Aftersoft Group
Aftersoft Group Reports 2007 Year End Results
NEW YORK and LONDON - October 15, 2007 - Aftersoft Group Inc. ("Aftersoft") (OTC Bulletin Board: ASFG), a leading supplier of software and services to the automotive aftermarket in the US, UK and Canada, today reported its financial results for its full year ended June 30, 2007. The Company reported revenue of $26.8 million, a 14 percent increase when compared to the previous year revenue of $23.5 million. The Company reported a loss of $1.6 million for fiscal year 2007, which included non-recurring items totaling $5.4 million. These items included a $2.4 million legal settlement endowed from the Car Parts acquisition and a $3.1 million reduction of good will. Excluding these non-recurring items, the Company would have generated net income of approximately $3.8 million, $0.05 per diluted share.
Revenues increased 14% or $3.3 million to $26.8m up from $23.5m for the previous year.
Chairman and CEO, Ian Warwick, commented, "We are pleased with our fiscal year 2007 results as we continued to tackle obstacles associated with our turnaround. We still managed to achieve an increase of $3.3 million or 14% in revenues when compared with the previous year's $23.5 million, along with a $3 million or 8.3% increase in margin when compared to the previous year's $12.7 million. With the McKenna lawsuit behind us and a more realistic valuation of our Goodwill, the company's balance is strengthening and we are be able to concentrate on expanding into international markets and benefit from recent progress. In fact, with our new products now launched we plan to aggressively penetrate the large North American market, with a goal of achieving a market penetration similar to the one we have achieved in the UK."
Warwick continued "Aftersoft has also improved operationally. Our gross margin improved to 59% from 54% in the previous fiscal year. Operating expenses, excluding the impairment of goodwill charge, actually decreased by 6% from the prior fiscal year. We intend to effect further improvements to our balance sheet going forward". Mr. Warwick concluded, "The registration statement filed on form SB-2 several months ago remains under regulatory review. As soon as we have a definitive response on the registration statement will immediately inform investors. Aftersoft's management is looking forward to this upcoming year with great anticipation. With many obstacles now behind us, we can focus our energies on delivering results for our shareholders."
About Aftersoft Group, Inc.
Aftersoft Group, Inc. is a supplier of ERP supply chain management solutions to automotive parts manufacturers, distributors, and retailers. Aftersoft provides the automotive aftermarket with a combination of business management systems, information products, and online services that combine to deliver benefits for all parties involved in the timely repair of a vehicle. For further information, visit www.aftersoftgroup.com
This release contains forward-looking statements that involve risks and uncertainties, such as statements about our plans, objectives, expectations, assumptions, or future events. These statements involve estimates, assumptions, known and unknown risks, uncertainties and performances, or achievements expressed or implied by the forward-looking statement. Actual future results and trends may differ materially from those made in or suggested by any forward-looking statement due to a variety of factors, including, for example, 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. Consequently you should not place undue reliance on these forward-looking statements. We discuss these and other risks and uncertainties in greater detail in the filings we make with the Securities and Exchange Commission, including under the section entitled, "Risk Factors" in the Company's Annual Report on Form 10-KSB and our report on Form 10-Q.