- Automotive dealership software developer Quorum Information Technologies (QIS) has fallen 15 per cent today after releasing its latest quarterly results
- The company quarterly revenue fell 28 per cent, down to $5.9 million for the quarter, compared to 2019’s same quarter
- This resulted in a net loss of $65,000 for the quarter, compared to a net loss of $960,000 in the previous corresponding period.
- The company attributed the poor figures to a large decline in car sales across Canada, following the onset of the COVID-19 pandemic
- Quorum Information Technologies (QIS) is down 17 per cent and is trading at C$1.06
Automotive dealership software developer Quorum Information Technologies (QIS) has fallen 15 per cent, following the release of its latest quarterly results.
The company’s software-as-a-service revenue fell 23 per cent to C$4.3 million against last year’s same quarter. This caused total revenue to fall 28 per cent to just $5.9 million.
The company’s gross margin fell 36 per cent to $2.4 million, alongside an adjusted EBITDA decline of 22 per cent to $1.1 million.
The significant drop in cash flow led to a net loss of $65,000 for the quarter, compared to a $960,000 net loss posted in 2019’s same quarter.
Quorum attributed the poor figures to its dealerships sales departments reducing operations during the COVID-19 pandemic. According to the company sales in the Canadian light vehicle sector fell 47 per cent year-on-year. The sector was hit worse in April and May, falling 75 per cent and 44 per cent, respectively.
To offset the downturn, Quorum managed to secure $1.8 million in wage subsidies from the US and Canadian governments.
President and CEO Maury Marks said despite COVID-19, the company was extremely well capitalised and expect to emerge healthier than ever after 2020.
“During the quarter we effectively preserved our software as a service and business development companyannual run rates, increased our SaaS position and re-prioritized our key development projects to provide our dealership customers with software tools to assist them during these challenging times.
“With our dealership customers facing an extremely difficult business environment in the quarter, we proactively addressed these concerns by providing a monthly discount for April and May,” he said.
Quorum Information Technologies (QIS) is down 17 per cent and is trading at C$1.06 per share at 12:15pm EDT.