 compared to $nine.3 million, or fifty four.5% of internet sales, for the identical duration inside the earlier economic 12 months.

Operating prices for the primary six months of fiscal yr 2019 expanded by way of $632,000 to $7.6 million, an growth of 9.1% in comparison to $7.0 million for the identical duration inside the previous financial 12 months. The boom was, on the whole, the result of accelerated R&D expenses because of extra resources centered on new projects and lower capitalized charges, and multiplied preferred and administrative expenses basically due to the timing of professional charges.

Operating income for the primary six months of the monetary year 2019 expanded by $161,000, or 6.9%, to $2.Five million, as compared to $2.4 million for the same duration within the earlier economic 12 months.

The interest rate for the first six months of financial 12 months 2019 reduced by means of $30,000, or 14.1%, to $183,000, compared to $213,000 for the same length inside the earlier monetary 12 months.

Provision for earnings taxes reduced to $413,000, or an powerful tax charge of 17.7%, for the first six months of the economic year 2019, compared to $1.1 million, or an effective tax price of fifty-one .6%, for the identical duration in the earlier financial 12 months. The decrease inside the powerful tax rate turned into mostly because of the decrease US federal statutory rate powerful January 1, 2018 as in line with the Tax Cuts and Jobs Act, tax benefits from fairness reimbursement, and the revaluation of our net deferred tax belongings at the lower US federal statutory price and the one-time repatriation tax on deemed repatriation of historic earnings on our foreign subsidiaries within the prior 12 months, as in line with the Tax Cuts and Jobs Act, partly offset through lower R&D tax credit.

Net income for the primary six months of the fiscal year 2019 become $1.9 million, or $zero.Sixteen in step with simple and diluted proportion, in comparison to $1.Zero million, or $zero.09 according to simple and diluted proportion, for the equal length in the previous fiscal year.

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