MAM Software Group Reports Year End Financial Results

News provided by

Sep 17, 2010, 09:05 ET

BARNSLEY, England, Sept. 17 /PRNewswire-FirstCall/ -- MAM Software Group, Inc. (OTC Bulletin Board: MAMS) (the "Company" or "MAM"), a leading provider of business automation and ecommerce solutions for the automotive aftermarket, announced the following financial results for its fiscal year ended June 30, 2010, through the filing on September 16, 2010 of its Annual Report on Form 10-K with the Securities and Exchange Commission:

(In thousands, except share and per share data)	For The Year Ended
	June 30,
	2010	2009
Revenues	$ 24,156	$ 21,119
Gross profit	$ 13,882	$ 11,623
Operating income (loss)	$ 1,111	$ (1,031)
Income (loss) before provision for income tax	$ 67	$ (7,237)
Net (loss) after taxes	$ (627)	$ (7,623)
Loss per share attributed to common stockholders - basic and
diluted	$ (0.01)	$ (0.09)
Weighted average shares outstanding - basic and diluted	83,970,278	86,272,712

The Company reported revenue of $24,156,000 for the year ended June 30, 2010 as compared to $21,119,000 for the year ended June 30, 2009 an increase of $3,037,000 or 14.4%. Operating income increased $2,124,000 to $1,111,000 for the year ended June 30, 2010, as compared to a loss of $1,031,000 for June 30, 2009. Income before income taxes was $67,000 as compared to a loss of $7,237,000 in the prior year, and the net loss after taxes was $627,000 for the year ended June 30, 2010 versus a loss of $7,623,000 for the year ended June 30, 2009. The loss per share was $0.01 versus a loss of $0.09 per share in the prior year.

Gross margins for the year ended June 30, 2010 were 57.5% versus 55% for the year ended June 30, 2009.

The Company reported revenue of $6,475,000 and $17,681,000 from its US and UK operations, respectively, for the year ended June 30, 2010, compared to $6,071,000 and $15,048,000, respectively, during the same period in 2009. Revenue increased 1,856,000GBP from organic sales growth in data services and systems sales from its UK operations. The stronger US dollar resulted in dollar denominated revenue of $17,681,000 during 2010 as compared to $15,048,000 during 2009, which is an increase of $2,633,000. US revenue increased $404,000 to $6,475,000 in 2010 from $6,071,000 in 2009 as a result of increased software sales.

Commenting on the full year results, MAM's CEO, Michael Jamieson, said, "This has been a year of continued improvement for the Company, driven by our simultaneous execution of continued growth in sales and earnings, as well as a reduction in operating expenses. The Company's UK subsidiary, MAM Software Limited, continued to increase revenue and income both in the US and UK. AfterSoft Network N.A.'s revenues remained in line with expectations and generated a growth in income from operations. These developments enabled the Company to increase both its gross profit and net income for the fourth quarter and full year." Mr. Jamieson further elaborated that "the current year's results were negatively impacted by in excess of $1,450,000 of one-time expenses and without these one-time expenses the Adjusted EBITA was $3,879,000 for the current year versus $1,330,000 for June 30, 2009."

Added Jamieson: "The fourth quarter represented a period of solid achievement for the Company. We continued our strategic development, building on the results achieved in the first three quarters. We realized a gross profit for the three months of $467,000 and net income before income taxes of $165,000."

Continued Jamieson: "We are looking forward to the 2011 Fiscal Year. Our goal for the upcoming fiscal year is to take advantage of our success in achieving both increased growth as well as cost containment during a challenging year when the two markets in which we primarily operate – the US and the UK – continued to struggle overall. The overall industry segment for our products and services continues to expand and we believe that our suite of modern business solutions, built by a team of experienced professionals using the latest technology, are clearly differentiated and in high demand."

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/.

