Mississauga, Ontario, October 29, 2010 – Armada Data Corporation (TSX.V: ARD) is pleased to report that its interim financial results for the quarter ended August 31, 2010 have now been filed on Sedar and are available to view on the Company’s website www.ArmadaData.com as well as on Sedar.
Highlights for the Quarter compared to the same quarter last year
- Revenue down slightly to $743,551 from $746,695 last year; a decrease of less than 1%
- Operating income (before amortization, stock-based compensation and corporate income taxes) decreased to $161,823 from $179,872 last year; a decrease of 10%
- Net income (after amortization, stock-based compensation and corporate income taxes) decreased to $107,599 from $161,823 last year; a decrease of 31% (includes a $46,000 provision for income taxes vs nil for last year)
- The total assets grew to $1,982,479 from $1,307,664 last year; an increase of 52%.
- Cash position increased to $1,175,419 from $662,952 last year; an increase of 77%.
- Dealer Services revenue increased 6%
- Insurance Services revenue increased 5%
- Retail Services revenue decreased 6%
The Company generated the third highest quarterly revenue in the company’s history and is now in the strongest financial position in its history. It is anticipated that Armada will continue to experience revenue and net income growth, moving forward.
Overall revenue was down slightly to $743,551 versus a record $746,695 last year or a decrease of less than 1%. Four out of five of the Company’s divisions reported improved results.
IT Services became Armada’s newest division after the acquisition of Cybernetfinder Corporation’s business assets. The acquisition was completed on July 21, 2010, approximately five weeks prior to the end of the quarter. Therefore, its revenue contribution to the Company’s quarterly results was only $28,160.
Total operational expenses increased to $581,728 from $566,823 last year or an increase of 3%. The majority of the increase can be attributed to the costs associated with integrating the new IT Services division into the Company.
Advertising and business promotion expenses decreased to $104,804 from $134,582 last year or a decrease of 22%. The majority of other expenses changed notionally compared to last year.
Subsequent to the first quarter, the Company declared a dividend in the amount of $0.005 per common share to all shareholders of record as at October 22nd, 2010. Based upon the results of the first quarter, it is the Company’s intention to increase its yearly dividend. Amount to be determined at year end.
“After 10 years of operations, I am pleased to report another very successful quarter. We are now experiencing some of the potential that our business model holds. For that I thank my entire team and look forward to reporting continued success to our shareholders in the coming quarters.” commented Paul Timoteo, President and CFO.
Outlook and Investor Highlights
Armada Data continues to attain a number of important fiscal and operational achievements, which include:
- The Company continues to diversify its revenue streams to ensure continued success
- Retail & Dealer Services continue to generate over 58% of revenues
- Insurance Services continue to generate the highest revenue of all divisions
- Company remains virtually debt free
- Company continues to strengthen its balance sheet
- Company assets now approaching $2,000,000
- Company liabilities under $500,000
- Company cash reserves now over $1,100,000
- Shareholder’s equity now over $1,500,000
- Company has generated over $475,000 of net income over the last 8 quarters
- Company continues to be one of the very few micro-cap companies to pay an annual dividend
Management believes that Armada Data Corporation, with its financial resources, is poised for significant growth as it grows its niche markets in all aspects of its Internet and traditionally based businesses.
It is expected that Management can meet these objectives regardless of economic conditions. Although a robust economy can lead to a greater number of cars sold and thus a potentially larger market opportunity for all of Armada’s divisions, a down economy has proven to have an equally positive impact as both individuals and insurance companies become more cost conscious.
About Armada Data Corp.
Armada Data Corporation (“Armada” or “the Company”) is a web-enabled Information Services Company providing accurate and real-time data, to institutional and retail customers, through developing, owning and operating automotive pricing related web sites and providing information technology services to its clients.
Armada Data Corp shares are listed on the TSX Venture exchange under the trading Symbol ARD. Armada has 14,135,820 shares outstanding.
Additional information relating to Armada Data Corporation is filed on SEDAR, and can be viewed at www.sedar.com.
For further information, please contact:
Armada Data Corporation
Mr. Paul Timoteo, President & CFO
Tel 1-866-453-6995 ext 224
Investor Relations; please contact Mr. Richard Buzbuzian at Integrated Investor Relations Inc. Tel 647-501-3290 or email: firstname.lastname@example.org
Public Relations; please contact Mr. Nelson Hudes at Hudes Communications International Tel 905-660-9155 or email: Nelson@HudesCommunications.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the Policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking information within the meaning of Canadian securities laws, including statements relating to revenue, earnings, customer demand, penetration and increases to market share and anticipated growth. Forward-looking statements are based on estimates and assumptions made by Armada in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors Armada believes are appropriate. Many factors could cause the actual results of Armada to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, reduced spending by customers and risks relating to general economic conditions. Readers should not place undue reliance on Armada’s forward-looking statements. Armada undertakes no obligation to update or revise any forward-looking information, except as required by law.