CALGARY, ALBERTA–(Marketwire – Feb. 18, 2009) – Quorum Information Technologies Inc. (TSX VENTURE:QIS) (Quorum) announced today that its core recurring operational revenue continues to grow. Quorum has four key revenue streams; recurring support, migrations, integration services and new sales. Recurring support revenues are a significant key to the valuation, profitability and cash flow of the company. For the fourth quarter of FY2008, Quorum will report recurring support revenues of over $1.4 million, an increase of 21% over the $1.16 million reported in Q4 2007. Recurring support revenue is now almost two thirds (2/3) of Quorum's total quarterly revenue. Quorum will report fourth quarter and annual results on all revenue streams in April 2009.
Migrations revenue is generated from selling services and hardware to bring existing customers up to the current technology platform so that they can convert to the latest version of XSELLERATORTM and the IDMS program offered by General Motors. Currently, of Quorum's 230 customers, more than 190 customers are now migrated. Expectations are for the balance of customers to migrate prior to the end of Q2 2009.
Integration Services with General Motors continues to move forward with several key Parts integration points being released in the U.S. in February, specifically:
– Parts Workbench “Material Returns and Part Claims” (U.S.) is the replacement functionality from the previous RAPID system that was decommissioned by GM.
– Parts Invoice Parts Workbench “Parts Invoice” (U.S.) is a new ebXML interface that will all dealerships to view and print invoice reports in XSELLERATOR.
– Parts Workbench “Parts Shipment” (U.S.) involves integration between GM and XSELLERATOR with regard to parts shipment information.
A number of new integration functions have already been deployed in the past few months in the U.S., including Parts Order, Parts Availability, SPAC Inquiry and Parts Information. These integration points create substantial efficiencies and move Parts staff towards conducting most of their job functions using XSELLERATOR.
Several integration points to support dealerships' Sales functions are also being released in the U.S. in February, including:
– Sales Workbench “Send Deal” – Vehicle Sale quotes initiated on the Sales Workbench can be sent to the Quorum DMS creating a new vehicle sale record.
– Sales Workbench “Vehicle Locate” – Allows the user to make a request for vehicle status from the sales workbench. The web service will advise the user if a vehicle is “In Quote”, “Quote Approved”, “Blocked by Sales”, “Available”.
And in Canada:
– Open Leads Interface (OLI) – This project will replace the leads available to GM Dealers in Canada via GM Global Connect spreadsheets with a true STAR standard lead interface. The leads will be received from GM and flow into the XSellerator customer prospecting area.
Finally, testing is currently underway for the following integration for the U.S. and Canada:
– Customer Delivery Reporting (CDR) – this interface developed in the U.S. designed to electronically submit delivery records from XSELLERATOR to GM will also replace the Canadian version known as VDR.
– Global Warranty Management (GWM) – This integration point will replace the current GM WINS warranty claim integration.
“Although the current dealership environment is difficult, our sales group continues to offer creative sales programs to prospective new customers. There has never been a better time for a dealership to purchase XSELLERATOR, and we continue to sell systems. Given market conditions, however, we expect our new sales to be down for 2009,” commented Maury Marks, Quorum's President and CEO. “As a result, we have reduced our cost structure to a level where we forecast that by Q2 FY2009, our recurring support and integration services revenues will cover over 95% of our fixed costs.
In other news, the Company has cancelled 1.64 million employees' and consultants' options. The Company has issued 1.86 million new options to employees and consultants at $0.15 per share. The options are governed by the Company stock option plan and are an important component of the Company's employee compensation and retention strategy.
Headquartered in Calgary, Alberta, Quorum's focus is on developing, marketing, implementing and supporting its DMS products for the automotive vertical. Quorum's suite of dealership and customer management software products automate, integrate and streamline every process across departments in a dealership. One of the select North American suppliers of General Motors' IDMS, Quorum is the third largest DMS provider for GM's Canadian dealerships with over 20% of the market. Quorum is a Microsoft Gold Certified Partner and Field-Level Managed ISV in both Canada and the United States. Quorum Information Technologies is traded on the Toronto Venture Exchange (TSX-V) under the symbol QIS. For additional information, please go to www.QuorumDMS.com.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.