ARI Network Services reports 2Q resultsPosted on
ARI Network Services reported fiscal second-quarter net income of $4,000, or zero cents a share, compared with $61,000, or 1 cent a share, for the same period last year.
The Milwaukee-based company also said Monday that it entered into definitive agreements with accredited investors in a private placement of $4.8 million of common stock at a price of $1.50 a share.
On Nov. 28, ARI acquired the assets of the retail division of 50 Below Sales & Marketing Inc., a provider of e-commerce websites to the powersports, automotive tire and wheel aftermarket, medical equipment and pool and spa industries. The acquisition brings with it more than 3,500 dealer websites, more than doubling the size of ARI’s website business and making websites the company’s largest source of revenue.
Total revenue for the second quarter of fiscal 2013, which ended Jan. 31, increased 35.9 percent, to $7.5 million, compared with $5.5 million in the same period a year earlier, primarily as a result of the acquisition.
Recurring revenue for the quarter increased 41.9 percent, to $6.6 million, or 88.3 percent of total revenue, from $4.7 million, or 84.6 percent of total revenue, for the period a year earlier. For the quarter that ended Jan. 31, the measure of customers who did not renew improved about 28.4 percent, compared with the same quarter last year.