MAM SOFTWARE GROUP, INC. Consolidated Balance Sheets (In thousands, except share and per share data)
	June 30,
	2010		2009
ASSETS
Current Assets
Cash and cash equivalents	$	1,196	$	1,663
Accounts receivable, net of allowance of $192 and $87		2,520		2,154
Inventories		366		318
Prepaid expenses and other current assets		371		507
Total Current Assets		4,453		4,642

Property and Equipment, Net		856		1,028

Other Assets
Goodwill		8,924		9,548
Amortizable intangible assets, net		2,757		3,566
Software development costs, net		1,520		1,691
Other long-term assets		49		179
TOTAL ASSETS	$	18,559	$	20,654

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable	$	1,551	$	1,386
Accrued expenses and other		2,368		3,162
Payroll and other taxes		364		278
Current portion of settlement liability		326		-
Derivative liabilities		291		-
Current portion of long-term debt		5,000		1,598
Current portion of deferred revenue		641		482
Taxes payable		647		708
Total Current Liabilities		11,188		7,614

Long-Term Liabilities
Deferred revenue, net of current portion		345		748
Deferred income taxes		642		880
Settlement liability, net of current portion		525		-
Long-term debt, net of current portion		168		4,713
Other		359		199
Total Liabilities		13,227		14,154

Commitments and contingencies

Stockholders' Equity
Preferred stock: Par value $0.0001 per share; 10,000,000 shares authorized, none issued and outstanding		–		–
Common stock: Par value $0.0001 per share; 150,000,000 shares authorized, 84,862,880 and 83,462,337 shares issued and outstanding, respectively		8		8
Additional paid-in capital		29,503		30,219
Accumulated other comprehensive loss		(768)		(482)
Accumulated deficit		(23,411)		(23,245)
Total Stockholders' Equity		5,332		6,500
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	18,559	$	20,654

MAM SOFTWARE GROUP, INC. Consolidated Statements of Operations and Comprehensive Loss (In thousands, except share and per share data)
	For the Year Ended June 30,
	2010		2009
Revenues	$	24,156	$	21,119
Cost of revenues		10,274		9,496
Gross Profit		13,882		11,623

Operating Expenses
Research and development		3,012		2,860
Sales and marketing		2,181		2,211
General and administrative		6,462		5,651
Depreciation and amortization		1,116		1,082
Impairment of goodwill		-		850
Total Operating Expenses		12,771		12,654

Operating Income (Loss)		1,111		(1,031)

Other Income (Expense)
Interest expense		(1,361)		(1,602)
Interest income		-		21
Change in fair value of derivative liabilities		267		–
Write down of investments in available-for-sale securities		-		(4,723)
Other, net		50		98
Total other expense, net		(1,044)		(6,206)

Income (loss) before provision for income taxes		67		(7,237)

Provision for income taxes		694		386

Net Loss		(627)		(7,623)

Unrealized gain on reversal of unrealized loss on investments in available–for–sale securities		-		184
Foreign currency translation loss		(286)		(2,283)
Total Comprehensive Loss	$	(913)	$	(9,722)

Loss per share attributed to common stockholders - basic and diluted	$	(0.01)	$	(0.09)

Weighted average common shares outstanding basic and diluted		83,970,278		86,272,712

MAM SOFTWARE GROUP, INC.
Calculation of Adjusted Earnings before Interest, Taxes, Depreciation,
and Amortization (unaudited, includes non-cash compensation and
intangible asset impairment)	For the Year Ended
	June 30,
(in thousands)	2010	2009

Net (Loss)	$ (627)	$ (7,623)
Interest Expense	1,361	1,602
Taxes	694	386
Depreciation and amortization	1,116	1,082
Non-cash equity compensation	152	310
Impairment of goodwill	0	850
Write down of investment in available-for-
sale securities	0	4,723
Change in fair value of derivative liabilities	(267)	0
One-time expenses	1,450	0
Adjusted EBITDA	$ 3,879	$ 1,330

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 from time to time in the Company's filings with the Securities and Exchange Commission.

SOURCE MAM Software Group, Inc.