ADNW 2.52:
B: Auto Data Network Generates $0.06 Per Share in Net Earnings on
$6.2 Million in Revenue In Fiscal Third Quarter; Reve
B: Auto Data Network Generates $0.06 Per Share in Net Earnings on $6.2 Million i
Revenue In Fiscal Third Quarter; Revenue Increases 11 Percent Over Previous Qua
ter
NEW YORK, Jan 22, 2004 (BUSINESS WIRE) -- Auto Data Network, Inc. (OTC BB:
ADNW), a provider of software and real-time data services to the worldwide
automotive industry, today reported results for its fiscal third quarter and
nine months ended November 30, 2003.
Revenue for its fiscal third quarter was $6.2 million compared to $475,000 for
the corresponding three-month period in 2002 and $5.6 million for the previous
quarter in the current fiscal year. The Company generated net income in the
third quarter of $829,000 or $0.06 per diluted share as compared to $117,000 or
$0.01 per diluted share for the same period last year and $728,000 or $0.05 per
diluted share for the second quarter of the current fiscal year.
Gross margins during the current quarter averaged 78 percent compared to 60
percent for the third quarter of the previous year and 81 percent for the
previous quarter. Total operating expenses increased slightly over the previous
quarter to $3.7 million from $3.4 million, however, as a percent of revenue it
decreased to 59 percent in the third quarter from 61 percent in the second
quarter.
For the first nine months of the current fiscal year, the Company generated
revenue of $15.1 million compared to $1.0 million during the same period of the
previous year. Net income for the nine month period ended November 30, 2003 was
$2.0 million or $0.14 per diluted share compared to $17,000 for the same period
of the previous fiscal year.
Chris Glover, Auto Data Network's Chairman, commented, "These results are in
line with our expectations and we are on track to achieve our projected earnings
for the current fiscal year. The success of our private placement completed in
early November provided us with the resources to further our expansion." Chris
Glover added, "Over the last three months, Auto Data Network entered the next
phase of our growth strategy, which is characterized by an emphasis on product
development. As we continue to advance our strategy of business acquisitions and
product integration, our investment in technology will yield a new generation of
products and services to support our expanding customer base."
Nick Palmer, the Company's recently appointed chief executive officer, added,
"Auto Data Network has developed a solid track record of profitably amassing
successful software and service providers. Any industry as diverse and extensive
as the automobile industry attracts many participants of all sizes. Considering
that the top five providers in this multi-billion dollar industry combine to
represent only 15% of the market, the opportunity to achieve a material market
penetration and develop a superior service offering through industry
consolidation is significant." Mr. Palmer concluded, "We have recently escalated
our investor relations efforts and exposure to the investment community. To
forward our commitment to this program, we intend to begin conducting conference
calls to discuss Auto Data Network's financial results with the release of its
fiscal fourth quarter data in the spring. A notification containing schedule and
participation details will be released prior to the conference calls."
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. This marketplace consists of
approximately 78,000 dealers in North America and 92,000 dealers in Europe. The
company estimates that this 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 is responsible for 48% of a dealership's profit, while
representing only 12% of its overall revenue. The second most profitable area is
vehicle finance and insurance, which contributes 35% of profits from only 2% of
revenues. |
