MAM Software Group Reports Quarterly Financial Results

BARNSLEY, England, Nov. 6, 2012 /PRNewswire/ -- MAM Software Group, Inc. (OTC Bulletin Board: MAMS), a leading provider of business automation and ecommerce solutions for the automotive aftermarket, announced the following financial results for its quarter ended September 30, 2012:

First Quarter Highlights:

• Continued investment in research and development.  Autowork Online, our UK 'Cloud' based service dealer product has been 'localized' for North America and is ready for pilot.
  
  
• A 6.3% annual growth in recurring revenues to $4,634,000 or 72% of total revenue.
  
  
• A cash position, net of interest bearing debt, of $1,751,000, after the repurchase of $759,000 worth of common stock and $475,000 worth of warrants.
  
  
• Continued quarterly growth of Autowork Online (SAAS) subscribers to 2,707 and quarter-over-quarter revenue increase of $26,000, or 8%, to $332,000 for the three months ended September 30, 2012 vs. the three months ended June 30, 2012.
  
  
• System backlog of $1,097,000.
  
  
• Repurchase of 336,483 shares of common stock for approximately $759,000 during the quarter.

First Quarter Financial Review:

Revenues were $6,483,000 for the three months ended September 30, 2012, compared with $6,162,000 for the three months ended September 30, 2011, an increase of $321,000 or 5.2%. Operating income increased $40,000 or 4.6% to $914,000 for the quarter ended September 30, 2012, as compared to income of $874,000 for September 30, 2011. Net income after taxes decreased $107,000 or 14.6% to $624,000 for the quarter ended September 30, 2012 vs. income of $731,000 for the quarter ended September 30, 2011 primarily from $206,000 of derivative liability expenses vs. derivative income of $150,000 in the prior year. The derivative liability expense is the result of an increase in the value of outstanding common stock purchase warrants as they do not meet the requirements to be treated as equity instruments. Basic and Diluted earnings per share were $0.05 versus $0.05 per share for the same year ago period.

The Company reported revenue of $1,930,000 and $4,553,000 from its US and UK operations, respectively, for the three months ended September 30, 2012, compared to $1,520,000 and $4,642,000, respectively, during the same period in 2011.  U.S. revenue increased $410,000 to $1,930,000 in 2012 from $1,520,000 in 2011 because of increased sales of software and professional services, and increased recurring revenue.  The stronger U.S. dollar resulted in a decrease in UK dollar-denominated revenue of $89,000, or 1%, to $4,553,000 during the three months ended September 30, 2012 from $4,642,000 during the three months ended September 30, 2011. UK software and professional services revenue decreased $311,000 and was partially offset by a $223,000 increase in recurring revenue.

Gross margins for the quarter ended September 30, 2012 were 58.2% vs. 56.4% for the quarter ended September 30, 2011.

Business Update:

Commenting on the first quarter of Fiscal 2013, MAM Software Group's CEO, Michael Jamieson, said, "Our Company continues to execute in furtherance of our strategic goals." We believe that the introduction of Autowork Online and Autopart Online into the larger North American market will lead to a positive impact on our recurring revenues. In addition, our Company experienced an increase in both revenues and profit margins that resulted in an increase in operating income of $40,000 to $914,000. Our Company's U.S. based recurring revenues increased to $1,183,000 from $1,130,000, an increase of $53,000 or 5%, for the quarter ended September 30, 2012 vs. 2011. Our Company's UK based recurring revenues increased to $3,451,000 from $3,228,000, an increase of $223,000 or 7%, for the quarter ended September 30, 2012 vs. 2011 respectively." Mr. Jamieson also added, "We continued our strategic development, building on the results achieved in Fiscal 2012. We were particularly pleased with the progress that we made with our 'cloud' based application, Autowork Online, in the UK. Subscribers to Autowork Online have increased each month of this quarter and now total 2,707. Revenues from Autowork Online increased to $332,000 or £210,049 from $307,000 or £194,000, an increase of $26,000 or 8% for the quarter ended September 30, 2012 vs. 2011. This product has been localized for the North American market and is being introduced and demonstrated to potential partners. We have introduced Autopart Online, which is a "rental" or SAAS (Software as a Service) version of Autopart. Autopart Online does not require the customer to purchase hardware and software licenses upfront, they can simply "rent" the infrastructure and purchase the professional services required to implement the system. We believe that by removing the capital investment associated with Autopart will lead to an increased interest in our Autopart Online solution. Furthermore, the first quarter produced an Adjusted EBITDA of $1,316,000 versus $1,219,000 for the quarter ending September 30, 2011."

About MAM Software Group, Inc.

MAM Software Group, Inc. (OTC Bulletin Board: MAMS) is a supplier of business and ERP supply chain management solutions to automotive parts manufacturers, distributors and retailers. MAM Software Group provides the automotive aftermarket with a combination of business management systems, information products, and online services that together deliver benefits for all parties involved in the timely repair of a vehicle. For further information, please visit http://www.mamsoftwaregroup.com.

The Accompanying Notes Are an Integral Part of these Condensed Consolidated Financial Statements

The Accompanying Notes Are an Integral Part of these Condensed Consolidated Financial Statements

This press release contains forward-looking statements. 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; general economic conditions; and other risks detailed time to time in the Company's filings with the Securities and Exchange Commission.

SOURCE MAM Software Group, Inc.